Archives of “January 5, 2019” day

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A TRADER’S PRAYER

  
  Education
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Stock and options trading is difficult to master, much like life at times. We all go through times of hardship.  I believe our country (and world) is going through one right now.  But difficult times have come and gone in the past and I have faith that this is just another one of those times.  Here is my prayer for the trader…in and out of the charts.
May the sun always shine bright with energy when rising and glimmer with comfort in descent
May your charts whisper to your burning ears

May your flowers be full of bees and your weeds choke on fallen nectar
May your wins humble and your losses teach
May still waters massage your aches and clean water quench your thirst
May fear give way to peace and greed surrender to charity
May the eyes of a child sooth the wrinkles of age
May a logical life give new meaning to an illogical chart
May you outlive your mother and father and die honored before your children
May the life within bring beauty to the life without

Respect the Trend

  
  Education
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respect-21One of my favorite trading tales involves a very wise, veteran trader who, when asked his thoughts on the market, would simply respond by saying “It’s a bull market,” or “It’s a bear market.” Younger traders simply seeking out a hot tip from the seasoned pro would often leave discouraged – or even annoyed, believing they were being fed a line. JL himself didn’t understand until years later the wisdom that was actually being dispensed with those words: The veteran was simply relaying the path of least resistance, or the trend for the general market, and therefore giving the trader an incredible edge in determining one of the many variables that makes up stock trading. (more…)

24 Quotes from Reminiscences of a Stock Operator

  
Analysis, Education
Image result for Reminiscences of a Stock OperatorReminiscences of a Stock Operator is one of them, I think. I have come cross that book several times in many reading list, but somehow, I skipped it. Until last month. Finally i decided to give a go to that book. And i regret that i have not read it before. I am amazed with its style and frankness and still contemporary, relevant content, after almost a century. It is a book, it deserves to be read more than once and if not, some parts must be noted down to go through time to time. Therefore, i extracted some quote from the book, for future references.
1
There is nothing new in Wall Street. There can’t be because speculation is as old as the hills. Whatever happens in the stock market today has happened before and will happen again.
There is always a reason for fluctuations, but the tape does not concern itself with the why and wherefore. It doesn’t go into explanations. I didn’t ask the tape why when I was fourteen, and I don’t ask it today, at forty. The reason for what a certain stock does today may not be known for two or three days,or weeks, or months. But what the dickens does that matter? Your business with the tape is now — not tomorrow. The reason can wait.
2
I always made money when I was sure I was right before I began. What beat me was not having brains enough to stick to my own game — that is, to play the market only when I was satisfied that precedents favored my play. There is a time for all things, but I didn’t know it. And that is precisely what beats so many men in Wall Street who are very far from being in the main sucker class. There is the plain fool, who does the wrong thing at all times everywhere, but there is the Wall Street fool, who thinks he must trade all the time. No man can always have adequate reasons for buying or selling stocks daily or sufficient knowledge to make his. play an intelligent play.
The desire for constant action irrespective of underlying conditions is responsible for many losses in Wall Street even among the professionals, who feel that they must take home some money every day, as though they were working for regular wages. I was only a kid, remember. I did not know then what I learned later, what made me fifteen years later, wait two long weeks and see a stock on which I was very bullish go up thirty points before I felt that it was safe to buy it.
A stock operator has to fight a lot of expensive enemies within himself.
I don’t know whether I make myself plain, but I never lose my temper over the stock market. I never argue with the tape. Getting sore at the market doesn’t get you anywhere.
3

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