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Many new retail traders are seeking methods of trading that do not involve pain. Seeking a method by which all drawdown is avoided. Searching for some “system” where they do not feel any amount of discomfort. Wherein they can sleep well at night. Well my friends, I am here to tell you that all such searches are a fool’s errand.  An idiot’s...

“Basketball players and fans alike tend to believe that a player’s chance of hitting a shot are greater following a hit than following a miss on the previous shot. However, detailed analyses of the shooting records of the Philadelphia 76ers provided no evidence for a positive correlation between the outcomes of successive shots” –  Cognitive...

“Reason.  Rationality.  Balance” – Sharpe Trade Mantra So last week we had an entry on “Bitcoin Crashing” and solving problems WE do not have. Some of the comments were passed on to me.  My first thought was … Rookie mistake 101 (Video Included. If you’re seeing this entry elsewhere and cannot play the video?  Click this link...

Today was my favorite type of day, trading the markets. As you may remember, a few days ago we began to turn bullish of our view on risk. Who cares.  That is not what trading is about.  Not really.  Everyone tends to obsess over directional bias or belief.  But in truth, that is a very small segment of what it is to be a trader.  Entrances and directional belief...

How can you destroy your trading account? It’s quite simple actually. Trade without a process, and make highly emotional decisions, or decisions based on a ‘gut feel’.  I can nearly guarantee that you will reach your goal of burning through your account and destroying any long-term edge that you may have possessed. I had an interesting interchange...