Trading Psychology

Best Practices in Trading With Dr. Brett Steenbarger

Apr 17th, 2014 | By | Category: Trader Development, Trading Psychology
Trading psychologist Dr. Brett Steenbarger appeared on the Options Tribe for the first time to share his observations about the common characteristics of successful traders that he has known throughout his career.  Dr. Steenbarger writes daily at TraderFeed.blogspot.com, a treasure trove of trading guidance.  He has written The Psychology of Trading, Enhancing Trader Performance, and The Daily Trading Coach. Enjoy the video! Seth Freudberg Director, SMB Options Training Program The SMB Options Training Program is an eight-month program designed for novice and intermediate level options traders who are seeking Read more [...]


Enhancing Trader Performance… with the Ten Commandments

Mar 16th, 2014 | By | Category: General Comments, Guest Blog, Trader Development, Trading Psychology
*****David Blair, The Crosshairs Trader, is a blogger/trader/educator who does a wonderful job of sharing research on elite performance and how it relates to trading. Below is his latest post for the SMB trading community.***** — Editor’s Note I am one who believes that in order to enhance trading performance one needs to study principles applicable both in and outside the charts. Although not a stock trading book per se, Rabbi Daniel Lapin has written an excellent treatise on the Ten Commandments for making money in Thou Shall Prosper. In it you will find the wisdom necessary to build a solid mental framework for accumulating Read more [...]


What a Successful Trader Would Never Do

Feb 22nd, 2014 | By | Category: General Comments, Mike Bellafiore's (Bella's) Blogs, Trader Development, Trading Psychology
Mike, This was kind of a mixed week. Good. 1. I find the 2nd day trade makes the most sense to me. I pick the strongest stock of the day and then find two levels of support and outline my entry price, stop price, target, and size. So far so good. 2. I also found that I don't pay as much attention to the offers as I paid to the bids. This was my working goal for the week. 3. And I changed my chart layout to have more perspective of the price. I added a 5-day/30-min chart. Bad. 1. At the last hours of Friday a took four trades that erased the profit of the week only because I saw the stock on Steve Spencer's monitor: Read more [...]


Four Ways Market-Neutral Traders Can Benefit From Technical Analysis

Feb 17th, 2014 | By | Category: General Comments, Guest Blog, Options Education, SMB Options, Trader Development, Trading Lesson, Trading Psychology
Even though Market-Neutral Traders may not be picking a direction, we are dealing with price movement. Knowing what directional traders are thinking and where there are likely to be areas of high volatility can be extremely beneficial. Knowing the market conditions you’re entering into, in advance, can help you to modify your entry or avoid entering a trade that’s not likely to work out. Understanding technical analysis allows you to identify unfavorable shifts in the market environment thereby allowing you to make better decisions on when to adjust or exit. Knowing where support and resistance points are allows you Read more [...]


Enhancing Trader Performance with James Montier

Feb 16th, 2014 | By | Category: David Blair, General Comments, Trader Development, Trading Psychology
*****David Blair, The Crosshairs Trader, is a blogger/trader/educator who does a wonderful job of sharing research on elite performance and how it relates to trading. Below is his latest post for the SMB trading community.***** — Editor’s Note If you are not studying the markets with those who study market participants you are missing out on a vitally important aspect of your trading education. Case in point: James Montier and his studies on behavioral investing. The following is a sample of just a few of Montier’s studies and interviews on the role of behavior when investing. We would do well to study him. AN INTERVIEW Read more [...]


The Importance of a Well-Thought-Out Trade Plan

Feb 9th, 2014 | By | Category: Guest Blog, Options Education, SMB Options, Trader Development, Trading Lesson, Trading Psychology
Have you watched "Star Trek: The Next Generation"? One of my favorite episodes is when the Enterprise gets into a battle with The Borg. The USS Enterprise is getting hammered. Fires are breaking out, sparks are flying everywhere and people are running around screaming. Then there's the Captain Picard, sitting in the Captains chair, confidently doing the tasks that will bring the battle to the best possible conclusion. Don't you wish you could behave that way? I did. In fact I wanted to be that guy. Not on a starship but in my "trading" chair. So I got thinking, "What gives a person the ability to make confident decisions when Read more [...]


Enhancing Trader Performance with Brett Steenbarger

Feb 9th, 2014 | By | Category: David Blair, General Comments, Trading Psychology
*****David Blair, The Crosshairs Trader, is a blogger/trader/educator who does a wonderful job of sharing research on elite performance and how it relates to trading. Below is his latest post for the SMB trading community.***** — Editor’s Note In the past week Brett Steenbarger, well-known trader and psychologist, announced his return to the blogosphere from a multi-year hiatus. For years, Dr. Steenbarger encouraged and mentored traders via his blog posts, Twitter feed, and best-selling books.  His contribution in the field is unparalleled. The following is indicative of his past contributions and should give a hint of Read more [...]


Risk Tolerance VS Risk Capacity

Feb 4th, 2014 | By | Category: Guest Blog, Options Education, SMB Options, Trader Development, Trading Lesson, Trading Psychology
To be successful at trading, long term, it’s extremely important that our risk tolerance is in line with our risk capacity. Risk “tolerance” has to do with the amount of draw down we can withstand prior to the loss psychologically effecting our trading. Risk “capacity” has to do with the amount of draw down we can withstand prior to the loss creating a real problem with our finances. As a trading performance coach, I’m regularly coaching some traders to increase their risk tolerance while coaching others to bring their risk tolerance down to a responsible level. Some traders have a very high risk tolerance. Read more [...]