Archives of “January 10, 2019” day

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Visualizing How Plunging Oil Prices Affect Currencies.The world consumes 93 million barrels of oil, which is worth $4.2 billion

  
  Education
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PETRO STATE
 

Every day, the world consumes 93 million barrels of oil, which is worth $4.2 billion.

Oil is one of the world’s most basic necessities. At least for now, all modern countries rely on oil and its derivatives as the backbone of their economies. However, the price of oil can have significant swings. These changes in price can have profound implications depending on whether an economy is a net importer or net exporter of crude.

Net exporters, countries that sell more oil abroad than they bring in, feel the sting when prices plunge. Less revenue gets generated, and this can impact everything from balancing the budget to the value of their currency in the world market. (more…)

Caffeine For the Trader’s Soul

  
  Education

Do you really, really, want to be a trader? There is no secret system, method, or guru that will make you a successful trader. Trading is work, trading is taking the hits, managing risk, and learning how to navigate the markets you trade. It is no different than any other profession, there is no quick money to be made in the practice of law, medicine, real estate, or business. It is the same process, you pay your tuition in time and money, you learn, you work, you grow, you  persevere and if you work harder than the majority you eventually win.

Many dream of the ‘freedom’ of trading. Trading does not come with a steady paycheck, traders eat what they kill. Traders are not employees they are entrepreneurs they get paid last. You pay your broker first, you pay the traders on the winning side of your trades second, then you get paid with the profits that remain. While you can make as much money as your winning trades allow their are no guarantees that you will make any money. Whether you trade for a living, manage money professionally, or trade for capital appreciation you have to be able to take your losses and not give up. (more…)

Trading should be boring

  
  Education
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Perfect description of what trading should be all about. As you might have heard from lots of great and successful traders, trading should be boring. Don’t get me wrong. You need to be passionate about trading in order to succeed. That applies to all things in life. For me, the research I do, all the stuff I read in order to improve my trading, increase my knowledge and my technical skills is what I am passionate about. The process of putting on trades and doing what the charts tell me to do is what is boring.

My trading philosophy is really simple. If I had to put it in one sentence it would be the following: ‘There is no way I am going to argue with price.’ The gist of it really is that opinions do not matter. I do have very strong opinions but when the charts tell me otherwise I change my mind. No hard feelings. A great quote dealing with the subject is the following:

When the facts change, I change my mind. What do you do Sir? – Lord Maynard Keynes

So why the ’same old, same old’ title? Because today was one of those days where I did what I have to do. My job as a trader is to be objective in my analysis of what is going on. The most important part is looking at my portfolio positions and sort them in descending order. The first one on the list is the one with the highest profit. The last one is the worst performer. I change the order in the streaming watch list of my broker whenever the ranking changes. Doing this manually is a ‘conscious and active’ process, as it literally forces me to ignore my opinions and therefore forces me to acknowledge the strength or weakness of  a stock. Remember:

There are no good or bad stocks. There are only stocks that make you money and stocks that don’t.

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