Trading Lessons from A Road Less Traveled 

In this 4-part series we'll explore why traders need more than technical analysis and market strategies—they need emotional resilience.

We’ll use ideas from the bestseller A Road Less Traveled by M. Scott Peck, to find ways how traders can achieve mental discipline, personal growth, and manage their emotions for long-term success in the markets. If you missed yesterday's article you can find it here. 

4. Balancing Rationality and Emotion: Emotional Awareness in Trading

"Mental health is an ongoing process of dedication to reality at all costs." – M. Scott Peck

Peck emphasizes the need to face reality with honesty. Traders must acknowledge their emotions without allowing them to dictate actions. Fear, greed, and euphoria are natural, but successful traders recognize these feelings but respond rationally.

Tips:

• Practice Mindfulness: Regularly...

Trading Lessons from A Road Less Traveled 

In this 4-part series we'll explore why traders need more than technical analysis and market strategies—they need emotional resilience.

We’ll use ideas from the bestseller A Road Less Traveled by M. Scott Peck, to find ways how traders can achieve mental discipline, personal growth, and manage their emotions for long-term success in the markets. If you missed yesterday's article you can find it here. 

3. Delaying Gratification: The Patience to Wait for Profitable Trades

"Delaying gratification is a process of scheduling the pain and pleasure of life in such a way as to enhance the pleasure by meeting and experiencing the pain first and getting it over with." – M. Scott Peck

Many traders struggle with the urge for instant results (especially yours truly). This impatience leads to overtrading, revenge trading, and abandoning strategies prematurely. Peck’s concept...

Trading Lessons from A Road Less Traveled 

In this 4-part series we'll explore why traders need more than technical analysis and market strategies—they need emotional resilience.

We’ll use ideas from the bestseller A Road Less Traveled by M. Scott Peck, to find ways how traders can achieve mental discipline, personal growth, and manage their emotions for long-term success in the markets. If you missed yesterday's article you can find it here. 

2. Acceptance of Responsibility: Owning Your Trades

"We cannot solve life’s problems except by solving them." – M. Scott Peck

Blaming market conditions, news, or external factors for poor trades is easy, but it stunts growth. Peck stresses the importance of accepting responsibility for our actions. In trading, this means owning both wins and losses. By doing so, traders can analyze their mistakes, learn from them, and refine their strategies.

Tips:

• Keep...

Happy New Year! This is the final part of a multi-part process to tune up your trading plan for the coming year. If you haven’t read the prior eight posts, you can find them here. 

If you were an actor you would not only memorize and practice your script, but you would listen to and watch a recording of your performance to hone your act. Repeatedly. Practice and review. This sequence is the formula for mastery. It applies to anyone wanting to truly master their profession including traders. 

It’s critical that you practice in simulated mode before risking real money. You want to develop “muscle memory” and confidence. Your knowledge and skill using your chosen trading platform should be first-rate. Your entry and exit execution should be flawless. 

It’s even more critical that you develop a consistent review process. Think about it this way, the trade plan you just developed is your...

Happy New Year! The next blog is part of a multi-part process to tune up your trading plan for the coming year. If you haven’t read the prior seven posts, you can find them here. 

Brokerage risk is rare but real. Ask anyone who had money with FTX. Keeping your trading accounts with reputable brand name brokers regulated in the USA is the safest decision. If you’re comfortable with offshore and unregulated brokers then start with a very small account and regularly take money out of it. That should give you some comfort that you’ll get your money when you want it, but it won’t guarantee that when you want a large distribution you’ll get it. 

Market risk is unavoidable. Major catalysts happen with no notice. Think about the reaction to the pandemic. Your best protection against market risk is a personal financial plan that is diversified among uncorrelated assets. Stocks, bonds, precious metals, real...

Newbies Only Part 7

Happy New Year! The next few blogs are part of a multi-part process to tune up your trading plan for the coming year. If you haven’t read the prior six posts, you can find them here. 

There are more risks in trading than the loss on any given trade. Here’s a few to consider. 

Liquidity risk. You’re buying and selling. That means someone needs to be your counterparty at a fair price. The difference between the bid (buyers) and ask (sellers) is called the spread. If this is wide enough it will ruin the edge your strategy has. 

Spread changes not only with the asset itself, but during changes in volatility. For example, the spread on the most popular ETF, the S&P Index (SPY) is less than 1% in the options market. Similarly priced stocks can have spreads of 10% to 20%. The spread is your cost of doing business with that asset. Avoid assets with a wide bid/ask spread.

Furthermore, the...

Happy New Year! The next several blogs are part of a multi-part process to tune up your trading plan for the coming year.

Yesterday you determined your starting and subsequent risk capital contributions. Along with your prior choice of time horizon (day, swing, or position) you’re ready to find the perfect asset to trade. 

Best choices… 

Position Traders: Stocks (high capital requirement) and Forex (low capital).

Swing Traders: Stocks (moderate capital), options, Forex, and futures (all low capital).

Day Traders: Stocks (moderate capital), options, and futures (low capital). 

You can now see that finding the market you’re best suited for is a combination of your time commitment and your risk capital. 

You’ll also notice that trading stocks require more capital. The reason is leverage, or lack thereof. Disciplined use of leverage is critical for trading success. 

The stock market offers you 2:1 leverage,...