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rssMinimize The Impact Of A Setback!
First, minimize its symbolic importance. Many people over interpret setbacks by imbuing them with more emotions than are warranted. They view setbacks as a form of punishment, as if a teacher or parent is punishing them for doing something wrong. Take the setback in stride and move on to the next winning trade.
Second, don’t confuse trading outcomes with personal significance. If you lose big, for example, the loss may have great financial significance but it doesn’t need to have great personal significance. You can wipe out your entire account, but that doesn’t mean you are diminished in the eyes of friends and family. You don’t need to let a loss or setback make you feel less worthy as a person.
Ironically, when you psychologically minimize the impact of a setback, and treat it as if it isn’t important, you’ll stay calm, free, and objective. And when you feel this way, you’ll trade profitably.
Motion Affect
When the zebra herd panics, the lion may not get a proper bite down due to visual confusion of the target’s shape. Remember that for the future when price screens are flick flashing oddly or excitedly.
An animal that is commonly thought to be dazzle-patterned is the zebra. The bold stripes of the zebra have been claimed to be disruptive camouflage, background-blending and countershading. After many years in which the purpose of the coloration was disputed, an experimental study by Tim Caro suggested in 2012 that the pattern reduces the attractiveness of stationary models to biting flies such as horseflies and tsetse flies.
However, a simulation study by Martin How and Johannes Zanker in 2014 suggests that when moving, the stripes may confuse observers, such as mammalian predators and biting insects, by two visual illusions: the wagon-wheel effect, where the perceived motion is inverted, and the barberpole illusion, where the perceived motion is in a wrong direction.
Mistake
88% of people reading this will not find the the mistake in this
A,B,C,D,E,F,G,H,I,J,K,L,M,N,O,P,Q,R,S,T,U,V,W,X,Y,Z. RT if you find it.
Walk the walk
Expectancy
If you perform an internet search on how to calculate expectancy as it relates to trading systems, you will most often see the following:
Expectancy = (probability of win x average win) + (probability of loss x average loss)
The average win and average loss can be either percent gain or loss or it can be dollar values. For example, following are the performance statistics for one of my trading strategies:
- Probability of win = 71.7%
- Average win = 2.72%
- Probability of loss = 28.3%
- Average loss = -3.59%
I can calculate the expectancy in percentage terms as follows:
Expectancy = (0.717 x 0.0272) + (0.283 x -0.0359) = 0.93% (more…)
5 Great Quotes From Jesse Livermore
1. The only leading indicator that matters
Watch the market leaders, the stocks that have led the charge upward in a bull market. That is where the action is and where the money is to be made. As the leaders go, so goes the entire market. If you cannot make money in the leaders, you are not going to make money in the stock market. Watching the leaders keeps your universe of stocks limited, focused, and more easily controlled.
2. Patterns repeat because human nature hasn’t changed for thousand of years
There is nothing new on Wall Street or in stock speculation. What has happened in the past will happen again, and again, and again. This is because human nature does not change, and it is human emotion, solidly build into human nature, that always gets in the way of human intelligence. Of this I am sure.
All through time, people have basically acted the same way in the market as a result of greed, fear, ignorance, and hope. This is why the numerical formations and patterns recur on a constant basis.
I absolutely believe that price movement patterns are being repeated. They are recurring patterns that appear over and over, with slight variations. This is because markets are driven by humans — and human nature never changes.
3. Your first loss is your best loss. (more…)
Beer ad has solution to pestering girlfriends
This Andes beer spot, from Del Campo Nazca Saatchi & Saatchi in Argentina, shows guys at a bar using a high-tech contraption—a sound-proof “Teletransporter” with all manner of sound effects piped in—to convince their annoying girlfriends when they call that they’re not, in fact, at the bar. But it raises more questions than it answers. For starters, wouldn’t the girlfriends know about these machines already? Seems like something that would be all over the news! Also, what kind of person uses the hospital as an alibi for anything? That’s the easiest bluff in the world to call. And when she does call it, he’ll be in the hospital for sure. UPDATE: Here’s the Web site of the Teletransporter. And yes, the agency apparently installed these things around the city of Mendoza. Presumably the grainy footage of the guys is real footage, too.
When a trade isn't working out as planned
The only way to be successful in the markets
Some might have longer holding periods they like to stick to. Some might prefer switching positions on a much more frequent basis. It all comes down to the same. Getting exposure to opportunities. Here’s a quote from Nassim Nicholas Taleb’s book ‘The Black Swan’ describing that phenomenon. Quote from page 170:
“… seemed to follow implicitly, though not explicitly, Louis Pasteur’s adage about creating luck by sheer exposure. ‘Luck favors the prepared,’ Pasteur said, and, like all great discoverers, he knew something about accidental discoveries. The best way to get maximal exposure is to keep researching. Collect opportunities…”
So whenever a trade doesn’t work keep in mind the outcome of one single trade doesn’t really matter. What it all comes down to is to repeat the process over and over again. In the long run doing research on a regular basis and getting exposure to opportunities is the only way to be successful in the markets.