This is an extremely important question and one to which the majority of investors/ traders do not give sufficient thought. Successful traders understand with absolute clarity why they trade. Why…
The ultimate goal for the trader and active investor is to reach the point where trading becomes automatic. At this level all trades are simply executed according to a plan…
This week we begin to look at how to get from trading incompetence to trading competence. That is, moving ‘above the line’ on our competence matrix as shown in the…
Typical attributes of the Unconscious Incompetence level that we discussed last week include relying on the advice of others as the basis for making trading decisions (including brokers, the media,…
Following on from the theme we have been discussing in the past 2 blogs on the differences between well recognised societal paradigms and how they differ from a market paradigm,…
Continuing from last week’s topic “societal paradigm vs market paradigm” I’ve used another 3 examples of how our social paradigm can deter us from success in the market. Whilst the…
“If you think you have discovered a great truth and it is not a paradox, I suspect you may be deceiving yourself.” – M. Scott Peck, author of a popular…
Part 2 – Mechanical: The dictionary definition of mechanical reads: “like a machine, as if acting or doing without conscious thought.” Unlike the discretionary trader, a mechanical trader uses a…
Part 1 – Discretionary: Discretion is defined as: “freedom or authority to act according to one’s judgment”. Statistically most investors use discretionary decision making processes in the market rather than…
In this, my final posting on this topic, I respond to Victor’s comment posted in response to my 28 May Blog. At first glance this blog may appear complex but…