- Daily self analysis: Successful trading is 40% risk control and 60% self-control.
- Daily mental rehearsal: Practice being disciplined in your mind before you trade daily.
- Developing a low risk idea: Trade with the odds on your side with a defined risk.
- Stalking: Wait for the entry. Utilize patience and don’t pull the trigger to soon.
- Action: Take the entry when the signal is hit. Do not freeze up. Be definitive.
- Monitoring: Keep an eye on what is happening with your position.
- Abort: Be ready to cut your losses, when you are wrong and hit your stop loss.
- Take profits: Use trailing stop or profit target when one is hit. Allow the market to take you out.
- Daily briefing: Think through your trading & what you did right/wrong based on your trading plan.
- Periodic review: Is your trading working? Do adjustments need to be made?
Latest Posts
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Examine Your Beliefs
There is lot of talk of trading psychology , but what exactly are the 3 or 5 things you can do to improve your psychology.
If you want to increase your muscles you go and lift weight
If you want to improve your stamina, you go and run daily
If you want to reduce weight you eat less and exercise more
What exactly do you need to do to improve your psychology.
If you want to increase your muscles you go and lift weight
If you want to improve your stamina, you go and run daily
If you want to reduce weight you eat less and exercise more
What exactly do you need to do to improve your psychology.
First starting point if you want to improve your psychology is by examining your beliefs
You can only trade what you believe in.
Your beliefs drive your behavior. (more…)
You can only trade what you believe in.
Your beliefs drive your behavior. (more…)
Trade patterns of China and India
beaa1803-art17e by TBP_Think_Tank on Scribd
The Law of Auto-Suggest
“The law of auto-suggestion, through which any person may rise to altitudes of achievement which stagger the imagination, is well described in the following verse:
If you think you are beaten, you are,
If you think you dare not, you don’t
If you like to win, but you think you can’t,
It is almost certain you won’t.
If you think you’ll lose, you’re lost
For out of the world we find,
Success begins with a fellow’s will-
It’s all in the state of mind.
If you think you are outclassed, you are,
You’ve got to think high to rise,
You’ve got to be sure of yourself before
You can ever win a prize.
Life’s battles don’t always go
To the stronger or faster man,
But soon or late the man who wins
Is the man WHO THINKS HE CAN!
Observe the words which have been emphasized, and you will catch the deep meaning which the poet had in mind.”
Against Quantification
Reading through Linchpin by Seth Godin advocates getting away from the quantified.
We measure the quantified because we can. But we should create the unquantified because it’s so rare. If you can quantify it, then probably someone before you figured out a why to grind it out. And if you can grind it out, someone can grind it out cheaper than you can. On the other hand, the really valuable stuff, the stuff we pay a lot for, is unquantified. Things like creating joy or security or happiness. No easy measurements for those, thus they are art, and art is always worth more than the predicted.
Visualizing The Global Millionaire Population
When we think of the term “millionaire”, it’s only natural for our thoughts to be skewed towards the famous business magnates that have amassed giant fortunes, like Jeff Bezos, Elon Musk, or Warren Buffett.
However, as Visual Capitalist’s Jeff Desjardins notes, the reality is that those types of ultra high net worth individuals (UHNWIs) with fortunes above $30 million are a fairly rare commodity – and when it’s all said and done, they make up a very tiny percentage of the millionaire population as a whole.
The vast majority of millionaires (90.0%) globally have fortunes between $1 million and $5 million, and you’re probably not going to find many of them with a sprawling mansion or a new Rolls Royce in the garage.
In fact, most millionaires drive a Ford.
LOCAL MILLIONAIRES
WARREN BUFFET rocks as AXL ROSE
Check out this video featuring Warren Buffett. Goes to show you are never too old to rock!
Good Luck Bad Luck!
There is a Chinese story of a farmer who used an old horse to till his fields. One day, the horse escaped into the hills and when the farmer’s neighbors sympathized with the old man over his bad luck, the farmer replied, “Bad luck? Good luck? Who knows?” A week later, the horse returned with a herd of horses from the hills and this time the neighbors congratulated the farmer on his good luck. His reply was, “Good luck? Bad luck? Who knows?”
Then, when the farmer’s son was attempting to tame one of the wild horses, he fell off its back and broke his leg. Everyone thought this very bad luck. Not the farmer, whose only reaction was, “Bad luck? Good luck? Who knows?”
Some weeks later, the army marched into the village and conscripted every able-bodied youth they found there. When they saw the farmer’s son with his broken leg, they let him off. Now was that good luck or bad luck?
Who knows?
If You’re Good At Something Never Do It For Free
Seth Godin writes:
I had a college professor who did engineering consulting. A brand new office tower in Boston had a serious problem–there was a brown stain coming through the drywall, (all of the drywall) no matter how much stain killer they used. In a forty story building, if you have to rip out all the drywall, this is a multi-million dollar disaster. They had exhausted all possibilities and were a day away from tearing out everything and taking a loss. They hired Henry in a last-ditch effort to solve the problem. He looked at the walls and said, “I think I can work out a solution, but it will cost you $45,000 if I succeed.” They instantly signed on, because if he succeeded, the project would be saved. Henry asked for a pencil and paper and wrote the name of a common hardware store chemical and handed it to them. “Here, this will work.” And then he billed them $45,000. That’s quite an hourly wage. It’s also quite a bargain.
Everyday ,Iam receiving mails that why I take fees or Subscription* charges. Godin’s quote came to mind. Will flesh this out further in the days to come, but for now I thought his wisdom was appropriate.
-Fees/Subscription* :90% goes to Charity only.