How to Increase Discipline Without Really Trying

Discipline is a well-known character trait of successful traders, especially those with longevity. For many aspiring traders, however, discipline is not their strong suit and will-power alone is usually insufficient to increase it, because discipline can feel like a...

How to Build Consistency

On the way home this morning from my regular tennis game an obvious parallel between tennis and trading occurred to me. In both “sports” consistency is paramount. Tennis is a “game of errors,” which is to say that the person making the fewest...

Are you tough-minded enough to trade?

“John” is a retired business man now living in Arizona. He told me on the phone just now that when he puts a fish in his fish tank and the fish gets picked on, he naturally feels bad for it. In our conversation, he then realized that he has been trading...

If you love a stock, sell it!

The Citi downgrade of AAPL (December 2012) generated a swirling controversy. Apple’s products inspire fierce loyalty among users, and the stock is no different. With shares trading above $700 just a few months ago, it was widely expected among Apple enthusiasts...

Swimming Against the Tide?

Determining the market’s directional bias (trend) is valuable because otherwise you will find yourself swimming against the tide. In addition to price, professionals use various volume measures to identify shifts in control. All the bulls have to do is stop...