Archives of “January 18, 2019” day

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20 Quotes From -Trading in the Zone :Mark Douglas

  
  Education
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1.) When it comes to trading, it turns out that the skills we learn to earn high marks in school, advance our careers and create relationships with other people, turn out to be inappropriate for trading.  Traders must learn to think in terms of probabilities and surrender all of the skills acquired to achieve in virtually every other aspect of life.

2.) Within 9 months of moving to Chicago, I had lost nearly everything I owned.  My losses were the result of both my trading activities and my exorbitant lifestyle, which demanded that I make a lot of money as a trader.

3.) You don’t need to know what’s going to happen next to make money.  Anything can happen.  Every moment is unique, meaning every edge and outcome is truly a unique experience.  The trade either works or it doesn’t.

4.) More or better market analysis is not the solution to his trading difficulties or lack of consistent results.  It is attitude and “state of mind” that determine his results.  A winner’s mindset means learning how to think in probabilities.

5.) The edge means there’s a higher probability of one outcome than another.  The greater your confidence, the easier it will be to execute your trades.

6.) Do you ever feel compelled to make a trade because you are afraid that you might miss out?

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The 150 Things the World's Smartest People Are Afraid Of

  
Education, Life
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Every year, the online magazine Edge–the so-called smartest website in the world–asks the top scientists, technologists, writers, and academics to weigh in on a single question. This year, that question was “What Should We Be Worried About?” and the idea was to identify new problems arising in science, tech, and culture that haven’t yet been widely recognized. 

This year’s respondents include former presidents of the Royal Society, Nobel prize-winners, famous sci-fi authors, Nassem Nicholas Taleb, Brian Eno, and a bunch of top theoretical phsycists, psychologists and biologists. And the list is long. Like, book-length long. Tthere are some 130 different things that worry 151 of the planet’s biggest brains. And I read it, so you don’t have to: here’s the Buzzfeedized version, with the money quote, title, or summary of the fear pulled out of each essay. Obviously, go read the rest if any of the below get you fretting. 

What keeps the smartest folks in the world awake at night? Here goes:

1. The proliferation of Chinese eugenics. – Geoffrey Miller, evolutionary psychologist.

2. Black swan events, and the fact that we continue to rely on models that have been proven fraudulent. – Nassem Nicholas Taleb

3. That we will be unable to defeat viruses by learning to push them beyond the error catastrophe threshold. – William McEwan, molecular biology researcher

4. That pseudoscience will gain ground. – Helena Cronin, author, philospher

5. That the age of accelerating technology will overwhelm us with opportunities to be worried. – Dan Sperber, social and cognitive scientist (more…)

China greasing economy with $55bn in tax breaks

  
Analysis, Education
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China’s State Council on Wednesday approved 380 billion yuan ($55.1 billion) in tax relief that will mainly favor farmers and small businesses in a move that is seen as both economic and political.

The second large-scale tax cut to follow last year’s comes as China’s economy is forecast to slow down in the latter half of 2017, during which the Communist Party will convene its 19th National Congress and reshuffle top leadership.

China will modify its value-added tax this July by removing the 13% bracket while retaining the 6%, 11% and 17% tiers. The 13% rate currently applies to farm products and natural gas, but they will move to the 11% category. Farmers as well as households that purchase rice and vegetables will likely benefit from this change.

For smaller companies, those that pay 300,000 yuan or less in annual taxable revenue qualify for preferential tax treatment. The ceiling will be lifted to 500,000 yuan. Furthermore, small businesses and startups will be allowed to deduct 75% of research and development costs, up from 50%. These tax breaks will remain in effect until the end of 2019.

The Chinese government enacted about 500 billion yuan worth of corporate tax cuts in 2016. Helped also by a surge in infrastructure spending, the real economy grew 6.9% during the January-March period this year, marking the second quarter of economic acceleration. However, the People’s Bank of China, the country’s central bank, has been gradually raising market interest rates in order to rein in the real estate bubble. (more…)

Be Flexible-5 Points to Win in Trading

  
  Education
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Flexibility for the trader  to move with price action is the key to successful trading. You can be rigid with your rules and risk management but you must be flexible when it comes to how the future plays out in price action for any market or stock. It is not those that predict the future that make a lot of money in trading but those that react to what is actually happening that are able to profit from price action.

  1. The ability to change your mind and reverse your trade in the other direction when proven wrong  is a powerful trait.
  2. The ability to admit you are wrong and take your stop loss can save your account.
  3. Put your ego aside and look at what is happening not what you believe should happen.
  4. Trade price action not your opinions.

  5. Always realize the markets are bigger than you are, they are always right.

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