Thought For A Day
Archives of “January 2019” month
rssDo the math
Fixed Mind Set Traders
The following is for those traders who, with a fixed mind-set, think…
…success is something over there
…trading is about being right, not about making money
…trading is too challenging
…the stock market is fixed with too many obstacles
…trading is about finding the effortless holy grail
…losses are to be avoided at all costs
…others’ success is threatening
Expectations & Reality
Become a Great Trader Without Trading
Sometimes history can assist us in becoming greater at what we want to do.
However, one of the biggest struggles we all face is that fact that we generally know what we need to do, but because we do not like the task, we do not do it.
As a trader, we all want to become better. Instead of using only our time in front of the charts to enhance our skills, use the time that we cannot even trade to become better.
Every Saturday-Sunday, the markets are closed. This is the perfect time to have you own personal trading school. Sit down with your trading journal of all of the trades you made last week along with your charts or the screen shots of your executed trades and analyze what you actually did.
You will soon discover that the information surrounding these trades will provide a wealth of information that will assist you in seeing your areas of strength and areas that you need to strengthen.
If we never look at where we have just been, then we will never be sure that the path we are continuing on will get us to our desired destination.
Power of chart -Nothing else
Know when problems can be resolved and then apply methods to solve them. That may mean giving up some control in order to gain a different control. It may mean changes in your personality, learning self-reliance, or giving up independence and ego to become part of a trading team.
Readers ,Just refresh yoru memory and see on 15th March ,I had written close below 337 will create panic and my target was of 283-265 level.
Today it kissed 283 level and now while updating its trading at 289.
No Magic ,No Miracle -Only Power of chart.
Updated at 13:48/29th March/Baroda
“Risk is the Possibility of Loss”
“Risk is the possibility of loss. That is, if we own some stock, and there is a possibility of a price decline, we are at risk. The stock is not the risk, nor is the loss the risk. The possibility of loss is the risk. As long as we own the stock, we are at risk. The only way to control the risk is to buy or sell stock. In the matter of owning stocks, and aiming for profit, risk is fundamentally unavoidable and the best we can do is to manage the risk. To manage is to direct and control. Risk management is to direct and control the possibility of loss. The activities of a risk manager are to measure risk and to increase and decrease risk by buying and selling stock.”
3 Lessons
Understand the various scenarios that the market may present you and then plan your actions for each of them. That is preparation, not prediction. Prediction tends to bind you to one point of view because when that doesn’t come true, you don’t know what to do.
Always have an exit plan. Many people could have avoided the catastrophic losses they took in the markets this year if they, or their financial professionals, had engaged in stronger risk management practices, including the use of trailing stops
Understand the various scenarios that the market may present you and then plan your actions for each of them. That is preparation, not prediction. Prediction tends to bind you to one point of view because when that doesn’t come true, you don’t know what to do.
Must See -What goes up, comes down considerably faster.Global Stocks -Lost $ 15 Trillion in 7 Months
For global stocks, the way down ($15 trillion lost in 7 months) has been much easier than the climb up ($30 trillion added in 4 years).
With markets from Asia to Europe entering bear markets this month, stocks worldwide have lost more than $14 trillion, or 20 percent, in value from a record last June amid worries over global growth and deepening oil declines. The pace of the drop has been so fast that it has already unraveled about half of the rally since a low in 2011.
Accept These 7 Things -If U Are A Trader
If you truly are serious about being a trader then there are seven things that you will have to accept.
You will have to accept that over the long term at best only 60% of your trades will be winners. It will be much less with some strategies.
Accept that the key to being a successful trader is having big wins and small losses, not big bets paying off. Big bets can lead quickly to you being out of the game after a string of losses.
Accept that the best traders are also the best risk managers, even the best traders do not have crystal balls so they ALWAYS manage their capital at risk on EVERY trade.
If you want to be a better trader then you need to accept that trading smaller and risking less is a key to your success. Risking 1% to 2% of your capital on any single trade is the first step to winning at trading. Use stops and position sizing to limit your losses and get out when your losses grow to these levels.
You must accept that you will have 10 trading losses in a row a few times each year. The question is what your account will look like when they happen.
You have to accept that you will be wrong, a lot. The sooner you accept you are wrong and change your mind the better off you will be.
If you really want to be a trader then you are going to have to accept the fact that trading is not easy money. It is a profession like any other and requires much work and effort and even years to become proficient. Expect to work for free and pay tuition to the markets through losses until you learn to trade consistently and profitably.