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UK And US Among Top 5 Weekly Sovereign Deriskers

  
Analysis, Economy, Education, Forex
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The week’s biggest (sovereign) CDS movers have been released, and we have some new entrants in the most endangered species list. While by now nobody will be surprised that the UK is a consistent top 2 player (coming in this week with $319 million in net notional derisking, this making it the 8th week or so the country has made the top 3), only behind Italy and its $452 million in net notional, and just in front of last week’s #1 Brazil, the presence of the United States at #4 should be a little unsettling. It has been months since the US appeared in the top 5. And just like in the long gold case, the same types of existential questions once again arise when the interest in US CDS picks up: who gets to pay off your contracts in the case of an event of default? Elsewhere, the presence of Korea and Turkey (or Australia) in the top 10 should not come as too surprising. On the other end, short covering was violent in CDS of Spain, Hungary and Portugal – Europe’s newest lepers. Is the CDS community concerned the EU can actually pull out a rabbit out of the hat that actually works for once? Hardly. The top 10 reriskers also saw the inclusion of France and long-forgotten insolvent Greece.

9 Skills to be Acquired by Traders

  
  Education
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1)Learning the dynamics of goal achievement so you can stay positively focused on what u want-not what u fear.

2)Learning how to recognize the skills you need to progress as a trader and then stay focused on the development of those skills,instead of the money ,which is merely a by product of your skills.

3)Learning how to adapt yourself to respond to fundamental changes in market condtions more readily.

4)Identifying the amount of risk you are comfortable with -your “risk comfort level”-and the learn how to expand is in a way that is consistent with your ability to maintain an objective perspective of market activity.

5)Learning how to execte your trades immediately upon your perception of an opportunity.

6)Learning how to let the market tell you how much s enough instead of assessing the potential from your personal value system of how much is enough.

7)Learning how to structure your belieds to control your perception of market movement.

8)Learning how to achieve and maintain a state of objectivity.

9)Learning how to recognie “true ” intutive information and then learning how to act on it consistenly.

8 important points about life

  
Education, Life
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Today let’s look at eight beautiful Life Changing Lessons to learn from the inspirational author, Paulo Coelho. Notice how beautifully these lessons align with the data on what actually makes people happy long-term.

We are all here for a purpose.
“No matter what he does, every person on earth plays a central role in the history of the world. And normally he doesn’t know it.”
“Everybody has a creative potential and from the moment you can express this creative potential, you can start changing the world.”

The only thing standing between you and your dream are your fears.
“Don’t give in to your fears. If you do, you won’t be able to talk to your heart.”
“There is only one thing that makes a dream impossible to achieve: the fear of failure.”

Mistakes are part of life.
“When you find your path, you must not be afraid. You need to have sufficient courage to make mistakes. Disappointment, defeat, and despair are the tools God uses to show us the way.” (more…)

Mastering Reward/Risk

  
  Education
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riskrewardMost traders ignore reward/risk ratios, hoping that luck will save them when things start to go bad. 

 This is probably the main reason so many of them are destined to fail. It’s really dumb when you think about it, because reward/risk is the easiest way to  get a definable edge on the market house. 

 The reward/risk equation builds a safety net around your open positions. It’s designed to tell you how much can be won, or lost, on each trade you  take. The secondary purpose is to remove emotion so you can focus squarely on the cold, hard numbers. 

 Let’s look at 15 ways that reward/risk will improve your trading performance. 

 1. Every setup carries a directional probability that reflects a specific pattern. Always execute positions in the highest-odds direction. Exit your trades  when a price fails to respond according to your expectations. 

 2. Every setup has a price level that violates the pattern. Only take trades where price needs to move a short distance to hit this “risk target.” Look the  other way and find the “reward target” at the next support or resistance level. Trade positions with the highest reward target to risk target ratios.  (more…)

20 Amazing Life Lessons-Steve Jobs

  
Education, Life
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Don’t Wait

When the young Steve Jobs wanted to build something and needed a piece of equipment, he went straight to the source.

“He began by recalling that he had wanted to build a frequency counter when he was twelve, and he was able to look up Bill Hewlett, the founder of HP, in the phone book and call him to get parts.”
 

Make Your Own Reality

Steve Jobs learned early that when you don’t like how things are in your life or in your world, change them, either through action or sheer force of will.

“As Hoffman later lamented, “The reality distortion field can serve as a spur, but then reality itself hits.” – Joanna Hoffman, part of Apple’s early Macintosh team.

“I didn’t want to be a father, so I wasn’t,” Jobs later said, with only a touch of remorse in his voice.
 

Control Everything You Can

Steve Jobs was, to a certain degree, a hippie. However, unlike most free spirits of the 1960s-to-1970s love-in era, Jobs was a detail-oriented control freak.

“He wants to control his environment, and he sees the product as an extension of himself.” (more…)

Is stock trading difficult? Depends on who you ask.

  
  Education
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Is stock trading difficult?  Depends on who you ask.

A seasoned trader with the discipline to follow well honed principles will say “trading is not difficult.  See how I take losses and let my winners run?”  A battered and bruised, emotionally unstable trader will say “the market is difficult.  I am getting my @ss handed to me on a platter and it hurts!”  A breakeven trader will say, “compared to my broker I am not doing so bad.”

Our perspective makes all the difference in our success of failure.  If we can have the proper perspective then the market cannot hurt us.

The proper perspective includes, but is not limited to, the following:

The market will do what it wants to do when it wants to do it regardless of the technical games we play.

We win some lose some, in no particular order, on any given strategy.

The only trading mistake that matters is when future uncertainty is not properly considered an essential element of risk.

The long-term process, not short term outcomes, builds the consistency necessary to tackle market uncertainty.

Responsibility accepted before the trade becomes the disciple that carries us through the trade.

The best money is oftentimes made by being a non-participating, impartial observer.


 

So the next time someone asks if stock trading is difficult.  What will be our answer?  Will it be based on the proper perspective or on the last trade we made?  On emotions? On our reaction to price action? News? Compared to what?  A successful bust or a skinned knee?  The answer can make a difference.

10 Foolish Things a Trader Can Do

  
  Education
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01. Try to predict the future movement of a stock, and stay in it no matter what.

02. Risk your entire account on one trade with no stop loss plan.

03. Have a winning trade but no exit strategy to get out, no trailing stop or exhaustion top signal.

04. Ask for and follow the advice of others instead of trading with your own trading plan, method, rules, and system.

05. Trade your emotions instead of signals: buy when you are greedy and sell when you are afraid.

06. Trade your opinions, not a quantified method. (more…)

Don't Mess With Women

  
Education, Humour, Life
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fact-Bottle of Wine
(Women will LOVE this one!)
A woman and a man are involved in a car accident on a snowy, cold Monday morning; it’s a bad one. Both of their cars are totally demolished, but amazingly neither of them is hurt. God works in mysterious ways. After they crawl out of their cars, the man is yelling about women drivers. The woman says, ‘So, you’re a man. That’s interesting. I’m a woman. Wow, just look at our cars! There’s nothing left, but we’re unhurt. This must be a sign from God that we should be friends and live in peace for the rest of our days.’
Flattered, the man replies, ‘Oh yes, I agree completely, this must be a sign from God! But you’re still at fault…women shouldn’t be allowed to drive..’
The woman continues, ‘And look at this, here’s another miracle. My car is completely demolished but this bottle of wine didn’t break. Surely God wants us to drink this wine and celebrate our good fortune.’
She hands the bottle to the man. The man nods his head in agreement, opens it and drinks half the bottle and then hands it back to the woman.
The woman takes the bottle, puts the cap back on and hands it back to the man.
The man asks, ‘Aren’t you having any?’
The woman replies, ‘No. I think I’ll just wait for the police…’

MORAL OF THE STORY:
Don’t mess with women.

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