Archives of “February 2019” month

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Trading Wisdom

  
  Education
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This (Trading) is not a job where you get paid by the hour. You get paid for doing the right thing”

-“Forget that your money is at stake. Money in trading account is just a tool for making money. Preserve your tool. You need it to make money”

-“Don’t let the outcome of one trade alter your trading discipline. One trade doesn’t make a system…”

-“Trading is a game of probabilities. You don’t have to be right every time. You just have to follow your rules”

-“You decide your fate; the market doesn’t”

-“Pure followers of stock pickers will never be around…Learn or you are bankrupt”

-“Be aggressive in trending market and conservative in choppy market”

“Take home runs when you can, but don’t beat yourself up about missing a few. One trade should never make or break your account”

Personal Strengths and Weaknesses

  
  Education
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We all have different personal strengths and weakness.  Many people focus on transforming a weakness into a strength. While that is admirable, the reality is that it’s not always possible. Although I agree with the basic idea of brain plasticity, and I whole-heartedly agree with the idea of always striving for self-improvement, I also know that as humans we have a certain degree of natural-born temperament and not everything about us can be changed.

Although we can’t always build or change every weakness into strength, the good news is that we can always leverage our strengths, if we know how. And that is mighty powerful. It’s so powerful that if you leverage the right strengths in the right way they can do an excellent job of not just counter-balancing your weaknesses, but can propel you so far ahead  that those weaknesses pale in comparison.

One of the most powerful things you can do for yourself is identifying your natural strengths and then work to see how you can build on them.

We all have different personal strengths, and knowing how to leverage them is an important part of successful trading. A major consideration here is that you try to identify and leverage your own personal strengths, and not simply copy someone else’s. All too often I see struggling traders running from one style to another style whenever they see someone else’s success. One of the primary reasons why copying someone else’s trading style doesn’t always pay off in trading is because of different personal strengths.

Consecutive Loses

  
  Education
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You go long and the market immediately goes down – you go short and the market immediately goes up.  That’s 2 consecutive losses AND you are getting a little ‘anxious’ so you don’t take the ‘next’ trade and it of course works.  BUT to make the situation worse you then ‘chase’ the entry and it immediately reverses – another loss AND this is 3 in a row.  Ok 1 more try – this can’t happen on every trade can it – pray mode?   
This time though you will be real clever.  You have at least noticed that the market is in a range AND it’s the bounce from the low/retrace from the high that is causing all the problems.  So this time the next trade you take will be a range extreme fade AND the hell with your trading method.  The market is at the range low AND per your new ‘on the fly’ plan you go long AND the range immediately breaks out giving you consecutive loser #4 – trading against a method trade that is going far enough to pay for the previous 3 losers and make you net ahead.   
Now what are you supposed to do – QUIT?  AND to be sure that there is no more temptation – your throw your computer out the window and dive out right behind it.  You are in a trading psychology spiral.

Solution if you are in Stress while Trading

  
  Education
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1. Think positively. Being optimistic helps in stressful situations. Do not let stress affect your mind and keep focusing on the positive side of your trading. What we think may result in decisions that can lead to better or worst situations. Thinking positively helps in making good decisions.
2. Change your response to stress. Being able to manage stress means developing strategies to deal with stress. Think of stress as a reaction rather than an event. It makes it easier to identify healthier ways to manage stress. Learn to Reframe Your Brain when adrenaline kicks in as the result of a win or a loss.
3. Task division. No man is an island. As a human being, we cannot survive being on our own. Having a trading mentor or trading buddy can provide both a sounding board and a support system. 
4. Manage your time. Time is such that once you lost it, you can never get it back. Managing and limiting your trading time will help to keep your emotions and trading on track. 
5. Learn your priorities. Our behavior towards ourselves and others may also contribute towards stress. Sometimes it is important to say no towards requests that you find it hard to meet. Keep in mind that by saying ‘yes’ to everything may please everyone but you may add on more stress and cause disappointment if the target is not meet. (more…)

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