Archives of “January 23, 2019” day

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Catalyst that could lead to a crash

  
Economy, Education
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“Chinese banks face state loans turmoil; about Rmb1,550B in questionable loans. “
This simple sentence reminds me of the Japanese Banks prior to the big Nikkei crash, that has not yet recovered (over 20 years).
What did we learn from the subprime mess ? The banks lied to us …..
What did we learn about the Nikkei crash ? The banks lied ….
1) Watch the Shanghai Index ! It has risen from its July’s low to almost 2600 ; a key resistance level.
2) Watch light crude oil prices (key indicator for the Chinese demand)
3) Did you just make some money on this rally ? SELL !!!!
I am bearish ? No, its just NOT the time to “buy and hold”

8 One Liner Lessons For Traders

  
  Education
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– markets change and if a trader doesn’t adapt, he’ll be driving a cab
– becoming a successful trader is not easy, even if you’re experienced
– core competency in one endeavor, does not guarantee competency in another
– working for a living sucks
– always be prepared to trade
– markets aren’t the only thing that reverts to the mean
– never turn down an edge, no matter where you are, or what you have in your hand

– success is fleeting, losing is forever

Perfectionism

  
  Education
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Trading is not about perfection. It is about probability and progress. All charts, analyses (fundamental and technical) and trading plans are built on probabilities.

Why then, do so many traders strive for perfection? Why do so many traders miss trades, waiting for exactly the right entry and then beat up on themselves when it doesn’t come and the position runs away while they sit there scratching their heads and condemning themselves?

Why are so many traders trying to turn a game of probability into one of 100% certainty?

The answer lies in one of the cardinal sins of trading which is PERFECTIONISM.

Perfectionism can be a great help to people in many professions, but can be fatal to a trader. Perfectionists, always trying to find the Holy Grail of trading go from one service to another, from one system to another, looking for a way that they can be right all the time. YES! Now, I found it. It’s this trading room, or this service, or this indicator! Wait… something is wrong here. Not all of these trades are working and I have draw downs! How can it be that this particular method failed and I actually had to take a loss? Must be something wrong. I will try harder and look for an even better system, a more expensive service, a new and improved guru, some absolutely no-fail software so that I can have ONLY WINNING TRADES. (more…)

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