This is a good one and something we can all learn from both when making good and bad trades. If you can delay your emotional celebrations or harsh criticisms after the trading day (or trading week) is over, that’s to your own advantage. Far too often traders fall trap to what I call “trading on tilt” where they try to wreak revenge on the market by making more bad trades after the first bad one to get back to even. In addition, if you’re doing really well and making great trades, put your guard up. It is true that the times we are most vulnerable to catastrophic losses usually follow the times we’ve experienced a very hot hand and have convinced ourselves that everything we touch turns to gold.
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Desire and Fear in Trading
Desire and fear alternate in the minds of traders as they go through the day. But let me ask you whether desire or fear dominates your thoughts and feelings as you trade?
For many traders the primary emotion is fear. They fear loss: losing profits, losing money, losing equity and even their margin. Some fear losing their touch, their feel for the market, their focus, their luck, the respect of their boss, colleagues, or mate, or worse, their own self esteem.
Other traders are flooded with the emotion of desire. They look forward to what the day will produce. They like the thrill of the chase. They have a sense of unlimited potential and abundant opportunities for profit. They anticipate improving their skills, intuition, and understanding as they go through the trading day and week.
Keep in mind that desire is not greed. Greed is an inordinate wanting. It is excessive desire and comes from a sense of scarcity, a feeling that there is not and will not be enough. Desire is healthy: greed is unhealthy.
What you feel depends upon your mental focus. Do you place your conscious and unconscious attention on the possibility of loss or the probability (hopefully) of gain?
What you hold in your conscious attention colors your reality and becomes the quality and fabric of your life and trading. In your life, do you look for what’s missing, or do you pay attention to what you have and can create? Do you think about terrible things that have happened and could happen again, or do you think about wonderful experiences you’ve had and expect even better things ahead? Trading is a microcosm of life. What you do in life, you’ll do in trading.
You can through conscious volition change your focus from loss to gain. You can imagine failure or success. You can anticipate improving your skills and understanding, or you can worry about getting even worse. (more…)
This is Truth About Life & Trading
Life Wisdom – Jim Rohn
Success is both a journey and a destination.
It’s the steady, measured progress toward a goal and the achievement of a goal.
Success is both an accomplishment and a wisdom that comes to those who understand the potential power of life.
It’s an awarenesss of value and the cultivation of worthwhile values through discipline. (more…)
Great Trading Quotes by WD Gann ,Paul Tudor Jones ,Ed Seykota ,Jim Rogers-Video
MSCI goes beyond BRICs
MSCI has launched the MSCI EM Beyond BRIC Index, a new subset of the MSCI Emerging Markets Index.
The new index comprises seventeen countries and excludes the ‘BRIC’ economies of Brazil, Russia, India and China, which currently represent around 40% of the wider emerging markets index. MSCI said the new index offered a way to ‘track and evaluate the emerging markets opportunity set for those wishing to invest in countries outside the BRIC region’.
The index is market cap weighted, but the weighting towards the larger markets of Korea, South Africa and Taiwan is capped on a quarterly basis at 15% to ensure greater diversification. This gives greater prominence to smaller emerging market countries.
As it stands, after Korea, South Africa and Taiwan, the largest weightings in the index will be towards Thailand, Malaysia and Indonesia. Chile, Columbia, the Philippines, Turkey and Poland all have a weighting in excess of 2%.
Performance comparison (more…)
Volume -Solution for Everything
10 Essential Trading Words
1. Simplicity – have a simple, well defined way to generate trading ideas. Have a simple approach towards the market. You can’t simply take everything into account when you try to make an educated decision. Filter the noise and focus on several key market components. For me, they are relative strength and earnings’ growth.
2. Common sense – create a trading system that is designed on the basis of proven trading anomaly. For example, trend following in different time frames.
3. Flexibility – be open to opportunities in both directions of the market. Be ready to get long and short.
4. Selectivity – chose only trades with the best risk/reward ratio; stocks with the best set ups; it doesn’t make sense to risk a dollar to make a dollar.
5. Don’t overtrade – two or three well planned trades in a week (month) might be more than enough to achieve your income goals. Patiently wait fot the right set up to form and offers good risk/reward ratio.
6. Exit strategy – Always, absolutelly always have an exit strategy before you initiate a trade. Know at which point the market is telling you that you are wrong and do not hesitate to cut your losses short immediatelly. Don’t be afraid or ashamed to take a trading loss. Everyone has them. Just make sure that you keep their size to a minimum. (more…)
Don't trade when u can't afford 2 lose
