Archives of “January 6, 2019” day

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Key to winning at trading

  
  Education
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key-asrThe real secret to making money in the markets is simply by having bigger winners than losses. A robust system may only have a 50/50 win rate but the half that are winners are much bigger than the other half that are losers. That is the key to winning at trading, not stock picking, not some secret formula that will get you in at the bottom and out at the top. Winning traders simply have small losses when they are wrong and big wins when they are right. They don’t have to be right every time they just have to be right big and wrong small. It makes no difference what method you use to achieve this you just have to be consistent in your method once you have found a winning one.

 

Paul Tudor Jones on Jesse Livermore

  
  Education
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One of the greatest trading books ever written is Reminiscences of a Stock Operator. The original book was published in 1923, but in 2010, an Annotated Edition was produced by Jon Markman. This edition reveals the truth about Jesse Livermore and provides colorful, historically accurate commentary on the characters, places, and events that have made Reminiscences such an enjoyable and educational read for generations.

The foreward to the Annotated Edition is written by legendary trader Paul Tudor Jones. At the end of the book, Jones answers a few questions about his relationship with the book and its themes. Here is one of the insightful questions that was asked to Jones. I found a profound meaning in his response. I hope you discover it as well.

Question: Part of the appeal of the book is Livermore’s journey of self-discovery as a person and as a trader. Have you had the same experience as a trader and portfolio manager, or was your path easier or harder?

Jones: Probably the best lessons to be learned from this book come from his repeated failures and how he dealt with them. In the book I think he lost his entire fortune four or five times. I did the same thing but was fortunate enough to do it all in my early twenties on very small stakes of capital. I think I lost $10,000 when I was 22, and when I was 25 I lost about $50,000, which was all I had to my name. It felt like a fortune at the time. It was then that my father flew up from Memphis and sat me down in my New York City apartment and began lecturing me as lawyers do. He commanded, “Leave the gambling den behind. Come home and get a real job in a safe profession like real estate.” Of course, I did not, and the rest is history. And real estate these past few years has been about as safe as shooting craps to pay the rent, so I was twice blessed. If I’d have taken my father’s advice, I might have lost all of my money again these past few years in my fifties. (more…)

Those Who Trade on Fundamentals ,Looking at Economy ,Greece ,China & Blue Channels-This is Perfect Picture

  
  Education

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For us First is Chart ,Technical Levels & Then Psychology .

We Don’t Care for Fundamentals (Balance sheets + Results )and too of Indian Corporate ?

All Economic Numbers & Other Factors are useless for Day Traders.

Do What ever u want to Do :This Equation will never change …

90% Traders are Losers ,5% are No Profit No Loss & only 5 % Traders Mint Money (In this 5% -In India :Corporate people +Insiders +FIIs & Mutual Fund Managers plays Dirty game and in last Blue channels……………Mint Money by creating stories and flashing Source base news )

Technically Yours/ASR TEAM/BARODA

5 Trading Pitfalls To Avoid

  
  Education
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Pitfalls1. Aiming too high – There is no quick way to get rich. You need to be realistic in the goals you set and do not overpromise yourself. The success in trading is the ability to follow through.

2. Trying to win them all – – Keep adding to a loser position instead of getting out. The result based on impulsive trades usually becomes a lot worse before it gets better.

3. Hoping to recover from big drawdown – Get out of your losing positions quick. It is inevitable that you get caught in the wrong end of a trending market. Always a day late and many many dollars short !

4. Don’t know when to stop/check – It is time to reflect when your system loses the edge. Don’t send yourself into mine fields. Take some time off and regroup your strategy.

5. Being stubborn – Don’t fight the wrong fight and keep kicking yourself. Remorse about your misfortune won’t changed what have happened. Trading is supposedly fun, challenging and rewarding. If you  don’t feel this way, please stop trading.

3 Mistakes -Traders are Doing (101% It's All Mindset )

  
  Education
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If you agree with me that not a lot changes in the markets you won’t mind that I site an old study and will see the benefit of this little reminder of mine.

In 1974 Blair Stewart completes a study of 8,922 brokerage customer accounts.

The following mistakes are found:

1) Speculators showed a clear tendency to cut profits short, while letting their losses run.

2) Speculators were more likely to be long than short, even though prices generally declined during the 9 years of the study.

3) Longs bought on weakness, and shorts sold on strength, indicating they were price-level rather than price-movement traders.

If you are currently struggling in your trading you might like to consider these three well repeated mistakes and develop a plan that you can follow so as not to fall foul of them.

9 Things-Jesse Livermore said regarding excessive trading

  
  Education
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“Money is made by sitting, not trading.”

2. “It takes time to make money.”

3. “It was never my thinking that made the big money for me, it always was sitting.”

4. “Nobody can catch all the fluctuations.”

5. “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 everyday, as though they were working for regular wages.”

6. “Buy right, sit tight.”

7. “Men who can both be right and sit tight are uncommon.”

8. “Don’t give me timing, give me time.”

and finally, the most important thing:

9. “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. Not many can always have adequate reasons for buying and selling stocks daily – or sufficient knowledge to make his play an intelligent play.” (more…)

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