TheRiskBlog

Overtrading is one of the most overlooked mistakes you can make while trading. As a trader you want to make money any minute the market is open, this is understandable, but it doesn`t mean that you need to trade every opportunity that comes across your screen. Trade the most profitable ones and forget the rest. Here are 5 tips on how to spot and avoid overtrading.

A While ago Brett Steenbarger posted a quite interesting questionaire at his Blog that helps you to define your curent attitude.

Every trader who wants to be successful needs a set of rules he acts on – a system. Most build their system over years with growing experience, others buy one. To discover what works and what doesn’t most traders test different systems during their trading career, till they find or develop one that fits them and brings the consistent success they searched for. But it is not easy to test a system, because there is one problematic factor involved in it – the trader himself.

Maybe you know those days, when you start with positive expectations and a big portion of optimism into the trading day. The news are good, the futures pre-market are in the green and some of your favourite stocks gained some points overnight. And you can’t wait to hear the opening bell.

Blogger and Author Stanley Bing said in his recent video at Fortune, that a crisis like this teaches us many lesssons, but the problem with it is that “everyone of these lessons will be forgotten the minute this crisis is over”
Is that really so?

If there was one big news this week, it was surely Warren Buffetts acquisition of Burlington Northern Santa Fe (BNI) railroad. But although the deal itself is interesting, another thing caught my attention.

If you tend to react like the trader in this video, you should seriously think about your tradingstyle. Trading shouldn’t be so stressful that you react like this when someone disturbs you.

When It All Goes Horribly Wrong

If there is one crucial factor for an economy to grow, it is consumer spending. And with Christmas sales not far away we need to ask whether the consumer is back and wants to spend as much as he did last year or more.

Mere mortals like us have no business competing with this guy, thats why we calmly sit down and listen when he talks. This is a real pro and he has been right about the markets at numerous occasions, so we listen again and adjust our risk management accordingly.

In books about trading, at seminars, at lectures or in magazines – everywhere you look, you get introduced to trading systems and strategies. It seems like everybody has his own idea of how to make money in the markets. And you will discover that most contents are quite different.
One system may be technical, using a market scanner, the next might trade off the news