Respect the price action but never defer to it.
The action (or “eyes”) is a valuable tool when trading but if you defer to the flickering ticks, stocks would be “better” up and “worse” down—and that’s a losing proposition. This is a particularly pertinent point as headlines of new highs serve as sexy sirens for those on the sidelines.
Discipline trumps conviction.
No matter how strongly you feel on a given position, you must defer to the principles of discipline when trading. Always try to define your risk and, above all, never believe that you’re smarter than the market.
Opportunities are made up easier than losses.
It’s not necessary to play every move, it’s only necessary to have a high winning percentage on the trades you choose to make. Sometimes the ability not to trade is as important as trading ability.
Emotion is the enemy when trading.
Emotional decisions always have a way of coming back to haunt you. If you’re personally attached to a position, your decision making process will be flawed. It’s that simple. (more…)
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rssNine Business Lessons From Celebrities
If you pay attention, you can find inspiration and lessons that you can apply to your business everywhere you look…
- Lance Armstrong: Be disciplined. No business will succeed without a lot of hard work and discipline. Commit to it. Stick with it. Eventually, you’ll reach your destination.
- Paula Deen: Be yourself (and be bold about it). You will naturally succeed if you build a base of followers who are naturally attracted to your personality. Don’t worry about being liked by everybody. Just let your own unique personality shine through.
- Mr. Rogers: Be positive. I can’t imagine making it in business without a whole lot of optimism.
- Ellen Degeneres: Have fun. The daily grind, even when you work for yourself, can be dull at times. Doing something you love, surrounding yourself with clients and connections that energize you, and taking time to appreciate the good things in life make it all worthwhile, and who doesn’t enjoy a good laugh every once in a while? (more…)
4 Types of Fear for Traders
The fear of being wrong: Traders fear being wrong so much they will hold a small loss until it becomes a huge loss. Even adding to the loss in the hopes of it coming back and getting to even. Don’t do this, holding on to a loser after it hits your predetermined stop loss is like being a reverse trend trader. Do not be afraid of being wrong small be afraid of being wrong in a BIG way by not cutting the loss.
The fear of losing money: New traders hate to lose money, they do not quite understand yet that they will lose 40%-60% of the time in the long term. We should come to expect the small losses and wait for the big wins patiently. Many times traders fear this so much that they have a hard time taking an entry out of fear of losing. If you can’t handle the losses as part of the business, you can’t trade.
The fear of missing out: The opposite of the fear of losing money is the fear of losing potential profits. This causes traders to watch a stock go up and up, miss the primary trend, then not being able to take it any more and get in late just in time for the trend to reverse and lose money. Trade at your systems proper entry point do not chase a stock because you are afraid to miss out on some profits.
The fear of leaving money on the table: When your trailing stop is hit get out of the trade. If your rules tell you to get out after a parabolic run up and stall then exit. You must be disciplined on taking money off the table while it is there. Being greedy for that last few dollars when your system says to sell could lead to major losses of paper profits. Let your winners run but when the runner gets to tired to continue: bank your profits
95% Traders Don't Know : Trading is 10 % what a stock does and 90 percent how you react to it.
Strong Economy ,Strong Fundamentals -Still Nifty Future in 5th Position
Dear Traders & Readers ,Just after looking at Global Indicies Monthly chart ,I had seen 20 Indices.
-From recent low of 21/10/2008 or 21st March/2009 just see performance of Indices.
-First five Indices in % gain are :Russia RTSE ,Argentina ,Srilanka ,Brazil ,Nifty Future
-Just see the table and think it over :Why Blue Channel Jokers ,Analysts ,Our Economists and Politicians are doing 
every day about Indian Economy that its growing and will grow at 8% ,9% or double figure.
-Every Fund Manager saying/writing :Indian Economy growing and very Bullish.
-Every Mutual Fund (Domestic ) Bullish and says money will only flow in India.
Just see with your naked eyes and see performance of Indice like :Karachi is up by 122%.
| Country Index | LOW 31/10/2008 LOW 31/03/2009 | High- April’10 | Point Gain | % Gain |
| Argentina | 819 | 2498 | 1679 | 205 % |
| AUSTRALIA | 3693 | 4991 | 1298 | 35% |
| AUSTRAI | 1379 | 2767 | 1388 | 100% |
| BRAZIL-Bovespa | 29435 | 71989 | 42554 | 144% |
| CAC | 2465 | 4065 | 1600 | 65% |
| CANADA | 7479 | 12211 | 4732 | 63% |
| CHILE | 2017 | 3869 | 1852 | 92% |
| DAX | 3588 | 6265 | 2677 | 75% |
| DOW | 6469 | 11001 | 4532 | 70% |
| FTSE | 3460 | 5790 | 2330 | 68% |
| HANG SENG | 10676 | 22249 | 11573 | 108% |
| KARACHI | 4781 | 10628 | 5847 | 122% |
| MEXICO | 16480 | 33841 | 17361 | 105% |
| NASDAQ Composite | 1265 | 2454 | 1189 | 93% |
| NIFTY FUTURE | 2228 | 5398 | 3170 | 142% |
| NIKKEI | 6994 | 11408 | 4414 | 63% |
| RUSSIA RTSI | 492 | 1642 | 1150 | 234% |
| S&P 500 | 666 | 1195 | 529 | 79% |
| SHANGHAI | 1664 | 3177 | 1513 | 91% |
| SRILANKA | 1476 | 3952 | 2476 | 168% |
After looking at table it looks that “Trend across the Globe ” is up since Oct’09 or March’10.
-So Fundamentals/Economy/Growth factors are of No Value.
-Percentage wise all Global Indices had spurted ,So dont ever think only India is moving up or Indian Economy is strong.
Updated at 13:25/11th April/Baroda
Jesse Livermore's own words on buying stocks at all-time-highs…
Here are the most important concepts in Behavioral Economics
If William Shakespeare were a stock trader
All the market’s a chart
And all the men and women merely traders;
They each have their exits and their entrances.
And each trader at some time or another plays one of seven parts.
There is the newbie, oftentimes crying and puking at the market’s ways.
Then the student, whining and creeping like a snail, unwilling to learn from the lessons taught by the headmaster, the market.
And then the lover, sighing and with a woefully ignored ballad for the stock to please stay, is spurned again and again.
Then the soldier, full of pious quotes and axioms, acting like a pard
Seeking to bring honor to his jealous self, sudden and quick to anger
Desirous of a quick, undeserved reputation by taking foolish risks.
And then the justice, full of well earned knowledge
His eyes sharp, his countenance etched with a trader’s experiences.
Full of wise sayings and modern instances;
And so he also plays his part in due time.
The sixth part shifts into leanness and relaxed dress.
His vision impaired; his honor held closely by his side.
The world too wide; the childish things too obvious.
He whistles as he watches the childlike newbies play.
Last scene of all, that ends this strange eventful history
Is second childishness and mere oblivion,
Sans chart, sans vision, sans desire, sans everything.
Be a cynic
Don’t argue with the tape but look at the other side of every coin. I’ve long noticed that as a group Russian and British traders are better than average. Why? Because by nature they question widely accepted beliefs. New opinions translate to revaluations. Leave your dogma at the door and be open to the unexpected and seemingly illogical. Winning traders have a reason to be in the trade. Even if based on nothing more than a vague, ethereal feel, a good discretionary trader has a profile in his mind and the moment his thesis is no longer provable or valid he is out of the position.
Greeks preparing for Today's Europe summit.
