On January 4th, Dr. Doug appeared on Power Lunch on CNBC at 1:15pm EST.
Topic: The topic was Trader Psychology for 2010.
In case you missed it, we have it here for you
Posts Tagged ‘Stock Market’
A Fresh Start In 2010
Thursday, December 31st, 2009(Watch The Video Online: Market coach Doug Hirschhorn, PhD, discusses how traders can forget 2009 and get a fresh start in 2010.)
This week, I want you to ask yourself just one thing: “Did I reach my full potential as a trader in 2009?”
For most, the answer is probably no. If that’s the case, don’t worry, because now is the perfect time for a fresh start in 2010.
But rather than examining the past, I want you to focus on the future. In other words, forget about what you didn’t do in 2009. Instead, think about what you will do in 2010.
As you do that, here are three things to consider:
- Trust your instincts If a trade looks like a loser and smells like a loser, chances are, it is a loser. Cut the loss and move on.
- Focus on the trade and not the money If you’re in a winning trade, don’t get out of it just because you’re up money. Instead, get out because the trade stops working.
- Finally, know what your pitch looks like Don’t be sloppy and swing at anything.
Trading isn’t a game of luck. It’s a game of probabilities and that means you need to know when you have edge. And make sure you only trade when that edge appears.
Happy New Year! And here’s to a great 2010.
Think better, invest smarter.
13 Trader Resolutions for 2010
Friday, December 18th, 2009(Watch the Video Online: Market coach Doug Hirschhorn, PhD, discusses 13 rules for traders to follow in 2010.)
As 2010 approaches, we have time to reflect on what we’ve done this year and what we intend to do next. Because I’m a trading coach, I have access to some of the greatest minds on Wall Street. Here’s a list of best practices I’ve gathered from them this past year.
- I will create game plans for all of my trades.
- I will trade only when I have edge.
- If I have 3 losing trades in a row, I will take a break, walk away and clear my head.
- I will never trade for revenge.
- Anytime I’m hoping, wishing or praying, I will exit the trade immediately.
- I will never give back more than half of my profit on any trade.
- I will keep a daily trading journal and email it to who will hold me accountable.
- I will think in terms of probabilities and risk/reward.
- I will remain objective in my trades by asking, “If I had no trade on, what would I do?”
- I will never put more than 20% of my capital at risk in any single position.
- I will not make trades just because I’m afraid to “miss out.”
- I will quickly recognize my emotions and compartmentalize them rather than waste time trying to get rid of them.
- And finally, I will trade to make money, not to be right.
I’m confident that if you commit to following these 13 rules, you’ll be more profitable in 2010.
Think better, invest smarter.
Position Yourself for 2010
Friday, December 11th, 2009(Watch the video online: Market coach Doug Hirschhorn, PhD, discusses how investors can position themselves for a strong 2010.)
Traders at banks and hedge funds get paid once a year, at the very end. Since most traders on Wall Street did not get paid much, if anything, last year, this years’ profits are even more valuable to them.
So what does that mean for the risk takers out there? It means the closer we get to the end of the year, the less interested traders are in putting on big risk. At this late stage of the game, the risk/reward for them is just not good enough.
What does that mean for the markets?
It means less competition from the big players and lower volume across the board. As a result, there are more quick rallies and dips along the way.
Here’s the good news: If you’re a smaller, short-term trader, there are fantastic opportunities to make some quick profits.
On the other hand, if you’re a medium or longer-term investor, you have a great chance to find excellent entry levels into positions for next year.
The take-away for this week is you should stick around and seek out opportunities in the markets, while the big players sit on the sidelines.
Think better, invest smarter.
