On the cover: the Prophet Mohammed holding the now iconic “I Am Charlie” sign, with “All is forgiven” written in the background.
Archives of “February 2019” month
rss"The market is a study in human psychology"
A new road sign in Stockholm
Remember this for Life time
19+1 Habits Of Wealthy Traders
1. Wealthy traders are patient with winning trades and enormously impatient with losing trades. Yes, I often fell prone to that. I tend to hope too much when things are going bad. I have time stops, but tend to close positions/strategies too early when having a nice gain. Too often I hold on to exit time when losing. I’m constantly working on that bad habit.
2. Wealthy traders realise that making money is more important than being right. Yes, but always hard to realise a loss.
3. Wealthy traders view technical analysis as a picture of where traders are lining up to buy and sell.Disagree, I have never found any evidence that this actually is true.
4. Before they eneter every trade they know where they will exit for either a profit or loss. Disagree, I use time stops. I have never in my testing found any value whatsoever in using targets or stop-loss.
5. They approach trade number 5 with the same conviction as the previous four losing trades. Yes, agree, but noe easy as confidence drops the more losers I have.
6. Wealthy traders use “naked” charts. Yes, I use no traditional indicators. I only use price action.
7. Wealthy traders are comfortable making decisions with incomplete information. Yes, very true. I try to make my trading as simple as possible. I avoid reading news.The only newspaper I read is The Economist. Except from that I only read football/soccer news and investment blogs on the internet. (more…)
Only 5% Traders Know this Secret
What does Money Management do for a Trader?
Money management keeps them in the game of trading. It is a game and there are winners and losers. The vast majority are losers. More than 90%! Once traders realize they need an exact plan…traders retool their approach, once they analyzed their trading system with money management concepts. Money management keeps traders …trading…
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts, commodity options or forex can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results. You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
Happy Teachers Day
Dr. Sarvepalli Radhakrishnan’s birth Anniversary September 5 is being celebrated as Teachers Day. September 5 is special day to pay respect to our teachers. Teachers Day is the only occasion when we remember the time spent with our teacher, what they taught and what we are today.
The day is also significant for all of us as we remember a great teacher, philosopher and statesman, Dr. S. Radhakrishnan, whose birth anniversary falls on this day.
Dr. Sarvepalli Radhakrishnan was born on Sept 5, 1888 into a middle class family in Tamil Nadu. He was the first Vice President of India.
Dr. Radhakrishnan was regarded as great teacher. (more…)
DON’T TRADE EVERY DAY
Do not trade every day of every year. Trade only when the market is clearly bullish or bearish. Trade in the direction of the general market. If it’s rising you should be long, if it’s falling you should be short.
Jesse Livermore
This is a corollary of trade only when you have an edge. Don’t take part in the market unless you have an edge. And for most trading strategies, the edge comes from market trends.
In a bull trend, the market tends to rise. A trading edge is possible if you look to buy.
In a bear trend, the market tends to fall. If you are looking to sell, you might gain a trading edge.
When the market has no clear tendencies, it’s much harder to gain an edge. If that’s the case, be sure not to overtrade.
Remember that you are a trader, not a worker. A worker shows up for work every day. A trader shows up only when there’s money to be made.
Trading Thoughts
The speculator’s chief enemies are always boring from within. It is inseparable from human nature to hope and to fear. In speculation when the market goes against you, you hope that every day will be the last day — and you lose more than you should had you not listened to hope — to the same ally that is so potent a success-bringer to empire builders and pioneers, big and little. And when the market goes your way you become fearful that the next day will take away your profit, and you get out — to soon. Fear keeps you from making as much money as you ought to. The successful trader has to fight these two deep-seated instincts. He has to reverse what you might call his natural impulses. Instead of hoping he must fear; instead of fearing he must hope. He must fear that his loss may develop into a much bigger loss, and hope that his profit may become a big profit.
When you’re in a losing streak, your ability to properly assimilate and analyze information starts to become distorted because of the impairment of the confidence factor, which is a by-product of a losing streak. You have to work very hard to restore that confidence, and cutting back trading size helps achieve that goal.
When I get hurt in the market, I get the hell out. It doesn’t matter at all where the market is trading. I just get out, because I believe that once you’re hurt in the market, your decisions are going to be far less objective than they are when you’re doing well. If you stick around when the market is severely against you, sooner or later they are going to carry you out.
The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading… I know this will sound like a cliche, but the single most important reason that people lose money in the financial markets is that they don’t cut their losses short.”