Groundhog Day

 For traders, our relationship to “the market” is similar to what Bill Murray’s character experiences in the film ‘Groundhog Day’. Deja vu… again and again. Although the context varies day to day, if we have a defined Trading Plan,...

Change of Character

Like people, markets (including individual stocks, commodities and currencies) have ‘character.’ As we trade, we get accustomed to a certain set of behaviors associated with the market’s current character. In normal people, character traits...

Firmly Objective

Reversal days like today are psychologically challenging. For one thing, they reveal how our biases can get in the way. If you get bearish due to the market being ‘overbought’ you may get squeezed by a surprise rally. If you stayed stubbornly bullish too...

Missing Out

Markets can move quickly. If you blink, you miss it. When one misses out, one might experience an irresistible urge to get in at the soonest possible moment, because the pain of missing out is a strong motivator. I urge you to resist that urge. Why? By prioritizing...

Should You Set a Daily $ Goal?

I’m often asked whether a trader should set a daily $ target. For the most part, the answer is ‘No.’ Setting a money goal mean we are focusing on the money, and that is a slippery slope in a highly random environment. It’s much better to focus...