Archives of “January 5, 2019” day

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Trading Experiences

  
  Education
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A major key to success as a Trader and Investor lies in your mind.  Actually, it lies in your ability to use your mind optimally and creatively.

Please remember – there is NOTHING WRONG WITH YOU.  You don’t need to change YOU.  What you most likely need to change is the “software” that you are running in your mind.  When we are born we do not get a user’s manual on how best to use our mental abilities.  So we learn by soaking up what we see and hear around us as we grow up.  And often times what we learn is not conducive to being a successful trader and investor.

One of the key mental approaches is to “Welcome Every Experience.”  Welcome every experience that comes to you.  It may be an expectation, or it may be a surprise.  It may be ‘good’, or it may be ‘bad’ based on your first assessment of it.  It may involve someone getting hurt, someone getting promoted, a tragedy, a triumph, a windfall, a bankruptcy, an ‘aha’ moment….anything.  The most useful way to approach experiences we receive (which are mostly experiences we can’t control as they are outside of us) is to welcome them and learn from them.  Realize that they are exactly what we need in that moment, at that point in our lives.  And since we don’t have a time machine, once something has happened, there’s no changing it. (more…)

Typical Traids of Top Traders

  
  Education
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First, let me say that I know of examples of successful trader’s that don’t have each of the characteristics that I would say the “typical” good trader shares. So there are exceptions to each of these. (more…)

Some Money Launderers are “More Equal” than Others

  
Analysis, Education
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“All animals are equal, but some animals are more equal than others.”
– George Orwell’s Animal Farm

It’s been many, many years since I read George Orwell’s Animal Farm, but the message conveyed in it will remain with me forever.  The book is many things, but more than anything else, it is a portrayal and critique of human nature and the political systems that we create. For those that need a refresher, or have not read the book, here’s the basic plot.

There’s a farm headed by a Mr. Jones, who drinks so much he becomes unable to take care of the farm and feed the animals.  Over time, the animals (in particular the pigs), decide human beings are parasites and the pigs lead a revolt and run Mr. Jones off the property.  They change the farm’s name from Manor Farm to Animal Farm and create a list of 7 commandments.  They are:

  1. Whatever goes upon two legs is an enemy.
  2. Whatever goes upon four legs, or has wings, is a friend.
  3. No animal shall wear clothes.
  4. No animal shall sleep in a bed.
  5. No animal shall drink alcohol.
  6. No animal shall kill any other animal.
  7. All animals are equal. (more…)

A Venerable Technique

  
Analysis, Education
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JL-One of intelligent honest things that Livermore did was to get out of one market by selling a related market, inducing the other traders to think that there was weakness in one market which would carry over to the related market. The art of indirection and letting people use their own intelligence and inferences to come to their own conclusion. for example if he wanted to get out of cotton, he’d sell some coffee. If he wanted to get out of a common, he’s sell the preferred or a related company that owned a big chunk of it, like sell Christiana which owned general motors et al. This technique one wonders how often is it used today. When it happens, is it artful indirection or chance? How to quantify and what predictions to be made? Would the robots be smart enough to do this?

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