Everyone makes mistakes. Some repeat their mistakes and suffer continuously. The smart ones learn from their own mistakes and call it experience. But the geniuses are a special breed, they’re the ones that learn from the mistakes of others. Here’s what Bruce Kovner has to say about this subject: “You have to be willing to make mistakes regularly; there is nothing wrong with it. Michael [Marcus] taught me about making your best judgment, being wrong, making your next best judgment, being wrong, making your third best judgment, and then doubling your money. Whenever I enter a position, I have a predetermined stop. That is the only way I can sleep. I know where I’m getting out before I get in. The position size on a trade is determined by the stop, and the stop is determined on a technical basis. I never think about other people who may be using the same stop, because the market shouldn’t go there if I am right. Place your stops at a point that, if reached, will reasonably indicate that the trade is wrong, not at a point determined primarily by the maximum dollar amount you are willing to lose. If you personalize losses, you can’t trade.”
Archives of “January 23, 2019” day
rss8 Types of Innovation
Great Quote by Paul Tudor Jones -100% Still valid after 8 years
Classic chart patterns to study
The Foundation of Technical Analysis
First Principles
- Markets are highly random and are very, very close to being efficient.
- It is impossible to make money trading without an edge.
- Every edge we have is driven by an imbalance of buying and selling pressure.
- The job of traders is to identify those points of imbalance and to restrict their activities in the markets to those times.
- There are two competing forces at work in the market: mean reversion and range expansion.
- These two forces express themselves in the market through the alternation of trends and trading ranges.
The Four Trades
- Traders usually view market action through charts, which are useful tools, but are only tools.
- Trades broadly fall into with-trend and countertrend trades. These two categories require significantly different mind-sets and approaches to trade management.
- There are only four technical trades. Some trades are blends of more than one trade, or an application of one trade to a structure in another time frame, but these are just refinements. At their root, all technical trades fall into one of these categories:
- Trend continuation.
- Trend termination.
- Support and resistance holding.
- Support and resistance failing.
- Each of these trades is more appropriate at one phase of the market cycle than another. If you apply the wrong trade to current market conditions, you will lose.
"Some guys have all the luck Some guys have all the pain Some guys do nothing but complain"
Interesting anecdote on abolishing price targets- From :Book "More Than You Know."
Sex Is Spiking With The Markets
Must Read ..
The odds are you’ve been having a lot more sex this summer than you did last winter.Research suggests that testosterone is closely linked to market performance as well as sexual drive and performance. Basically, all three…ahem…rise and fall together. (more…)
Ride winners, cut losers.
Accept you will make many mistakes
Those who learn how to minimize the damage when they are wrong and who readily own up to the mistakes they make will do far better over the long haul. Making mistakes is a part of this game, but knowing how to handle them is everything. Likewise, if you attach your ego to your portfolio’s performance you are destined for failure. The market absolutely loves to kill those with big giant egos and who look for the markets as a place to prove how smart they are. Markets chew and spit out these folks routinely for good reason and they will continue to do so at every available opportunity.