Successful versus Unsuccessful
Archives of “January 2019” month
rssIgnore Your Guts
In my studies I have often found something that is rather interesting and maybe different than most would suspect. The most successful traders I have studied don’t rely on gut calls or feels, but rather adhere to a disciplined set of rules or guidelines and are humbled enough to admit that their emotional decisions aren’t consistent enough to hold up during the heat of the moment.
Ironically, most would think just the opposite that the more successful a trader is, the more ‘feel’ he or she has or the more ‘instinct.’ Sure, it looks macho to make calls or predictions and when proven correct a person is often praised and viewed as having some superior knowledge, but in reality these people are one step below those that have already moved through this stage and left it behind.
As an individual trader it is simply impossible to remain emotionless, making the proper trading decisions at all times, when the action is heated. Even when there is a lull, our emotions kick in and we feel a change is needed or something should be done, when in reality our rules may say to stay put or do nothing.
Intelligence
Trading Mindset Upgrade Profit Opportunity -Anirudh Sethi
Anybody that has traded for an expanded timeframe comprehends the significance of having the correct attitude with regards to trading beneficially. Truth be told, without the correct attitude, it’s practically difficult to deliver reliable outcomes. In addition, the greatest test I’ve seen for some traders understands what the right mentality involves, and after that making it perpetual so it turns out to be second nature while connecting with the business sectors. Most traders concentrate on creating techniques with a specific end goal to profit. Henceforth, there is no other path around. In any case, your mentality is regularly “the missing connection” with a specific end goal to perform better. To get consistent returns you need to concentrate on the mental part the same amount of as the trading numbers. For the individuals who have not traded much, this may sound somewhat abnormal. What does brain science need to do with hard and cool trading numbers? In the wake of trading for a few years, you’ll find that trading is absolutely not as simple as it appears to be, an incredible inverse. On the off chance that you can’t take after the principles of the procedure, you essentially have no technique.
Target is Most Valuable Consequence of Trading Mindset
Your mindset and convictions will be a noteworthy deciding component in your trading come about. Consider this illustration, where the same fruitful trading approach is utilized by a hundred traders and ordinarily no two of them will trade it the very same way. Why? Since every trader has a one of a kind conviction framework, and their convictions will decide their trading style and their trading comes about. That is the reason even with a gainful and demonstrated trading approach; numerous traders will come up short. They don’t have the best possible conviction framework to empower them to trade well. At the end of the day, they do not have ‘The Trader’s Mindset’. When you experience mental issues it is best to perceive the issues, simply know about them and don’t deny they exist. Keeping in mind the end goal to settle mental issues, we should first wind up plainly mindful of the issues that are making the issues altogether mind. This is a lot of what truly matters to analysis. The therapist or psychotherapist tries to get the patient initially to perceive issues that are causing their issues. The patient must trust that these issues are making the issue altogether for the patient recuperates. The reason this procedure can take so long, maybe even years, is on the grounds that the patient needs to perceive their issues as well as must acknowledge that there genuinely is an issue. They should assume liability for their issues to recuperate. (more…)
Italy is not junk, but it isn’t far off either.
The World's GDP Growth, Declining of Late. (Don't blame the US)
Russell Napier’s Anatomy of the Bear -Book Review
Described as “a cult classic in the investment community,” Russell Napier’s Anatomy of the Bear: Lessons from Wall Street’s Four Great Bottoms, first published in 2005, is now in its fourth edition, with a new foreword and preface (Harriman House, 2016).
Napier remains a bear. He believes that the run-up in the markets we have seen since 2009 is merely a bear market rally. The “inexorable pressure” from rising consumption in China and increasing retirement in the U.S. “augurs deflation and thus can unleash the force that will push equities to valuation levels associated with the bear market bottoms of 1921, 1932, 1949 and 1982.” (p. 13)
August 1921, July 1932, June 1949, and August 1982: four summer bottoms. What do they have in common? And what can we learn from them to steer ourselves through the next “big one,” whenever it may occur?
To study the nature of bear market bottoms, and how investors reacted to them, Napier analyzed “some 70,000 articles from the Wall Street Journal written in the two months either side of the four great bear market bottoms.” From his research he unearths “approaches that have worked in assessing when the bear is about to become the bull. What also emerges is an understanding of how similar the great four bear-market bottoms were, in turn leading us to a set of signals to guide investment strategy.” (p. 27)
Ed Seykota Interview
Van Tharp:
Have you played around with any other significant ideas in terms of position sizing besides market’s money? If so, what are they?
If you could give me ten rules to consider with respect to position sizing what would they be?
Ed Seykota:
“Playing around” with “when market money becomes your money” seems to be an exercise in math-turbation.
I don’t know what you mean by playing around with ideas. I feel you either think things through or you don’t.
Ten rules for position sizing:
1. Bet high enough to make meaningful profits when you win.
2. Bet low enough so you are ok financially and psychologically when you lose.
3. If (1) and (2) don’t overlap, don’t trade.
4. Don’t go adding a bunch of rules that don’t work, just so you have ten rules.
3 Trading Principles
Sharpen Your Edge
“Gaining a competitive advantage is like having a two-edged sword, and you need to keep both of them sharp. On edge is internal-knowing what unique skills you bring to the table. The other is external and comes from gathering knowledge that makes it more likely you’ll succeed”
Keep Your Cool
“Deciding when to cut your losses is one of the toughest decisions for anyone to make, but traders at the top of their game know that they always have to make the decisions they need to make, which may or may not be the ones they wantto make”
Get Comfortable With Being Uncomfortable
“In the trading world, you will either make money or lose money on any given trade. All that matters in the end is making more money when you’re right than you lose when you’re wrong. Knowing this, traders have learned to accept failure as part of the game, but they also use the information they acquire from their mistakes as a learning tool. Frequently, what they learn from losing money is more valuable than what they learn when they make money”
Self-knowledge is important as market knowledge
