Archives of “February 8, 2019” day

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12 Wisdom Points for Traders

  
  Education
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1. Now the successful trader prepares before he enters battle.  The unsuccessful trader makes but a few, if any, preparations before he enters battle.  Proper preparation leads to victory; a little preparation leads to defeat; and no preparation leads to ultimate destruction!  The one who is properly prepared is the one who is most likely to win.

2. In trading, let your great object be a quick and decisive victory, not the slow death of a lengthy loss.

3.  If you know who the enemy is and you know yourself, you will never fear the next trade.  If you know yourself but not the enemy, you will win one lose one.  If you do not know the enemy or yourself, you will lose on each trade.

4.  The quality of entry is like a well-timed swoop of a falcon which enables it to strike and destroy its victim.

5.  Proper preparation may be likened to the bending of a crossbow; decision, to the releasing of the trigger.

6.  Just as water retains no constant shape, so in trading know the market is constantly changing.

7.  Ponder and deliberate before you enter a trade. (more…)

China’s malls are empty, but whole cities?

  
Analysis, Economy, Education
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The China bears tell us that stimulus spending there is largely being wasted. This report from Al Jazeera offers startlingly strong support for that proposition:

China’s economy is continuing to grow despite the global recession, helped by a massive government stimulus package of $585bn.
But doubts remain whether such strong growth can be sustained by public spending alone.

Al Jazeera’s Melissa Chan reports from Inner Mongolia, where  a whole town built with government money is standing empty.

Four Stages Of Awareness in Trading

  
  Education
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Have you ever noticed that awareness is the first step toward future growth? If you want to improve in any area, read on below to understand the four stages of awareness as they relate to good trading.

The learning curve in any endeavor involves four stages:

Unconscious incompetence (where the trader has no idea how much he doesn’t know about trading)
Conscious incompetence (where the traders realizes after initial losses that he has a lot to learn)
Conscious competence (where the trader has developed and is now doing well as long as he works his system and its rules)
Unconscious competence (where the trader has mastered the rules and also knows when to break the rules as conditions change, in a complete flow with the markets based on great experience)

LUCK VS SKILL

  
Analysis, Education

Successful technical traders know that their technical analysis does not make them successful.

It does not take much skill to learn how to read a chart.  In fact, there is plenty of programs that can do that for you.  Technical analysis provides an historical record; it does not predict what will happen.  History is not doomed to repeat itself in the markets.  No, the skill comes in managing what happens next.  The skill comes in managing the luck handed to us, good or bad.

Technical analysis is a tool that when used properly and for the right reasons will aid the trader in managing what happens at the right hand side of the chart, most of which is pure luck.  Once in a trade the trader is 100% dependent on the decisions and news events that follow, none of which is in his or her control.

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