Financial Occultist

First Credit Agricole, now Italy….Maestro: the EUR take down orchestra is reaching the fortissimo cadenza. Next up: the glissando.

Overview

In our view Italy’s current growth prospects are weak, and the political commitment for productivity-enhancing reforms appears to be faltering.
Potential political gridlock could contribute to fiscal slippage.
As a result, we believe Italy’s prospects for reducing its general government debt have diminished.
We have therefore revised the rating outlook on Italy to negative, implying a one-in-three chance that the ratings could be lowered within the next 24 months.
We have also affirmed the ‘A+/A-1+’ sovereign credit ratings on Italy. (more…)

MOST IMPORTANT RULE OF TRADING

07-Jan-19 02:29 pm

Education

Anirudh Sethi

The most important rule of trading is to play great defense, not great offense. Every day I assume every position I have is wrong. I know where my stop risk points are going to be. I do that so I can define my maximum possible drawdown. Hopefully, I spend the rest of the day enjoying positions that are going my direction. If they are going against me, then I have a game plan for getting out. – Paul Tudor Jones

GAMBLE & SPECULATING -The Difference

07-Jan-19 02:27 pm

Education

Anirudh Sethi

Paul Tudor Jones: How to be a successful investor (Watch your risk).

07-Jan-19 02:26 pm

Education

Anirudh Sethi

Deadly Emotions

07-Jan-19 02:25 pm

Education

Anirudh Sethi

REVENGE, we all know it and have done it. It happens when you are tricked by the market and decide to take another trade before looking at the big picture, then BAM you are on the wrong side of the trade again. Pissed off and refusing to move while your money is going further down the drain. Scared to let go for fear that you are going to get tricked again.

PANIC, that is when you lack the confidence to enter or ride a profitable trade. This happens when you have taken some hits and now you lack the confidence to trade profitably.

IMPATIENCE, this happens when you can’t wait for a proper trade set-up and jump on a price hiccup/retracement, often finding yourself on the wrong side of the trade.

ANGER, you know that feeling that comes over you when you have taken a hit or two and you want to kill your computer.

SELF PITY, when you come to the market hoping for crumbs and get none, and can’t see why THEY won’t let you have just a little bit.

DEPRESSION, something perhaps outside of the market has you at an extreme low point.

INDIFFERENCE, it happens when you have gotten hit so many times that you just don’t care any more because no matter what you can win any way.

All of these emotions work hard against you clouding your clarity and give other traders the advantage over you.

If you are experiencing any of these emotions when you enter your platform; abandon your trading until you have yourself under control and have the clarity of mind to trade. Not doing so greatly increases your chances of handing your money over to a trader who is more emotionally fit and controlled than you are.

We are all human and it happens to us all, but what weighs heavy in your mind will often weigh heavily in your pocket.

Come to your trading platform, well rested, focused and ready to trade. You may take an occasional hit so what it is a LESSON. We all get them and if we learn the lesson that the loss has taught us; it will make us much better traders.

DO NOT TRADE YOUR EMOTIONS!!!!!—-

7 Wisdom Thoughts on Trading

07-Jan-19 02:23 pm

Education

Anirudh Sethi

• It’s much easier to learn what you should do in trading than to do it. Good systems tend to violate normal human tendencies.

• Two cardinal sins of trading — giving losses too much rope and taking profits prematurely — are attempts to make … positions more likely to succeed, to the severe detriment of long-term performance.

• The people who survive avoid snowball scenarios in which bad trades cause them to become emotionally destabilised and make more bad trades. They are also able to feel the pain of losing. If the losses don’t hurt, your financial survival is tenuous.

• In many ways, large profits are even more insidious than large losses in terms of emotional destabilisation. I think it’s important not to be emotionally attached to large profits. I’ve certainly made some of my worst trades after long periods of winning. You start to think you can afford shoddy decisions.

• As a general rule, losses make you strong and profits make you weak.

• I take the … view that missing an important trade is a more serious error than making a bad trade.

• Don’t think about what the market’s going to do; you have absolutely no control over that. In particular, you should spend no time at all thinking about those rosy scenarios in which the market goes your way, since in those situations, there’s nothing more for you to do. Focus instead on those things you want least to happen and on what your response will be.