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One Liners For Traders

  
  Education
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  • Let winners run. While momentum is in phase, the market can run much further than might be expected.
  • Corollary to that rule: Do not exit winners without reason!
  • Be quick to admit when wrong and get flat.
  • Sometimes a time stop is the right solution. If a position is entered, but the anticipated scenario does not develop then get out.
  • Remember: if one thing isn’t happening the other thing probably is. Historically, this has never been good for me…
  • Be careful of correlations. Several positions can often equal one large position bearing unacceptable risk. Please think.
  • I am responsible for risk management, money management, trade management, doing the analytical work and putting on every trade that comes.
  • I am not responsible for the outcome of any one trade. Markets are highly random. I do not have a crystal ball. I am not as smart as I think I am.
  • Risk management is the first and last responsibility. I can make almost any mistake and be ok as long as I do not violate my risk management parameters.
  • Opportunity comes every day. Do not neglect the work. Must do analysis every day.
  • Opportunity comes every day. Get out of poor positions. Move on.
  • I am a better countertrend trader than a trend trader. Sometimes the crowd is right, and they will run me over at those times if I’m not quick to admit I’m wrong.
  • If you’re going to do something stupid, at least do it on smaller size.

Habits of Incredibly Successful People

  
  Education
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Extraordinary people have extraordinary habits. Here are few I’ve noticed. 

Dilbert creator Scott Adams doesn’t use goals. He uses systems instead 

Adams writes in his book How to Fail at Almost Everything:

A system is something you do on a regular basis that increases your odds of happiness in the long run. If you do something every day, it’s a system. If you’re waiting to achieve it someday in the future, it’s a goal.

The system-versus-goals model can be applied to most human endeavors. In the world of dieting, losing twenty pounds is a goal, but eating right is a system. In the exercise realm, running a marathon in under four hours is a goal, but exercising daily is a system. In business, making a million dollars is a goal, but being a serial entrepreneur is a system.

When Charlie Munger was a lawyer, he saved the most productive hour of the day for himself

Munger explained:

I would sell the best hour of the day to myself. And only after improving my mind — only after I’d used my best hour improving myself — would I sell my time to my professional clients. I did that for a number of years.

Nikola Tesla designed complicated inventions in his head before tinkering

He explained: (more…)

Cementing a change in trading–or in any other facet of life–requires 2 things

  
  Education

If you are trying to change something in your trading, the key question to ask is:  Am I going about this change in a way that is likely to rewire me?  If not, the change won’t stick.  Sticking with the same wiring and hoping for different outputs is a formula for frustration.

Cementing a change in trading–or in any other facet of life–requires two things:

1)  A fundamental shift in state of mind and body – The most efficient (if not the most constructive) learning occurs during trauma:  a single event can alter personality in fundamental ways.  Successful change creates positive traumas.

2)  Repetition – Doing new things the same way over time is what turns positive changes into positive habits.  We know we have achieved rewiring when we have cultivated new habits.  If a change is something you are working on, you know you haven’t reached rewiring.  It’s when changes become habits that they are truly part of us.

12 Great Chess Quotes For Traders

  
  Education
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Some great chess quotes from Garry Kasparov that can apply to chess, trading, or life.chess-trading

  1. You must know what questions to ask and ask them frequently. Questions are what matters. Questions, and discovering the right ones, are the key to staying on course.
  2. The top achievers believe in themselves and their plans, and they work constantly to ensure those plans are worthy of their belief.
  3. Personal style is not generic software that you can download. You must instead recognize what works best for you and then, through trial and error, develop your own method- your own map.
  4. We must also avoid being distracted from our strategic path by the competition.
  5. Play the opening like a book, the middle game like a magician, and the endgame like a machine.
  6. You may learn much more from a game you lose than from a game you win.  You will have to lose hundreds of games before becoming a good player.
  7. Chess is everything: art, science, and sport. (more…)
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