Archives of “January 2019” month

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The Way of The Turtle- 17 Quotes

  
  Education
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WAY TO TURTLE
 

I like to collect quotes from books I read, and here you have some good quotes from the book:

  1. …we were taught how to think in terms of the long run whan trading and we were given a system with an edge. (page 34)
  2. The Turtle Way views losses in the same manner: they are the cost of doing business rather than an indication of a trading error or a bad decision. ……In fact, we were taught that periods of losses usually precede periods of good trading (page 37)
  3. The secret of trading and of the Turtles’ success is that you can trade successfully by using ideas and concepts that are well known and have been around for years. But you have to follow those rules consistently (page 39)
  4. Over the years I kept finding evidence that emotional and psychological strength are the most important ingredients in successful trading. This was my first exposure to that idea and the first time I had seen it in action (page 44).
  5. Good trading is not about being right, it’s about trading right. If you want to be successful, you need to think of the long run and ignore the outcomes of individual trades (page 44).
  6. ….It takes a lot of time and study before one realizes just how simple trading is, but it takes many years of failure before most traders come to grips with how hard it can be to keep things simple and not lose sight of the basics (page 115).
  7. Keep it simple. Simple time tested methods that are well executed will beat fancy complicated methods every time (page 131).
  8. In a similar manner, simple rules make systems more robust because those rules work in a greater variety of circumstances (page 212).
  9. People have a tendency to believe that complicated ideas are better than simple ones….Some of us thought that trading successfully couldn’t possibly be that simple; that there must be something else to it (page 224).
  10. The primary goal of trading should be to stay in the game (page 116). (more…)

Trading in the Zone

  
  Education
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These Beliefs are the Seven Principles of Consistency from Mark Douglas’s “Trading in the Zone” I highly recommend picking this book up to add to your collection, because it has benefited me tremendously in understand how beliefs and values play a vital role in one’s trading and ultimate success.

I remember the first time I picked this book up I didn’t “get” it and put it away. About a year later I read it again and it just clicked. I now reference it on a weekly schedule just so the principles in the book stay fresh in my mind and to reinforce what I had learned.

I am a Consistent Winner Because:
1.  I objectively identify my edges.
2.  I predefine the risk in every trade.
3.  I completely accept the risk or I am willing to let go of the trade.
4.  I act on my edges without reservation or hesitation.
5.  I pay myself as the market makes money available to me.
6.  I continually monitor my susceptibility for making errors.
7.  I understand the absolute necessity of these principles of consistent success and , therefore, I never violate them.
Five Fundamental Truths: 
1. Anything can happen.
2. You don’t need to know what is going to happen next.
3. There is a random distribution between wins and losses for any given set of variables that define an edge.
4. An edge is nothing more than an indication of a higher probability of one thing happening over another.
5. Every moment in the market is unique.

Addional Mark Douglas Material in PDF form. (more…)

Van Tharp Wisdom

  
  Education
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Must Read ………

“The main goal is to make money, money that can be used to purchase objects of desire, such as a shiny red sports car, a spacious, luxurious home, or a large wardrobe of fine clothes. They believe that great financial success will be the solution to all their problems. Trading isn’t just a job; it’s their salvation. Although many traders are motivated by money, there’s a downside to focusing on what you can have as a result of your profits. When traders focus solely on accumulating wealth, on “having,” they tend to act greedy and may take risks in an effort to win. There is a blind and unrealistic focus on trading at a high level of performance. Unless they trade at a high level of performance, they can’t possibly “have” what they desire. But a novice trader can’t achieve a high level of performance, and so, there is a mismatch between skills and goals. Traders in a “having” state of mind often feel frustrated that their trading efforts fall short of their expectations. And when they feel frustrated, they have difficulty concentrating on their ongoing experience. They tend to make trading errors, which intensify their feelings of anger and frustration. In addition, they are tempted to give up easily and avoid putting in their best effort. They tend to think, “Why should l even try? I’ll never achieve the level of success I desire.”

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Whatever You Think … Think the Opposite

  
  Education
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Don’t be negative about rejection. It happens.

Work for free, if necessary.

Good grades will not secure you an interesting life. Imagination will.

Go to work and do your learning in the school of life.

Start your own company, then you have control of your own destiny.

Form your own opinion.

Having the courage to stand up in the face of public opinion is what makes you a winner.

Have a goal.

How you present yourself is how others will value you.

If you want to be interesting, be interested.

When things go wrong it tempting to shift the blame. Don’t.

Knowledge makes us play safe. The secret is to stay childish.

When it’s right, it just clicks.

Discipline & Passion

  
  Education
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All successful day traders need discipline, once you have a plan stick to it. When day trading you can lose money as well as make money, as losses can result in an end to your career you need to manage your risks, know where to set your limits and stop loss orders accordingly. Once you have met your objectives do what you planned don’t let greed or fear take control of you. 

Day trading involves being passionate about the market, a good day trader never switches off tracking the market day in and day out following news globally, analysing charts and looking at quote screens. This all has to be processed as quickly as possible, this is of course is what will give a good day trader an edge. 

Top Ten Things Traders Must Change to Survive

  
  Education
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  1. When the market goes from bull to bear, or from an uptrend to a down trend you must change from going long to going to cash or selling short.
  2. When a market recovers from a bear market to an uptrend over taking the 200 day moving average you must go from bearish or neutral to long.
  3. New bull markets most of the time have new leaders you can’t just play the same ones from the last up trend.
  4. When you make a trade and it goes against you, then you were wrong. When your stop is hit you must change your position and get out.
  5. When you have a strong opinion about a trade but it goes the opposite of what you believe day after day you must change your mind, you were wrong.
  6. When a trade does not go the way you expected in the time frame you had planned you have to take a time stop and change to something that is moving.
  7. Each day you must change and grow as a trader and improve on your skills through continuous learning.
  8. While the market will change the principles of winning through risk management, correct trader psychology, and playing the probabilities will stay the same.
  9. The market rotates and different market capitalizations come into favor and out of favor, follow the money.
  10. Different sectors rotate in and out of favor based on the cash flow of earnings, follow the capital.
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