I will just write what the market is going to do tomorow, for that just have some patience for time being till then few quotes from Jesse Livermore’s book How to Trade in Stocks (one of my favorites, originally written in 1940). Pay particular attention to the first quote!
- “Successful traders always follow the line of least resistance – follow the trend – the trend is your friend”
- “Wall Street never changes, the pockets change, the stocks change, but Wall Street never changes, because human nature never changes”
- “Just because a stock is selling at a high price does not mean it won’t go higher” (more…)
The folks at EWI (Elliott Wave International) released a provoking new article today entitled:
“Blaming Market Manipulation for Losses is a Huge Obstacle to Success.”
The article encourages traders to take responsibility for losses instead of finding scape-goats to blame.
Losses may have just been the result of a bad outcome from a high-probability trade… or might have been the result of a bad trading habit like doubling down on losers or chasing a fast price move.
Mr. Prechter makes the point that “Losses are part of the game” and should be used as learning experiences.
You won’t learn if your loss was a result of random probability or a bad trading behavior if you do not analyze the loss, and instead sweep it under the rug as a painful memory.
I particularly liked the quote:
“You don’t have to be perfect to win in the markets, either; you “merely” have to be better than almost everybody else, and that’s hard enough.”
The article is actually the 4th Point in an article published years ago (not during the current market melt-up!) by Robert Prechter on what it takes to be a successful trader.
It’s brief, but thought-provoking!
Reporting from New York — Chris Fargis thought his big job interview was over. But when the partners at Wall Street upstart Toro Trading finished with their questions, they broke out a deck of cards and a green-felt card table. Mind playing a few hands of poker?
It was a final test, and Fargis was relieved. The 30-year-old never went to business school or even took a finance class. But he knew poker. He had made a living playing the game online for six years from his Manhattan apartment, betting on up to eight hands at a time.
Within a few days, Fargis — with no Wall Street experience — was offered a position trading stock options, a job that entails making multimillion-dollar gambles. His poker skills sealed the deal. (more…)