Trading Theory

Training for Trading Success

Jul 25th, 2014 | By | Category: General Comments, John Locke, Trading Lesson, Trading Psychology, Trading Theory
Think back to the last time you experienced the opportunity to watch a world class performer, someone who really put on an amazing show. It doesn’t matter whether it was a musician, a sports athlete, an actress, a doctor or a business owner. When you see one of these performers in action, you can’t help but admire their skills. It truly is a work of art. And it makes me wonder, “How many hours, days, years or even decades of practice and performances did it take to be able to perform at that level?” How many times have they tried to master their skills and failed before they finally got it right?” And more importantly Read more [...]

Harness the Power of Your Emotions

Jul 18th, 2014 | By | Category: General Comments, John Locke, Trading Lesson, Trading Psychology, Trading Theory
As humans we make decisions based on emotions. Of course we sometimes use logic change our decisions but our initial decision, and the one we are most likely to act upon, is always based on emotion. This is because our emotions are much more powerful and react much more quickly than our logic. Therefore, our emotions quickly send us down the path that we unconsciously think will give us the most pleasure or the least pain before we even realize what’s happening. This is why we often do things we logically don’t want to do. You see many of the challenges we have with emotion isn’t the emotion itself. The emotions are doing Read more [...]

The Power of Focus

Jul 14th, 2014 | By | Category: General Comments, John Locke, Trading Lesson, Trading Psychology, Trading Theory
Most traders have no idea of the amount of progress they can make when they focus all their resources on mastering a single style of trading. Controlled focus is like a laser bean that can cut through the biggest challenges that have been blocking the path to your success. When you focus consistently on the improvement of any one trading system, you develop unique distinctions on how to make that system better. A major reason so few traders achieve the results they desire is that they never concentrate on their power. Instead they dabble their way through trading trying a little of this and a little of that making no real progress Read more [...]

Properly Setting Your Trading Goals to Lower Stress

Jun 19th, 2014 | By | Category: General Comments, John Locke, Trading Lesson, Trading Psychology, Trading Theory
As traders we often set some sort of performance “goals”. We might say something like “My goal is to make $5000 per month trading”. There are problems with that goal, the biggest problem being that we don’t actually have control over how much money we make in any given trade. We might have a lot of influence on how much we make. We could utilize a variety of resources such as a good trading plan and proper position sizing but ultimately the underlying asset has to do certain things in order for us to reach our goal. Things we cannot predict and things that we have no control over. Therefore, we do not have full control Read more [...]

Trading Education: Do You Have A Methodology To Trade Gaps?

Jun 15th, 2014 | By | Category: General Comments, Steven Spencer (Steve's) Blogs, Trader Development, Trading Lesson, Trading Theory
On June 4th we posted a pre-market video in which I discussed a potential "gap fill" trade in TIBX. When a stock gaps outside of the prior day's range you have three options. Play it for a continuation in the direction of the gap, play it to fill some or all of the gap, or simply take a pass on trading it.  I have found over the years that most traders consistently choose the same option each time disregarding many factors that favor choosing one option over another. Why is this the case? For many it is a lack of methodology for trading gaps. For others it may be they are just more comfortable fading stocks versus following Read more [...]

Options Trading for Income with John Locke for June 2, 2014

Jun 3rd, 2014 | By | Category: General Comments, John Locke, M21 Trading System, Options Education, SMB Options, Trading Lesson, Trading Theory
Risk Disclosure No relevant positions Visit our website: M21 Webinar Link John Locke Check out these great videos! May Group Mentoring Open House Part 1 May Group Mentoring Open House Part 2 Learn Read more [...]

Becoming a Confident Trader; It’s Not What You Think

May 23rd, 2014 | By | Category: Guest Blog, John Locke, Options Education, SMB Options, Trading Ideas, Trading Lesson, Trading Psychology, Trading Theory
As a trading psychology coach, one of the more common questions that come up is “How can I be a more confident trader?” This is an extremely important subject because having the correct confidence level is essential to being a good trader. Lack of confidence creates stress and poor trading decisions which lead to unneeded losses. Let’s take a look at some factors that make up confidence. Goals and planning – Planning properly and correctly setting well defined, realistic goals and is essential to being confident. I would say that probably 80% of confidence problems I see are simply because people don’t have a Read more [...]

PetSmart Not So Smart?

May 21st, 2014 | By | Category: Steven Spencer (Steve's) Blogs, Trading Theory
This morning I created a "trade idea" video featuring a short setup in PETM. Here is how the trade actually played out for me. The idea behind the trade was there was a fresh catalyst causing bearish price action during pre-market trading, and a similar setup has yield excellent results recently in stocks such as DKS and INCY. A very important part of the trading process is trade review which should take place after the market closes and you have some time to review each of the day's trades. The below chart highlights the action points from my trading in PETM on the Open. I lost money on two short trades and one long trade. The Read more [...]