Whether it is day trading, scalping, or investing,there are fundamental skills that each trader should master. Skill-building activities will help you sharpen your ability to make money and cash in on critical market movements.
1. Don’t Be a Perfectionist
Consistent profits are achieved from winning more than you lose – not winning every single trade.There are plenty of professional traders who generate profits by winning just 10% of their trades by maximizing gains and minimizing their losses.
2. Stick to a Trading Plan
Developing a trading plan is extremely important.Day trading around your own set plan for each position will produce consistent profits. A trading plan planner should be your best friend when developing your own trading
style. The key is sticking to what you’ve written down on paper.
3. Know the Odds
You should know the payoff odds for each trade that you take.Scalping produces large gains from small movements with higher risk than swing trading. Your trading plan should include a way to regulate how much capital you’re willing to risk on each position – but you should never risk more than 2% of your total account value. (more…)
Archives of “January 5, 2019” day
rss28 Simple One Liner Rules For Traders
1. Train with deadly seriousness.
2. Educate yourself.
3. Be vigilant.
4. Take away emotion.
5. Be your sternest critic.
6. Feel your way to a win.
7. Be Patient.
8. Don’t be afraid to lose.
9. Know your strengths and weaknesses. (more…)
Everyone wants to be successful until they see what it actually takes. Be prepared to constantly be on your toes!
George Eliot explains long term probability in Silas Marner
"TRADING WISDOM: ADDICTION TO PERFECTION"
“One of the great evils of trading is false exactness…Trading is a fuzzy process and I mean fuzzy in the best sense of the word. That is, as in fuzzy logic, as in the willingness to accept the idea that things aren’t exactly quantifiable and to forge ahead anyway” –John Bollinger (creator of the Bollinger Bands)
Trading is not about perfection. It is about probability and progress. All charts, analyses (fundamental and technical) and trading plans are built on probabilities.
Why then, do so many traders strive for perfection? Why do so many traders miss trades, waiting for exactly the right entry and then beat up on themselves when it doesn’t come and the position runs away while they sit there scratching their heads and condemning themselves?
The answer lies in one of the cardinal sins of trading which is PERFECTIONISM.
Perfectionism can be a great help to people in many professions, but can be fatal to a trader. Perfectionists, always trying to find the Holy Grail of trading go from one service to another, from one system to another, looking for a way that they can be right all the time. YES! Now, I found it. It’s this trading room, or this service, or this indicator! Wait… something is wrong here. Not all of these trades are working and I have draw downs! How can it be that this particular method failed and I actually had to take a loss? Must be something wrong. I will try harder and look for an even better system, a more expensive service, a new and improved guru, some absolutely no-fail software so that I can have ONLY WINNING TRADES.
This is perfectionism in action. Not only does this type of irrational behavior and belief undermine and demoralize a trader, but it takes away all the enjoyment and fun of being in the markets. It leads to depression with depletion of psychic and physical energy, and leaves the perfectionist to confront his basic and overriding fear— fear of failure. In the extreme, it leads to physical and mental illness, including addiction to prescription drugs, alcohol, or illegal substances as well as other addictions. The pain of failure or the haunting fear of failure is simply overwhelming, and one turns to whatever works to medicate the pain. (more…)
Facebook's Zuckerberg is 'Person of the Year'
Facebook founder and CEO Mark Zuckerberg has been named Time magazine’s ‘Person of the Year’ for 2010.
At 26, Zuckerberg has put himself on the map not only as one of the world’s youngest billionaires, but also as a prominent newcomer to the world of philanthropy.
Earlier this year, he pledged $100 million over five years to the Newark, N.J. school system. Now, he’s in the company of media titans Carl Icahn, 74, Barry Diller, 68, and others who have joined Giving Pledge, an effort led by Microsoft founder Bill Gates and investor Warren Buffett to commit the country’s wealthiest people to step up their charitable donations.
Zuckerberg owns about a quarter of Facebook’s shares.
Federal Reserve Chairman Ben Bernanke received the honor last year. The 2008 winner was then-President-elect Barack Obama. The 2007 winner was Russian Prime Minister Vladimir Putin.
Other previous winners have included Bono, President George W. Bush, and Amazon.com CEO and founder Jeff Bezos.
Time’s ‘Person of the Year’ is the person or thing that has most influenced the culture and the news during the past year for good or for ill.
Greed
There was a scorpion, who wanted to cross a river, but cannot as he could not swim.
He asked a frog to carry him across a river.
The frog was afraid of being stung, but the scorpion reassures him that if it stung, the frog would sink and the scorpion would drown as well.
The logic appeals to the Frog, So he then agrees; nevertheless, in mid-river, the scorpion stings him, dooming them both.
When asked why, the scorpion explains, “I’m a scorpion; it’s my nature.”
To let profits run, need to keep Greed at bay, else it will Sting in each and every trade.
Grateful to have a lot of Jeep in me because I was never Formula One.
Google and Your Memory
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Hallmark of a Position Day Trader
