trading psychology Archives • Futures Day Trading Strategies

Posts Tagged Under: trading psychology

What makes a Trader Successful? Insights from a 20 Year Industry Veteran

 

Successful Traders

 

What makes a trader successful in the long-run? In my opinion, it is coping. Not blind faith or euphoric unsubstantiated enthusiasm, but the ability to continue through good and bad periods as your portfolio goes up and down. Coping, in this sense, is the ability to handle all the psychological pressures that are associated with sitting in front of the trading screen.

The concept of recovering from hard times is an important concept. I am not comparing trading losses to other personal losses; never the less, financial losses can have a significant impact on a trader’s motivation and morale. Your ability to recover from previous hardships will make a difference in how you approach your future success.

Trading amplifies your weaknesses and downplays your strengths. Your challenge is to reverse

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What Makes Traders Take Higher and Unnecessary Levels of Risk?

 

Almost every Forex and Futures trader that we have spoken to has admitted to, at some point, taking a trade outside their method and/or outside their risk tolerance.  We were curious to see what makes people take those types of trades and whether we can find ways to eliminate this negative behavior.

We engage in situations where we have to deal and assess the level of risk on a daily basis. Whether it’s crossing the street, getting in your car or making investment decisions and placing trades, your brain always analyzes the potential risk and reward tradeoff – but not always in the most rational ways. There are instances where you will be prone to taking higher risks than necessary.  In trading, this rarely ends well. In fact, the professionals want you to take these unnecessary risks.

You must also keep in mind that risk/reward evaluations also take place on a psychological

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When you should really be scared of FOMO (Fear of Missing Out)

 

FOMO, or the “fear of missing out”, is a well-documented phenomenon in the world of trading. FOMO comes in many forms and shapes and often leads to bad and impulsive trading decisions. The following article will go over how FOMO is responsible for many of the problems that traders  deal with on a daily basis.
In its purest form, a trader who is driven by the “fear of missing out” enters trades too early, without waiting for actual confirmation of any trading rules. These traders see price moving and they think that they can “feel” it is going a certain direction, even though their trading rules don’t support the trade idea. They try to come up with reasons why they don’t want to miss a potential trade because it can finally get them out of their losing streak, despite the lack of any confirmation. Essentially, these traders will reason themselves

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Top 10 Trading Articles on the Optimus Futures Blog in 2015

 

Top Articles for Futures Traders

We dedicated a lot of time and resources to educating traders in 2015 by writing informative and educational trading articles. There were so many updates to our blog, people new to our site and/or services might not even know where to start! So to help everyone catch up as well as give our loyal readers a quick refresher, we put together this list of 2015’s most popular articles based on our Analytics.

Below, you’ll find helpful articles on trading psychology, indicators, charts, in-depth tutorials on backtesting strategies, and even full walkthroughs on important platforms features. Everything you need to start trading with an edge in 2016!

 

10. Trading Losses: an Honest Discussion in Trading Psychology

Realistically speaking, most new traders will acknowledge the fact that they will encounter losses and that not

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Does intuition and gut feeling play a role in trading?

 

Does intuition and gut feeling really exist in trading?

Whenever you hear traders talk, they use the words intuition or gut feeling to express their thoughts and to justify their decisions which are often not based on sound trading principles or trading rules, but on something different, something they ‘felt’ about what is going to happen next; or so they claim. However, it is very important to distinguish between real intuition and what traders mistake as intuition.

Trading Intuition

Intuition and impatience

The most commonly made mistake is that traders use intuition to justify trades where they prematurely entered the market and broke their trading rules. They will then say that they had a feeling that price was about to take off and that they didn’t want to miss the trade. Be honest to yourself, how often

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