There are times when the opposite is actually true. The high volume of trades shown on the VWAP trading indicator is happening because the smart money is looking to get out of their current position. As a general rule, if the price is currently above the daily average, it’s a good time to sell. When you see the price below the daily average, it could be a good time to buy. However, as with all of the indicators in day trading, there are exceptions to the rule.

Suppose you find a stock whose price is currently below the daily average. As was just mentioned, the general consensus would tell you that it’s a good time to buy. If there’s not enough trading volume at that point in the day, though, the price won’t go up. On a good day, that could leave you in a position where the stock price doesn’t really go anywhere for the rest of the day. That may allow you to sell it off with a small loss or even earn a few cents.

There’s also a chance, though, that the low volume ultimately drives the price down. That’s why just looking at the average price of a stock on the VWAP trading indicator can be a very near-sighted way to trade. Volume is just as important to the equation as the price. Another important element to keep in mind when using a VWAP is the time frame. Most professional traders will tell you to keep the time frame anywhere between 5 and 15 minutes. What that’s going to do is give you a clearer picture of the current price and volume within a stock. 

Another mistake people make is trying to look at daily time frames to anticipate where the price will go. Remember that the VWAP trading indicator is an average, but a lot can happen within a day. If you’re looking at the daily time frame, you can see that the current price is below the average and the volume of trades is decent. Conventional wisdom, as was mentioned, would indicate it’s a great time to buy. The problem is, the average is higher because the price started out the day on a high and then dropped, and the volume is decent because everyone was getting out! Now, there’s no guarantee that the price will return to a previous high point, at least not within the next few hours or even days. 

The VWAP can be one of the go-to tools for day traders. First, it’s very important to know how to adjust it properly. The key is to read every detail the indicator provides. Once you learn how to do that, you’ll have unlocked one of the most powerful day-trading tools! 

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The post What is the VWAP Trading Indicator and How to Use it as a Day Trader? appeared first on Bulls on Wall Street.

Small-cap stocks are companies whose market value is anywhere between around 300 million dollars and 2 billion dollars. This category encapsulates most, if not all, the smaller companies that are still publicly tradable. Should traders take a chance on trading small caps? It really depends on their strategy and even the size of their account. 

Many novice traders gravitate towards small caps because their stock prices tend to be rather low. At times, they go for around 50 cents a share or less. This means that with a couple of hundred dollars, any trader can buy up a decent portion of the company. In some cases, even small traders could significantly affect the stock price. These low entry price points make small caps a rather appealing option. On top of the low stock prices, small caps tend to fluctuate in value quite a lot throughout the day.    

Day traders can take advantage of these price variations to make quick profits with small caps. Having said all this, why do some people shy away from these stocks? The speed at which the prices for small caps fluctuate can be too much for some traders. This can lead to big wins as well as big losses. At times, people who enter the market without the right strategy are just on this ride as passengers hoping for the best.

It’s essential to understand the tendencies in small caps to make price entries as a day trader, with a scalping strategy that can help you be effective when trading these stocks. When that’s not in place, trading small caps could be a bit like playing a game of chance. That’s where things can go south quickly. People who’ve experienced the downside to these low-priced stocks are afraid to go on that ride again.  

Who then really benefits from trading small caps? As mentioned, traders with a smaller budget can definitely benefit from trading small caps. Small caps have also been a great refuge for some of the smaller funds that invest in the market. The lower prices allow these funds to buy up a considerable amount of stock and affect the price very much in the way that larger funds do with some of the blue-chip stocks.      

There are plenty of other benefits to trading small caps that any trader can take advantage of. The quickness at which these prices move can teach a trader to read market tendencies in a way that they may never be able to if they stick to the blue-chip stocks. You could argue that there’s a higher risk involved in this process, but the good thing is that it’s a lower investment that you’ll have to make to get past the learning curve that all traders have to go through. Trading small caps can sometimes feel like being thrown into the deep end of the pool. With the right tools and strategies, though, there’s a better likelihood that you’ll eventually learn to swim that way!  

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The post Should You Still be Trading Small Caps? appeared first on Bulls on Wall Street.

You take a loss that you know should have been a win, and the next thing you know, you have taken three more losing trades in a row.

You feel a grudge against the stock, treating it like a person who has just wronged you.

At this point, you are angry, confused, anxious, and driven to make the lost money back immediately without question. Instead of walking away from the screens, you keep searching for opportunities. You keep trying to make something work. You keep trading. You keep losing. 

This spin cycle is called revenge trading, and it is a crucial mistake that can absolutely crush your account, and crush it quickly.

Today, we are going to shed light on the importance of avoiding revenge trading in the current market. As a day trader, it is essential to avoid impulsive actions that can lead to significant losses.

Today, we will explore practical strategies to protect ourselves from the pitfalls of revenge trading, ensuring a more steady and successful trading journey.

Understanding Revenge Trading

Revenge trading, driven by emotions like anger, frustration, or greed, lures traders into making impulsive decisions to recoup losses quickly. It is as simple as it sounds. It is the emotional pitfall we human traders fall into when we take one or several losses and want to make that lost capital back immediately, even though we are in a heightened, angry emotional state.

However, revenge trading often leads to further financial setbacks and crushes long-term success. Recognizing revenge trading as a detrimental pattern is the first step towards avoiding its detrimental effects.

Learn more from Kunal Desai, a veteran day trader with over 20 years of trading experience, how to identify revenge trading:

How To Resolve & Prevent Revenge Trading Issues

Embrace Discipline and Patience

Discipline and patience are the key pillars of successful trading. Resisting the urge to retaliate against the market’s fluctuations and patiently waiting for optimal opportunities are essential. By adhering to well-thought-out trading plans, we can avoid succumbing to revenge trading’s allure.

Prioritize Risk Management

Effective risk management is crucial in any market condition, and it serves as a shield against revenge trading. Utilize risk mitigation techniques such as setting stop-loss orders, focusing on proper position sizing, and making sure you are always respecting the 1:3 risk-to-reward ratio on all of your trades. These measures protect your account from excessive losses and maintain a balanced approach to trading.

If you prioritize risk management and ensure that every single trade follows these proper practices, you will avoid taking a bad setup with bad risk management out fo anger and anxiety when in a heightened emotional state, avoiding the recent trading detriment.  

Do NOT be this guy:

Maintain Emotional Detachment From Trading

Separating emotions from trading decisions is a skill that all traders must cultivate. Emotional detachment allows for objective analysis and rational decision-making. Celebrate wins modestly and accept losses as learning opportunities without letting them impact future trades. By staying emotionally detached, we can maintain a clear mindset and avoid falling into the trap of revenge trading. You are then trading the chart and the setup, not your emotions, allowing you to make clear decisions amidst a stressful environment/situation.

Stay Engaged in a Community

Participating in trading communities, joining chatrooms, and seeking mentorship provide invaluable opportunities to gain insights and learn from experienced traders. Engaging in knowledge sharing helps expand our understanding of market dynamics, trading strategies, and risk management techniques. Through collaboration, we can develop a well-rounded approach to trading, reducing the likelihood of succumbing to revenge trading tendencies.

Also, a community or trading partner can prevent you from overtrading or revenge trading simply by having another person ‘monitoring’ you. A trading partner is an amazing resource that many people find within our chatroom upon joining. By opening up to your partner and allowing them to see what you are doing on a day-to-day basis, they can stop you from revenge trading by pulling you out of an emotional state and helping you realize that you indeed are about to revenge trade and should completely walk away from the screens. Find a partner or a community, engage with it, and be open. 

Find out more about our chatroom by clicking here!

Cultivate a Growth Mindset & Accepting Losses

Adopting a growth mindset enables us to view setbacks as opportunities for growth and improvement. Embrace failures as stepping stones on the path to success. By continually learning from our mistakes and seeking ways to enhance our trading skills, we can build resilience and navigate the market with a growth-oriented mindset.If you understand that losses are just a part of the long-term game and journey that is trading, you will learn to accept the losses and move on, taking a valuable lesson with you each time. You won’t on the contrary get angry and try to make that money back immediately by forcing bad setups and revenge trading.

Rrevenge trading poses a significant threat to traders in today’s market. By adhering to discipline, patience, and effective risk management strategies, we can safeguard ourselves against impulsive actions and emotions. 

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The post How to Overcome The Deadly Trading Sin of Revenge Trading appeared first on Bulls on Wall Street.

The best trading idea in the world won’t make you money if you cannot execute it. To succeed as a trader, you must be proficient in planning AND executing. 

Here are five actionable trade management tips to help you improve your trading that you can implement immediately to improve your results in the 2023 market conditions:

Size Down During Market Volatility

Every novice day trader thought they would become a millionaire when banks started failing a few weeks ago and volatility started hitting the markets. More range means more profits, right?

Wrong. During volatility, you can win big if the trade swings in your favor, but you will also LOSE big if the trade goes against you. As traders, we always respect risk. Any trade can turn into a loser.

Here are more reasons why you should size down during volatility:

Taking Partial Profits

As traders, our job is to take profits. We do NOT marry positions. Especially when the market is volatile and choppy like it has been recently, must take profits quickly.

Kunal, myself, and many other traders here at Bulls on Wall Street use a concept called scaling out of positions. This is where you take a partial profit on a position, and move your stop loss to breakeven to make a free trade.

If you are up $200 on a trade, sell half to lock in $100. Then moving your stop loss up to your buy price, or a higher level of support/resistance, allows you to lower your trade risk, while realizing a profit.

AVOID YOLO Options

The stock market is a place for traders not gamblers. On social media the phenomenon of turning $100 into $100,000 with options has become prevalent. It is less than 1% trading strategy. There is no edge to it.

You need strategies that can extract you consistent profits from the market to trade for part-time or full-time living.

Kunal shares with you a more sustainable options strategy in this video here:

Learn more about our new options trading service and our veteran options trading instructor Levi in this free training here.

Use Proven Trading Strategies

One of the worst things you can do for your trade management is to take trades with strategies you don’t know well. If you don’t know the probability of a trade playing out, your emotions will ruin your trade management.

Here are 3 powerful trading strategies you should look for every day in your watch list:

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Some of our boot camp students have been having their best trading years ever!

These students have been trading and studying for years with us to make these kinds of days happen. If you want to learn the strategies that allow you to capitalize in these market conditions, apply for our LIVE Trading Boot Camp below!

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The post 5 Powerful Trade Management Concepts To Implement Right Now appeared first on Bulls on Wall Street.

As a newcomer to this industry, you will have tons of mixed emotions approaching your first day in action.

You don’t want to show up to your first day fearful and scared. If you prepare and get educated, you will come in as a trader, NOT a gambler. 

Today we wanted to make a guide that will help calm the nerves on your first day at the screens and will help you prepare for a successful jumpstart to your career.

Learn Before You Earn

Success is made through education and practice. A lot of new students come into our programs with no experience at all, watch one video, and BAM, start trading the next day. 99% of the time, those traders get wiped out and take a huge confidence hit. 

To prepare successfully for your first day means to study beforehand. Make sure you have completed a full study course, not skipped around any areas, have all of your boxes checked on the educational side of things, and know a core set of THREE strategies/patterns max you are going to look for.

Study for weeks before your first day, get a grip on your trading strategy and plan, and then you can hit the trading desk.

Just take it from one of our students here, Bobby, who realized that education comes FIRST, trading comes SECOND!

Practice on a Simulator

While it won’t accurately simulate the real emotions of trading, simulated trading will help you get the basic mechanics down. Learn how to trade your strategy in real-time. Learn how to execute orders, buy, sell, stop loss. There is no point in trading real money until you are at least profitable on a simulator.

Play What Is Moving

When you are a new trader it can be hard to gauge which stocks or setups have momentum. A lot of experienced traders just have that feeling that can help them feel when ‘mojo’ is coming into a stock at a given point. To avoid looking all day at dead setups that have no potential, as a new trader you want to focus your attention on stocks that have already traded over 1 million shares for the day, and trade consistent volume every day.

You don’t want to look to trade the stock on your first day that traded 7k shares yesterday and 50k today. Make sure your scanners are set to only show you stocks that have volume and activity so you don’t get caught in low liquidity traps. Watch this video below to learn more about how to scan for the best stocks to trade:

Set Your Platforms Up

Don’t do this at 9:25 AM. You’ll want to have your charting platform and order entry system all set up and on your screens the night before. Tomorrow is your first day remember, so you want to be as prepared as possible. Make sure your charts have all the indicators they need, look good, your level 2s are up, hotkeys ready and programmed (if you are using them), and all your windows are in the correct spots. This will save you tons of time and frustration the following morning by having everything already there and set for yourself. You want to be as clear-minded and sharp today as possible. Limit distractions.

Make a Watchlist

Take an hour the night before and create a watchlist. Get at least 3-5 stocks ready for the bell tomorrow so at least you have something to look for if the gappers and morning section is light. Doing this the night before when you are relaxed and your mind is clear will create a good habit and routine and also help you choose clearer setups. Watch this video below to learn how to build a successful watch list:

Get Your Mind Right

While we have been preparing for this huge day, you have to also take a step back and realize this is a long journey. It is a marathon, not a sprint. You don’t have to become a millionaire today. You have time to learn, grow, adapt, and scale your account steadily. Don’t rush things on your first day and have ridiculous expectations. Whether you are green or red on your first trading day does not determine the fate of your trading career!

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The post How To Prepare For Your First Day of Trading appeared first on Bulls on Wall Street.

Risk management is one of the biggest factors that determine your ability to be a profitable trader in the markets. Here are 6 must-watch video lessons to improve risk management for day traders and swing traders:

Don’t Give Back Profits Needlessly

Trading is a game where you can make AND lose a lot of money. A crucial trait of winning traders is their ability to hold on to the profits they make, and not give them back. Here is a video lesson from veteran trader Kunal Desai detailing how you can protect existing profits through aggressive risk management:

Combat Revenge Trading

One of the main causes of poor trading risk management is emotions after losing trades. It is normal to feel emotional after losing money. But you cannot these emotions result in you forcing trades on subpar setups. Revenge trading almost always results in you making a red day even worse. Here is how you can combat revenge trading:

Keeping Losses Small to Stay in The Game

There are days where you will have losing trades. But if you remain level-headed and keep those losses small, you can get your PNL back into the green if you capitalize on other opportunities. Here are some tips for going green on the day after a few losing day trades:

Trade, Don’t Gamble

In order to succeed in trading, you have to trade and execute a strategy with an edge. Doing anything else outside of a rigid system is just gambling. Here are some tips to combat the urge to gamble when you trade:

Go For Quality, Not Quantity

When you have a sound risk vs reward ratio on your trades, you don’t need a great win percentage to be a profitable trader. The better your risk vs reward ratio, the less you need to worry about having a high win percentage to make money. Here are some tips from Paul about how to maintain a strong risk vs reward ratio on your trades:

Use Hard Stop Losses

Sound risk management in trading requires a stop loss. You need to always have an exit strategy if a trade goes against you. Some people use mental stop losses, meaning they take themselves out of the market when they get their exit signal, and others use a hard stop loss, meaning they have an automated exit strategy. Here are the pros and cons of using both:

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Most of the time, this is not the case for new traders. Money creates emotions. If  you increase your size too much, it becomes difficult to control and manage your emotions.

Emotions will be in your trading no matter what. Succesful trading requires not the elimination of emotions, but management.

If any of these signs sound familiar, you need to start reducing your trading position size:

You Focus on Your PNL All the Time

You chase PNL, it runs. This is one of the most common errors a new trader makes: They constantly pay attention to how much they are up or down in a trade.

This causes poor decision-making because you’re making decisions based on your PNL instead of the market trend.

Pro tip: Hide your unrealized PNL on a trade. This will help keep your focus on what matters: The charts.

You Cannot Leave the Computer

A trade shouldn’t chain you to your computer to your phone. You should be able to comfortably leave for a minute or two without panicking. If you feel too scared to leave a position unwatched for a few minutes, you’re trading too large.

You Take Profits Too Soon

That’s my mortgage. That’s my car payment. That’s a week’s worth of groceries.

When you assign value to unrealized gains in the markets, it can cause you to take profits when you shouldn’t. While this is effective for curtailing greed, in the long run, early profit-taking has disastrous consequences for your long-term PNL. Learn to find that “sweet spot” with your position sizing:

Take profits based on price action, not what the unrealized gain is.

You Stop Out Prematurely 

Have you stopped out before because you were scared, just to watch the stock reversed on you and go to the moon!

If you’re jumping in and out of positions, it’s because you’re fearful of the money being risked. Cut down your size to eliminate this fear. Pre-define your risk before every trade: Are you truly okay with losing $200? If that makes you nervous, lower that number.

Losses Cause You to Adjust Spending Habits

Only risk what you can afford to lose. A trading loss should not cause you to change what type of fuel you get at the gas station. Or what type of food you buy.

You can only be a successful trader if you trade what you can afford to lose. NEVER trade with money you need to survive on. You will not be able to view the market objectively and let our trades play out.

Anything can happen in a trade. Even a strategy with an 80% win rate has a 20% of losing on any given trade. Trading with money you can afford to lose allows you sit back and view markets objectively.

You’re Afraid to Take a Loss

We’ve seen it happen too many times. Traders freeze up, and the loss gets so big that they cannot bear to realize it. Eventually, usually by force from the broker, the trader is liquidated and realizes a massive loss.

This is the opposite of what can go wrong with stopping out pre-maturely. Stopping out too late. This ties back into trading with money you can afford to lose: What you are risking on a trade shouldn’t make you so emotional that you freeze up.

Struggling with managing your trading positions correctly? We have multiple classes dedicated to this important topic in our 60 Day Live Trading Boot Camp:

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The post 6 Signs You’re Trading Too Much Size appeared first on Bulls on Wall Street.

The stock market isn’t that simple. Get familiar with this phrase: “Buy the rumor, sell the news”.

This is one of the most counterintuitive aspects for new and inexperienced traders. Today’s blog will clear up your confusion:

What is “Sell the News”?

One of the most important lessons you need to learn as a trader or investor in the stock market, no matter what time frame you trade on: Price action is always king.

I’ve seen stocks rally on some of the most horrendous news you can think of. I’ve seen stocks tank after reporting blow-up earnings reports. “Sell the news” events are when the stock rallies leading up into a positive company event, like an earnings release for example, and then sells off as soon as the event occurs.

The stock will often gap up during pre-market once the press release hits, and then reverse as soon as the market opens as sellers enter the market. This is called a “gap and crap”. Here are all 6 types of stock gaps you will see at the market open:

So what causes stocks to abruptly reverse at these key moments when the outlook of the company has never looked better?

What Moves Markets

Markets are moved by supply and demand. News can cause shifts in supply and demand, but the news itself is not what moves markets.

Often the good news will already be priced into the stock BEFORE the event happens. By the time the event happens, the stock has become a crowded trade. The edge becomes to do the opposite of the crowd.

$SPCE Example

Richard Branson flew into Space yesterday in the world’s first space tourism flight. An insane accomplishment, and seemingly positive news for his company Virgin Galactic.

But look what the stock did as soon as the market opened today:

It dumped almost 20% in less than half an hour. Plus the company filed today an offering to sell up to $500 million in stock. Even the insiders understand how “sell the news” works!

Another good example from last year is Pfizer:

The day after it announced the success of it’s vaccine trials it gapped up 20%. And look what happened after. It tanked almost 20% over the next few days.

How to Trade “Sell the News” Events

News catalysts are great for bringing momentum and liquidity into a name. But they do not by themselves give you a trading edge. If it was that easy, no one would need to work a regular job. You’d just buy on good news every time, and short on bad news.

With these kinds of widely anticipated company events, you need to think about which side the crowd is on. Many of these are “crowded trades”, trades where everyone is taking the same position with the same thesis. The edgie is going short, which I did this morning:

Lately, these gaps start fading pre-market, so you need to hit them on a spike right at the open to catch the move! The key is to align the context, a “sell the news” play, with an intraday setup to give you a low-risk entry to take down these stocks.

The post How to Trade “Sell the News” Plays | $SPCE Example appeared first on Bulls on Wall Street.

But what you do not see is the 5 losses they took on the way down trying to guess the bottom, and how they still ended up red on the trade.

Learning to capture the meat of a trending stock on an intraday or daily timeframe is a crucial skill for all trading styles, not just counter-trend trading.

Every time you trade a stock, you need to have realistic expectations of how far a stock should run in either direction on a given setup.  Here are some tips on how you can participate in big market moves without trying to pick a top or bottom:

Scaling

Scaling is my favorite technique for capturing the meat of a stock’s move. Scaling is a strategy where you sell or cover your position in portions, instead of all at once. This allows you to realize profits while keeping yourself in a position to capture a bigger move in the market. Here’s how scaling works:

You can also use scaling for entering stocks, as you can take partial positions, and then add more shares once you get confirmation of the stock trending in your favor.

Do not let scaling into a position turn into averaging down on a loser. Make sure to always have an entry and exit plan when you are scaling your positions, so you know exactly when you will add more to an existing position or reduce your position size.

Know The Stock’s Range

Always know a stock’s average true range, especially when day trading it. The average true range is how much a stock typically trades up or down on a daily basis. Let’s look at $SPCE for example:

$SPCE’s average true range in the past 14 days was $4.92, roughly 10%. Catching a 3-5% move in this on the right day is very doable in the current market environment. If $SPCE has already made an 15% move that day, is there a good probability of it continuing? No. If it has only moved 3% on the day, does it have the potential to continue if there’s a good setup? Yes.

A stock’s range helps you create your expectations around your entries and exits. You always need to know this about any market you trade in order to put on high probability trades.

Now, do some stocks have days they trade outside of the ATR? Of course. This is why I mentioned the scaling point earlier. You take partial profits after a stock has made it’s “expected” move, and keep partial for the home run. You should NOT be putting on large positions after a stock has used up most of it’s ATR.

Expectations

NEVER get into a trade with the expectation that you caught the bottom or the top of the move. Even if many indicators and setups align in your favor, there is always a chance you could be wrong. The market can, and will, do anything. Overbought can get more overbought. Oversold can get more oversold. “Markets can stay irrational longer than you can stay solvent.”

Always manage your risk and make a plan for every scenario. Prepare for the worst, expect the best.

Knowing Key Support and Resistance Levels

Knowing key levels of supply and demand of a stock tells you where the stock will likely end up, and where it could reverse. Here are the different types of support and resistance levels you should pay attention to:

Mark out these key levels before taking a position. This will tell you when you should start taking profits, and how far the stock might rally or dump on your trade.

Let The Bottom/Top Pick Itself

When you get into counter-trend trading, you cannot fall into the trap that something seems “too oversold” and must bounce, or “too overbought” and must pull back. So many markets moves have exceeded everyone’s expectations to the long and short side. Picking tops and bottoms is a fool’s game.

Instead, let the stock end the trend it’s on, and then join once it is obvious the trend has changed. You can still get a nice gain on a stock bouncing or pulling back without catching the exact top or bottom. Jessie Livermore said it best: “ Give up trying to catch the last eighth – or the first. These two are the most expensive eighths in the world.”

The post Must-Read For Day Traders: How to Catch the Meat of the Move appeared first on Bulls on Wall Street.

Today’s article will show you some of our favorite strategies to overcome some of the most common psychological issues all stock traders and investors face:

Combating FOMO (Fear of Missing Out)

FOMO is the most common reason why we buy stocks to high, or short to low. One of the worst feelings in trading is watching a stock make a big move without you. For some traders, it’s even worse than taking a loss! The stock market is so big, and there are so many stocks moving every day, you will always be missing an opportunity. You have to learn to combat FOMO to become a consistently profitable trader.  This video lesson will help you learn how to overcome FOMO:

Sizing Positions Correctly to Avoid Fear 

Position sizing plays a major role in trade management. One of the most common mistakes traders make is sizing their positions too large. It puts them at a bigger risk of taking a massive trading loss and also makes their trade management much worse.

When you are trading huge size, you will take profits at the wrong places, stop out either too early or too late, and generally be a lot more emotional in your trading. Reducing your size will actually make you MORE money, because of how it reduces emotions and improves your trade management. This video lesson will show you the importance of sizing positions correctly, and how to break the bad habit of over-sizing:

 No Emotional Attachment

One of my favorite trading quotes: “Trade the ticker, not the company.” One of the biggest issues traders have is an emotional attachment to the stocks they trade. Their attachment causes them to mismanage their positions.

These traders will usually either fail to take profits when they have them or fail to stop out of their positions when the loss was small and manageable. Here is how you can combat emotional attachment in your trading:

How to Scale-Out of Positions to Reduce Greed

Timing exits is one of the trickiest parts about trading stocks. Selling too soon and missing the big move. Selling too late and watching a nice unrealized gain come all the way back to breakeven or a loss. I’ve found the best exit strategy to manage these two problems is to scale out of your positions, which means taking partial profits (½, ⅓, ¼). This video lesson will show you how to scale out of your positions correctly, and manage greed while you’re in a trade:

Revenge Trading: How to Stop Forcing Trades

Every trader’s reaction after taking a trading loss: “How can I make this back”? Most traders jump on the first stock that moves, take another loss, and then end up further in the red. Next things they know, a small manageable red day turns into a day that undoes weeks and months of green. The best traders don’t let trading losses affect their trade selection, and don’t get emotional. Here are some of the best strategies to combat revenge trading:

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The post 5 Trading Psychology Lessons Every Trader Needs to Learn appeared first on Bulls on Wall Street.