Trader E.Q.

There are two types of trader E.Q's (Emotional Quotient), smart money, and dumb money.

Dumb Money (def): "Average individual investors who trade money are often shoved under the “dumb money” umbrella. ... Consequently, the “dumb money” group tends to buy and sell investments at the worst possible time. They buy stocks when prices are on the rise, and sell those stocks when prices start to decline." - Investopedia

Smart Money (def): Individuals or institutions who buy the fear of retail traders, and sell the greed of retail traders. They trade off principles, not emotions. They know there will always be another great trade setup if they are patient enough.

Dumb Money Example

Dumb Money Traders

Smart Money Example

Smart Money Traders

Assess both charts and work on areas where you need to improve. We are all learning and growing.

Change what needs to be changed, and start fresh next time you sit down to trade ;)