As Visual Capitalist’s Jeff Desjardins notes, with 1.4 billion people and the third-largest geographical area, the country is a vast place to begin with. Add in explosive economic growth, a market-oriented but Communist government, a longstanding and complex cultural history, and self-inflicted demographic challenges – and understanding China can be even more of a puzzle.
(more…)
Latest Posts
rss11 Everyday Phrases You Might Be Saying Incorrectly
Some people mumble. Others repeat nonsensical sayings they just don’t understand.
Whatever the reason, we’ve totally bastardized parts of the English language, often changing the phrases’ meanings, too.
These 11 examples always come out incorrectly. Let’s set the record straight.
1. For all “intents and purposes” – not for all “intensive purposes”
If you say “for all intensive purposes,” you mean “for all these very thorough purposes,” which doesn’t make any sense.
On the other hands, “for all intents and purposes” means “for all the reasons I did this and all the outcomes.” It’s a much stronger cliche.
2. Nip it in the “bud” – not nip it in the “butt”
This phrase should imply you cut a new bud (off a plant), not bit someone in the backside.
3. One “and” the same – not one “in” the same
“One in the same” refers to one thing in a group of other things that look the same – meaningless. “One and the same” means that two things are alike.
4. “By” accident – not “on” accident
Even though you do something on purpose, you can’t do something on accident. “By accident” is technically correct. English is crazy.
5. Case “in” point – not case “and” point
“Case in point” means, “Here’s an example of this point I’m trying to make.” The version with “and” makes them two different things, which isn’t helpful to your argument at all. (more…)
New Maslow's hierarchy of needs
Long or Short Position
Do you need to long or short the market today? If you’re a day trader, forget this question and ignore this post. But if you’re a positional player, perhaps having a holding period of at least 5 sessions, the above question is necessary.
Let us ponder.
1. What are your chances of success (initiating a trade that will eventually turn into a satisfactory profit)? Since you’re going to hold for several sessions, possibly facing several opening gaps along the way, might as well establish a position that you’re going to sleep with. So, unless you get the price you’re comfortable with, stay aside. Particularly practical with long holidays.
2. Is this your original plan? Are you trading according to your overall strategy or purely intraday impulse? I don’t think its very difficult to tell the difference. If you trade base on intraday impulse, you get a little more excited than usual.
3. ‘I have been dormant for some time, and I seriously need to do something’. The degree of this itchiness varies according to individuals. If you come from a day trading background, you’ll have a tougher time adjusting. After all, the mindset of ‘If I don’t do anything, I am not going to make anything either’ is in every human’s mind. Think about it. Position trading involves much passiveness, so technically, after establishing a position, you are dormant in some way.
4. ‘I am sure this is a solid short term opportunity’. I think this is the mother of all trading sin. Of course, this does not apply to day traders. But if you’re now a positional trader, stay a positional trader. Learn to let go the small fish.
SUCCESS FROM FAILURE
You Need To Learn How To Dance In The Rain
Every trader will experience storms during their trading career.
You might have days or even weeks without any storms, but they will come. Violent movements, large losses, markets that react opposite than your strategy tells you will happen and so much more.
We cannot keep these situations from happening; however we can make a decision to either wait for the storms to pass or step out and dance in the rain.
If we are planning on waiting until there are no storms, no struggles, no disappointments or no losing trades then we will be waiting for a very long time. Expect the storms to occur and have a plan as to how you will work through the storm.
When we work through the storm with a higher awareness of our risk management, money management and patience we will come out the other side stronger than before and will be ready for the next time a storm breaks out.
It is not the fact that storms happen, it is being ready to get out in the storm and still be productive. Instead of fearing the storm, learn how to dance in the rain.
Every day same thing over and over, it never ends. Its like Groundhog Day every day.
Calmness
How do you handle adversity? What do you do when the markets go against you? Do you get angry and defensive or do you stay calm and play offensive?
When the markets go against you, do you overtrade? Do you try to make all of your losses in one deal? Or do you stay calm, take a breather and reevaluate the market?
When our emotions go up, our intelligence comes down. We make bad decisions. We take it personally. Then we start doubting ourselves and we start losing confidence. Then we start losing more and more…
When we stay calm, we can evaluate the market from an objective place. We can see the market for what it is and not what we want it to be. Then we can take a calculated risk.
Trading Wise Words
Turtle Trading Principle
Trade with an edge, manage risk, be consistent, and keep it simple.
The entire Turtle training, and indeed the basis of all successful trading, can be summed up in these four core principles.
Curtis Faith, Way Of Turtle
Why Chart Patterns Repeat Themselves
All through time, people have basically acted and re-acted the same way in the market as a result of: greed, fear, ignorance, and hope.
That is why the numerical formations and patterns recur on a constant basis.
Jesse Livermore, How To Trade In Stocks
Stick To Your Trading Rules
Successful trading is about finding the rules that work and then sticking to those rules.
William J. O’neil
Perfect Speculator
Perfect speculator must know when to get in; (more…)
Book Review: Wall Street and the Wilds
Wall Street and the Wilds by A.W. Dimock, 1915, contains the sage of the rise and fall and rise and fall of a Wall Street gold trader, options seller, stock manipulator, developer of the clearing house, pool operator, Steamship promoter, real estate developer of Elizabeth, New Jersey, telegraph line builders, railroad builder, hunter, photographer and naturalist from 1850 to 1915.
It includes chapters on black Friday, the day that the gold bulls broke the US Treasury in 1870, the effect on prices of the civil way, the way manipulations were carried out in those days, the relation of the flexions to financiers in those days (not much different from today), systems for profiting in gold, the legal system in those days (fees of a million dollars for routine cases were common even in 1880, the early developments of photography in the wilds, hair raising tails of wars between the Native Americans and the US military, pinpoint shooting, advanced fly casting techniques, and much more.
Everything talked about is totally a propos of current techniques in Wall Street. Dimock was a minister’s son born in 1840 who went to Andover and came to Wall Street at 15 and got his start scalping odd lots in insurance stocks. He developed a system of selling gold every 1/8 up and buying it every eight down. He became the Little Napoleon of Wall Street and dominated the gold exchange the way the big grain companies dominate the grain market today, using some of the same techniques. He made so much money that it was easy come, easy go, and he lost it all by guaranteeing the purchase of friends, defrauding by the Goulds during Black Friday, and finally in the crash of 1873.
The book is compelling, and instructive and a great history of 19th century stock and commodity markets, very much akin and resonant of today. It’s highly instructive. I’ll quote from some of the more resonant and sagacious passages: (more…)