As you begin to walk out on the way The way appears.
Latest Posts
rssThe Focus Investor's Golden Rules [Book:The Essential Buffett]
How to know when to exit your position?
This started as a quirky post but quickly turned into something probably more useful. I admit the post is based on personal experiences. Luckily, I do not make these mistakes any more….at least not very often ;). Enjoy!
1) It is time to sell when…..you find yourself using extra technical indicators on charts to justify holding your position that you didnt use to get into it in the first place!
2) It is time to sell when…..you find yourself going to yahoo message boards to see if someone has some positive news that you don’t know!
3) It is time to sell when…..you find yourself justifying to yourself holding a position for fundamental reasons when you entered it for technical reasons!
4) It is time to sell when…..when you ask an “expert” on twitter or some blog to chart a stock checking for entry when you are already in it!
Let me know if you readers have any other such fun “indicators” and I shall add them
If you torture the data enough, it will say what you want.(This Happening EveryWhere in India -From Economy to Stock Market )
Friendship is born when one man says to another "What! You too? I thought that no one but myself…"
12 Great Rules
Apple's market cap is at $715 billion. Only 18 countries have a larger GDP than AAPL market cap.
Most often, traders have four fears
Most often, traders have four fears. There’s the fear of being wrong, the fear of losing money, the fear of missing out and the fear of leaving money on the table. I found that basically, those four fears accounted for probably 90% to 95% of the trading errors that we make. Let’s put it this way: If you can recognize opportunity, what’s going to prevent you from executing your trades properly? Your fear. Your fears immobilize you. Your fears distort your perception of market information in ways that don’t allow you to utilize what you know. |
As traders, we need to observe ourselves carefully and recognise what our fears might be, decide how to resolve the issues (which cause these fears) then follow through with an action plan to eradicate the fears.
Change Of Market Character
As a trend develops, the reactions, or pullbacks, tend to become smaller. Traders looking to enter the trend wait for reactions to place their orders; as the move becomes more obvious, these reactions will get smaller and the increments of trend movement will become larger. When the reaction suddenly is larger, the move is ending; the change in the character of the move signals a prudent exit, even if prices continue erratically in the direction of the trend.
Implicit memory and Decisions
Implicit memory is comprised of unconscious emotional patterns of relating to ourselves and others. It’s the kind of memory you access without thinking. It’s what makes you feel characteristically you.
These are the types of behavioural patterns laid down implicitly in the brain:
How do you feel about yourself?
Are you good at self-care? Do you accept all aspects of your personality? Or do you tend to deny yourself, or verbally beat yourself up?
How are you with others?
Do you naturally gravitate towards others and enjoy their company? Or do you prefer being on your own?
Implicit memory guides our behavior automatically, without thought or effort. You can think of implicit memory as a set of instructions or procedures encoded in the brain. However, a procedure can’t easily be described in words or contained in images. These procedures are nonconscious and nonverbal. (more…)