The Ten Cardinal Rules Of Trading
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rssBernard Baruch – one of the best from “Lessons From The Greatest Stock Traders…”
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Everlasting skills
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New ⚠ Powell indicator Never fails to impress
Tight risk management and concentration on leaders – a few traits the best implemented. From ‘How Legendary Traders Made Millions’
From ‘Studies In Tape Reading’ – Wyckoff 1910
Cortisol and testosterone increase financial risk taking and may destabilize markets -#AnirudhSethi
Financial risk-taking is a term that is thrown around quite often in the world of finance. But what does it really mean? Cortisol and testosterone are two hormones that have been shown to increase financial risk-taking, according to recent studies. Cortisol may increase financial risk by making people more sensitive to rewards and less sensitive to losses or punishments. Testosterone, on the other hand, has been found to make people more confident about their decisions when they take risks – essentially giving them an irrational sense of invincibility after they’ve taken a calculated gamble with potential long-term consequences. As these hormones are released into our body for various reasons (e.g., stress), they can lead us down the path towards increased volatility in markets which can have significant consequences for the rest of us.
##Cortisol, testosterone increase financial risk-taking:
Cortisol and testosterone levels affect the way we take risks. Cortisol increases financial risk-taking while testosterone tends to decrease it. When cortisol is in excess, people are more likely to make risky decisions that may lead them into debt or bankruptcy. Men with high levels of both hormones were more apt to engage in reckless behavior than those who had low amounts of either hormone
When cortisol is high people make risky decisions that may lead them into debt or bankruptcy. Men with high levels of both chemicals increased their investment by 40%. Cortisone (cortisol) relative to his level of testosterone, the greater chance he will take big chances with money. Cortizone (cortisol) is released in response to any type of physical or emotional disturbance, while testosterone is secreted after intense moments such as winning a sports game.
Testosterone decreases financial risk-taking. Cortizone (cortisol) relative to his level of testosterone, the greater chance he will take big chances with money. Cortizone (cortisol) is released in response to any type of physical or emotional distress, whereas testosterone is secreted after intense moments like winning a sport’s game.
##The more stress we feel in our daily lives, the higher our level of cortisol and testosterone will be as well: (more…)
Is Trading All About Luck? – #AnirudhSethi
One of the biggest misconceptions about trading is that it is all just luck. Is trading really just a game of chance? Is there any way to improve your odds? The answer is no, and yes. Trading isn’t all about luck because you can make intelligent decisions on what trades to take, but at the same time not every trade will be successful. You have to accept failure in order to succeed.
##The idea of luck is a misconception:
The idea of luck is a misconception. It’s not about who has the most money, or even who knows what they are doing…it’s all about how your brain handles risk and reward in our complex world.
Do you know that research shows we make more impulsive decisions when stressed out? Stress may be one cause for some people to have an increased vulnerability to gambling addiction. This doesn’t sound like much fun! Some other factors which can increase susceptibility to gambling addiction include poverty, social isolation, prior mental illness, access to addictive substances such as alcohol or drugs, and family history of addictions (including “dipsomania”).
A study published in the Journal of Gambling Studies found that gamblers with a family history of addiction were more likely to have worsened gambling symptoms than those without such a history.
People who are addicted might not be able to control their behaviors and they may experience cravings for the activity – even if it’s harmful or dangerous. This is where trading all about luck comes in! If you can take your emotions out, then this will give you an edge over other traders on Wall Street. Is Trading All About Luck?
It’s possible some people just aren’t wired right when it comes to making decisions under duress which would explain why these people seem “luckier” at times – but luckily doesn’t mean there isn’t skill involved as well!
##Trading is about managing risk and being disciplined: (more…)