One of my favorite passages.. "Mr. Market is there to serve you, not to guide you….." – Warren Buffett (1987 BRK)
Archives of “January 7, 2019” day
rss1 Minute of Internet =240 million emails , 4M Google search
Ray Dalio: The biggest mistakes investors make.
Mark Douglas :Quotes
page 121
1) Anything can happen
2) You don’t need to know what is going to happen next in order to make money.
3) There is a random distribution between the wins and losses for any given set of variables that define an edge.
4) An edge is nothing more than an indication of a higher probability of one thing happining over another.
5) Every moment in the market is unique.
Page 185
I AM A CONSISTENT WINNER BECAUSE:
1) I objectively indentify my edges.
2) I predefine the risk of every trade.
3) I completely accept the risk or I am willing to let go of the trade.
4) I act on my edges without reservation or hesitation.
5) I pay myself as the market makes money available to me.
6) I continually monitor my susceptibility for making errors.
7) I understand the absolute necessity of these principles of consistent success and, therefore, I never violate them.
Markets are changing all the time
You have to have the ability to change and see how the markets are changing and adapt to it. That’s a constant process. That’s why I think you see some people do well for four or five years and then just disappear.
History can be a useful benchmark but only if everything is put into the right context. Markets are dynamic and people’s reactions are different. It is much more subtle and nuanced than looking at what happened the last time.
No setup works all the time and in all types of market environment. The success rate of any setup fluctuates in cycles – there are periods when it is high and periods when it is low. Most successful speculators have specialized in a small number of setups. The question is, do you change when the market dynamics change and do you adapt new setups or do you wait for the proper market environment to come back before you risk any money?
Sarcastic "Truth" -Everybody Who is Breathing Running for Money
Four types of trades
Enjoy the journey
18 Trading Wisdom Thoughts for Traders
1. You will be tested mentally and emotionally this is not for the weak minded. 2. Master Traders are detached emotionally from profit or loss. 4. Haste is the enemy of great entry points. 5. Doubt is often followed by a lost opportunity. 6. The Trend will give you direction on your path. 7. Having an exit strategy prevents unnecessary pain. 9. Going against momentum brings forth the fools reward. 10. Better the bad trade that is unrewarding. 11. Habit is built on the principles of probability. 12. Know your exit point in the worst case scenario first. 15. Set realistic goals and let the good times role. 18. Times of great probability are like diamonds falling from the sky. |
When You Trade -Have Risk Management ,Instead of Sleeping Like BABY
There’s an old joke about the investor who never used any stop losses. His friend knew his big positions were getting crushed.
Out of concern, the friend asked, “How are you sleeping?”
“Like a baby” he answered.
“Really? You aren’t nervous or upset?”
“I sleep like a baby” he repeated.
“That’s amazing. I’d never be able to sleep through the night with those types of losses.”
“Who said anything about sleeping through the night? I said I slept like a baby: I wake up every two hours, wet myself and cry for 30 minutes before falling back to sleep.”
That’s why risk management is so critical: to save you from sleeping like a baby, and in the long run to save you a lot of money.