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“Top 15 Reasons Traders Lose Their Discipline”

  
  Education
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Losing discipline is not a trading problem; it is the common result of a number of trading-related problems. Here are the most common sources of loss of discipline, culled from my work with traders:

15)Lack of discipline includes several lesser items.’ i.e., impatience, need for action, etc. Also, many traders are unable to take a loss and to take that loss quickly.

14)Emotion makes many traders hold a loser too long. Many traders don’t discipline themselves to take small losses and big gains.

13)Often traders have bad timing, and not enough capital to survive the shake out.

12) Many traders can’t (or don’t) take the small losses. They often stick with a loser until it really hurts, then take the larger loss. This is an undisciplined approach. A trader needs to develop and stick to a system.

11)Lack of experience in the market causes many traders to become emotionally and/or financially committed to one trade, and unwilling or unable to take a loss. They may be unable to admit they have made a mistake, or they look at the market on too short a time frame.

10) Environmental distractions and boredom cause a lack of focus;

9) Fatigue and mental overload create a loss of concentration;

8) Overconfidence follows a string of successes;

7) Unwillingness to accept losses, leading to alterations of trade plans after the trade has gone into the red;

6) Loss of confidence in one’s trading plan/strategy because it has not been adequately tested and battle-tested;

5) Personality traits that lead to impulsivity and low frustration tolerance in stressful situations;

4) Situational performance pressures, such as trading slumps and increased personal expenses, that change how traders trade (putting P/L ahead of making good trades);

3) Trading positions that are excessive for the account size, created exaggerated P/L swings and emotional reactions;

2) Not having a clearly defined trading plan/strategy in the first place;

1) Trading a time frame, style, or market that does not match your talents, skills, risk tolerance, and personality.

Ignore Your Guts

  
  Education
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In my studies I have often found something that is rather interesting and maybe different than most would suspect. The most successful traders I have studied don’t rely on gut calls or feels, but rather adhere to a disciplined set of rules or guidelines and are humbled enough to admit that their emotional decisions aren’t consistent enough to hold up during the heat of the moment.

Ironically, most would think just the opposite that the more successful a trader is, the more ‘feel’ he or she has or the more ‘instinct.’ Sure, it looks macho to make calls or predictions and when proven correct a person is often praised and viewed as having some superior knowledge, but in reality these people are one step below those that have already moved through this stage and left it behind.

As an individual trader it is simply impossible to remain emotionless, making the proper trading decisions at all times, when the action is heated. Even when there is a lull, our emotions kick in and we feel a change is needed or something should be done, when in reality our rules may say to stay put or do nothing.

Ray Dalio’s Long-Term Debt Cycle Charts

  
Analysis, Education
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The following speech was delivered by Ray Dalio of Bridgewater at the Federal Reserve Bank of New York’s 40th Annual Central Banking Seminar on Wednesday, October 5, 2016.

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It is both an honor and a very special opportunity for me to be able to address such a large and esteemed group of central bankers at such an interesting time for central bankers. I especially want to thank President Dudley and Vice President Schetzel for inviting me to forthrightly share my perspective as an investor and my unconventional template that I believe sheds some light on the very unconventional circumstances that we face.

It is no longer controversial to say that:

• …this isn’t a normal business cycle and we are likely in an environment of abnormally slow growth

• …the current tools of monetary policy will be a lot less effective going forward

• …the risks are asymmetric to the downside

• …investment returns will be very low going forward, and (more…)

Yesterday Sensex Rallied 777 :Properties of the number 777

  
Analysis, Education
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Symbolism

  • This number joins together the principles of the man, 700, the cosmic plans, 70, and their image in the Archetype, 7, according to R. Allendy. It is the universal organization, 7 + 7 + 7 = 21, the general evolution.
  • Represent the celestial perfection, 7, on the 3 plans of the manifestation: matter, astral (mental or soul) and spirit.
  • It is the number of the sacred work of the sons of God for the establishment of the Kingdom of God on the Earth, mainly for the period of the seventh millennium after Adam where it is written that Satan will be chained for thousand years.
  • In esotericism, 777 means that virgin spirits (those to which God gave the life with the mission to rise towards the Creator, until to absorb themselves again in Him) will know 777 incarnations during seven revolutions that the wave of life accomplishes around the seven globes of the seven world periods. The symbolism of this number is therefore the ascension of the soul through the physical body.
  • According to the tradition of Himalayan masters, 777 is the number of the celestial man and symbolizes the transmutation which takes place at the time where the man becomes conscious of the necessity to cover the path of initiation, and that he perceives, even of an elementary manner, that the goal is in God.
  • The purity – does not father and is not fathered.

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