Money & Wealth No Important :Acquiring Knowledge & Learn something New Everyday is AIM of life
Archives of “January 14, 2019” day
rssPredictions
Two things that are very important when it comes to making predictions:
- Predict, but patiently wait for the chart to tell you when to take action.
- Predict, but don’t stick to your predictions when the market proves you wrong.
One of my most important trading guidelines is: ‘Be patient with your winners. Be very impatient with your losers.’
It is what people actually did that counted not what they said
A stupid man's report of what a clever man says can never be accurate
History Repeats. World is now repeating John Law’s nightmare of paper money -VIDEO
Trading Decision
There is a huge difference between a wish and a decision. A wish is a negative and puts the trader in a frozen state waiting for something to happen (generally associated with trying to get even on losing trades). That is negatively charged energy. Decisions, on the other hand, are positively charged energy. It makes the trader take action. Taking action is taking responsibility. You alone are responsible for your current mental state or condition. Decisions can be both good and bad of course. The sooner the trader realized the bad decision, the sooner they can act to correct it.
The first step in the decision-making process is to realize that what you are doing is not working. Remember that falling down is a positive motions is you bounce right back. Make a list of the positive and negative things that will happen when you take action on the decision.
Don’t expect instant gratification if you make the decision. Decision-making is a process that begins with the first step but these steps are the foundation for a stronger behavioral structure. This structure will give you the confidence in your trading. Confidence plays a key role in successful trading. Having the confidence necessary for successful trading can help the trader in difficult trading environments. Whereas one trader lacking confidence and good decision-making skills may be frozen and unable to act, the trader who has taken the time to build this foundation will be prepared to take the appropriate actions.
Advantages & Disadvantages of EBITDA
The Advantages of EBITDA
Although there is no silver bullet metric in financial statement analysis, nevertheless there are numerous benefits to using EBITDA. Here are a few:
- Operational Comparability: As implied above, EBITDA allows comparability across a wide swath of companies. Accounting standards provide leniency in the application of financial statements, therefore using EBITDA allows apples-to-apples comparisons and relieves accounting discrepancies on items such as depreciation, tax rates, and financing choice.
- Cash Flow Proxy:Since the income statement traditionally is the financial statement of choice, EBITDA can be easily derived from this statement and provides a simple proxy for cash generation in the absence of other data.
- Debt Coverage Ratios:In many lender contracts, certain debt provisions require specific levels of income cushion above the required interest expense payments. Evaluating EBITDA coverage ratios across companies assists analysts in determining which businesses are more likely to default on their debt obligations.
The Disadvantages of EBITDA (more…)
Going From a Losing Trader to a Consistent Winning Trader
It is not magic. It is hard work. It is not the system. It is the mindset. I am always working on my trading psychology.
I read and reread psychology ideas from the masters. This is from Marty Schwartz -Pitbull in Market Wizards…
It is absolutely wonderful…Forget about being right…
When I was able to separate my ego needs from making money. When I was able to accept being wrong. Before, admitting I was wrong was more upsetting than losing the money. I used to try to will things to happen. I figured it out, therefore it can’t be wrong. When I became a winner, I said,“I figured it out, but if I’m wrong, I’m getting the hell out, because I want to save my money and go on to the next trade.” By living the philosophy that my winners are always in front of me, it is not so painful to take a loss. If I make a mistake, so what!
Essential qualities for Speculator
1)Self-reliance :A man must think for himself ,must follow his own convictions.Self-trust is the foundation of successful effort.
2)Judgement :That equipoise ,that nice adjustment of the facilities one to the other ,which is called good judgement ,is an essential to the speculator.
3)Courage :That is ,confidence to act on the decisions of the mind.In speculation ,there is value in Mirabeau’s dictum :Be bold ,still be bold ,always be bold.
4)Prudence :The power of measuring the danger ,together with certain alertness and watchfulness is important.There should be a balance of these two ,prudence and courage ,prudence is contemplation ,courage in execution.Connected with these qualities ,properly an outgrowth of them ,is a third ,viz :promptness.The mind
convinced ,the act should follow.Think ,act ,promptly
5Pliability :The ability to change an opinion ,the power of revision.He who observes ,says Emerson,and observes again ,is always formidable.
Find Yoursellf A Chair!
Trading is a job. Treat it as such. Traders put themselves in a chair and wait, like fishing. They just sit and wait, even though it looks like the market is miles away from any kind of setup. They do nothing else. No reading, No chatting, No distractions. It’s just being able to sit in that chair everyday and not do anything else!