“I am sure the chinese are nervous about the Euro, but they are even more nervous about the Dollar”
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Thought For A Day
Warren Buffett FACTS
Greg Simmons having fun at the reality of Warren’s numbers. 5th largest TARP recipient? Not too shabby Warren. Bailout makes it easy!
Be Happy. Limit Your Options
The dangers of drawdowns- For Traders
Citi Panic/Euphoria did its job.
25 Rules of Trading Discipline-Video
Proven Model For Successful Goal Setting
Following is a proven model for successful goal setting:
- Concise – ensure that your goal statement is simple and easy for both your conscious and unconscious mind to understand and then act upon.
- Realistic – when a goal is relatively easy for you to accept and is not too much of a leap from where you are currently, the unconscious mind can work with that and start having you put things in order for this to become a reality. E.g. If you are currently losing money in the market, it could be too big a jump for your unconscious mind if your first financial target goal was to make $1 million in the next 6 weeks. It could be far more effective to set this at $10,000.
- Ecological – the execution of all goals needs to be safe to yourself and safe for others. This is just a step to ensure that what needs to happen does not include any possible harm coming to yourself, any other person, animal or the planet. I think you get the picture.
- As now – always have your goal stated as if you have already achieved it. Nothing is more powerful for your unconscious mind than to have every part of you feel that the achieving of this goal has already happened.
- Timed and toward what you want – attach a time frame to your goal statement. Think about a realistic time frame that you can expect to work with this goal and always make the statement towards what you want not away from what you don’t want. You will see in the following goal statement example how to best do this.
- End Step/Evidence – you will need to ask yourself ‘ What will I be doing when I have achieved this goal that will mean I KNOW that it has happened?’ What do you have to see, hear or feel in order to know? Again, see the example below to give you clarity on this.
So, get busy and C.R.E.A.T.E. your trading goals from the process above.
10 Common Patterns of Faulty Thinking
Here are 10 common patterns of faulty thinking adapted from Dr. David Burns, author of the classic Feeling Goodand pioneer of Cognitive Behavioral Therapy:
All-or-Nothing Thinking: Failing to recognize that there may be some middle ground. Characterized by absolute terms like always, never, and forever.
Overgeneralization: Taking an isolated case and assuming that all others are the same.
Mental Filter: Mentally singling out the bad events in one’s life and overlooking the positive.
Disqualifying the Positive: Treating positive events like they don’t really count.
Jumping to Conclusions: Assuming the worst about a situation even though there is no evidence to back their conclusion.
Magnification and Minimization: Downplaying positive events while paying an inordinate amount of attention to negative ones.
Emotional Reasoning: Allowing your emotions to govern what you think about a situation rather than objectively looking at the facts.
Should Statements: Rigidly focusing on how you think things should be rather than finding strategies for dealing with how things are.”
Labeling and Mislabeling: Applying false and harsh labels to oneself and others.
Personalization: Blaming yourself for things that are out of your control.