What I talk about is nothing new or revolutionary. In fact, if you’ve taken the most basic of basic psychology courses in school, you’ve learned about the concept of confirmation bias. Given trading the markets is a huge mental game, confirmation bias can play many roles in holding you back from improving as a trader, […]
I had a statement come in through my website that prompted an idea for this video. I 100% understand and respect where this person is coming from and why they viewed the situation the way they did. At the core, the stock market “is numbers” and numbers are… well… simply numbers. What is there to […]
The stock market and day trading prove great opportunity. I don’t think anyone will deny that; however, with that being said, day trading for a full time job has many considerations that must be made. While I realize why some people have the wrong impression of how all this works, I want to set the […]
Lots of people have the best intentions when first starting their trading journey; however, in a cruel joke type of way, many of these trading simulators out there do a massive disservice. It is by no means intentional; but it needs to be made aware of. No matter how noble your intentions are, if you […]
I can’t take any credit for coming up with this mind trick, but thanks to fellow followers of the ClayTrader community, it is a mind trick that I find myself using over and over again due to its effectiveness. If you’ve ever found yourself in a spot where you are feeling the need to make […]
In the world of psychology, confirmation bias is a concept and topic that is considered pretty basic. Even though it is basic human psychology, the craziness it can lead to and cause in the world of the financial markets is staggering. As much as I wish I could say this whole example was fake, it […]
While I certainly don’t mean to imply that in order to be a successful trader you need an elaborate system and strategy filled with all sorts of complicated requirements; however, at the same time, finding success in the markets is not quite as some newer traders perceive it to be. Sure, the core goal needs […]
I speak from experience when it comes to penny stock investors who display an insane amount of arrogance and cockiness. Sure, I see it all the time, but when I first start investing into penny stocks, I was the exact same way. I thought for sure I had found the diamond in the rough, but […]
The market absolutely loves to play with the emotions of new traders. One of the most common and favorite cruel jokes the market plays is making someone “think” they have it all figured out…. only to completely demoralize them by taking back all the money it gave the trader, and then some. One of the […]
There is no such thing as the holy grail for how to trade in the stock market; however, there are some attributes and characteristics that once developed can put your odds of success much higher. One of the most important things a trader must have is self-awareness… kind of… it needs to be the sweet […]
I’ve had several people comment that my ClayTrader Mail series is unnecessary, a waste of time, and/or getting too old and repetitive. I’d fully disagree with it being a waste of time, but as far as the other two points are concerned, I can understand why they are commenting. Sure, the overarching themes in many […]
Whether you are trying to day trade stocks or swing trade with advanced options; the world of the stock market can be a crazy and complicated place. When you start to introduce concepts that seem obvious, such as “failure”, it takes the trickiness to all new levels. The good news is, there is a solution […]
I guess I’m just not as nice as some people think I should be since I don’t offer all my content for free. I do charge money for my premium training content, and sure, there is a business aspect that goes into it… but, there is also basic human psychology that needs to be factored […]
I wish I could take credit for this analogy regarding trading in the markets, but I can not. Thanks for a member of the community, they overheard this conversation about skiing and then passed it along to me as it truly does a PERFECT job of explaining why certain concepts in trading must be learned […]
For those of you who have traded with real money in the stock market, you know how mental of a game it can be. With this being the case, I am always looking for ways I can give myself an edge when it comes to my personal psychology. While nothing is perfect, I wanted to […]
I always assume that people want to learn how to trade and get better at trading the markets; however, the way some people act, you have to wonder. In order to ever truly progress and improve as a trader, there are a few critical things that you need to be asking yourself and considering. If […]
Trading the markets is a mental game. The same can be said about life, and I wanted to share a simple “viewpoint” that you can use that will really shift the way your mental attitude changes. I like to call it taking the “guaranteed trade” which profits you each and every time.
If you’ve looked around long enough, I’m sure you’ve seen the statistics that state 90% of all traders fail. I realize that number scares away many people, but in my opinion, it is a number and statistic that should be embraced and used as pure inspiration!
Thanks to a move that is an American classic, I am able to explain just how tricky and sly the emotion of greed can be. Yes, many people think they have greed under control, or perhaps, are not being greedy at all; however, as you will see in this video, greed is a “clever girl” […]
Regardless if you are a brand new trader to the markets and trying to learn how to trade, or if you are someone who has a lot of experience day trading and swing trading, there is a single word floating around that should NOT ever be used. I still struggle with it from time to […]
This concept is the most important I could talk about. I’ve covered it before, but not in such a way that focuses on an analogy. Hopefully you’ll see just how dumb the analogy is, but then realize that it is what many new traders do when first getting started.
It may have taken well over two years to collect this data, but now that we have it, we can see exactly why so many people fail in their aspirations to get active in the markets as traders. It’s one thing to make a claim based on general theory, but as you’ll see, the claims […]
Bottom line, WHY are you in the markets? Your answer is going to be a very accurate indicator on your chances of success or failure.
In this consumer driven culture we all live in, people having debt is nothing out of the ordinary. In fact, it’s so common place that if you don’t have debt, you are actually the exception and not the rule. I’ve seen plenty of marketing that attempts to persuade you to trade the markets to pay […]
Believe it or not, there is quite a few similarities between the world of dating and trading. In fact, the one similar aspect does a fantastic job of explaining why someone who invests into learning a strategy will still probably fail.
No matter how long you’ve been trading the markets, a common problem that seems to always persist is selling out of a trade too soon. Sure, there are profits made, but in many cases, the money made could be so much more.
An accusation I hear every once in a while is something to the effect of, “If you are such a great trader, why are you spending your time teaching?” Some people ask in a sincere way, others state it in a way which implies it as an insult. Regardless of the way it is being […]
It amazes me how many traders out there believe in Magic Hammers. The Magic Hammer seems extremely silly; but, when you compare it to the outlook new traders can have towards “guru websites”, it’s not at all different…
Outside of greed, in my opinion, the next two most common emotions in the world of trading are panic and stress. ‘Where’ do these emotions come from? ‘How’ can they be avoided and corrected? That’s what I discuss using a real world situation that I’m confident everyone can relate to.
Hollywood tends to over exaggerate quite a bit, but when it comes to answering the question: How to be successful in trading?, this movie scene perfectly summarizes it. Podcast: The Stock Trading Reality Podcast
The most popular question to ask within the markets is also the worst question to ask. On the surface, the question seems very innocent and productive; however, when you actually analyze it, you will see how it truly is a risky thing to be asking people.
A common problem among traders is the question constantly hanging over their heads of, “Do I really actually know what I’m doing?”. In other words, “Do I have confidence in my abilities as a trader?” How do you ever know though? This video will explain the attitude that arises after you have finally arrived at […]
One of the biggest stumbling blocks for traders can be scoring a win. Yes, you read that right. A winning trade can actually be a large hindrance in the long term failure rate for traders. How can this be so? I cover this extremely important aspect whether or not a winning trade is truly a […]
This topic drives me nuts and I need to address this silly logic that marketers use to prey on new traders. It also drives me crazy because I used this logic when I first got involved in the markets. I wish someone would have slapped me in the face and said “Hey! What are you […]
Getting yourself on a stocks or option trading winning streak is a great thing, I can’t argue that. However, in an odd way, a winning streak can also lead you down a very risky path. Obviously, don’t avoid going on winning streaks, but the concept talked about in the video is certainly something you need […]
Like a bug drawn to a bug zapper, the same thing happens to many aspiring stock traders. The tricky thing about this attribute of the market is it is a huge positive; however, at the exact same time, this attribute also acts as a zapper of trader’s portfolios.
You could have constructed the perfect trade plan, following all the rules… however, there is one little factor that often times slips through the cracks and destroys all the time and effort putting together the plan. Learn what this sneaky little wrecking ball is all about.
“Trade what you “see” happening, NOT what you “think” will happen.” My personal trading philosophy explained How Assuming Cost Me 230%
Why is the success rate for traders only at 10%? I will explain using some pretty common sense logic; however, it was not “common sense” to me when I first started trading. Luckily, I realized it very quickly and escaped the trader death trap.
I will be the first to raise my hand and admit I did plenty of dumb things when I first started trading; however, the one thing I did do right was not create excuses. There are two excuses that I hear all the time… over…and over… and over again. Well, I’m here to tell you […]
It’s one of the more amazing dynamics of the stock market. People trusting complete strangers in regards of what they should do with their money. This sounds like a totally stupid and illogical thing to do; however, I see it all the time. Are you listening to strangers? Are you listening to the brownbag traders?
Let me first just acknowledge the fact that there are many shady people in the world. Add in the component of wanting to sell you something, and oh boy, the waters get that much murkier. I know whenever I see someone on TV or the internet selling products or services, my skepticism radar goes on […]
I see it all the time. Someone who believes they are a trader; yet, their actions show something completely different. While they may believe they are a trader, the blunt reality of the situation is quite different: they are a puppet.
One of the very few guarantees I can make to you in regards to the stock market is this: you will have losing trades. While this may seem like an obvious statement, it is the one concept that causes most traders to fail. In order to overcome the effects of a losing trade, you must […]
The economics and psychology of habits needs to be understood in order to ensure that you become the best trader possible. In this quick tip video, I explore “how” habits are created and “what” you can to best increase your probabilities of becoming a consistent stock trader.
It’s time for a trader health checkup. How are you doing as a trader when it comes to staying focused and mastering a certain style/concept? There is a very powerful syndrome floating around in the trader world and it affects more than it doesn’t. I was a total victim of this syndrome. What is it? […]
Growing up we are taught that “goal setting” is something that needs to be done in order to be successful in whatever you are pursuing. While I agree with this, there is an instance where, from my experience, “goal setting” becomes very risky. In what instance is this the case? For those in the business […]
So you have stumbled onto my site and this blog post. Great! Assuming this is your first time here (or maybe you’ve just been on my site a few times), you’re probably feeling a bit skeptical about me and my services. I understand! Sure I offer lots of free resources, but I also charge money […]
How would you rate your imagination when it comes to being a stock trader? Do you have a good or bad imagination? In this Stock Trading Quick Tip video, I discuss what type of imagination you need for success. Along with this, I explain exactly “how” you can create this type of imagination for yourself. […]
Through my experience as a trader and teacher, there is a particular sequence of logic that I’ve heard over and over again. On the surface it may sound like very reasonable logic; however, when you stop and really think about it, it literally is terrible logic! If I’m being honest though, when I first got […]
Many traders pull inspiration from other sports and professions. Clay describes in this video how sometimes that may not be the best idea.
Why Winning Streaks are Dangerous – As a stock trader, psychology and emotions are the primary key to long term and consistent success. With this being the case, stock trading winning streaks can become very dangerous and lead to undesirable outcomes. What do I mean? How is this possible?
Most people, if presented with the following scenario, would reply, “sign me up!” What is this scenario? Imagine…
Are you a politician when in comes to stock trading? If you are not, you better start kissing babies and become one as this is a key component to becoming a successful stock trader.
Do you fall into the category of stupid stock trader? If you are not sure, you’re about to get that question answered for you.
If I were to take a survey based around the question “What does it take to be a successful stock trader?”, I am certain I would get an array of answers given its broadness. Some answers may be “you need a large portfolio”, “you need to have a solid education”, “you need lots of practice […]
The number one question I receive on a constant basis from stock traders is “How do I become successful trading stocks?” This is a great question since I believe it shows the person is willing and ready to better themselves as a stock trader. Trading stocks for a living is one of the most enjoyable […]
Learn about the 5 tools I use to find trading setups (including 3 that are completely free).