Archives of “January 16, 2019” day

rss

Euro-area industrial production disappoints, 0.1% vs 0.2% exp m/m

  
Analysis, Education
#  #  #

Industrial production in the 18 country-strong Euro-area grew by a marginal 0.1 per cent in October, indicating a poor start to the fourth quarter.

The 0.1 per cent growth was lower than economists’ expectations of a 0.2 per cent expansion and will do nothing to raise optimism over the outlook for the euro-area economy.

The biggest improvement month-on-month was in the production of non-durable consumer goods, with production rising 1.8 per cent in this particular sector.

However, energy production dropped 1.9 per cent compared to September and capital goods dipped by 0.2 per cent.

Year-on-year, industrial production improved by 0.7 per cent but the monthly figures will likely be closely scrutinised by economists, who are already concerned about the downside risks to the euro-area economy. (more…)

5 Characteristics of Successful Trader

  
  Education
#  #  #  #  #  #  #  #  #  #  #  #  #  #  #  #  #  #  #

Knowledge – A trader must put in the time and effort to study and learn the proper skills in order to be successful. Whether that is through technical or fundamental analysis, one must invest in their education. They must completely understand their market, and its ideal as a beginner to focus on one market and be a specialist. A part of the knowledge and education is devising a game plan or strategy for trading. Writing down your rules and sticking to your trading plan is a key to success.

 Controlling your emotions – The ability to control your fear and greed is paramount to success. A successful trader will have a balanced emotional state regardless if he/she is winning or losing. Ensuring the trader has a clear head and is able to pull the trigger and take trades every time an opportunity presents itself.

  Patience – A successful trader can sit on the sidelines for days waiting for the proper setup. They don’t jump into a trade just for the sake of trading. Yes there may be opportunities, but the smart trader waits for trades that meet their trading rules and system. Over trading by beginner traders is a big obstacle to overcome. A need to always be in the market will lead to taking trades that are likely too risky. Learn patience, it’s a key to success. A winning trader usually has an extraordinary amount of self control, and often the best trade is no trade.

 Discipline – There are no 100% winning traders and taking losses are part of the trading profession. It is about finding high probability opportunities and managing the risks on each trade. A trader must stick to their trading plan and discipline is the key to success.

Confidence – Having the confidence in yourself and your system to make your profit or take a loss when your method tells you to is a winning trait. Confidence usually comes from experience and knowledge.

Murphy's Laws

  
Analysis, Education
#  #  #  #  #  #  #
  • If there is a possibility of several things going wrong, the one that will cause the most damage will be the one to go wrong.
  • If there is a worse time for something to go wrong, it will happen then.
  • If you perceive that there are four possible ways in which a procedure can go wrong, and circumvent these, then a fifth way, unprepared for, will promptly develop.
  • If everything seems to be going well, you have obviously overlooked something.
  • Nature always sides with the hidden flaw.
  • Whenever you set out to do something, something else must be done first.
  • Every solution breeds new problems.
  • Enough research will tend to support your theory.
  • When there is a very long road upon which there is a one-way bridge placed  at random, and there are only two cars on that road, it follows that: (1) the two cars are going in opposite directions, and (2) they will always meet at the bridge.

(more…)

Trading Lessons-One Liners

  
  Education

All successful traders use methods that suit their personality; You are neither Waren Buffett nor George Soros nor Jesse Livermore; Don’t assume you can trade like them.

What the market does is beyond your control; Your reaction to the market, however, is not beyond your control. Indeed, its the ONLY thing you can control.

To be a winner, you have to be willing to take a loss; (The Stop-Loss Breakdown)

HOPE is not a word in the winning Trader’s vocabulary;

When you are on a losing streak — and you will eventually find yourself on one — reduce your position size;

Don’t underestimate the time it takes to succeed as a trader — it takes 10 years to become very good at anything; (There Are No Shortcuts)

Trading is a vocation — not a hobby

Have a business/trading plan; (Write This Down)

Identify your greatest weakness, Be honest — and DEAL with it

There are times when the best thing to do is nothing; Learn to recognize these times (Nothing Doing)

Being a great trader is a process. It’s a race with no finish line.

Other people’s opinions are meaningless to you; Make your own trading decisions (The Wrong Crowd)

Analyze your past trades. Study what happened to the stocks after you closed the position. Consider your P&L game tapes and go over them the way Vince Lombardi Bill Parcells reviewed past
Superbowls

Excessive leverage can knock you out of the game permanently

The Best traders continue to learn — and adapt to changing conditions

Don’t just stand there and let the truck roll over you

Being wrong is acceptable — staying wrong is unforgivable (I liked this one! – BMB)

Contain your losses (Protect Your Backside)

Good traders manage the downside; They don’t worry about the upside

Wall street research reports are biased

Knowing when to get out of a position is as important as when to get in

To excel, you have to put in hard work

Discipline, Discipline, Discipline !

Go to top