Tag Archives: losses

Cultivating The Trader’s Mindset

The trader’s mindset is truly remarkable.

It doesn’t come naturally.

You can work diligently and consistently to develop the trader’s mindset for yourself.

You may think you’re making progress.

trader's mindset

It grows little by little.

But you can never really be sure you’re succeeding.

That’s because it’s so fragile. For most of us, it involves a delicate balance.

Mastery vs. Self-Deception

You may think you’ve got it figured out. You may think you’ve mastered it at last.

And then you confront a situation in the market that takes you by surprise.

You find yourself reacting emotionally. You’re wildly out of control.

And the trader’s mindset has just gone out the window.

The Trader’s Mindset Requires Discipline

Keeping your head straight for trading demands regular daily attention.

If you want to keep your smile, you brush and floss every day.

When you want a career as a professional concert musician, you spend hours daily practicing your instrument.

If you want to be successful with profitable trading, you give constant attention to cultivating the trader’s mindset.

It’s Often Counter-Intuitive

In many cases, the appropriate trader’s mindset doesn’t match our normal responses and our expected behavior.

That can take some getting used to.

For example, it’s much more important for us to focus on how much we’re willing to lose than on how much we might win. That goes against the grain for most of us.

But if we can maintain that mindset discipline, we’re much more likely to have profitable experiences in the markets.

But if you can learn to think in terms of probabilities and risk assessment, you’ll soon be on your way toward the mindset you need.

Not The Only Requirement

The right mindset is not the only thing you need, of course.

You have to pay attention to all the parts of the Trading Triad.

Trading Triad

That’s the meta-program we apply to trading mastery.

It’s especially important in effective astro-trading.

There are key requirements for each of the three components in the triad.

What You Need To Trade Successfully

If you want to trade successfully, it’s essential to have access to market data. Examining the regular flow of data helps you understand prevailing market trends.

You also need to know how to trade. That includes the simple mechanics of placing trades. It can also include knowledge of analytical tools and position strategies.

But connecting with the markets and spotting good trade set-ups isn’t enough.

You also have to understand yourself as a trader.

You need to tune in to your own reactions to movements in the markets.

You need to be aware of your emotional responses – not only to challenges and trading losses, but also to your successful trades.

In short, you have to develop the trader’s mindset.

That’s one of the reasons we’ve included an extensive session on the trader’s mindset in our new online training program, the Astro-Trading Intensive.

With the Astro-Trading Intensive, you’ll get better insights into yourself and your own trading behavior.

That can make a huge difference in your results!

Trade Management Really Matters

I guess I should be more vocal about trade management.

At least that’s the word that I just got in an email from Richard, who’s been following our work in market astrology for the last few years.

“If I may give you an opinion on your emails (I’ve been receiving them for quite some time),” Richard said, “you never talk about strategies for position size management, entering with low risk, managing the trade (managing the risk), pyramiding (adding to a winning position), thoughts on anti-martingale strategy (reducing size when performing poorly) and discipline/patience (Staying out of the market when there is no trade) and also cutting losses while they are still small.

“You also don’t seem to recommend any books or anything. So that’s just my opinion.”

Why Trade Management Is Missing

Needless to say, I really appreciate Richard’s sharing his opinion.

And his point is well taken.

The truth is, I don’t mention trade management very often in the emails I send out to subscribers who have opted-in to get more information about our programs, products, and services.

And there’s a reason for that.

Most of those email subscribers have signed up to get notifications because they’re curious about financial astrology.

They want to know whether or not astro-trading really works.

Some of them are active in the markets.

But most of them are just thinking about trading. They’e never actually put money into the markets.

Or they’re just kicking the tires of astro-trading because they haven’t really decided yet if they’re interested or not.

So sending them emails with an in-depth focus on trade management doesn’t really help them very much.

So Where’s The Trade Management Information?

It’s a different story, however, for our members, students, and customers.

Trade management is a key part of virtually everything that we teach about astro-trading.

It’s been at the core of the trading strategy that we’ve used with the Financial Cycles  Model Portfolio.

Trade Management Creates This Track Record

It’s what’s responsible for our repeated success. Our Model Portfolio has consistently out-performed the Dow and the S&P 500 year after year, without any losing years for the past 14 years.

Trade management is also a big part of the done-with-you services we provide for our Gold-Plus Elite members at financialcyclesweekly.com.

In our weekly conference calls we discuss specific trade management strategies with our members. Our weekly newsletter provides detailed trade management guidelines for each of the trades active in the portfolio. It also includes suggested parameters for the new trades we are considering during the coming week of trading.

Individual Attention To Trade Management

The fact is, trade management is essential if you want to be successful in the markets.

I personally drive that point home again and again in the one-on-one coaching calls that I have with active traders. They want the extra edge that the astro-trading advantage offers.

It’s a standard part of each group mentoring call that I facilitate for our Project Regulus members, who make a long-term commitment to astro-trading mastery.

It will also be a big part of our discussions at the Heart of the Lion Astro-Trading Symposium in September.

What Can Effective Trade Management Do For You?

Managing your trades effectively is mainly about following a specific set of rules.

When you enter a trade, determine in advance how much you’re prepared to lose.

Set your initial stops accordingly.

Pay attention to position size. Don’t bite off more than you can chew.

Use the timing guidelines we provide for our Gold-Plus Elite members. They’re designed to identify high-probability, low-risk trading opportunities.

Once a trade is active, trail your stops periodically. This helps reduce your risk and then lock in your profits.

Heed the guidelines we give our Gold-Plus Elite members about the specific times to stay out of the markets. We can tell in advance when we want to avoid initiating active trades.

Most importantly, be sure to take losses quickly and cheerfully. A quick loss is typically a small loss, which means you’ve saved some of your trading capital. It’s money that you can use again to trade another day!

Finally, don’t forget that a vital part of trade management is managing yourself as a trader.

Remember to keep notes on yourself.

How are you feeling? Why are you taking the trades that you have chosen? What’s going through your mind when the market turns? What’s happening with the money in your horoscope?

The more clearly you understand yourself as a trader, the more effective your trade management will be.

More Trade Management Resources

Although we often mention trade management principles in our live webinars and other interactions, you’ll also find great resources in some of our courses and training programs for astro-traders.

“The Confidential Astro-Trading Formula for Financial Independence” and “Astro-Trading and Your Personal Money Flow” are two good examples.

Both courses are available in online video format. That means you can absorb the information at your own pace.

They can both provide a big boost to your trade management skills.

And from time to time, you can get them free.

We’re giving both of these top-level training programs away as bonuses with our new Gold-Plus Elite ROI Accelerator program.

This is a high-level membership. We only open the doors for new participants for brief periods every few weeks.

But when we do, you can get both courses – plus a bundle of other great bonuses – as a free gift for enrolling.

If you want to polish up your trade management skills with this bonus material, be sure to CLICK HERE FOR MORE INFORMATION.

 

Dealing with Disclaimers– And Real Trading Results

One of the inconvenient things associated with sharing public information about trading and the markets is that so many disclaimers are required.

There are legal restrictions on what you can and cannot say.

You have to remind people constantly that they can lose money, that just because something has happened in the past doesn’t mean it’s going to happen again in the future, and that everyone is responsible for his or her own actions.

As far as I’m concerned, it’s all pretty much common-sense stuff.

It’s the kind of thing that any grown-up should know and remember, without having to be reminded of it every five minutes or so.

But like it or not, disclaimers are required, so you’ll see them popping up in the newsletter, in our webinars, on the website, and in other odd places from time to time.

As a matter of fact, you could consider this entire blog post some kind of elaborate disclaimer, because I’m telling you a bunch of stuff you probably already know, as a way of introducing a new video that’s jut been posted on YouTube.

It describes some of last week’s trading action by our Gold-Plus Elite members, so remember that last week isn’t typical.

What happened last week doesn’t happen every week.

But when it does, we’re all pretty happy around here.

So take a look:

Leave me your comments, and share this video with others. Send them to this blog post, or give them a direct link to the YouTube video at http://www.youtube.com/watch?v=BAFWrWuahps&feature=share&list=UU_J2ISLnzsFcPWaZDH5jW2g