1) Trade for success not for money.
2) Strive for discipline.
3) Know yourself and how well you handle risk.
4) Lose your ego.
5) Know your risk level and when you hit your stop point exit the trade.
6) Know when to trade and when to wait.
7) Love your losers like you love your winners.
8) Losing trades will be your best teachers.
9) After three losing trades in a row, take a break.
10) Don’t break any of the above nin rules.
1. Plan your trades. Trade your plan.
2. Keep records of your trading results.
3. Keep a positive attitude, no matter how much you lose.
4. Don’t take the market home.
5. Continually set higher trading goals.
6. Successful traders buy into bad news and sell into good news.
7. Successful traders are not afraid to buy high and sell low.
8. Successful traders have a well-scheduled planned time for studying the markets.
9. Successful traders isolate themselves from the opinions of others.
10. Continually strive for patience, perseverance, determination, and rational action.
11. Limit your losses – use stops!
12. Never cancel a stop loss order after you have placed it!
13. Place the stop at the time you make your trade. Continue reading »
New technology that will redefine the camera is coming. The question is when it will be ready for prime time.
Researchers are working on cameras that can capture still images and video clips without a lens. It turns out that pictures can be taken with just an image sensor superimposed with specially imprinted thin film. Since this would obviate the need for bulky lenses — the film is a mere 1 micron thick — the technology is likely to find its way into a range of fields and could completely alter the competitive landscape of the camera industry.
Compared with today’s cameras, lensless models should be a lot cheaper to produce.
In Japan, the leader is Hitachi, which recently announced the development of the country’s first lensless camera. Over in the U.S., Rice University and semiconductor developer Rambus are leading the way. At this point, Hitachi’s technology stands out because of its speed.
Design-wise, the Japanese company’s lensless camera is fairly simple. It comprises an image sensor superimposed with special film imprinted with a pattern of concentric circles. The film interferes with the light that passes through to the sensor. A computer calculates the extent of that interference and reconstructs the image. Continue reading »
If you want to win then you must control your risk carefully with only 1% or 2% of your capital at stake in every individual trade, if you want to lose then just trade huge position sizes, put all your chips on the table.
If you want to win plan your entries and exits before you enter a trade then follow them, if you want to lose ask for everyone’s opinion and just make decisions based on other people.
If you want to win cut your losses short and let your winners run, if you want to lose hold your losers and hope that they come back and sell your winners quickly to lock in gains.
If you want to win trade only the best high quality stocks in the market, if you want to lose trade the junk and hope for a miracle come back.
If you want to win then build complete confidence for your system through chart studies and back testing, if you want to lose trade with no idea of if what you are doing even works.
If you want to win go with the current trend of the market, if you want to lose fight the trend and trade against it.
If you want to win then go long the hottest stocks in a bull market, if you want to lose short the hottest stocks in a bull market.
Do what makes money not what you feel like doing.
So, who are the rogue traders that have experienced all of this? Here’s a small sample (the ones we know of!). They are not in chronological order but in order of how much money they actually lost their banks (from the lowest to the highest):
The guy that brought down the Allfirst Bank and incurred losses of $69.2 million.
He was sentenced to 7.5 years in prison on January 17th 2003 for hiding the losses that he incurred as a currency trader. He hid the losses for a year. He is now under confinement at his home (since January 2009, meaning that he served almost six years for his rogue trading).
He was ordered to pay back $1, 000 per month after his release from prison and despite the fact that he remains in debt to the full sum of $691.2 million he will probably never be able to pay it back. How did it all happen?
One thing is for sure: Rusnak has kept his nose clean since getting out of prison and has managed to fall into relative anonymity. Nobody knows what he’s doing today for work. Continue reading »