January 20, 2023 - Financial Occultist

“Mind over market” in trading refers to the idea that a trader’s psychological and emotional state can have a significant impact on their trading performance. A trader who is able to control their emotions and maintain a clear and rational mindset is better able to make informed decisions, manage risk, and stick to their trading plan.

Some key elements of “mind over market” in trading include:

Emotional control: A trader must be able to control their emotions and not let fear or greed influence their decisions. This includes being able to handle losses and not overreacting to market fluctuations.
Mental discipline: A trader must have the discipline to stick to their trading plan and not deviate from it based on emotions or short-term market movements.
Risk management: A trader must have a well-defined risk management plan and be able to stick to it. This includes setting stop-losses and managing position size.
Patience: A trader must be patient and not try to force trades or chase market movements.
Accepting uncertainty: A trader must be comfortable with the inherent uncertainty in the markets and not try to predict market movements or control the outcome of their trades.

Overall, “mind over market” in trading is about having a clear and rational mindset and maintaining discipline and emotional control in the face of market uncertainty.

Poker and Trading crucial points – #AnirudhSethi

20-Jan-23 07:34 pm

Anirudh Sethi

Both poker and trading involve making decisions based on incomplete information and managing risk. Some crucial points that are common to both include:

Risk management: In both poker and trading, managing risk is crucial to long-term success. This includes setting stop-losses, managing position size, and understanding the potential rewards and risks of each decision.
Probability: In both poker and trading, understanding probability is important for making informed decisions. In poker, this includes understanding the likelihood of certain hands winning, while in trading, it includes understanding the likelihood of certain market conditions.
Patience: Both poker and trading require a lot of patience. In poker, it means waiting for the right cards or the right opportunity to make a move. In trading, it means waiting for the right market conditions or the right set-up.
Psychology: Both poker and trading require a strong mental game. In poker, this means being able to handle the ups and downs of the game and not letting emotions cloud judgment. In trading, it means being able to handle the volatility of the markets and not letting emotions cloud judgment.
Adaptability: In both poker and trading, the ability to adapt to changing conditions is crucial. In poker, this means being able to adjust to different opponents and different strategies. In trading, this means being able to adjust to different market conditions and different economic conditions.

Overall, both trading and poker require discipline, patience, and the ability to manage risk and make decisions based on probability and incomplete information.

When loss is not a loss in trading ? – #AnirudhSethi

20-Jan-23 06:59 pm

Anirudh Sethi

In trading, a loss is not considered a loss if it is part of a larger strategy with a specific risk management plan. This means that the loss was planned for and is within the trader’s established risk tolerance.

Additionally, a loss can also be considered not a loss if the trader was able to exit the position before it reached its maximum potential loss, for example by using stop loss orders. The strategy of cutting losses short is a common one among traders.

Furthermore, a loss can also not be considered a loss if the trader can learn from the experience, and apply the knowledge gained to make better trades in the future.

Overall, a loss in trading is only truly a loss if it is not part of a larger strategy and if it cannot be used to improve future performance.