Why ladies make better traders than men!

Dear female reader,

Men will probably hate me for this, but someone needs to say it.

There are two problems that many men have when trading.

Testosterone and ego.

Men don't like the idea of being wrong and they generally like to take big risks when it comes to trading and with life in general.

But with you ladies, you know when to say no, when to ask for directions and how to stick to a strategy.

These are key characteristics you need to profit and bank a second income when trading the markets.

And so today I want you to teach those men a lesson and show them how your qualities will make them much better traders.

Ladies know when to say no!

Through my 11 years of trading experience, I’ve found out something interesting. Most men that start off trading, want to be right.

They get into a trade according to their strategy, but will keep holding onto it until they’re “right”.

Even if the trading strategy goes against them where they lose money, men will just keep holding on.

The need to be right is more important to most people, rather than trading correctly.

And then when I ask them why they don’t get out at a small loss and look for the next trade, they tell me this.

“I’m going to go big or go home.”

I’ve never heard such nonsense in my life.  I mean that one little trade, could end up destroying his account.

But with ladies it’s different. They know when to get out of a dangerous situation, without clouding their judgement with ego and with the need to be right.

They’ll follow their plan in a strategic and well thought out manner. This is the key characteristic to make money trading the markets.

But I thought women are emotional and hysterical when it comes to life?

Ok, it is understandable that women can have hormonal changes and mood swings once in a while. But when it comes to an actual crisis or problem, the ladies are more risk averse.

They are known to be calmer in a crisis, where they make better decisions in an unemotional and strategic manner.

So if their trade goes against them, they’ll re-look, re-analyse and act in a way that it saves their portfolio.

Unlike majority of men, who love the drive, danger and adrenaline of weathering through a crisis.

Now before I continue, let me just state my disclaimer now, before you unsubscribe for me being so “controversial”.

Not all females and men will be great traders. Not every woman I mention in this article are the same. So please don’t send me emails telling me how you disagree with what I have to say today. I’m only stating what I’ve seen throughout my trading career.

And men! If you want to profit from the stock market, then you need to be a little bit more in touch with your feminine side.

Men like to go against their trading strategy because they “know” better

What happens when a man gets lost when driving? And this includes me!

We like to try wing it and keep driving until we find the destination.

I remember I got lost in France for 14 hours, when I was younger and I refused to ask for directions. And two years ago on the 4 July I got lost again in Paris for six hours and I also never didn’t ask for directions.

I don’t know what it is, but it almost becomes a challenge to find our destination without asking for help.

But with women, in general, it’s different. And I definitely see it as a strength and not a weakness.

Women, will happily go to anyone with a smile on their face and pure confidence to ask for directions.

And guess what, they’ll reach their destination before us men find the place.

With trading it’s the same, most men have the map “trading strategy”
 they need to profit from the market. But they seem to go against their own plan because they “know” better.

And don’t worry I tried to follow my own trading map for over five years. After being down 30% of my portfolio and a HUGE dent in my ego, I learnt my lesson.

So when you have a proven and back tested strategy, please follow it!

FOLLOW IT!
FOLLOW IT!

It’s proven for a reason. So follow it and make money using it.

It’s as a simple as that.

I guess when it comes to trading, testosterone isn’t always your friend.

Know when to say NO! Follow your trading map as you should, don’t have a losing ego state of mind and never think you are better than the market.

So until next time, get in touch with the winning female traits and put on your big girl panties.

And ladies, you got this!

"Wisdom yields Wealth"

Timon Rossolimos

Senior Editor:  Trading Tips
Head Analyst: Red Hot Storm Trader
Author:             94 Top Trading Lessons of All Time

PS: Don't forget to like these two pages on Facebook for awesome trading tips and Facts about everything!

Take your losses like Floyd Mayweather takes his punches and win!

It's in the mainstream! Mayweather running around, hugging Manny and defending throughout the fight of the century. But he still ends up the winner of the night taking home over 100 million dollars. 

In fact, there's a joke going around: It's not "fly like a butterfly sting like a bee" anymore. Now it's "run like a chicken, hug like a bear".

Anyways jokes aside, while I was watching the match early in the morning, I thought about how much I can relate to my own trading and with managing my portfolios risk. 

Expect the losses when you start trading like Mayweather expects puny punches

Like Mayweather, he can't be a boxer without taking the occasional hit from time to time. As for me I can't be a trader, without taking losses in the market.

I have a startegy with a track record that shows a win rate of 62% on average a year. So, I expect to take knocks in the market... But how I manage the losses, are a different story. 

You see I basically expect to take around three two losing trades for every five trades I take. But as long as I ride my winning trades longer than my losing trades, I’m sure to keep my portfolio on the up.

Adopting this attitude to your trading will prepare you for the potential losers and winners to come.  And you'll have peace of mind knowing that losing trades are part of your winning game plan. 

Make sure your "knocks" are small and easy to stomach

Do yourself a favour.  Go watch the boxing match again.  You'll see Manny throwing hundreds of punches at a time. But more importantly, you'll see how Mayweather defends himself from being injured or worse, knocked out.
And so he’s developed skills and has trained himself to handle the punches with ease.

With trading it's identical. You can either be knocked out your portfolio in just one trade or, you can manage your losses with the defence of a stop loss function.
The stop loss will get you out of your trade at a specific level, should the trade go against you. And so, you can limit your loss using the stop loss.

So before you get into every trade, know where to put your stop loss. Don't risk more than 2 to 4% of your portfolio per trade.  You don't know how many losing trades you'll take in a row. 

And whatever you do, put your reward level at least double of what you're willing to risk.  So you can grow your portfolio with being able to stomach the small losers. 

And always remember, "Wisdom yields Wealth". 

Timon Rossolimos
Author:          94 Top Trading Lessons of All Time

PS: Don't forget to like these two pages on Facebook for awesome trading tips and Facts about everything!