How We Learn
Archives of “January 16, 2019” day
rss7 Unfortunate Habits of Unhappy People
1. Playing it too safe.
Don’t play it so safe that you put yourself in situations where none of your potential options satisfy your calling. Dream your dream, but also realize that you are more than just the dreamer, you are the point of origin for your dream’s reality.
Your dream is your creative vision for your future life. You must break out of your current comfort zone and become comfortable with the unfamiliar. Start smashing through those emotional barriers. Move forward. Life doesn’t magically give you what you want in your mind; it gives you what you insist upon with your actions. Read The Power of Habit
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2. Continuous self doubt.
You will inevitably become who you believe yourself to be.
If you spend enough time saying, “I’m not smart enough, thin enough and rich enough,” it’s likely that you will someday be right. On the contrary, if you havethe belief that you are smart enough, thin enough and rich enough now to take the next positive step forward, over time you will likely acquire the capacity to be these very things at your desired level of expectation. (more…)
Keep it simple .. Buy what's going up .. Sell what's going down
A Delicate Balancing Game
“Damage control can prevent failure, but it will never elevate you to excellence.”
“Now Discover Your Strengths”, by Buckingham and Clifton
When I ran across this quote, I was stunned. “Is that true?” I pondered. Then almost immediately I said, “Of course.”
As traders we need to do both. We need to pursue excellence even as we maintain damage control. We must protect against undue loss even as we seek opportunities for maximum gain.
It’s an emotional, artistic, and technological balancing act summed up by the trading cliché, “Cut your losses, and let your profits run.”
It’s easier said than done. How many times have you skipped a promising trade because you sought to avoid loss? How many times have you jumped out of a winning trade to secure your current profits only to despair as the trade soars into the stratosphere without you?
Computers have been programmed to play checkers not to lose, but the set up turned out not to be sufficient. In order to succeed, the computer had to be trained to play to win.
Many traders have failed because they abhorred loss and feared consequent failure. Other traders have failed because they ignored the possibility of loss in their reckless hunt for gain.
Risk management is necessary, but if it is your primary focus, you’ll have a hard time getting to the pot of gold at the end of the rainbow. On the other hand, if all you think about is the possibility of gain and overlook the potential for loss, you could find yourself falling off a financial cliff.
Trading is a delicate balancing game where optimism requires a seasoning of caution, but the primary goal still needs to be excellence and profit.
4 types of trades
Universal Laws of Success
(1) Law of LOVE – It says in essence – “LOVE ALL PEOPLE AS YOURSELF”. All other rules are subordinate to this one Law – they must NOT conflict with it. It’s biblical. It applies to everything we do – as individuals – families – business teams – organizations – countries. It is Global in its reach.
(2) Law of CAUSE & EFFECT – This is an orderly universe. There are no accidents. Everything happens for a reason. For every effect there’s a cause or a set of causes.
(3) Law of MIND – Thoughts objectify themselves. We ‘become’ what we ‘think about’.
(4) Law of MENTAL EQUIVALENCY – To achieve success in any area, we must have a ‘clear image’ of that success in our mind a mental picture of our idea of success – a vision.
(5) Law of CORRESPONDENCE – Our outer life will mirror our ‘inner’ life. There is a ‘direct correspondence’ between our experiences and our thoughts and attitudes.
(6) Law of BELIEF – Whatever we believe – deeply – becomes our reality (including our belief that we “deserve” Success).
(7) Law of VALUES – What we truly value and believe in is reflected in our ‘actions’, even though our ‘words’ may say otherwise.
(8) Law of MOTIVATION – Everything we do is triggered by our inner desires, urges and instincts – many are subconscious.
(9) Law of SUBCONSCIOUS ACTIVITY – Our subconscious mind ‘alerts us to things around us’ – consistent with our dominant desires and concerns.
(10) Law of EXPECTATIONS – What we ‘expect with confidence’ tends to materialize.
(11) Law of CONCENTRATION – Whatever we concentrate on – and think about repeatedly – becomes more a part of our inner life.
(12) Law of HABIT – Virtually all that we do is automatic – the result of habit. Habits that move us ‘away’ from our goals must be ‘changed’. (more…)
10 KEYS TO SUCCESS
1. How you think is everything – always be positive. Think success, not failure. Beware of a negative environment.
2. Decide upon your true dreams and goals. Write down your specific goals and develop a plan to reach them.
3. Take action. Goals are nothing without action. Don’t be afraid to get started. Just do it.
4. Never stop learning. Go back to school or read books. Get training and acquire skills.
5. Be persistent and work hard. Success is a marathon, not a sprint. Never give up.
6. Learn to analyze details. Get all the facts, all the input. Learn from your mistakes.
7. Focus your time and money. Don’t let other people or things distract you.
8. Don’t be afraid to innovate. Be different. Following the herd is a sure way to mediocrity.
9. Deal and communicate with people effectively. No person is an islan. Learn to understand and motivate others.
10. Be honest and dependable. Take responsibility. Otherwise, nos. 1-9 won’t matter.
Qutotes from Richard Dennis & Paul Tudor Jones
Richard Dennis
“when you start, you ought to be as bad a trader as you are ever going to be.”
“I always say that you could publish trading rules in the newspaper and no one would follow them. The key is consistency and discipline. Almost anybody can make up a list of rules that are 80 percent as good as what we taught people. What they couldn’t do is give them the confidence to stick to those rules even when things are going bad.”
“my research on individual stocks shows that price fluctuations are closer to random than they are in commodities. Demonstrably, commodities are trending and, arguably, stocks are random.”
“There will come a day when easily discovered and lightly conceived trend-following systems no longer work. It is going to be harder to develop good systems.”
“The secret is being as short term or as long term as you can stand, depending on your trading style. It is the imtermediate term that picks up the vast majority of trend followers. The best strategy is to avoid the middle like the plague.”
Paul Tudor Jones
“First if all, never play macho man in the market. Second, never overtrade. My major problem was not the number of points I lost on the trade, but that I was trading far too many contracts relative to the equity in the accounts that I handled.” (more…)
23 Lefsetz’s Business Rules
1. You’ve got to get along. If you don’t have good people skills, you’ll never succeed, even if you run your own business.
2. Money talks. He who has cash has leverage, and someone always has more than you do. There’s rarely a deal between equals.
3. Leverage is not always about money. I.e. if you’re an unsigned band that can sell out arenas, you’ll get an incredible deal from the label.
4. If a deal is too good, it probably is. In other words, if the other person can’t make any money, there’s going to be a problem.
5. The best deals are win-wins.
6. If you’re not willing to risk, if you’re not willing to give something up, you’re going to sit on the sidelines. Sure, the label might not offer you your dream deal, but the alternative is to go it alone, which is an option, but probably not the one you want since you entered negotiations in the first place. (more…)
The trading curve.
Initiation- Every trader comes in thinking they will make money, in fact if they have never traded, they probably have convinced themselves fully. They spend time looking for all the answers in charts but it is in the process. It seems like easy money. It is not easy but it is probably the best way to make money. The best of anything takes more work.
Wearing off of novelty– This is a critical time for any trader. This is where the hole gets deeper or ideally the trader stops and starts to work more efficient. Process and not charts. This is the motivation to understand what trading really is and who they really are. (more…)