Making Top Trades in the Market Consistently

In trading, commitment begins with our own time. In being here today, you have shown the very first step in that level of dedication. After commitment, we construct trust, confidence in ourselves and our trading platform. This confidence contributes to the improvement of consistency, and once we understand how to adapt to ever shifting market conditions, we begin to produce harmonious winning trades over time.

Let us delve into the specific principles, which help build consistency and confidence in trading.

A few basics:

1. Hold no attachment to trades

Colm O’Shea of George Soros’ hedge fund recalls that Soros had the least amount of regret of anyone he’s ever met. He has no emotional attachment to a notion. When a trade is incorrect, he will just cut it, move on and do something else.

“I remember,” he states, “one time that he had this huge Forex position. He made something like $250 million in one day. He was quoted in the financial press speaking about the position. It sounded like a significant strategic view he held. Next, the market went the other way, and the place just disappeared. It was gone. He did not like the price action, so that he got out. He doesn’t let his structural perspectives on how he believes the market will perform get in the way of his trading.”

When people request of me for my opinion about the markets, I regularly tell them, “what I think the market might do today could very well differ from the opinion I might hold tomorrow.” As traders, it’s not our job to be correct; it’s our job to earn money.

A quote from O’Shea, “the most important change in my trading career happened when I learned to divorce my ego from the market. Trading is a psychological game. Most men and women think that they’re playing against the market, but the market does not care. You’re really playing against yourself.”

Concentrate on the here and now

Quick, decisive decision making is essential. We base our conclusions on the info in front of us in the time of this transaction.

You need to quit trying to will things to happen in order to prove that you’re right. Listen only to exactly what the marketplace is telling you NOW. Remember the objective isn’t to prove you are right, but to hear the cash register ring.

Whether you think of yourself a discretionary trader or technical trader, there is a degree of intuition and sense that develops from experience and observations.

As well as live trading and reviewing graphs, the quickest way I have found for creating a solid trading intuition is to keep a record of marketplace behavior.

Write down in a trading journal what is happening in the market. Then write down everything you think will or should happen as a result. When the outcome is revealed, compare your initial hypothesis. This is a great way to construct a good macro comprehension and robust intuition.

2. The Significance of Implementation 

With all these markets and informational sites (e.g. and tools out there to exchange there are many ways to express your ideas. It begins with an observation or theory. Sometimes buying the inherent is the best trade. Other times, a derivative or money makes for a much better play.

When looking to express a notion in the markets, search out the commerce with the least danger, greatest reward possible.

Draw a line in the sand

Know where you should be proven wrong before even entering a transaction. Start by deciding where the market would have to go, that is at what level your idea would be invalidated. This is where you put your stop. Colm O’Shea stressed this idea in his own trading.

Execute consistently

Even though I place my transactions manually, I attempt to be as mechanical as possible. This means, if I see a set up that meets my criteria, I take action. The mechanics of trading shouldn’t be left up to the conclusion of the dealer. To be a winner you need in order to toe the line and pull the trigger. Go back to the basics and remember what you were originally taught in your options strategies for beginners pdf whenever you begin to lose your way.

Embrace uncertainty and danger

I accept the fact that a trade may be a loser even before I enter the position. That’s, I am accepting the worse possible scenario, and I’m fine with it. This keeps me focused and aim during the whole trading procedure.

3. Numbers belief
The pawn dealer experiment resulted from a dispute between commodity speculator Richard Dennis and long time friend Bill Eckhardt over the concept of if great traders were made or born. Dennis believed that he could teach people to become great traders. Eckhardt believed that genetics and aptitude were the determining variables.

So as to settle the issue, Dennis suggested they recruit and train some new blood, providing them real accounts to exchange and determine which one of them were correct.

The most profitable trader of the group, Curtis Faith discovered that the principles instructed by Dennis were simple to follow since they were not only very exact, but provided answers for each of those decisions they had been to make while trading. This made it a lot easier to trade regularly because there was a set of principles which defined exactly what needs to be accomplished.

Ignore individual trade results

The ideal way to judge our trading performance isn’t to examine the result from our last 1 or 2 trades; it is to look jointly at a bunch of say our last 20 trades. This manner, the results of every individual trade is masked. This also helps dilute any “recency bias” that individuals may encounter and prevents previous trades from impacting future decisions.