How to know if a ‘professional’ trader is lying to you.

It shouldn’t come to a surprise that being in the finance/trading world we are that we are constantly being lied to. The financial industry and marketing machines are constantly trying to find new ways to lure us into thinking that they have the next best thing in trading. Whether its a new trading strategy, a new mentor who has apparently has more experience in trading then you have been alive or an amazing new black box indicator that plans with rob the banks dry, we’ve seen them all. And even after we all know that they are lying to us, many of us still get sucked in to their whims, why? Because, maybe, deep down inside we want it to be true. We don’t really have any other way of knowing if they are lying to us or not. We read a few reviews and checked out their ‘results’ and then simply hand over our credit card number only find a few months later that the system never worked anyway. There needs to be a way to make better informed decisions about what your purchasing or who your following. So whats the most effective way of understanding if a trader/system or strategy is really profitable? The answer is simple – track their performance. How we ‘track’ their performance? Through the Trading Consistently Journal, of course! Our platform is the worlds most flexible trading journal, and can be used not only to track your own performance, but others as well. Today I’ll show you how exactly I was able to tell that a significant trading authority was actually giving out unprofitable (and possibly misleading) signals. I...

How exactly the TC Journal identifies my biggest psychological mistakes

When I was using spreadsheets, I would often wonder if it was actually helping me improve my trading. Sure, almost every trading guru on the planet talks great lengths about journalling and some even prescribe what tools to use (like spreadsheets). But a vast majority of them fail to explain how exactly you can understand what you did wrong across a number of trades.  You can’t ever understand what you did wrong for a single trade and assume your magically cured you’ll just ‘remember to not make the same mistake again’. What you need to understand how often that error occurred across a number of trades and put in procedures and processes in place to ensure that mistake doesn’t happen again. Not just that – if you truly want superior results you need to track the multiple sources of errors that could arise and see which is your most common ones across multiple strategies on multiple markets. When I kept a using a spreadsheet, I noticed that I would find some excellent insights into what I did wrong or areas for improvement for a particular trade in my analysis, but i could never ‘zoom-out’ and look at the bigger picture of my trading and find out how often I made that mistake and what I could do to prevent it. Spreadsheets just simply wasn’t the right tool for that. Neither was Word, Evernote or any other tool I used for that matter. Remember – having a profitable trading strategy isn’t enough. You need to execute it perfectly and with discipline to ensure your meeting your goal.  The Trading Consistently...

Why Trade Journal Spreadsheets aren’t improving your trading.

As traders, we’ve been told from a number of ‘trading gurus’ to keep a trading journal. So one day we found a spreadsheet template that they or some other ‘guru’ made, downloaded it, opened it in our spreadsheet editor and started using it in a snap without questioning. Spreadsheets are prolific in the retail trading industry as a means to log your trades. In this article I’ll argue why they are not helping your trading and, as a matter of fact, can even make it worse. From initial understanding it makes sense to log your trades. Of course – how else would you know how to improve unless you actually logged each trade you took, then look back to know what worked and what didn’t. Any professional endeavor requires measuring your performance, learning from your mistakes and finding where to improve. However, without adequately finding ways to improve and acting on them you run the risk of bogging yourself down in your perceived failures and not progressing. For example, how many times did you start something, fail at it and then want to do it again? As kids we don’t care about failure – we simply get up and try again. But as adults we take it more seriously, we’ve learnt that failure is ‘bad’ and we should avoid them. We’ve often been taught painful repercussions of failure – rejection from parents, societies shame, disappointment from friends – so its no wonder we avoid looking at our failures at all cost. Spreadsheets don’t give you the whole picture. You see – spreadsheets only track half the story. You can...

The Simple Formula for Trading Success.

What’s your plan for 2014? I’m often asked what it is that’s ‘different’ about my trading compared to most traders… For instance, how is it that I can trade full time for a living from so many different trading styles? It all comes down to one thing: Having a plan with written goals. I credit my trading & investing success in no small part to the discipline of having a written plan with specific goals, and holding myself accountable to taking action to achieve those goals. What’s my formula for success?  Simple: Written Goals + Accountability + Action + Discipline = Success! Before I started regularly writing down my goals, I had little success in trading. Since choosing to be accountable for my success, developing the habit of regular goal setting, and taking disciplined action through the Trading Consistently Journal I’ve abolished my bad trading habits and have been trading consistently since then.If you’re struggling with the thought of creating a plan and setting goals, or think it’s just going to be a chore, then ask yourself this question: Without setting written goals, have you managed to achieve everything that you want out of life?   If you answered “No” then perhaps it’s time you started doing things differently!  Living To A Plan! Frankly, if you fail to have a plan, you might as well plan to fail! Rather than drifting through 2014 without any real direction (like most people will) and waking up in another 12 months to the realisation that nothing has changed, take active control of your life today! Here are 8 simple steps to get you started: Step 1: Your ‘WHY’ Figure out why you are trading in the first place… What is it that your trading is meant to...

What to learn about Trading from Airline Pilots

Believe it or not, trading is a lot like flying a plane. In this article we will discuss why ex-Pilots are quite often successful traders and what we can learn from them. Pilots have alot of responsibility when flying a plane. We rarely think about just how important it is for pilots to be well-prepared ahead of time with the information they will need to make good aeronautical decisions. Not only must they be careful of their flying environment but must also consider all aspects of their flying instruments to make good aeronautical decisions. Good pilots must be always be disciplined when flying, but they don’t all start with great discipline. They are taught discipline through some simple, yet highly effective means. If the pilot waits until the plane is airborne, then the pilot’s workload may become such that the pilot could be distracted by information gathering tasks when more critical tasks need to be accomplished to keep the flight flying safely. Or critical information simply may not be available to the pilot in flight that would have been available to him/her on the ground. Either case could lead to poor aeronautical decision making and cause an aircraft accident or incident. The interesting thing is that traders also face this task. In order to take a trade we must consider a number of information gathering tasks before deciding to take a trade. If we fail to gather the information correctly BEFORE we take the trade then its possible that we entered a trade that wasn’t according to our trading plan. When we fail to gather correct information often enough...