This week we take a look at the second core component of trading discipline – the area I call technical discipline. Trading and investing approaches vary but at the very least you need a process for choosing what stocks to buy and when to sell. Because you have accepted that “no-one knows with 100% certainty…
When it comes to trading, discipline comprises of three core components: Mental, Technical and Physical discipline. The trading fraternity often talks about discipline being a requirement to be a successful trader so over the next 3 weeks I am going to examine discipline in each of these areas and discuss what is involved with each…
Something that is a given when trading the markets is loss trades. But it’s the lessons learnt from these losses that go far beyond the money lost during unfriendly market periods. How well traders and investors put steps in place to ensure that their long term performance can be enhanced is dependent on the degree…
Following on from last weeks blog post, I have continued to dissect the statements made by Mr Kerr Nelson in the Australian Financial review article, “Wizards of the game”. I hope you enjoy my commentary. “Loss aversion is an irrational approach sadly evident in the stockmarket. Many investors keep hanging on to losing stocks in…
For those that know me, you know that I am an avid reader of market related books and newspaper articles. Last week I came across an article in the Australian Financial Review called “Wizards of the Game”. The Financial Review interviewed some of Australia’s most respected and high profile fund managers and their individual approach…
