Archives of “January 18, 2019” day

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The Trading Mindset & Common Psychological Issues

  
  Education

plutchiksPlutchik’s Wheel of Emotions

As you know by now, psychology is a secondary interest of mine, after reading charts and tarot cards, of course. For this week, I decided to cover the “trader’s mindset” and the most common psychological issues that all traders deal with.
How does someone know that they reached the trader’s mindset? Here are a few characteristics:
1. No anger whatsoever.
2. Confidence and being in control of the self
3. A sense of not forcing the markets
4. An absence of feeling victimized by the markets
5. Trading with money you can afford to risk
6. Trading using a chosen approach or system
7. Not influenced by others
8. Trading is enjoyable
9. Accepting both winning and losing trades equally
10. An open mind approach at all times
11. Equity curve grows as skills improve
12. Constantly learning on a daily basis
13. Consistently aligning trades with the market’s direction
14. Ability to focus on the present reality
15. Taking full responsibility for your actions (more…)

35 Chinese Cities Have Economies As Big As Countries

  
Analysis, Economy, Education
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As Visual Capitalist’s Jeff Desjardins notes, with 1.4 billion people and the third-largest geographical area, the country is a vast place to begin with. Add in explosive economic growth, a market-oriented but Communist government, a longstanding and complex cultural history, and self-inflicted demographic challenges – and understanding China can be even more of a puzzle.
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11 Everyday Phrases You Might Be Saying Incorrectly

  
Education, Life

Some people mumble. Others repeat nonsensical sayings they just don’t understand.

 Whatever the reason, we’ve totally bastardized parts of the English language, often changing the phrases’ meanings, too.

These 11 examples always come out incorrectly. Let’s set the record straight.

1. For all “intents and purposes” – not for all “intensive purposes”

If you say “for all intensive purposes,” you mean “for all these very thorough purposes,” which doesn’t make any sense.

On the other hands, “for all intents and purposes” means “for all the reasons I did this and all the outcomes.” It’s a much stronger cliche.

2. Nip it in the “bud” – not nip it in the “butt”

This phrase should imply you cut a new bud (off a plant), not bit someone in the backside.

3. One “and” the same – not one “in” the same

“One in the same” refers to one thing in a group of other things that look the same – meaningless. “One and the same” means that two things are alike.

4. “By” accident – not “on” accident

Even though you do something on purpose, you can’t do something on accident. “By accident” is technically correct. English is crazy.

5. Case “in” point – not case “and” point

“Case in point” means, “Here’s an example of this point I’m trying to make.” The version with “and” makes them two different things, which isn’t helpful to your argument at all. (more…)

Long or Short Position

  
  Education
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Do you need to long or short the market today? If you’re a day trader, forget this question and ignore this post. But if you’re a positional player, perhaps having a holding period of at least 5 sessions, the above question is necessary.

Let us ponder.

1. What are your chances of success (initiating a trade that will eventually turn into a satisfactory profit)? Since you’re going to hold for several sessions, possibly facing several opening gaps along the way, might as well establish a position that you’re going to sleep with. So, unless you get the price you’re comfortable with, stay aside. Particularly practical with long holidays.
2. Is this your original plan? Are you trading according to your overall strategy or purely intraday impulse? I don’t think its very difficult to tell the difference. If you trade base on intraday impulse, you get a little more excited than usual.
3. ‘I have been dormant for some time, and I seriously need to do something’. The degree of this itchiness varies according to individuals. If you come from a day trading background, you’ll have a tougher time adjusting. After all, the mindset of ‘If I don’t do anything, I am not going to make anything either’ is in every human’s mind. Think about it. Position trading involves much passiveness, so technically, after establishing a position, you are dormant in some way.
4. ‘I am sure this is a solid short term opportunity’. I think this is the mother of all trading sin. Of course, this does not apply to day traders. But if you’re now a positional trader, stay a positional trader. Learn to let go the small fish.

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