Where do you find yourself? amateur vs. pro trader
Archives of “January 2, 2019” day
rssThe traits of a successful trader
The most important is discipline – I am sure everyone says that. Second, you have to have patience; if you have a good trade on, you have to be able to stay with it. Third, you need courage to go into the market, and courage comes from adequate capitalization. Fourth, you must have a willingness to lose; that is also related to adequate capitalization. Fifth, you need a strong desire to win.” – Gary Bielfeldt
The Market Never Lies, Never Fails
Notions like ‘false breakouts‘ are generally harmful to traders, because they presuppose that the market can try to do something. A move reverses and they say the breakout is ‘false’ or it ‘failed’ or whatever. Reality check… The market does not fail to do anything. Ever! You were the one that thought it was breaking out and you were wrong. It happens, get over it. And get in the right mindset: you are trying to predict the natural evolution of price, and you won’t always get it right. Getting it right more often is a good idea if you want better returns. Telling the market it was the one that ‘failed’ is just pissing in the wind. |
ALERT-Gold Net Speculative positions have reached record high
Learning to do nothing
This is a lesson I keep needing to come back to. I can see that trading for amusement has been my own downfall a thousand times in the last few years, and to just sit at the sidelines can be painful.I just read a brilliant quote :
“Once able to trade, it is very likely that a person will make the emotional decision to do just that when bored. This timing is unlikely to correspond with a low risk trading opportunity.”
The Hierarchy of learning. Failing = most powerful way to learn
The influence Of Hope & Fear
In trading psychology, two emotions that are constantly to the fore are hope and fear. One of the traders who recognised this was the legendary trader W D Gann.
“Hope and fear: I have written about this often in my books and I feel I cannot repeat it too often. The average person buys commodities because they hope they will go up, or because someone advises them, they will go up. This is the most dangerous thing to do, never trade on hope. Hope wrecks more people’s lives than anything else. Face the facts, and when you trade, trade on the facts, eliminating hope”
“Fear causes many losses. People sell out because they fear commodities are going lower, but they often wait until the decline has run its course and sell near the bottom – never make a trade on fear”
Creative People
People Who Wake Up at 5 AM Or Earlier Are More Likely To Succeed in Life
39 One Liner Lesson for Traders
- Be ethical.
- Learn what you don’t know.
- Greed will bury even the lucky eventually. (Ahem penny stock chasers)
- Marry your best friend. (I did and couldn’t be happier!)
- Money in the bank is the Report Card – “Warren Buffett”
- You can’t outsource your passion.
- You can’t do everything yourself, delegate anything someone else can do. (I’m still learning this one haha)
- Bad things do happen to good people.
- Some people just can’t be helped no matter what you do, so don’t try.
- What you pay for, is what you get! (We all learn this the hard way unfortunately)
- The truth isn’t slander.
- The best competition is your own competition.
- Spend outside your means, you will have to work harder, make more money and become more successful.
- Mac is 150% better than Windows. (Loving my new MacBook Pro I got last year!)
- Complaining about people is time wasted.
- Have a reason why you do something.
- Write to do lists, lot’s of them! (Mine never seem to be complete though?)
- If you can’t do, don’t teach.
- Surround yourself with great people.
- If you want something from someone, do something for them first.
- Network at events. (more…)