"Essence of Trading" Posts
Essence Of Trading: Make Trading Worth Your Time
By Lawrence
One thing about being a trader, specifically daytrader, is to accomplish financial freedom with the power of scalability. Once you master a sound trading style, you can scale up easily to improve your profit. The important thing is to realize if there is any specific things you are doing with your trading that delay or […]
Essence of Trading: Price Goes Up And Down
By Lawrence
Before you spend time even thinking of the more complex price patterns or technical setups, have you even paying any attention to the most basic foundation of the price charts, like the price bars themselves? It does not matter you use candlesticks or open-high-low-close bars (OHLC bars). The important thing is whether you know anything […]
Essence of Trading: Don’t Forget Your Trading Goals
By Lawrence
Many people simply forgotten why they choose to trade or day trade. Trading is an activity to seek profit. The time you spent on trading should be productive and profitable. More importantly, trading should be more profitable than, say, the salary of a comparatively stable career. It is not just the amount of money that […]
Essence Of Trading: Why We Love Picking Tops and Bottoms (Part 2)
By Lawrence
… continue from part 1 Insecurity Associated With Trading Confirmed Signals When being stopped out, you feel a lot more painful on confirmed signals comparing to taking a relatively smaller loss should your extreme picking not going your way. The root to this problem is the uncomfortable feeling associated with trading confirmed signals. A confirmed […]
Essence Of Trading: Why We Love Picking Tops and Bottoms (Part 1)
By Lawrence
All common trading techniques with positive expectancies are likely triggered on confirmed basis, meaning that there is no top and bottom picking involved. Yet, almost all traders who learn to trade on their own would do so. This behaviour of picking price extremes is actually part of the human physiology that does not work to […]
Essence Of Trading: Value Of Time
By Lawrence
Many traders who learned to trade by themselves often glue themselves to the screen watching every single trade, every bid and offer updates on the markets they trade until they are so tired that they either fall asleep or cannot do it any more because their eyes are burning in pain. They thought this is […]
Essence of Trading: The Three Pillars of Critical Thinking (Part 3)
By Lawrence
… continue from part 2 "Being ignorant is not so much a shame, as being unwilling to learn" – Benjamin Franklin Stop Associating Common Terms With Market Conditions Until You Can Understand What They Really Mean The first most common mistake I have seen is that someone telling everybody that a stock (or whatever that […]
Essence of Trading: The Three Pillars of Critical Thinking (Part 2)
By Lawrence
… continue from part 1 “Real knowledge is to know the extent of one’s ignorance” – Confucious Objective Evaluation Is Difficult To observe and collect evidence from something physical is quite different from doing the same on abstract data. Physical evidence like a kid who got a black eye after school is easy to identify […]
Essence of Trading: The Three Pillars of Critical Thinking (Part 1)
By Lawrence
Critical thinking is not just thinking hard or deep into an issue and then decide whether to believe it or not. It is a common misunderstanding that everyone can just do that at will if they try. Most of us has to be trained to have the necessary critical thinking skills to make it functional. […]
Essence of Trading: Importance of Critical Thinking And Why It Is Not Enough (Part 2)
By Lawrence
… continue from Part 1 The Difficulties In Accepting Changes One of the reasons why many people fail to do something about their bad trading habits is that they cannot feel it. Knowing something is not good for you is one thing. Taking actions to change the situation, however, requires your full acceptance of the […]
