Posts Tagged ‘Stock Market’

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Winning In a Traders’ Market

Saturday, February 13th, 2010

(Watch the Video Online: Market coach Doug Hirschhorn, PhD, advises investors on how to navigate this tricky “traders’ market.”)

As you’ve probably heard by now, we’re in what’s commonly referred to as a “traders market.” This type of market is tricky even for elite traders, which is why I want to share with you four things you need to keep in mind to be profitable.

1. Take a tactical approach Like a surgeon, you have to pay close attention to where you enter and where you exit. One small mistake can cost you big time.
2. Get bigger quicker These types of markets don’t allow traders the luxury of scaling into positions. Rather, you have to know what setup you’re looking for and when it appears, you want to hit it big because it may be the best chance you have to get in on that trade.
3. Use tighter stops In trending markets, you have time to let your trades breath so you don’t get squeezed out of them. Unfortunately, that’s not the case in a “traders market.” In this market, tight stops will keep you in the game longer and right now, the traders making money are the ones who are able to survive the quick moves.
4. Your intuition will show you where to find profits I’m talking about that feeling you get inside when you think now is the right time to get in the trade. If you want to be successful, you need to pay attention to your gut and then, most importantly, follow it.

The biggest mistake a trader can make is to have a great idea and not have the confidence to put it into action. Do not be that guy.

Think better, invest smarter.

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Posted in CNBC Video Blogs, Trading Psychology | No Comments »

Making Money Is Easy

Sunday, January 31st, 2010

(View The Video Online: Market coach Doug Hirschhorn, PhD, advises traders that making money really is easy. Keeping it, however, is a bit more challenging.)


This week’s trading lesson: Making money is easy. In fact, making money in any market is easy. It’s keeping it that’s hard.

You see, most traders are right about 50 percent of the time. Successful trading really isn’t about how much you make when you are right. Rather, it’s about how much you lose when you’re wrong.

We all know most traders fail to reach their potential because of poor discipline. That’s not new. And as the trading coach to Wall Street’s elite, I’ve been able to pinpoint three common factors that cause that loss of discipline:

  1. Holding a position for a long time and getting out because you’re either bored or lose patience.
  2. Staying in a losing position, thinking it can’t possibly get any worse. Invariably, it does.
  3. Having a winning trade on but being afraid of turning the profit into a loss. You book the trade only to watch it rip in your favor a short time later.

If I just described you, welcome to the party. But don’t worry too much — Dr. Doug has the cure for your trading ailment.

Every day, before you begin trading, look around and see what the price action or the vibe is. Is it quiet? Is it fearful? Is it passive? Is it aggressive? Then I want you to ask yourself one question: “Is today a day to make money or limit my losses?”

Once you have the answer, trade that way. Remember, your job is to make money, not to be right. And sometimes, the best way to do that is to sit on your hands and not lose any.

Think better, invest smarter.

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Success in 2010

Saturday, January 16th, 2010
(Watch the Video Online: Market coach Doug Hirschhorn, PhD, discusses how traders can find success in the coming year.)

This year will prove to be challenging even for the elite traders out there. Here are four things traders can do to tip the probabilities of success in your favor:
  1. Trust your gut If something looks like crap and smells like crap, then chances are, it is crap. Listen more to your gut to tell you when to cut a loss and move on.
  2. Keep it simple If something is working, keep doing it. There aren’t any bonus points for being clever. The money is the same color no matter how you make it. So do the simple things and chip away at the profits. I once had a client who felt he had to do complicated trades in order to make money. Bottom line was, he was wrong. Keeping it simple is the proven strategy for success.
  3. Probabilities don’t lie If you’re not carefully tracking the metrics on your trades, you might as well be gambling at a casino. Make it a point to track the data on your trades and study them. That way, you can do more of what’s working and less of what’s not.
  4. Avoid speculating and predicting I can’t begin to tell you how many times I see traders blow up their accounts because they try to speculate or predict what’s going to happen in the future. The simple fact is, no one knows. Even the best traders have a winning percentage of around 50 percent. That means successful trading is not about being right, it’s about what you do when you’re wrong. The bottom line is, trade what you see, not what you think.

Think better, invest smarter.

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Posted in CNBC Video Blogs, Investment Psychology, Trading Psychology | No Comments »

Fighting Trader Trepidation

Sunday, January 10th, 2010

(Watch the Video Online: Market coach Doug Hirschhorn, PhD, discusses how traders are likely to deal with Trader Trepidation in 2010.)

The theme for this week, and probably for the next few months, is “trader trepidation.” Here are three reasons why traders might seem a little hesitant early in 2010:

Memory of not getting paid is fresh in traders’ minds

When traders have a bad year (like 2008), it usually takes two to three years before they get paid again. For example, in 2008, traders lost money. In 2009, they made back the losses from 2008, and in 2010, if they make money, they’ll get paid in the first quarter of 2011. That’s a long time to be in the penalty box.

Equities are likely to be especially tough in 2010

We haven’t seen the end of the Galleon situation and have no idea how the SEC is going to tighten regulation. This creates a large amount of uncertainty and, for traders, when too much uncertainty exists, they sit on the sideline and wait.

Distractions will fill traders minds

During the next few months, expect to hear a lot of discussions about Wall Street payouts. Some firms had record years in 2009 and plan on paying traders big. This will really bother politicians and jobless Americans and the end result will be a revamping of how traders get paid on the Street. The good news is, Wall Street will likely turn into more of a pay-for-performance situation. The bad news is, it’s going to take a while to figure out, and that means major distractions to professional traders. The more time they spend thinking about how they’ll get paid, the less they’re able to think about making trades.

So where will the opportunities be in 2010? From what I’m hearing, it looks like gold, oil, currencies and other deep, liquid, unregulated global commodities are where the action will be. That’s still one place traders can get great price action with the least amount of headaches.

Think better, invest smarter.

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Nailing a Job Interview

Friday, January 8th, 2010

(Watch the video online) Dr. Doug was recently interviewed on CW11 (Local NY, CBS affiliate) about what you can do to bring your best to a job interview. With this advice in hand, you’re better prepared to nail the job interview. Dr. Doug covers:

  • Putting together a game plan.
  • What are the rules of interviewing?
  • Be prepared to answer what kind of job you are looking for and what role you want to play in that company.
  • You should also know about the perks and benefits package you might be receiving if employed by the company.
  • Before the interview, you should know about the company (their goals and what they want to achieve).
  • Don’t be afraid to say “I don’t know” when asked questions. Employers know that you don’t know everything. Saying “i don’t know” shows you have a high level of self-awareness.
  • Keep your answers short and sweet. Direct your answer to those questions, and don’t go on for 10 or 15 minutes. That is an interview killer.
  • It’s alright to negotiate. If you’re being low-balled, be polite and professional but let them know it you feel that price is below current fair market value and to please reconsider.

We hope that you’ll watch the video and find some key take-a-ways that could help you land your next Great job.

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Posted in Business Motivation, Peak Performance | No Comments »

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