Archive for the ‘Mental Edge’ Category

What are the 5 Game Changers to Uncover Your Blind Spots and Make 2011 Your Best Year?

Monday, February 7th, 2011

Following is the replay webinar where I talk about:

  • What is Human Capital Risk (HCR)?
  • How does HCR impact your trading?
  • What are the 5 Game Changers to Uncover Your Blind Spots and Make 2011 Your Best Trading Year?
    • What are the symptoms?
    • What Actions you can Take right now to increase your P&L?

There are still a few spots left for Consistently Boost Your Profits, which starts on February 14, 2011. To register go to:

Let me ask you a question:

How ready are you to Uncover Your Blind Spots that block the True Profit Potential of Your Trading Business and have a personalized game plan to boost your profits?

How would you like for the curtain to be pulled back and to find out the little talked about secrets of top 5% traders? It is going to change how you look at the markets and enable you to stay in your trading zone….

In this program we will cover:

  1. Your Personal Risk Profile – How to recalibrate your skill sets and get the results that you have always wanted
  2. Money Management – How to recognize and stop the sabotage patterns that cause your yoyo effect
  3. Unshackle Your Power – How to harness your attitude so your trading business can flourish and go to the next level
  4. Getting In the Zone – How to stay in your trading zone and manage your positions from an objective point of view

To discover more, go to:

Trading: An Art Or Science?

Saturday, January 22nd, 2011

Is trading an art or a science? This is a conversation that I had with a very successful trader:

Nazy:       Do you believe trading is an art or a science?

Trader:    Definitely a science.

Nazy:       How do you trade?

Trader:    I use an automated system so there will be no emotions attached.

Nazy:       How did you come up with that system?

Trader:    I have done my homework. I really know my markets. In addition, I learned the system inside out and understood its assumptions. I constantly test it and push it to its limits.

Nazy:       So, you are not relying on the system formulas alone. Are you?

Trader:    No. I come up with my own angles and formulas.

Nazy:       Your own formulas give you the edge.

Trader:    Yes.

Nazy:       How do you come up with your own formulas?

Trader:    It is based on my knowledge, experience and ideas.

Nazy:       How do you define it? Do you consider it your feel and intuition for the  markets?

Trader:    Yes. It is something inside of me. It is a gut feeling that I have.

Nazy:       So, that is when the art comes into play? Doesn’t it?

Trader:    Yes.

This is how he understood that trading is more than a science. It is also an art.

If trading was purely a science, you wouldn’t need traders. Everything could be done through program trading. However, to be successful, to have that edge, not only you do need the science of trading, but you also need to develop the mental edge and the art of trading.

The art of trading is the reason that one person can make money with a given system and another person cannot. It is about understanding your system and tweaking it to suit your purpose and your personality.

So going back to the original question, is trading an art or a science? It is both. You need to develop the skills and then the skills become your habit. In the process, you develop a feel for the markets and trading becomes an art.

You cannot develop your feel for the markets by reading books or studying alone. You need to be in the game and understand the market behavior. You need to listen to the market and learn from it, rather than impose your views on it.

When you develop your feel and intuition for the markets, you build your confidence. By doing that, you trust yourself more and you do not feel the urge to follow others. You talk to them and seek their advice, and you are comfortable with your own conclusion even if it goes against the norm.

Remember, your success is not about what is happening in the markets. It’s about the choices that you make and how comfortable you are with your choices.

Norman Vincent Peale said, “Any fact facing us is not as important as our attitude toward it, for that determines our success or failure.”

Here is to making trading success your habit™,

How to Beat the 10 Pitfalls of Trading

Wednesday, January 5th, 2011

We hear staggering statistics that approximately 95% of traders fail in their ability to consistently profit from the markets.

What are the 10 major mistakes that these traders make that cost them dearly?

  1. Having no trading plan
    When you don’t have a plan, you don’t have a template to follow. It becomes very costly when your emotions are high and you have to make decisions on the fly.
  2. Using strategies that do not match your personality
    You hear of a trading strategy that has worked very well and you are anxious to follow it. One important factor to consider is: does it match who you are and your lifestyle?
  3. Having unrealistic expectations
    Most traders assume that it is very easy to make money in trading. They have unrealistic expectations with regard to their initial capital, their risk profile and how much money they can expect to make.
  4. Taking too much risk
    Usually when traders are down, they want to make their money back very quickly. Therefore, they increase their position size without thinking about the risk/rewards.
  5. Not having rules to follow
    Most traders think if they have rules to follow, they are restricting themselves. It is on the contrary. Having rules allows you to be more flexible since you have thought about lots of issues beforehand.
  6. Not being flexible to market conditions
    It is very important to see the markets as they are and not as you want them to be or as you assume them to be.
  7. Failing to take responsibility for your results
    When the results are not in your favor, the tendency is to blame the markets, circumstances, advice of others… When you blame things outside of yourself, you become a victim of circumstance. When you take responsibility, you can react differently to your circumstances and become the success you know you can be.
  8. Being addicted to volatility
    One of the reasons that people get into trading is because they like the excitement of it. If there is no excitement, they create it. This is one of the reasons that traders sabotage themselves.
  9. Not having a process to keep track of your performance
    If you don’t keep track of your results, how do you know what has worked and what has not? How can you tweak your process to get the best results that you can?
  10. Not dealing with your Emotional Risk
    When dealing with money, there are lots of emotions involved. Emotions are part of everyday life. What separates the successful traders from others is how they react to their emotions.

So what can you do to become a more consistent trader and increase your profitability?

  1. Think of trading as a business and have a trading plan.
  2. Make sure that the strategies you select, match your personality so you can follow them.
  3. Have a realistic expectation of what your returns are. Include all the costs associated with your trading business.
  4. Have an idea for your risk/reward ratio. Don’t confuse trading with gambling. If you are increasing your position, make sure that your strategy warrants it.
  5. Have trading rules and follow them. Think about them as contingency plans. Because when your emotions are very high, the tendency is that you make very poor decisions that can cost you your account!
  6. Be flexible to the market conditions. When you see the market as it is, you have a much better chance of managing your portfolio and increasing your profits.
  7. Take responsibility for your results. Taking responsibility does not mean that you have control of everything that happens. It means that you have a choice of how to react to the things that happen.
  8. Find out why you are in the trading business. If it is for the excitement of it, find other hobbies or activities that you can get your excitement from.
  9. Keep track of your performance. This is a way of objectively looking at how you are doing, what you did right and what you learned. Be gentle with yourself.
  10. One of the most important things that people don’t handle is their Emotional Risk. When emotions run high, the quality of decisions goes down. It is very important to learn how to react to your emotions and thus increase your profits.

“At first, something seems impossible. Then it becomes improbable. But with enough conviction and support, it finally becomes inevitable.” Christopher Reeves

Here is to making trading success your habit™,

What is a Major Hidden Influence Behind Your Trading Decisions

Thursday, April 8th, 2010

Have you ever wondered why traders don’t make money consistently?

Do you blame the markets, the systems, lack of information or information overload, etc…?

The truth of the matter is that you don’t trade the markets. You trade your perception of the markets.

Let me explain.

When we look at markets, we look at them based on our filters. Our filters determine how we view them and what state of mind we are in.

What are our filters and how do we develop them?

Our filters are beliefs/thoughts/actions based on our own previous experiences as well as the experiences of our mentors/influencers in different aspects of our lives.

An example is media. On a daily basis, we are bombarded by negative messages. So, we tend to focus on what can go wrong and are constantly waiting for the other shoe to drop.

What differentiates the traders who make money consistently is that they hear what is being said – instead of getting influenced and drained by it, they look at the opportunities that are available.

Did you know that more millionaires were made during the Great Depression than in any other era in U.S. history? Among them are Colonel Sanders, who was a grandpa when he started Kentucky Fried Chicken, and Walt Disney.

Furthermore, Forbes magazine says 10 million millionaires will be created by the year 2016.

What is the difference between the millionaire and others? They don’t have the filters that the majority has. They don’t follow the conventional beliefs…

There is a story that I heard which reminds me that nobody is immune to these beliefs.

There was a holy man who was in charge of fundraising to provide services in the community. However, his perception was that fundraising is equal to begging. So he was trying to avoid it with passion.

He came up with the brilliant idea that he would get money from investors and use the interest for charity work and pay back the principal to the investors. Sounds like a great idea, yes?

The problem was that he lost all the money in 3 weeks. So, after all, he needed to raise more money, which for him meant even more begging.

What is the moral of the story? If we don’t notice our beliefs and make a conscious choice about them, then they come and haunt us in different ways.

So what can we do about our beliefs?

  1. Acknowledge them
  2. Examine them to see if they are serving you
  3. If the beliefs are a hindrance, replace them with new ones that serve you

The important thing is that the beliefs that are not serving you have an affect only if you are not aware of them or don’t do anything about them.

Albert Einstein has a saying: “The significant problems we face cannot be solved at the same level of thinking we were at when we created them.”

Remember, we are not defined by our abilities. We are defined by our choices!

To discover the strategies for making better choices and creating the kind of profits that you want, click here.

Olympic Games And Trading

Friday, February 26th, 2010

I was watching the ski jumping at the winter Olympics. The announcer said that it is a simple move. Everyone knows how to do it. The challenge is that the mind is telling them that it is suicide. The winner is the one that trust their own skill more…

He went on to say that the difference between the top athletes is something that does not show up in slow motion. It is between their ears and it is their confidence.

It was repeated over and over again. It is a mental game!

It was not that the athletes had perfect runs. They had made mistakes. The difference was that they did not panic. They did not focus on their mistakes and thus they won their medals….

What does this have to do with trading?

Trading is also a mental game.

When you are cutting your winners short, stop yourself. Notice if you believe in yourself and your strategy. If you do, let your trade run longer.

Also, when you are letting your losers run, it is important to cut them short. It is not about wishing and hoping that it comes back. It is about believing that there are more opportunities to come!

How are you dealing with your state of mind? Are you managing them, or allowing them to dictate your actions?

The Olympians of trading are those who can harness their attitude!

Free Webinar Going Pro

Wednesday, January 13th, 2010

One the mangers that I have a lot of respect for, John Netto, is offering a free webinar tomorrow Jan 14.  

Following is the detail:


Going Pro: Using Your Trading Success to Manage Money Professionally
Thursday, Jan. 14, 2010 at 5PM Eastern / 2PM Pacific

Webinar Entry Link will be eMailed to Registrants Jan, 13th

All of us at Team OSOK Trading would like to thank everyone who participated in the ISE webinar discussing volatility across multiple asset classes and we would like to invite everyone to attend John Netto’s free 1-hour webinar entitled: “Going Pro: Using Your Trading Success to Manage Money Professionally” coming up Thursday, Jan. 14, 2010 at 5PM Eastern / 2PM Pacific. This webinar will go into the topics facing those looking to trade professionally, in particular, the cost metrics behind setting up a hedge fund, payout structure for prop accounts, generating a professional track record in such a way as to get recognized by allocators, marketing, creating a disclosure document, and much more. 

·       5 PM Eastern, Thursday, January 14

·       Free of Charge to attend

·       Options as a professional trader

·       Proprietary Trading

·       Hedge Fund

·       Raising Assets

·       Different web sites to put your track record

·       Seed capital, RIA, Family Offices, Pension Funds

·       Regulation

·       NFA, FINRA

·       What filings are required

·       When you must register

·       Back Office

·       How to outsource bookkeeping




What Differentiates the Top 5% Traders From the Others

Thursday, December 31st, 2009

On this call we cover:

  • What are the 5 differentiator factors of top 5% traders & the other.
  • How to recognize the symptoms
  • Give you steps so you can be on the right track for 2010 and you can have the kind of profits that you want and deserve in your trading.

This text will be replaced

To download the call  Click Here

Happy Holidays (Present for You)

Sunday, December 27th, 2009

Wishing you a very happy Holiday Season and an amazing New Year!!!

Trust your year is filled with more joy, peace, laughter, health and prosperity.

We appreciate you being part of Mental Edge Trading community and allowing us to contribute to your trading success.

To start 2010 on the right track, I am inviting you to a special teleseminar to share with you what differentiates the top 5% traders from the others.

Here are the dial-in details:

Topic: What are the 5 differentiating factors of the top 5% traders from the others?

Date: Tuesday – Dec. 29th

Time: 5 PM Eastern

Dial In: 1 (218) 862-6400

Passcode: 4287433#

NOTE: We always begin promptly according to so mark your calendar and be sure to call-in a few minutes early so you’re not pre-empted by other teleseminar callers.

Here is to making trading success your habit™.

Nazy Massoud & MET team

P.S. There are still a few spots left for Consistently Boost Your Trading Profits which starts on Jan 4, 2010. Check it out at

Discover How to Get Off the Rollercoaster of Trading

Sunday, December 13th, 2009

If you are a trader or investor who:

  • Is ready to stop overtrading instead of cutting the winners short and letting the losers run?
  • Wishes you knew the appropriate steps needed to be consistently profitable rather than spending days upon days going from one system to another, from one market to another, and from one expert to another that doesn’t bring in sustainable money?
  • Is ready to get ahead of the game and become one of the 5%-10% who makes it in the trading business?

Find out how to get started

10 Factors in Determining Your Trading Success

Wednesday, December 2nd, 2009

I had an interesting question from a member of our community.

He was assuming that intelligent people are the ones who are successful traders and was asking if a C student can be a successful one.

What I had forgotten to mention to him is that grade has nothing to do with intelligence. Einstein was never a good student…

Does intelligence play a role? Yes and that is not the only determinant of success.

I know some traders who are very smart and yet they are not as successful. Also, I know some traders who might not be the most innovative ones and they are very successful.

There are 10 other factors that play a role in determining your success. What are they?

  1. Know yourself and your Personal Risk Profile

    This helps you understand your strengths as well as the areas that you could develop.

  1. Know the reason you are getting into this business

    There are going to be challenging times. Knowing why you are in this business enables you to keep your focus.

  1. Know your trading goals and strategies

    If you are not clear, how would you know if the goals and strategies that you have chosen are the right ones for you? Do they play to your strength?

    Also, you will have a hard time following a path that it is not clear. It is like driving from your home to somewhere that you might have an idea of where it is, but you are not sure. You might get there, but when?

  1. Sound money management system

    It is important for you to know why you have chosen the system that you have and that it fits who you are.

  1. Risk management

    Are you comfortable with the parameters? Can you follow it?

  1. Your core influencer

    It is essential to have the right selection of people that have your ear. Then it becomes easier for you to move toward your goals, instead of holding you back.

    Remember, ultimately you are responsible for the choice that you make.

  1. Your environment

    It is crucial to have an environment that doesn’t drain your energy and allows you to flourish.

  1. Perseverance

    Challenging times are a guarantee. Your reaction is going to determine your results. Are you going to quit or continue?

  1. Flexibility

    It is one of the most crucial elements in your success. If a strategy does not work for you, be ready to modify or change it. Don’t be married to it. Ask yourself, do you want to be right or do you want to make money?

  1. Willingness to learn and grow

    One way to keep up is to learn and grow and not to become obsolete. Then you can have even more success in your trading business.

You might’ve heard that Michael Jordan, one of the greatest basketball players in US, was cut from his team at his sophomore year in high school. That could’ve been the end of his career.

However, he knew what he wanted. He persevered and changed his strategy. He wanted to succeed, so he was willing to learn, grow and developed the skills that he needed. He surrounded himself with the people who could help him and believed in him. The rest is history…

What is your game plan?

Here is to making trading success your habit™,