What is the “Gambler’s Fallacy” and how might it describe why you may not be achieving the trading results you’ve been expecting?
According to The Skeptic’s Dictionary, the Gambler’s Fallacy is the incorrect notion that the odds for something with a fixed probability increase or decrease upon observing the most recent occurrences.
The classic fallacy plays itself […]

I wanted to provide some additional personal insights to a blog post by Toni Hansen recently entitled “Frustration in Achieving Trading Success,” which included personal statements of similar difficulties her journey to trading success.
I do recommend the entire post, but I wanted to highlight a few quotes for you:
“I think that nearly every single one […]

I recently read a few simple quotes on overcoming fear that I wanted to share:
“I have not ceased being fearful, but I have ceased to let fear control me.” — Erica Jong
“Your fears are not walls, but hurdles. Courage is not the absence of fear, but the conquering of it.” — […]

Have you ever been caught in a trade and your emotions are overtaking you, causing you to make a decision based on your feelings? Was it a good decision after the fact?
Typically, if we trade specifically on emotion (greed makes us buy too late, and fear keeps us in too long… or prevents us from […]

Once you understand how mental accounting errors can hurt trading results, it is helpful to identify patterns in your own thinking and trading which can be challenged with personal strategies.
While a blog entry cannot attempt to identify and correct these errors, I can challenge you to identify your own thoughts and seek out further resources […]

Quick: What if I gave you $1,000 to invest however you wanted right now? It’s your money now - free. Would you put it on a speculative option play and try to double it within a week?
Now, ask yourself, would you be likely to make the same speculative decision if forced to […]

As posted earlier, to achieve higher rewards (profit), you must take on more risk (uncertainty).
But how do you know how to analyze your risk-taking behavior? In short, it comes from taking risk and writing down your responses - physical (sweating, increased heart rate, shaking, etc) and emotional (doubts, fear, negative thinking, anger, etc). […]