Archives of “January 6, 2019” day

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Overcoming 8 of the Pains in Trading

  
  Education
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Here are 8 painful aspects of trading and what to do about them.8number

  1. The pain of losing money. (Trade smaller so it is much less painful, and just one outcome of the next 100.)
  2. The pain of being wrong about a trade you were sure about. (You lost simply because the market wasn’t conducive to your particular trade, trend followers lose money in choppy markets, swing traders lose money in trending markets, the market picks the particular winning trade not you.)
  3. Consecutive trading losses hurt. They make you doubt yourself, your method, and your system. (You need to remember your winning trades, your winning years, or your proof in back-testing, or paper trading of your method’s profitably.)
  4. The embarrassment of public losses. You told everyone who would listen about a great trade, and you were wrong. (Never be overconfident in any trade, but always be sure of your stop loss. Always be uncertain in your trade winning or losing, just follow your plan. )
  5. The pain of of admitting you were wrong. (Cut your loss and move on to the next trade, trade reality not your ego.)
  6. You are following a guru and come to realize he truly is a salesman and not a trader. (You stop following gurus and look to learn how to trade all by yourself.)
  7. You take a position that meets all your entry guidelines and then it hits your stop loss. (Follow your plan, exit the trade, and say “next”)

  8. You start trading a system that did amazing in back-testing and promptly lose 10% of your account in a draw down. (You have to double check to see if you made any mistakes in your research, if the method is valid then stick with it so it can win in the long term, you may need to make slight adjustments in position sizing or stops to account for volatility that you may have missed.)

Coach Yourself as a Trader

  
  Education
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What are the three things (i.e. courses of action, strategies, resources) that you’ve found most helpful in mentoring/coaching yourself as a trader?

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And here is how I answered:

  • 1. Understand me. The most powerful tool I have found in life and in this specific case, the market, is what I, as a person, am capable of doing as a trader. I finally understand that personal characteristics that are engrained in my DNA will only allow me to trade successfully under specific circumstances. For example, I am much more consistent and profitable as a medium term and longer term trend trader than as a day trader (even more so on the long side). I don’t need to be everything, all the time as long as I continue to focus on the areas that bring me the greatest success. Understanding “me” has been my holy grail of understanding how to trade the market with some type of consistency and profitability.
  • 2. Learning to cut losses. It’s almost cliché but not many people can do it (in any aspect of life). I have learned to cut losses in my trading, my career, my hobby of competitive poker and everything else in life where the rule applies. Without this rule, there wouldn’t be a third rule. (more…)

Forget Copernicus: Saudi Cleric Teaches Earth Does Not Orbit the Sun -video

  
Analysis, Education, Video
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A Saudi cleric told students at a university in the United Arab Emirates that the Earth is stationary and does not move around the Sun, insisting any claims to the contrary are pure speculation.

Sheikh Bandar al-Khaibari said that the Earth cannot be revolving around the Sun because otherwise airplanes would not be able to reach their destination. In a recently emerged video, the cleric can be seen using a cup of water to awkwardly explain why the Earth is in fact stationary. Take a look:

 

27 Motivational Quotes for Traders

  
  Education
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1. IF A TRADER DOES NOT UNDERSTAND WHAT HAPPENS TO HIM PSYCHOLOGICALLY WHILE IN A TRADE, HE IS DOOMED TO LOSE UNTIL HE DOES OR HE RUNS OUT OF MONEY.
2. THE MARKET PAYS YOU TO BE DISCIPLINED.
3. BE DISCIPLINED EVERY DAY, EVERY TRADE AND THE MARKET WILL REWARD YOU.
4. ALWAYS LOWER YOUR TRADE SIZE WHEN YOURE TRADING POORLY.
5. NEVER TURN A WINNER INTO A LOSER.
6. YOU’RE BIGGEST LOSER CANNOT EXCEED YOUR BIGGEST WINNER.
7. DEVELOP A METHODOLOGY AND STICK WITH IT.
8. BE YOURSELF. DON’T TRY TO BE SOMEONE ELSE.
9. YOU ALWAYS WANT TO BE ABLE TO COME BACK AND PLAY THE NEXT DAY.
10. EARN THE RIGHT TO TRADE BIGGER.
11. GET OUT OF YOUR LOSERS.
12. THE FIRST LOSS IS THE BEST LOSS.
13. DON’T HOPE AND PRAY.
14. DON’T SPECULATE.
15. NEVER TAKE A BIG LOSS.
16. HIT SINGLES NOT HOME RUNS.
17. CONSISTENCY BUILDS CONFIDENCE.
18. LEARN TO SWEAT OUT YOUR WINNERS.
19. MAKE THE SAME TYPES OF TRADES OVER AND OVER AGAIN.
20. BE A BRICKLAYER.
21. DON’T OVER ANALYZE.
22. ALL TRADERS ARE EQUAL IN THE EYES OF THE MARKET.
23. IT’S THE MARKET ITSELF.
24. ITS BORING. ITS A JOB. PATIENCE.
25. 70% OF THE MONEY FLOWING COMES FROM INSTITUTIONAL INVESTORS.
26. STRONG VOLUME IS 150% OF NORMAL VOLUME.
27. TRADE WHAT YOU SEE, NOT WHAT YOU THINK.

To Get Right Direction in Life-Few Points

  
Education, Life
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  • Bring joyful, imaginative and impassioned energy every day. Don’t fake it.life-asr
  • You don’t need to be big to be good, you need to be smart.
  • When there is no one there, insert yourself. Take over.
  • Engage the world as if your life depends on it.
  • Nothing is more important than transforming someone.
  • Have a vision grounded in your uniqueness.
  • The race winner is often curious and slightly mad.
  • Dry obligation in life will figuratively kill you.
  • No one will give you permission. Seize the mantle.
  • If you can’t solve a problem you are playing by the collective’s rules.
  • Hard work, sustained concentration, and drive are the so-called secrets.
  • Winners understand sunk costs and opportunity costs.
  • Plan to win, prepare to win and have every right to expect to win.
  • It’s in your power to change your belief systems. No one is stuck. Be unstuck.
  • Winning is never about your limited resources, but rather always about your unlimited resourcefulness.
  • By not questioning the world you always lose.

Trading Quotes -The Disciplined Trader ,Mark Douglas

  
  Education
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The market is never wrong in what it does; it just is. Therefore, you as an individual trader interacting with the market—first as an observer to perceive opportunity, then as a participant executing a trade, contributing to the overall market behavior—have to confront an environment where only you can be wrong, and it’s never the other way around. As a trader, you have to decide what is more important—being right or making money—because the two are not always compatible or consistent with one another…—-The Disciplined Trader,Mark Douglas

If, in fact, you can’t control or manipulate the markets and the markets have absolutely no power or control over you, then the responsibility for what you perceive and for your resulting behavior resides only in you. The one thing you can control is yourself. As a trader, you have the power either to give yourself money or to give your money to other traders.—-The Disciplined Trader,Mark Douglas

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