Latest Posts

rss

Accept Your Emotions as Natural and Stop Blaming Yourself

  
Analysis, Education
  • Example common cycle is that you take a trade before its ready because you fear of missing out, then you feel frustrated when the market dances around, you exit the trade, then you feel guilty of making the same mistakes over and over again.
  • What you should have done is to look at the anger and say “I see why I am irritated. I got in too early and I added or exited. Of course I feel this way”. Accept your emotions, then move on to decide on the best thing to do next.
  • But-I-Know-Better (BIKB) trades set up feeling and emotional contexts of self-recriminations. Just catching yourself in those — and the feelings surrounding them — will impact your bottom line in a positive way.
  • Get used to admitting to yourself (and if possible to someone you can trust) what you are feeling. Instead of trying to overcome or intellectualize a feeling (saying to yourself, “stop doing that”), say I feel like x, y, or z. Just let it be and don’t judge it.
  • Most of the time, if you have the courage to feel badly, get to the root of the feeling, and realize that x-y-z feeling or fractal-emotional context crept up on you without you knowing it, the feeling ‘pops’ like a balloon. Even if it doesn’t pop, it begins losing air like a tire going flat. The overwhelming sense of urgency begins to dissipate. The debilitating part just won’t last that long if you just let yourself feel and articulate it, even if only to a journal.

Ten Ingredients to become A Great Trader

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

It is all a game of risk management, mind, and a robust system. Everything else is just noise. 

  1. Passion for trading, only passion can fuel the work ethic needed to do the hard work that leads to success.
  2. Goal oriented traders succeed, if you know why you are trading and where it leads you may just get there.
  3. Perseverance: It is hard to lose if you never quit.
  4. Resiliency: The ability to come back from losses may be the secret to trading success.
  5. Back testing systems and methods before trading them speeds up the learning curve and side steps a lot of learning through real losses. (more…)

keep it simple -Don't miss to read…

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

keepitsimple
If you have been reading this blog for a while you know that ANIRUDH SETHI REPORT promotes simplicity.  Am I alone in thinking this way?  I do not believe so!  I would hazard to guess that most all, if not all, professional traders believe that successful trading boils down to having and following a very simple set of rules. 
Here is a very short list of comments from very reliable sources—successful professional traders.
John F. Carter:  “It is important to remember that there is no need to spend wasted years looking for complicated setups or the next Holy Grail.  There are very simple setups out there to use.  Some of the best traders I know have been trading the same setup, on the same time frame, on the same market for 20 years.  They don’t care about anything else, and they don’t want to learn about anything else.  This works for them, and they are the masters of this setup.  They have nothing else coming in to interfere with their focus” (p. 31, Mastering the Trade: Proven Techniques for Profiting from Intraday and Swing Trading Setups).
Clifford Bennett:  “While there have been some spectacular front-cover traders, the ones who amass fortunes year after year tend to stay in the background. At the very least, they display a simple and down-to-earth approach to markets if they are ever interviewed” (p. 117, Warrior Trading: Inside the Mind of an Elite Currency Trader). (more…)

Trading, Gambling, Praying

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

Intuition is not free

If you are thinking about exiting, it is too late. You are praying at that point. If it is in your plan for your targets to get hit, up or down, continue what you are doing. If you are just hoping your stop does not get hit, on behalf of the market, thank you. I am making the assumption that those who post or say that their stop is going to get hit have discretion in their system. The problem is not this trade it is the hundreds or thousands you will take after that. There is a reason you wanted to get it, that is intuition. If you cannot afford to not make money on a trade, you are fucked anyways.

You lost the lesson too

The market is constantly giving feedback. What happens after the “my stop is going to get hit” statement? What if the market goes in your direction? Are you going to get out at breakeven? Let it run? Take a small lost/gain? What are you going to do next time? The time after that? The outcome will affect your decision. The outcome you remember best will be the one that gives you the best psychological reward not financial rewards. Trading is about answers, not questions. Unanswered question impedes reactions and forces decisions. Decisions are bad over the long term.

Get out already (more…)

Go to top