The psychology of investing not only affects individual investors but also affects the market as a whole. Many investors often underestimate or are unaware of the affects that our emotions have on our return on investment.
After the long weekend, we enter a busy week of economic data releases. Durable goods data was released earlier this morning coming in well above expectations, jumping .8 percent after analysts forecast a decline of .8 percent. Ex-transportation numbers show durable goods orders with a tenth of a percent rise. This is a leading indicator of positive economic growth.
Everyone talks about discipline and trading. It's probably not a stretch to say that discipline could be the most common word used in trading. I have received many, many emails over the years from traders asking me how they can improve their discipline.
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Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. View Full Risk Disclosure.
CFTC Rules 4.41 - Hypothetical or Simulated performance results have certain limitations, unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.