Archives of “January 2, 2019” day

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The power of fear

  
  Education
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Fear is the emotion of survival.

Before every game or before the first trade of the day there is always that little bit of uncertainty. That feeling in your stomach. For me it always went away as soon as the first hit or the dink of my first order getting filled. Same is true with my fear of public speaking.

It was not always that way. I had to do the work, be prepared, and convince myself whatever the outcome I would work to achieve a better outcome the next time. Eventually the fear of not doing became worse than the fear of doing.

Like I always say, do it once, the good habits that is. (more…)

Successful Traders

  
  Education
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aish-smile
“Successful traders constantly ask themselves: What am I doing right? What am I doing wrong? How can I do what I am doing better? How can I get more information? Courage is a quality important to excel as a trader. It’s not enough to simply have the insight to see something apart from the rest of the crowd, you also need to have the courage to act on it and stay with it.”

RISK -Quotes

  
  Education
  • The more risk we take because we believe the environment is low-risk in character, the less the environment continues to be low-risk in character.
  • How can investors deal with the limitations on their ability to know the future? The answer lies in the fact that not being able to know the future doesn’t mean we can’t deal with it.
  • The future should be viewed not as a fixed outcome that’s destined to happen and capable of being predicted, but as a range of possibilities and, hopefully on the basis of insight into their respective likelihoods, as a probability distribution.
  • Many possibilities exist today…this uncertainty as to which of the possibilities will occur is the source of risk in investing.
  • It’s not reasonable to expect highly superior returns without bearing some incremental risk.
  • While I don’t think volatility and risk are synonymous…in the short run, it can be very hard to differentiate between a downward fluctuation and permanent loss.
  • Thinking risk control is easy is perhaps the greatest trap in investing, since excessive confidence that they have risk under control can make investors do very risky things.

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Mastering the Art…

  
  Education
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“You have all these people trying to come up with formulas to beat the market. The market is not a science. The science may help increase the probabilities, but to excel you need to master the art of trading.”  
– Mark Minervini, Stock Market Wizards
“After a certain high level of technical skill is achieved, science and art tend to coalesce in aesthetics, plasticity, and form. The greatest scientists are artists as well.”

– Albert Einstein

To achieve trading greatness, one must first become an artist. To become a true artist, one must first master the art.
What does it mean to “master the art” of trading? What kind of nuances and subtleties are involved?  What range of experiences, processes, and deep situational knowledge is required?

Developing A Method is Hard Work

  
  Education
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MgmtLesson

Shortcuts rarely lead to trading success. Developing your own approach requires research, observation, and thought. Expect the process to take lots of time and hard work. Expect many dead ends and multiple fail-ures before you find a successful trading approach that is right for you. Remember that you are playing against tens of thousands of profession-als. Why should you be any better? If it were that easy, there would be a lot more millionaire traders.

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