Archives of “February 2019” month
rssThe Stimulus Packages Will Soon Lose Its Influence
“I am not sure yet that the recession is already over because the numbers of unemployed persons in the United States is still increasing and there are several indicators that barely suggest a rebound on the economy , I think that also this year it will not get better because the stimulus packages will already lose its influence So I could imagine that we would not have a basic rebound and that the markets will rather correct.”
translated from a german TV video interview, April 2010
The Secret to understanding Trading is "There is No Secret" just hard work and persistence!
Difference
In Trading, the STATISTICS show that smarts, experience, etc. are not the differentiating factor. So, what does make a difference?
These are many of the factors that allow some people to become monster traders over time. It’s not my opinion, just my observations. |
Don’t be a hero. Don’t have an ego
What does it mean to be a hero in trading?
In poker, a “hero call” is sometimes appropriate. It refers to the call of a very large river bet with medium strength — or even Ace-high — based on a strong read that your opponent whiffed on a draw and is representing a huge hand to steal the pot.
In markets and trading, there is no official definition, but we can more or less surmise being a “hero” looks like the following:
Putting your foot down and saying “markets will do X, I’m sure of it!”
Pointing to the sky like Babe Ruth — “this is where my profits on this trade are going to go!” (more…)
Apple's growth since re-hiring Steve Jobs 20 years ago.
Keep perspective
IF you can keep your head when all about you
Are losing theirs and blaming it on you
If you can trust yourself when all men doubt you
But make allowance for their doubting too;
If you can wait and not be tired by waiting,
Or being lied about, don’t deal in lies,
Or being hated, don’t give way to hating,
And yet don’t look too good, nor talk too wise:If you can dream – and not make dreams your master;
If you can think – and not make thoughts your aim;
If you can meet with Triumph and Disaster
And treat those two impostors just the same;
If you can bear to hear the truth you’ve spoken
Twisted by knaves to make a trap for fools,
Or watch the things you gave your life to, broken,
And stoop and build ’em up with worn-out tools: (more…)
Qantas Explosion– from the Cockpit
This is an absolutely brilliant interview that is full of insights for the market. The interviewee is one of the pilots aboard the Qantas Airbus A380 last month that had an extremely serious uncontained engine explosion shortly after take-off.
In the interview they cover – inter alia – such things as
– The importance of checklists
– Dealing with contradicting signals
– Over-riding systematic considerations in favour of discretionary controls
– Keeping your head during a major catastrophe which constantly shifts its dynamics and has a lot of what we might call negative gamma…rapidly developing, interacting, non-linear issues that can rapidly move beyond your ability to keep up with them
– The importance of training and professionalism
– The importance of excess redundancy and robustness
– The importance of improvisation – and the ability to keep a clear enough head in a panic to ensure your creativity can be brought to bear on the problem.
– Power of teamwork.
Best part are the pictures of the cockpit showing the checklists and procedures they are working through.
As it turns out, this incident was very much more serious than the media ever picked up on. What an amazing story. I’m sure all will benefit greatly from reading this. For myself, I will be referring to this interview many times. A banquet for a lifetime.
Hope it benefits you all as much as it did me. Also hoping Mr. Tucker weighs in with some insights!
29 Instances Of A Major World Stock Market Shutdown
Eyes Wide Shut
Why does it take so long for a trader to learn?
Like I’ve said before, I’ve seen as much so-called wisdom over the years that I’ve eventually learned to hold as inviolate truth, as that which should be thrown out with yesterday’s garbage. Yet why does the eventual accumulation of pertinent knowledge translate so slowly into one’s trading results? If we are capable of weeding out the good stuff from the bad, why doesn’t the good stuff just take over and guide us directly towards success?
Aside from the fact that I might just be a dumbass, one thing I’ve figured out is that the distance between the brain and the finger might not be so close as you’d think — if you’re not careful. I know I’m not the only trader who has a tendency to repeat the usual mistakes, or variations of same, despite having berated myself 10 times in the previous week to make an effort not to do it again. My contention is that old habits die hard. Real hard. And only if you go out of your way to kill them outright. (more…)