Trading with Root Cause Analysis
If you have read my article on Pareto charts this will probably make more sense to you. Root cause analysis is another tool that traders could benefit from. I know that some of these things do not seem trading related, but you can improve results with them. When all is said and done results are what matter anyway. On your pareto chart you have identified weaknesses in your trading style. Root cause analysis is how you start to fix them. First we need to identify the most prominent cause of failed trades. Once this is identified you will need to write it at the top of a separate sheet of paper. Below this you will ask a question. What caused this reaction? Then you list the answer. Now ask yourself the same thing about this new answer. List it. You will continue to ask yourself this for each new answer, until you cannot come up with an answer. Generally, you will only be able to go about 3-5 levels deep. This is your root cause. This is the start of the path that leads to the losing trade. When you have reached the root cause you have one more question. How do I avoid this root problem. If it is a emotional problem maybe, you need to work to become more self aware of the feeling that starts a process of bad decisions. When this feeling starts to erupt, just exit your positions and and stop trading for the day. It is better not to trade, than trade and lose. If the problem is psychological, maybe you need to find a routine that works for you. A good example of this is a baseball pitcher. A major league pitcher has all the physical requirements, or he would not be in the majors. Some pitchers have been known for having quirky routines they go through on each pitch. There are some pitchers who have had terrible seasons because they lost something in their routine. Their physical attributes have not changed, only their mindset. Their routine is only psychological, but the results of it being off are all to real. Of course, if it ends up being the system the fix is obvious, scrap it.
Other Trading System Articles
Trading Psychology - Adopt the Right Mindset for Big Profits! The fact is the majority of traders lose because they cannot control their emotions. Trading psychology is one of the keys to investment success.A simple fact will illustrate the influence of trading psychology:Why the majority of traders loseThere is one statistic that has remained constant since the beginning of investment ...Currency Exchange: How To Use It and What It Can Do For You I can tell you this, this is definitely not a business that will make you rich overnight, so if your sitting there in your lazy chair hoping that you can just throw in $25 and expect to be a millionaire in a week this is definitely not for you!. I CAN tell you this though given a little patients and time you can profit substantially over the l ...Executing a Trade There are two basic ways to execute a trade, on the exchange floor or electronically. With the ever changing technological advancements in this day and age, there is a drive to move more trading to the networks and off the trading floors, however this is meeting with some resistance. Most markets trade stocks electronically.The New York ...Understanding the Forex Trading System The forex trading system involves buying and selling foreign currencies, it is the biggest financial market in the world and on an average the trading ranges anywhere between united states dollar one and a half trillion to two trillion everyday. Trading goes on round the clock on all working days throughout the globe. If you plan to explore inve ...Online FOREX Trading – To Be A Success Don't Pay Attention To The News! Can studying the news help you make profits in online FOREX trading? The answer for most traders is a no.In fact, paying attention to the news in online FOREX Trading will lose money. Why? Read on and let’s find out.How and why prices moveIn online FOREX trading (and any financial market for that matter) prices move based up ...Understanding Emissions Trading and Global Warming It goes without saying that there is often an inherent conflict between science and economies. Emission trading is an interesting effort in the global warming arena.Understanding Emissions Trading and Global WarmingIt is a mild understatement to say that global warming is both a controversial and misunderstood field. As the decay o ...Choices for Cosmetic Dentistry Modern dentistry has devised a number of ways to provide treatment options for people looking for teeth enhancement procedures. Methods may range from simple teeth whitening up to bracing and bridging. Some of these methods are discussed in the following sections of this article.Teeth whitening Teeth whitening basically employ peroxid ...UV Light Inside Hospital Duct Vents There is a very serious problem in our Hospitals and that is the infections, which are happening and it is killing hundreds of thousands of people. We need a way to kill such bacteria to prevent all these hospital deaths. There is a way. How so you ask?I propose using more UV high intensity light in hospitals. These UV lights should be in ...Stock Investing: Buy-and-Hold vs. Timing The most important factor in stock market success is controlling risk. Risk, of course, includes not only the possibility that you will lose money, but also the possibility that you will miss out on a chance to make money.The Sensible Stock Investor uses a variety of methods for managing risk. One of these is timing. Timing means selectin ...Modern Medicine Fails In our western communities, statistics have been offered which account for one person in four dying of cancer and one in four of heart disease. If these figures are accurate, the other half of our population is left to account for all the kidney failures, contagious diseases, arthritis, respiratory problems and other innumerable diseases suffer ...Vietnam as an Emerging Economy Vietnam, one of Asia's Newly Emerging Economies, has turned its economy around dramatically after several years of macroeconomic instability, stagnation, and isolation from the world economy. With its Soviet style ministerial system and Communist Party leadership, Vietnam is moving from a commodities based economy heavily reliant on ever diminis ...A Critical Review of Metastock 8.0: Is Upgrading Worth the Money If you are like many other traders, you have been eagerly waiting for the release of Metastock 8.0 for one reason, and one reason only, the reportedly redeveloped system tester. Metastock`s one major flaw has always been its lack of back testing capabilities, though previous versions of Metastock are head and shoulders above the competition on o ...What Type Of Indicators Should You Use For Trading Are those simple indicators like MACD or ADX useful for trading?Yes sure they are! MACD is the most reliable indicator ever seen! Is this right? Of COURSE IT’S NOT!!I’ve seen lot of forex articles on the net talking about the strength of these indicators like they were the key of success to the forex & st ...How To Profit Trading Forex If anyone has ever told you it’s easy to make money in Forex they are misleading you. Successful traders have discipline, the ability to manage their money and understand the psychology of the market. Trading is not done by guessing which way the market will move, but by using either fundamental analysis or technical analysis.To make an ...Trading Software Trading is a risky business, but if carried out with care it can result in huge profits. It involves getting a firm hold in the market, either short or long term. Realizing the importance of trading, trading software programs have been introduced to the public to offer a variety of trading tools to help make proper buying or selling decisions. ...Road Warrior At Risk: The Dangers Of Ad-Hoc Wireless Networking Airport Menace: The Wireless Peeping Tom ---------------------------------------- As a network security consultant, I travel quite frequently. At times, it seems like the airport is my second home. I actually like to fly, it's a moment in time where no one can reach me by e-mail, or mobile phone.It never fails that something in ...Five Forex Trading Tips You MUST Know Jumping into Forex trading with both feet? Here are five must-know tips on forex trading and mini forex to help you stay afloat in the Foreign Exchange currency market.Know your forex trading market. Educate yourself about the currencies that you trade. The more you know about the country whose currency you’re trading in the forex mar ...How to Rate Your Favorite Uranium Company Many investors invested in the Great Uranium Bull Market with little rationale behind their speculation. Through the robust rallies of the past two years, it was easy to play the momentum of a newsletter writer’s recommendation. Quite a few did so, often employing the ‘greater fool strategy’ and hoping the last and dumbest investor would provide ...12 Basic Stock Investing Rules Every Successful Investor Should Follow There are many important things you need to know to trade and invest successfully in the stock market or any other market. 12 of the most important things that I can share with you based on many years of trading experience are enumerated below.1. Buy low-sell high. As simple as this concept appears to be, the vast majority of investors d ...A Guide to Forex Trading System There is no other market in the world that can compare itself to the foreign exchange market. With almost USD 2 trillion in daily average the Forex market is bigger than all the stock and bond markets of the entire world. A better way to understand its enormous size would be to compare it with any national stock exchange. Let's use the New York ...Are You This Trader? Have you ever heard the Kenny Rogers song The Gambler. During the chorus there is a line that says;You've got to know when to hold 'em, and know when to fold 'emI want to cover the fold 'em part. This is usually the one that knocks the feet out from under the newbies.So you have studied the manuals and all the course materia ...Brief Summary of Forex Trading The foreign exchange market is widely known as "Forex". Here brokerage firms and banks are linked over an electronic network. This network enables them to convert the currencies of countries all over the world. It is the largest and the chief liquid financial market in the world. Dollar volume of dealing of currencies daily goes beyond $1.9 tril ...The Great Pretenders Here we are in the midst of another political season, and I have to admit I just don’t get it.We’ve been at this game now for 225 years or so, and this is the best we can do? Let’s face it. Our vaunted two-party system really is doing it right this time. Here we are, trying to kick off a new millennium. But what have we got to show fo ...Learn By Hands On Forex Trading: Demo Accounts Vs Mini Accounts If you are new to Forex, you are likely overwhelmed by the sheer amount of information you are finding about currency trading. Although the concept of trading the currency markets is simple to understand, the actual trading methodologies and understanding of how, why and when trades are executed can be hard concepts to grasp and fully understand ...True Investment Road Maps If you don't know where you are going any road will get there. After you get there you might not like where you ended up. You must plan ahead for your trip.Do you know where you are going with your retirement portfolio? Do you have a plan mapped out? Do you know what to do if your plan starts hemorrhaging money like a stuck pig? Remember ...Stock and Options Millionaire Principles INTRODUCTIONHaving been trading stocks and options in the capital markets professionally over the years, I have seen many ups and downs.I have seen paupers become millionaires overnight…AndI have seen millionaires become paupers overnight…One story told to me by my mentor is still etched in my mind: ...Horse Racing Betting System - Designing a Simple System Putting together a system is not as difficult as it may sound, even for a beginner. The important thing, and with any betting, is that you write down every rule and follow it for at least 100 bets. You do not need to trade real money, paper trading is best at first. If after 100 bets it is in profit, you can then give it a betting bank and start ...'Carbon Neutral' What Do You Mean? This new term which has lately been doing the rounds in environmental circles and also in the more general media, refers to carbon dioxide and how we can find ways to reduce or offset the amount of this global warming gas which we pump into our atmosphere.We are attempting to neutralize part of the carbon dioxide emission by increasing ca ...The Stock Market Report That Wall Street Does Not Want You To Read The best way to maximize your profits is to be prepared to give some back to the Stock Market. When most traders first hear this, they are a little taken back. Why would you give any of your profits back to the Stock market; because you are never going to be able to exit right at the peak of the Stock market trend. But, you can still stay with t ...Online Futures Trading - Advantages and Disadvantages What Is Online Futures Trading?A futures contract is an agreement to buy or sell a commodity at a date in the future. Everything about a futures contract is standardized except its price. All of the terms under which the commodity or financial instrument is to be transferred are established before active trading begins, so neither ...Forex Trend Detection Long term profitable Forex trading warrants long term goals and objectives. One good idea is to have an excellent trend based trading system. Just having one will not really work out if you do not follow it in a disciplined manner. Building a trend based trading system is no mean task. The basic skill lies in solidifying the rules for trend dete ...The One Thing You Must Know Before Making a Trade Okay, You’ve entered what you think is a low risk trade, having deduced that this was the perfect time to go long. Your indicators all line up, and CNN reports good 1st quarter results in the sector your trading. Now, you watch in utter dismay as it turns against you, hitting your mental stop, and you impulsively decide to ride it out, hoping ( ...Do Trading Systems Really Work? Sometimes we have to forget about all the hype and just think about what is really important. When George Bernard Shaw was asked if he were in the National Gallery and there was a fire, which painting would he try to save. He answered, “The one nearest the door of course.”If you have found yourself searching the web for trading support an ...Spot Uranium Price Creeps Up to $61/Pound as Buyers Begin to Worry About Supply TradeTech published the weekly spot uranium price indicator of $61/pound, for the week ending November 10th in Friday’s edition of “Nuclear Market Review.” It is posted on the Trade Tech website. But, judging from the number of utilities seeking U3O8 equivalent, it is unlikely spot price increases will stall or stabilize at this level. Nor will ...How to Get a Lower Blood Pressure Using Medical Treatment The treatment for lowering the blood pressure is usually recommend by physicians for patients with a blood pressure of above 160/95mmHg. For those with a blood pressure immediately bellow these values it is taking into account age, sex or other individual factors of the patients before taking the treatment.The first kind of treatment reco ...Retail Brokerage In a 2001 report published by Celent, a firm that is concentrated on the implementation of information technology in the world pecuniary assistance sector, it showed that retail brokerage in North America may be down but definitely not passé.The said company has two primary offerings namely research and consulting. Research takes place wh ...
|
