Don’t define the risk in advance of putting on a trade.
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Archives of “January 12, 2019” day
rss3 Points – Trading Psychology
Don’t Dwell on Mistakes, Focus on Opportunities
- Holding onto the baggage of the past, the mistakes of yesterday, is nonproductive. If robs you of your energy and mental and emotional focus on new opportunities. You must see what opportunities exist now and take advantage of them… Focus your time, energy, and money on making money — on new trading opportunities.
- Yes you need to learn from your mistakes, but don’t dwell on them. Use them as positive learning experiences; as a springboard to becoming a better trader.
Don’t Blame the Market or Others
- When pain surfaces, if you are honest and in touch with yourself, you will own the upset and seize the opportunity to release that internal reality — to forgive! Pain functions to inform us of our errors.
- False forgiveness is based on the belief that others are responsible for what we feel, and therefore it tends to reinforce that error. To forgive others, in this manner, for what happens in your mind leaves your pain intact and the opportunity to heal is lost.
- Making use of every opportunity to heal is an important decision you can make and that decision will immeasurably accelerate your process.
Accept Negative Emotions to Neutralize the Negative Charge
- Whenever we avoid processing a negative emotion, then attach an emotional charge to it, and shorten our breath and tighten our diaphragm, our blood pressure often shoots up so that we lock that memory of that emotional charge into our system.
- When you go to sleep, the current in you literally reverses and you lock your daily emotional charges into your organ systems, body processes, and memory. It’s a very negative thing to do.
- Processing the situation correctly short-circuits the negative cycle. So, before I go to sleep at night, I forgive others whom I think have wronged me and give thanks personally for all things. I want to stay free, healthy, and unencumbered.
- Remember, emotions are a choice. The realm of unconscious bad habits is where the demons live in all of us. We need to exorcise them.
50 Trading Rules for Traders
Chart of the Day-High yield bond spreads are at post-crisis lows.
YouTube Salem Abraham & Larry Hite "On Betting"- Video -Watch Time 76 seconds
10 Great Trades
What were the greatest trades of all time? Who made them? Here is a list of the who, what, when, where, and how of the greatest trades that were ever made.
While the risk management while executing many of these trades is not what many traders would want, we can see many of these as trend trades and the dangers of fighting the trends. These trades were not all entered into at one time, most of them were built slowly and grew by adding as profits accrued. Most were also watched closely with and eye on the exit button when a true reversal began. Livermore made many probing shorts that he had to stop out as the bull market reversed off support and continued upwards after appearing to roll over. Some of these traders had the sell button ready to push at a seconds notice in case a reversal knocked them out. Some could have been ruined with a little blind sided government intervention that modern day traders are faced with now. But you can not argue with the profits and many of these traders have very long proven records, these were not random trades and they did not just get lucky, most of these were the great play that they landed after decades of research, study, and a life time of great trading.
1. John Paulson’s bet against sub-prime mortgages made his hedge fund a cool $15 billion in 2007, that is billion with a ‘B’. he is only one of a very exclusive club that was able to make this call and win with it. That was a call of a lifetime that everyone was blind to even deep into the crises.
2. Jesse Livermore’s call on the Crash of 1929, Jesse Livermore did not need any computer models, technical indicators, or derivatives to make $100 million dollars ($1.2 billion in today’s dollars) for his own personal account during a time when everyone was bullish and then almost everyone lost their shirts. It was an amazing day when Jesse came home and his wife thought they were ruined and instead he had the second best trading day of anyone in history.
3. John Templeton invested heavily into Japan during the 1960s, when Japan was beginning its three-decade long economic miracle, Templeton was one of the country’s first outside investors. At one point, he boldly put more than 60 percent of his fund in Japanese assets. (more…)
Trader’s 10 Best Friends & Worst Enemies
A Trader’s 10 Best Friends
- Studying the markets to understand what works. $Study
- You are comfortable with uncertainty. ????
- Being optimistic about winning in the long term. #Winning
- You manage risk very carefully on each trade. #Risk
- Thinking in probabilities. #RiskReward
- Following your trading plan. #Discipline
- Accepting losses. #StopLoss
- Monster Stocks in up trends.
- A plan on exactly how you will trade. #TradingPlan
- A robust trading system. #CanSlim
A Trader’s 10 Worst Enemies
- Scared to enter a trade.#Fear
- Feeling the need to be right on every trade. #Pride
- Entering a trade too late or taking profits too soon. #Impatience
- Trading too big a position size. Not taking profits after a reversal. #Greed
- Revenge trading. #Anger
- Randomly entering and exiting trades with no plan or method. #Recklessness
- Wanting to enter and exit perfectly on every trade. #Perfectionism
- The market starts swinging wildly but you don’t change your position sizing. #Volatility
- The trader’s method is to be long in bear markets and short in bull markets. #Contrarian
- The trader just will never admit when he is wrong. #Ego
15 Things To Give Up
A Brilliant New Speech, George Soros Reveals The Exact Moment That Angela Merkel Started The Euro Crisis
His key warning:
In my judgment the authorities have a three months’ window during which they could still correct their mistakes and reverse the current trends. By the authorities I mean mainly the German government and the Bundesbank because in a crisis the creditors are in the driver’s seat and nothing can be done without German support.
He ends with a plea:
We need to do whatever we can to convince Germany to show leadership and preserve the European Union as the fantastic object that it used to be. The future of Europe depends on it.
June 02, 2012
Ever since the Crash of 2008 there has been a widespread recognition, both among economists and the general public, that economic theory has failed. But there is no consensus on the causes and the extent of that failure.
I believe that the failure is more profound than generally recognized. It goes back to the foundations of economic theory. Economics tried to model itself on Newtonian physics. It sought to establish universally and timelessly valid laws governing reality. But economics is a social science and there is a fundamental difference between the natural and social sciences. Social phenomena have thinking participants who base their decisions on imperfect knowledge. That is what economic theory has tried to ignore.
Scientific method needs an independent criterion, by which the truth or validity of its theories can be judged. Natural phenomena constitute such a criterion; social phenomena do not. That is because natural phenomena consist of facts that unfold independently of any statements that relate to them. The facts then serve as objective evidence by which the validity of scientific theories can be judged. That has enabled natural science to produce amazing results.
Social events, by contrast, have thinking participants who have a will of their own. They are not detached observers but engaged decision makers whose decisions greatly influence the course of events. Therefore the events do not constitute an independent criterion by which participants can decide whether their views are valid. In the absence of an independent criterion people have to base their decisions not on knowledge but on an inherently biased and to greater or lesser extent distorted interpretation of reality. Their lack of perfect knowledge or fallibility introduces an element of indeterminacy into the course of events that is absent when the events relate to the behavior of inanimate objects. The resulting uncertainty hinders the social sciences in producing laws similar to Newton’s physics. (more…)
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