Being a professional trader requires a great deal of energy. Like all professionals, there will be times when you are expected to perform at a high level when you feel less than at the peak of your powers. Psychological and physiological effects of family crises and personal health problems, for example, can trigger fatigue and cloud your judgment. However, the most common cause of fatigue or burnout is overtrading. (more…)
Archives of “January 8, 2019” day
rssAre U Holding These Stocks ?Just see How Financial Terrorists of India had Minted Money in Tons
Click to Enlarge………….and See The MAGIC of Financial Terrorists in India !
Following Fundamentals ?First Your Funds will be Wiped out ,Then U will become MENTAL !
15 Crucial Points From -Trading Psychology 2.0
1. Discipline, while necessary for success, is never sufficient. Discipline does not substitute for skill, talent, and insight. Strict, disciplined adherence to mediocre plans can only lock in mediocre results. If it were otherwise, there would be no losing automated trading systems.
2. It is not enough to find an “edge” in financial markets; as any tech entrepreneur can attest, competitive advantages are perishable commodities. Those who sustain success continually renew themselves, uncovering fresh sources of competitive advantage. That requires processes for assessing and challenging our most basic assumptions and practices. It takes a good trader to create success, a great one to recreate it. Nothing is quite as difficult— and rewarding— as letting go of what once worked, returning to the humble status of student, and arising phoenix-like from performance ashes.
3. This productivity is readily apparent on a day-to-day, week-to-week basis: The greats simply get more done than their colleagues. They organize their time and prioritize their activities so that they are both efficient (get a lot done per unit of time) and effective (get the right things done). How much time do we typically waste as traders, staring unthinkingly at screens, chatting with people who offer little insight, and reading low-priority/ information-poor emails and reports? The successful traders invariably are workhorses, not showhorses: They get their hands dirty rooting through data and make active use of well-cultivated information networks.
4. Successful traders I’ve known work as hard on themselves as on markets. They develop routines for keeping themselves in ideal states for making trading decisions, often by optimizing their lives outside of markets.
5. This, for me as a psychologist, has been one of the greatest surprises working with professional money managers: The majority of traders fail, not because they lack needed psychological resources but because they cannot adapt to what Victor Niederhoffer refers to as “ever-changing cycles.” Their frustration is a result of their rigid trading, not the primary cause. No psychological exercises, in and of themselves, will turn business around for the big-box retailer that fails to adapt to online shopping or the gaming company that ignores virtual reality. The discipline of sticking to one’s knitting is destined for failure if it is not accompanied by equally rigorous processes that ensure adaptive change. (more…)
Do Losers Average Losers
Do losers average losers?
Averaging down is usually compounding your loss had been my experience.
Or, throwing good money after bad money.
Averaging in or out looks a lot like hedging/scalping the gamma of an options position. Counter trend if you’re short, trend following if your long.
How you amend your position with respect to some factor (be it equity, time, what-have-you) is imho the next frontier, and the most productive, to-date, endeavor in portfolio management (and little understood because people had not crafted the tools to study it).
Adding to losing positions is portfolio insurance in reverse. The points bad of portfolio insurance, are points good now in this exercise and vice versa. There is an enormous, fertile, ocean-sized domain to be explored and exploited here, and there is the opportunity to step beyond mere aphorisms in this regard.
Ralph, as I understand what he does is the worlds master of averaging positions—but not for short term trades—only trades where he knows the position will show a profit…unlike we short term traders that often buy at all time highs, etc.
Just because a trade goes against you initially, doesn’t mean the trade isn’t good. If the conditions that got me into the trade in the first place still exist and I didn’t go all in with my full package initially, I’ll add to my position. All it means is I was a little early on my initial execution, and when the trade is working, I’ll add aggressively.
Yes indeed. (more…)
Perfect Timing
Today I know that …
My lessons may have been costly ,but they brought with them a kind of undertstanding more precious than gold.
😆 Playing the market is much different from being an investor.
😆 Pride is another word for stupidity if you claim credit for profits temporarily created by a bull market run wild.
😆 Paper profits are the illision of wealth created by the myopia of greed.
😆 Margin is a secuctive temptress more enticing than Delilah-and far more dangerous.
😆 Money doesn’t make people better ;it just allows them to become kinder and more charitable.
😆 Losing money doesn’t mean you’re a fool ,just as making a fortune doesn’t prove you’re a genius.
😆 Maturity means knowing how to cope with failure-and with sucess.
😆 The market respects those who treat is seriously and research it thoroughly ;it mocks those who think its rewards are freely granted to the followers of friendly tips and exicted phone calls from “helpful” strangers.
😆 Just as in every other game of chance ,all of your winning should never be left on the table.
😆 The law of gravity was not repealed for the sake of Dalal street ;even there the rule still holds that “whatever goes up must come down .”
😆 Forgiveness is a virtue even to myself ;I can forgive the fact that I failed-because I know that Iam not a failure.
Magic is believing in yourself. If you can do that, you can make anything happen.
