Latest Posts

rss

TRADER’S AWARENESS ZONES

  
  Education
#  #  #  #  #  #  #  #

If you know who the enemy is and you know yourself, you will never fear the next trade.  If you know yourself but not the enemy, you will win one lose one.  If you do not know the enemy or yourself, you will lose on each trade. Sun Tzu Trader

The very best traders develop market awareness zones as a form of checks and balances for unbridled behavior.   In other words, no sound trading strategy should be based solely on an indicator but on several carefully designed tactics that form a strategic whole, much like a successful football or basketball team relies on a game plan carried out by several players working together, not one player acting alone.  In military terms, all branches working together to defeat a common foe.

The 3 Most Confusing Things Your Math Teacher Ever Told You

  
Analysis, Education, Life
#  #  #  #  #  #  #  #  #  #  #  #  #  #

Now that the fall term of school is over, we can all relax for the holidays. Here’s a gift to everybody out there, students and teachers and especially parents, who might still be befuddled about some of the more puzzling things that came up in math class. This is why the teacher said what she said.

1) You can’t divide by 0.

Why not? Well, because if you try to, no matter what answer you write down, it won’t make sense. Take 6 divided by 0. What should that equal? A lot of people guess 0. But that doesn’t work. If 6 divided by 0 were equal to 0, that would mean that 0x0 would have to equal 6 (just as 6 divided by 2 equals 3 means that 2×3 equals 6). The trouble here is that 6 divided by 0 cannot equal any number, because any number times 0 always gives 0, not 6. This is why division by 0 is verboten.

2) 1 is not a prime number (more…)

Trading Wisdoms

  
  Education
#  #  #  #  #  #  #  #  #  #  #  #  #

“Never let the fear of striking out get in your way” – Babe Ruth

“If you can’t take a small loss, sooner or later you will have to take the mother of all losses” – Ed Seykota

“Don’t think about what the market is going to do. You have absosutely no control over that. Think about what you are going to do if it gets there.” – William Eckhardt

“I turned from a loser to a winner when I was able to separate my ego needs from making money. When I was able to accept being wrong. Before that, admitting I was wrong was more upsetting than losing money” – Marty Schwartz

“The worst mistake a trader can make is to miss a major profit opportunity. 95% of the profits come from only 5% of the trades” – Richard Dennis

Trading Quotes

  
  Education
#  #  #  #  #  #  #  #  #  #  #  #  #  #  #  #  #  #  #
  1. “Time is your friend; impulse is your enemy.” John (Jack) Bogle
  2. “When reward is at its pinnacle, risk is near at hand.” John (Jack) Bogle
  3. “Rule no. 1 is never loose money. Rule no. 2 is never forget rule number one.” Warren Buffett
  4. “Look at market fluctuations as your friend rather than your enemy. Profit from folly rather than participate in it.” Warren Buffett
  5. “I paraphrase Lord Rothschild: The time to buy is when there is blood on the streets.” David Dreman
  6. “It is absurd to think that the general public can ever make money out of market forecasts.” Benjamin Graham
  7. “The whole secret to winning and losing in the stock market is to lose the least amount possible when you are not right.” William J. O Neil
  8. “It is not whether you are right or wrong that is important, but how much money you make when you are right and how much you lose when you are wrong.” George Soros
  9. “If you want to have a better performance than the crowd, you must do things differently from the crowd.” John Templeton
  10. “My first rule is not to lose money. Losing an opportunity is minor in comparison, because there are always new opportunities around the corner.” Burt Dohmen
  11. “Experienced traders control risk, inexperienced traders chase gains.” Alan Farley
  12. “Most traders take a good system and destroy it by trying to make it into a perfect system.”
  13. “Trade what you see, Not what you think”
  14. “A Technician is an Artist and Technical Analysis is the Super Skill of discovering sharp and compact Charts and Patterns depicting Trends and Targets with Precision and Perfection.”
  15. “Identifying the “Rhythmic Flow” of Financial Instruments for skimming the crème, quietly and consistently is the fascinating nature of the Technician’s profession.”
  16. “Like any craft, such as piano playing, perfection may be elusive – I’ll never play a piece perfectly, and I’ll never buy the low and sell the high – but consistency is achievable if you practice day in and day out.”
  17. “You never need to chase a trade. The market has plenty of opportunities. The money runs out before the opportunities do.”
  18. “Good trading is a peculiar balance between the conviction to follow your ideas and the flexibility to recognize when you have made a mistake.”
  19. “Always understand the risk/reward of the trade as it now stands, not as it existed when you put the position on.”
  20. “At all levels of play the secret of success lies not so much in playing well as in not playing badly.”
Go to top