What do you need to fix first about yourself before you can become a better trader?

I was at dinner last night with a highly successful manager.  She had just landed the top account at her multi-billiondollar financial firm.  Over fettuccine noodles and chicken Pad Thai she continued that the firm contemporaneously placed her into a special training program for their star performers. Her boss warned that the program would be difficult, expose her weaknesses and uncover uncomfortable things about … Read More

The Trading of Past Trading

Dr. Andrew Menaker, noted trading psychologist, and I spoke briefly on the phone today about a lecture he will give to SMB. He asked for topics. I gave one and then another which I am pretty sure gets undercovered.   We talk and write often about trading on tilt. That state of mind where your judgement is impaired, literally, and you … Read More

Trade the Trade

A trader sent me this review of his work of yesterday: I made ~$250-300 right on the open which I was fairly happy with considering the stock I was trading didn’t move exactly how I wanted it to. I was trading actively, controlling my risk and in the trades I needed to be in. Most importantly, I was involved. None … Read More

Katz’s Corner: Are There Trading Hot streaks?

Do we have hot streaks as a trader? There is some research here from the must read @jonahlehrer that suggests that the belief there are shooting streaks in basketball is not supported by the data. I asked Dr. Jonathan F. Katz of High Performance Associates and who works with traders for his thoughts (see below): Ah, the age old question, perception … Read More

Traders Ask: Was I a Wuss?

Hey Mike And Steve, I had a question for you guys about risk and how you guys manage it psychologically. For some reason, when trading on my Lightspeed Platform, my risk tolerance shrinks, and I punch out of stocks way to early or cannot sit through pullbacks when a stock goes negative on me. I get nervous it will just fall out of … Read More

Traders Ask: Violating My Risk Parameters

Dear Mike, I hope that my email finds you well. One of things I’ve learned about trading at a proprietary firm, is that the best traders are also the most honest traders. They’re honest about their numbers, their mistakes and weaknesses as a trader. Today I took a real close look at my trading weakness. I want this to become … Read More

Breaking Your Keyboard

I know that when you trade it’s best to stay calm. And busting your keyboard is not keeping cool. I get and have blogged that you make poor trading decisions when you are not in the zone. But having sat on a prop desk the past 12 years of my life I have heard and seen many smashed, broken, and … Read More