Archives of “January 9, 2019” day

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You are not your Trade

  
  Education
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Systems don’t need to be changed. The trick is for a trader to develop a system with which he is compatible. -Ed Seykota

Traders can make psychological mistakes when trading that can end a trading career very fast. Here are a few examples:

  • They take on more risk than they can deal with, stress takes over and they start making bad decisions.
  • They become married to a trade, they become stubborn and ignore their stop losses, wanting to be “right” they wait while losses mount.
  • Their egos take over their trading. They are more concerned about proving how smart or clever they are than making money. They begin to be more concerned with bragging about their winners than managing their losing trades. It becomes an ego trip that will not end well.
  • Their system does not match them, someone who likes fast paced action should not be a long term growth investor and someone who loves investing in growth stocks they believe in should not day trade.
  • A trader loses many times in a row so they change systems right before the big pay off. If you have a proven system trade it for the long term benefits.

Here are some solutions: (more…)

Intelligent people are more likely to underestimate themselves, while ignorant people are more likely to believe they’re brilliant.

  
  Education

Dunning-Kruger

Known as the Dunning Kruger Effect, some unskilled people believe they are superior and assess their own abilities as much higher than what is accurate. On the other side of the coin, some highly skilled people often underestimate their competence, assuming that what is easy for them, is also easy for others. 

The "NEWS" has only two sources

  
  Education
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1. press releases from the government and businesses and non-profit agencies and celebrities and academics who are announcing to the world what they are (or claim to be) doing

2. journalists’ own “investigations”

There are no incentives for either group to minimize the “visibility” of poverty, any more than there were any incentives for missionary groups to tell the congregations back home that “actually the heathen seem quite content to remain unconverted”.

The government gets its money because of “problems”. Businesses want always to seem “charitable”. Non-profit agencies are in the business of “charity” and “problems”; and, as Jason Reitman’s wonderful script puts it, every celebrity needs a “cause”. No explanation is needed for the academics.

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