Archives of “January 30, 2019” day

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3 destructive habits every trader must avoid.

  
Analysis, Education
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Three destructive habits that will kill your trading day, week, month, or career.

Not having a plan. Get a plan, who cares if it is bad, start with something. You can build off of it and refine it. You have to be willing to spend the time to make the plan yours. You do not start anything without some level of planning. Trading is hard; your brain spends a lot of time in fast forward, affecting your memory. You can slow it down by having a plan and increase your brains ability to remember.  A plan makes it possible to improve. Most importantly, a plan gives you a chance at removing emotion.

Forgetting why you are trading.  The purpose of trading is to make money.  Every action should bend to that goal. That does not mean every trade makes money.  It means every trade gets to closer. If you are looking for comfort, get a teddy bear. If you are looking to be right, play trivial pursuit.  If you want excitement, drive fast.

Letting it go. It is really important to separate what happened from how you felt. The more distance between the two the less time it takes to learn from that situation.  Admitting you made a mistake or are wrong are necessary for letting it go.  Unlike life, you get no credit for admitting you are wrong, it is just a part of trading. Neither matter unless you take action.

Mahatma Gandhi among leaders most admired by CEOs globally

  
Analysis, Education
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Mahatma Gandhi figures among the top three most admired leaders of the world, said a global survey of CEOs conducted by accountancy firm PwC.

While Winston Churchill tops the list of 10 most admired leaders, Gandhi figures in the third position after Steve Jobs (co-founder of Apple), said the 16th Annual Global CEO Survey.

As part of its annual survey, PwC said it recently asked 1,400 CEOs from around the world “which leaders they most admired, and what they most admired about their actions”.

“Some clear types emerged: warriors, (Napoleon; Alexander the Great) reformers (Jack Welch), leaders though adversity (Winston Churchill; Abraham Lincoln), leaders who caught the imagination of the masses (Mahatma Gandhi; Nelson Mandela) and consensus builders like Bill Clinton” PwC said in a statement.

Winston Churchill was the most popular choice of all CEOs with Steve Jobs admired in the most number of countries (37). (more…)

10 Quotes of Jesse Livermore

  
  Education
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When seasoned traders get together, we have a sort of “secret handshake” that the uninitiated may not notice.  We ask each other if they’ve read Reminiscences of a Stock Operator.  The insiders reply by telling you the number of times they’ve read the book.  Novices ask for the author’s name.

Recently, I’ve been rereading Jon Markman’s wonderful annotated version of this Jesse Livermore classic.  This special edition even has a forward written by Paul Tudor Jones.  As I revisited Mr. Livermore’s wisdom, I realized that so much of the trading baton that I’ve endeavored to pass on to my readers is directly or indirectly the result of the special batons he passed on to me.  In considering this, I feel it’s only appropriate to salute the man.  Afterall, I have patterned myself after him and my favorite quotes come from this truly extraordinary trader.  As Dr. George Lane, the creator of the stochastic oscillator, once told me over dinner, “Gatis, you can never get enough of that good stuff.” 

My trading approach is organized into 10 stages that I call Tensile Trading.  For this week’s blog, I’ve chosen a few of my favorite Jesse Livermore quotes for each of these 10 stages.
1. Money Management:
    * “I trade on my own information and follow my own methods.”
    * “The desire for constant action irrespective of underlying conditions is responsible for many losses on Wall Street, even among the professionals, who feel that they must take home some money every day, as though they were working for regular wages.”

2. Business of Investing:
    * “I believe that anyone who is intelligent, conscientious, and willing to put in the necessary time can be successful on Wall Street.  As long as they realize the market is a business like any other business, they have a good chance to prosper.”
3. The Investor Self:
    * “My satisfaction always came from beating the market, solving the puzzle.  The money was the reward, but it was not the main reason I loved the market.  The stock market is the greatest, most complex puzzle ever invented – and it pays the biggest jackpot…it was never the money that drove me.  It was the game, solving the puzzle, beating the market that had confused and confounded the greatest minds in history.  For me, that passion, the juice, the exhilaration was in beating the game, a game that was a living dynamic riddle…” (more…)

DIFFERENCE BETWEEN THESE TWO GROUPS OF TRADERS

  
  Education
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two groups of tradersThere must be a difference between these two groups of traders – the small minority of winners and the vast majority of losers who want to know what the winners know. The difference is that the traders who can make money consistently on a weekly, monthly, and yearly basis approach trading from the perspective of a mental discipline. When asked for their secrets of success, they categorically state that they didnt achieve any measure of consistency in accumulating wealth from trading until they learned self-discipline, emotional control, and the ability to change their minds to flow with the markets.

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