Thought For A Day
Archives of “Education” category
rssSeven Habits of Ineffective Traders
- When people won’t do their own homework.
- When people can’t explain their reasoning for a trade.
- When people make things more complicated than they need to be.
- When people enter a trade for a good reason, then lose their nerve and exit too soon.
- When people hesitate, or follow others, and enter a trade too late.
- When people will not contemplate the real reasons for their failures.
- A defeatist attitude, especially in me.
Good Traders Manage The Downside They Don't Worry About The Upside
See Meat Consumption in India
Is this the world’s most bearish man?
He is this man:
His name is Robert Prechter and he thinks the Dow will fall well below 1,000 over within the next six years. What’s more, he even speaks in Nostradamic verse:
Mr. Prechter is convinced that we have entered a market decline of staggering proportions — perhaps the biggest of the last 300 years.
In a series of phone conversations and e-mail exchanges last week, he said that no other forecaster was likely to accept his reasoning, which is based on his version of the Elliott Wave theory — a technical approach to market analysis that he embraces with evangelical fervor.
Originating in the writings of Ralph Nelson Elliott, an obscure accountant who found repetitive patterns, or “fractals,” in the stock market of the 1930s and ’40s, the theory suggests that an epic downswing is under way, Mr. Prechter said. But he argued that even skeptical investors should take his advice seriously.
Successful Trading is Like Getting Pregnant
Patience and Discipline
While these two virtues are over-worked and very often mentioned when determining what unsuccessful traders lack, not many will argue with their merits. Indeed. Don’t trade just for the sake of trading or just because you haven’t traded for a while. Let those very good trading “set-ups” come to you, and then act upon them in a prudent way. The market will do what the market wants to do — and nobody can force the market’s hand.
10 Most Foolish Things a Trader Can Do
The Ten Most Foolish Things a Trader Can Do
- Try to predict the future movement of a stock, and stay in it no matter what.
- Risk your entire account on one trade with no stop loss plan.
- Have a winning trade but no exit strategy to get out, no trailing stop or exhaustion top signal.
- Ask for and follow the advice of others instead of trading with your own trading plan, method, rules, and system.
- Trade your emotions instead of signals: buy when you are greedy and sell when you are afraid.
- Trade your opinions, not a quantified method.
- Do not bother to do your homework on trading, just jump in and trade, you are smart, you will figure it out.
- Short the best and most expensive stocks in the stock market and buy the cheapest junk stocks.
- Put on trades you are 100% sure are winners so you do not even need a stop loss or risk management.
- Buy more of a trade that you are losing money in and sell your winners quickly to lock in small profits.
10-Trading Method Quotes For Traders
1. “Trade What’s Happening…Not What You Think Is Gonna Happen.” – Doug Gregory
2. Go long strength; sell weakness short in your time frame.
3. Find your edge over other traders.
4. Your trading system must be built on quantifiable facts not opinions.
5. Trade the chart not the news.
6. A robust trading system must either be designed to have a large winning percentage of trades or big wins and small losses.
7. Only take trades that have a skewed risk reward in your favor.
8. The answer to the question, “What’s the trend?” is the question, “What’s your timeframe?” – Richard Weissman. Trade primarily in the direction that a market is trending in on your time frame until the end when it bends.
9. Only take real entries that have an edge, avoid being caught up in the meaningless noise.
10. Place your stop losses outside the range of noise so you are only stopped out when you are likely wrong.
The perfect drink for those who need to nourish their sex glands
Here is a different sort of “adult” beverage. This new drink called Adult doesn’t have any alcohol in it, nor does it have any sugar, caffeine, preservatives or carbs. What it does have is all of the ingredients needed to enhance your sex drive, according to Ted Chao, president of the U.S. People Foods & Beverages Co. and maker of the Dr. Chao Herbal Drink Line. According to the company, this “potion nourishes the sex glands.” The secret ingredients are horny goat weed (Herba epimedii), Wolfberry fruit (Fructus lycii) and other ingredients taken from the recipes of a 19th-century Chinese herbalist. Not satisfied with just helping out in the bedroom, Dr. Chao has also created a drink called “Lady.” This elixir allegedly helps reduce PMS symptoms with the combination of saffron, aloe and something called motherwort herb. Chocolate was not listed anywhere in the ingredients.