Archives of “February 2019” month

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New Trading Rules

  
Analysis, Education, Humour, Life
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Never marry a woman you wouldn’t wish to divorce, i.e. never get into a position you couldn’t get out of with ease, and think of this before you make the commitment. I would add that the selfish wife or selfish price or selfish dog should never marry a man that will leave her in oblivion if things don’t work out. Imagine the great harm that the selfish dog did itself by killing a human. Now they’re all likely to be rounded up.

Never admit to having made a profit, but always emphasize your losses.

Surround yourself with big and powerful players so that your positions will be with the forces when you disseminate or implement them.

Quotes that apply to golf AND Trading

  
  Education
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  1. “Golf is not a wrestle with bogey; it is not a struggle with your mortal foe; it is a physiological, psychological, and moral fight with your self; it is a test of mastery over self; and the ultimate and irreducible element of the game is to determine, which of the players is the more worthy combatant.” –Arnold Haultain

  2. “Golf is the loneliest sport. You’re completely alone with every conceivable opportunity to defeat yourself. Golf brings out your assets and liabilities as a person. The longer you play, the more certain you are that a man’s performance is the outward manifestation of who, in his heart, he really thinks he is.” –Hale Irwin
  3. “If you wish to hide your character, do not play golf.” – Percey Boomer
  4. “I never learned anything from a match that I won.” -Bobby Jones
  5. “Concentration in golf comes out of a combination of confidence and hunger.” –Arnold Palmer
  6. “Golf is deceptively simple and endlessly complicated.” –Arnold Palmer
  7. “Golf is about how well you accept, respond to, and score with your misses much more so than it is a game of your perfect shots.” –Dr. Bob Rotella (more…)

Stupid Things Finance People Say

  
  Education
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Here are a few stupid things I hear a lot.

“They don’t have any debt except for a mortgage and student loans.”

OK. And I’m vegan except for bacon-wrapped steak.

“Earnings were positive before one-time charges.”

This is Wall Street’s equivalent of, “Other than that Mrs. Lincoln, how was the play?”

“Earnings missed estimates.”

No. Earnings don’t miss estimates; estimates miss earnings. No one ever says “the weather missed estimates.” They blame the weatherman for getting it wrong. Finance is the only industry where people blame their poor forecasting skills on reality.  (more…)

Trading Errors

  
  Education
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 Ignoring the downside of a trade. Most traders, when entering a trade, look only at the money they think they will make by taking the trade. They rarely consider that the trade may go against them and that they could lose. The reality is that whenever someone buys a futures contract, someone else is selling that same futures contract. The buyer is convinced that the market will go up. The seller is convinced that the market has finished going up. If you look at your trades that way, you will become a more conservative and realistic trader.

Taking too much risk. With all the warnings about risk contained in the forms with which you open your account, and with all the required warnings in books, magazines, and many other forms of literature you receive as a trader, why is it so hard to believe that trading carries with it a tremendous amount of risk? It’s as though you know on an intellectual basis that trading futures is risky, but you don’t really take it to heart and live it until you find yourself caught up in the sheer terror of a major losing trade. Greed drives traders to accept too much risk. They get into too many trades. They put their stop too far away. They trade with too little capital. We’re not advising you to avoid trading futures. What we’re saying is that you should embark on a sound, disciplined trading plan based on knowledge of the futures markets in which you trade, coupled with good common sense.

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