Your time is limited, so don't waste it living someone else's life. —Steve Jobs
Archives of “February 2019” month
rss17 Trading Rules
1. Trade needs to fit like a leather glove. 100% your terms or pass. Follow your instincts!!
2. A complete trade plan consists of entries, STOPS, and profit targets. Set a hard stop immediately for ½ position and watch other half for better exit.
3. Stick to plan and cut losers immediately! You can ALWAYS re-enter.
4. Respect your max daily loss and liquidate all positions immediately if/when hit.
5. Focus on only 1 position during the first 30 minutes for complete, undivided attention.
6. Never long a stock that is red on the day until after half time and very, very selectively (<10%).
7. Treat every trade like it is your only trade of the day/month/year.
8. Add to winners by recycling shares. Cover 1/2 into washes and re-short 1/4 on pops but reduce size each time.
9. Take a considerable timeout before switching bias from short to long.
10. Avoid shorting day 1 on low floaters – only para scalps with cover into following wash.
11. Wait for the back side of move to bring the hammer down when shorting.
12. Focus on the meat of the move, not trying to top and bottom tick everything.
13. If you have given back ¾ of daily profits, call it quits. You should never turn a green day to red.
14. Just had a monster day (good or bad)? Take tomorrow off.
15. NEVER say NEVER! Even shit can fly high if thrown hard enough.
16. Be very cautious when dip buying (small size, tight stops) – especially near potential back side.
17. 3 day rule. Better to bring the heat after day 3 of big moves.
Trading Decision-Making Process
There is a huge difference between a wish and a decision. A wish is a negative and puts the trader in a frozen state waiting for something to happen (generally associated with trying to get even on losing trades). That is negatively charged energy. Decisions, on the other hand, are positively charged energy. It makes the trader take action. Taking action is taking responsibility. You alone are responsible for your current mental state or condition. Decisions can be both good and bad of course. The sooner the trader realized the bad decision, the sooner they can act to correct it.
The first step in the decision-making process is to realize that what you are doing is not working. Remember that falling down is a positive motions is you bounce right back. Make a list of the positive and negative things that will happen when you take action on the decision.
Don’t expect instant gratification if you make the decision. Decision-making is a process that begins with the first step but these steps are the foundation for a stronger behavioral structure. This structure will give you the confidence in your trading. Confidence plays a key role in successful trading. Having the confidence necessary for successful trading can help the trader in difficult trading environments. Whereas one trader lacking confidence and good decision-making skills may be frozen and unable to act, the trader who has taken the time to build this foundation will be prepared to take the appropriate actions.
Many times specific decisions a trader makes will not yield profits, they will result in a loss, but more importantly, it will position the trader to be able to recognize and act on the next opportunity. Practicing and applying this process will pay dividends throughout your lifetime.
Why Switzerland Has The Lowest Crime Rate In The World
Profile Of The Successful Trader:
Trading is being young, imperfect, and human – not old, exacting, and scientific. It is not a set of techniques, but a commitment. You are to be an information processor. Not a swami. Not a guru. An information processor.
Participating in the markets can only develop your trading skills. You need to become a part of the markets, to know the state of the markets at any given time, and most importantly, to know yourself. You need to be patient, confident, and mentally tough.
Good traders offer no excuses, make no complaints. They live willingly with the vagaries of life and the markets.
In the early stages of your trading career, pay attention not only to whether you should buy or sell but also to how you have executed your trading ideas. You will learn more from your trades this way.
Never assume that the unreasonable or the unexpected cannot happen. It can. It does. It will. (more…)
Trading is being young, imperfect, and human – not old, exacting, and scientific. It is not a set of techniques, but a commitment. You are to be an information processor. Not a swami. Not a guru. An information processor.Which are the most atheist European countries?
Becoming a Successful Speculator
The capacity for rigorous thought; the flexibility and resilience to adapt to changing circumstances; the love of disciplined risk-taking; the hungry intellect: perhaps successful speculators already display those qualities in other life domains and then learn to apply them to markets.
Top 10 Trading Influences
If New Trader University had a campus this would be the professors:
Dan Zanger is a world record holding trader that taught me to use in the money stock options on the biggest monster stocks to amplify my returns with no added risk at key points. He is the king of chart patterns.
Alexander Elder taught me how the trader’s Mind, Method, and Money Management have to all work together for a trader to be successful.
Michael Covel showed me how the best trend following traders in the world win over the long term by simply following the trend. Finding the big trends is now my focus above all else.
Jesse Livermore knew how to make a fortune in bull and bear markets, in commodities or stocks. His only weakness was the management of the risk of ruin. He made some of the biggest fortunes in the history of trading and also blew up his account more times than other legends.
Nicolas Darvas showed me how to ride monster stocks 100 points farther than anyone else seemed to believe they could go. His lessons also showed me how to miss bear market draw downs.
Van Tharp‘s marble game on how to manage the risk of ruin was a game changer for me. Managing risk is really what determines a trader’s long term survival not stock picking.
William O’Neil showed me how to pick the real winning stocks based on historical models not opinions. He has studied what has really made money in the stock market historically better than anyone else I know. I get my stock watch list from his publication Investor’s Business Daily’s IBD 50.
Ed Seykota is truly a master trader and he has the returns to prove it. Mr. Seykota believes that a trader’s psychology determines a trader’s success more than any other factor. I believe him.
Jack Schwager wrote “Market Wizards” and really got into the specific nuts and bolts of what makes them win.
Paul Tudor Jones I have picked up a lot of trading wisdom form his documentary, quotes, and interview. He is truly one of the greatest traders of our time.
If you decide to study these great traders keep what actually makes you money in the long term and discard what does not.
Successful People -Unsuccessful People
Rules of Trade
Never Mix Disciplines. If you day trade then day trade and do not let a day trade turn into a swing trade. If you swing trade do not let your swing trade turn into an investment. Follow the rules based on the discipline of your time frame. Never Try To Trade Back A loser. In other words, each trade is a new one and should not be used to win back money lost in the last trade. Always trade in the present not in the past where too many emotional and psychology factors can affect the current trade. Revenge does not pay in or out of the market. |