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Trader Mindset

Michael Martin is a trader and instructor. His show deals with the emotional and psychological aspects of trading and managing risk. His book "The Inner Voice of Trading" and features interviews with Michael Marcus, Bill Dunn, and Ed Seykota - who also wrote the Foreword. Get the audio book free at MartinKronicle.com.
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Now displaying: September, 2021
Sep 30, 2021

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Day after day, the market doesn't have any discipline which is why you must. 

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Sep 28, 2021

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Hubris can be as detrimental to your trading as "revenge trading."

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Sep 27, 2021

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You can use volatility as a "risk on / risk off" indicator.

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Sep 24, 2021

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How do you want trading to serve you?

It's probably not just about the potential to earn money.

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Sep 23, 2021

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Feelings aren't facts. The gut feeling traders have about an earnings announcement is where overconfidence shows up in their trading.

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Sep 22, 2021

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I think prediction is more about being correct (and doing so publicly) rather than anticipating a move or a series of moves that make you money over time. 

The latter is about expected values, not accuracy. 

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Sep 21, 2021

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Forcing the issue or forcing a trade rarely works out well.

It's a need for an emotional win, more than a financial one.

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Sep 20, 2021

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You can inadvertently invite a lot of frustration into your life if you place your protective stops too tight.

You'll get knocked out of an otherwise good trade.

Stocks and commodity futures have a personality and you can't expect them to be something they're not.

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Sep 17, 2021

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Protective stops preserve your capital and preserve your mindset.

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Sep 16, 2021

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If you let the weeds bloom at the same rate of your flowers, you don't have a garden. You have a mess.

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Sep 15, 2021

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Backtesting forces you to be objective and not selective and removes the "yeah, I would've put that trade on..."

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Sep 13, 2021

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Looking at the ratios between your winners and losers and the frequency with which they occur.  

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Sep 10, 2021

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Managing risk and determining the best use of your time. 

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Sep 8, 2021

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If you put your stops here, you're going to get knocked out of any otherwise good trade.  

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Sep 7, 2021

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If all your positions have a zero at the end, that's a problem. Think in percentage terms.    

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Sep 3, 2021
If you know what your target RoR needs to be, you can determine the number of trades you need to make knowing your winning % and ratio of average winners to average losers. 
 
Sep 2, 2021
You can lose money from bad luck, bad timing, and bad analysis. 
 
However you start losing money, get out instead of adding more.
 
You won't get out at a lower break-even price. 
 
You know it and I know it. 
 
Sep 1, 2021
Backtesting is forced objectivity and it can help you stop deluding yourself. 
 
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