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Self Improvement

  
  Education
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self-improvementIf you are having trouble achieving your trading goals, take time out to examine the real causes of your problems. Working towards improvement will take a dedicated approach on your part. Identification of the problems are the first step. Attacking the problems one at a time is the first part of the solution. Doing the right thing at the right time based on the information you have should be your goal. Sit down and have an in depth talk with yourself and ask yourself some hard questions. For example: – do I have the emotional makeup necessary for this business? – do I have the financial reserves so that I am not relying on trading to pay the bills while I learn? – do I really enjoy doing this? Coming up with honest answers will be the only way to ultimately overcome issues that keep getting in your way. If you keep doing the same things, you will keep getting the same results, so you’ll need to change. Plain and simple. Best not to delay in sorting things out.

Waiting for the right moment to enter and exit definitely comes with experience. Correct order execution, taking profits when they are offered and cutting losers are also vital to your success.

My mind is not bogged down by indicators, rumours, conjecture or analyst’ reports. It is much easier for me then to concentrate on what really matters – recognizing what the charts are telling me and acting on this information.
Concentrate on the problems you might have. Hesitation, taking big losers, selling winners to soon, screwing up order entry, racing heart and sweaty palms. (more…)

The Mind of the Greatest Trader-Livermore

  
  Education
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As revolutionary as this early-day stock guru’s approach to trading was for his time, in truth, Jesse’s stock trading “secrets” just came down to good, sound basics. His success stands as a testament to the fact that the further we wander away from trading breakout stocks and a simple, disciplined approach to trading stocks, the less success we’re inclined to have. Just how unconventional was Jesse Livermore? Take a look:

  • He believed in trading top quality stocks, not “weaker sister” stocks.
  • A stock hitting new highs was a signal of a stock’s strength to Livermore, and meant the stock had broken through its overhead supply of sellers. Today, we call this a “breakout stock”.
  • He was one of the first stock traders to realize that stocks tend to move in industry groups not in isolation.
  • Unlike today’s self-appointed stock pick gurus, Jesse Livermore was a humble student of the market, and never considered himself a master.

Livermore was ever conscious of the part one’s psychology played in achieving stock trading success, so he never spoke about what he was doing to anybody, and actually was known to ask people to keep their stock tips to themselves! He was so protective of his trading psychology that he would not even use the words “bullish” or “bearish,” thinking they would create an emotional mindset that he wanted to avoid. (more…)

How to Handle a Justifiable Loss

  
  Education
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  • Accept the loss and forget about it.
    • Record it in your record book and do not rehash it.
  • Do not discuss the loss with anyone.
    • Do not recruit anyone’s sympathy or sorrow.
    • Do not feel sorry for yourself.
    • Do  not soothe your loss by going overboard on food, drink, or sex.
  • Do not feel as if you have been punished.
    • Do not punish or hate yourself for losing.
    • Do not allow yourself to accept any punishment from loved ones.
    • Do not accept ridicule or blame from your broker.
  • Do not blame your trading system.
    • Do not alter your technique, system, or methods.
  • Do not fear making the next trade
    • Do not respond by allowing your market studies to fall behind.

Sixty Ways To Make Life Simple Again

  
Education, Life
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  1. Don’t try to read other people’s minds.  Don’t make other people try to read yours.  Communicate.
  2. Be polite, but don’t try to be friends with everyone around you.  Instead, spend time nurturing your relationships with the people who matter most to you.
  3. Your health is your life, keep up with it.  Get an annual physical check-up.
  4. Live below your means.  Don’t buy stuff you don’t need.  Always sleep on big purchases.  Create a budget and savings plan and stick to both of them.
  5. Get enough sleep every night.  An exhausted mind is rarely productive.
  6.  Get up 30 minutes earlier so you don’t have to rush around like a mad man.  That 30 minutes will help you avoid speeding tickets, tardiness, and other unnecessary headaches.
  7. Get off your high horse, talk it out, shake hands or hug, and move on.
  8. Don’t waste your time on jealously.  The only person you’re competing against is yourself.
  9. Surround yourself with people who fill your gaps.  Let them do the stuff they’re better at so you can do the stuff you’re better at.
  10. Organize your living space and working space.  Read David Allen’s bookGetting Things Done for some practical organizational guidance.
  11. Get rid of stuff you don’t use.
  12. Ask someone if you aren’t sure.
  13. Spend a little time now learning a time-saving trick or shortcut that you can use over and over again in the future.
  14. Don’t try to please everyone.  Just do what you know is right.
  15. Don’t drink alcohol or consume recreational drugs when you’re mad or sad.  Take a jog instead. (more…)
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