Where is The Fear Today Tommorrow Everyday
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These 10 to 25k People having MONEY ,POWER ,Authority !
101% Naked Truth !
How do *your* coping efforts work for you?
Take a look at how well you trade after a position has gone against you. Do you trade better after a drawdown or worse?
How about after you have a few winning trades, days, or weeks in a row? Do you trade better or worse? Breaking down your performance as a function of recent performance will tell you a great deal about how effective you are in coping with risk and reward.
The other excellent indicator of whether your coping is working for you is your emotional experience during trading. If you find that anxiety, overconfidence, frustration, and stress are pushing you into poor decisions, you know that you’re not coping well with the uncertainties of markets.
Finally, it is helpful to identify the sequences of coping behaviors that you utilize when you’re making good decisions and the sequences when you’re trading poorly. Knowing how your individual coping responses come together to form coping strategies can help you cultivate your coping strengths.
Tracking how you deal with challenges when you are at your most effective enables you to create a mental model of that coping that you can call upon during periods of high stress. We cannot avoid the stresses of trading, but those do not have to generate distress and biased decisions.
This Brilliant Pyramid Outlines The 6 Steps To Financial Success
You’ve probably heard of Maslow’s hierarchy of needs.
It’s the ranking of primary human needs for psychological well-being as described by American psychologist Abraham Harold Maslow, and is usually illustrated not unlike the old-school food pyramid:
The financial blogger known only as Mister Squirrel recently shared his own version of Maslow’s hierarchy: the path to financial success.
Here’s what it looks like:
Psychological Makeup
Yου learn tο distinguish tһе ɡοοԁ traders frοm tһе bаԁ, tһе successful techniques frοm tһе unsuccessful, аחԁ tһе ɡοοԁ habits frοm tһе faulty. Yου аƖѕο learn tο distinguish tһе lover frοm tһе fighter, tһе winners frοm tһе losers, tһе serious frοm tһе frivolous, tһе cerebral frοm tһе superficial, аחԁ tһе friend frοm tһе foe. Bυt above аƖƖ, уου learn tһаt tһе psychological makeup οf tһе trader іѕ tһе single mοѕt critical element οf success.
Trading Wisdom – Perfectionism
Trading is not about perfection. It is about probability and progress. All charts, analyses (fundamental and technical) and trading plans are built on probabilities.
Why then, do so many traders strive for perfection? Why do so many traders miss trades, waiting for exactly the right entry and then beat up on themselves when it doesn’t come and the position runs away while they sit there scratching their heads and condemning themselves?
Why are so many traders trying to turn a game of probability into one of 100% certainty?
The answer lies in one of the cardinal sins of trading which is PERFECTIONISM.
Perfectionism can be a great help to people in many professions, but can be fatal to a trader. Perfectionists, always trying to find the Holy Grail of trading go from one service to another, from one system to another, looking for a way that they can be right all the time. YES! Now, I found it. It’s this trading room, or this service, or this indicator! Wait… something is wrong here. Not all of these trades are working and I have draw downs! How can it be that this particular method failed and I actually had to take a loss? Must be something wrong. I will try harder and look for an even better system, a more expensive service, a new and improved guru, some absolutely no-fail software so that I can have ONLY WINNING TRADES.
This is perfectionism in action. Not only does this type of irrational behavior and belief undermine and demoralize a trader, but it takes away all the enjoyment and fun of being in the markets. It leads to depression with depletion of psychic and physical energy, and leaves the perfectionist to confront his basic and overriding fear— fear of failure. In the extreme, it leads to physical and mental illness, including addiction to prescription drugs, alcohol, or illegal substances as well as other addictions. The pain of failure or the haunting fear of failure is simply overwhelming, and one turns to whatever works to medicate the pain.
“Life can be lived forwards, but can only be understood backwards” ~Soren Kierkegaard (more…)
This is a must read.
Kim Jong Un retires, opens discount clothing store.
9 Lessons From The Greatest Trader Who Ever Lived
One of the good guys (for me, at least) has always been Jesse L. Livermore. He’s considered by many of today’s top Wall Street traders to be the greatest trader who ever lived.
Leaving home at age 14 with no more than five bucks in his pocket, Livermore went on to earn millions on Wall Street back in the days when they still literally read the tape.
Long or short, it didn’t matter to Jesse.
Instead, he was happy to take whatever the markets gave him because he knew what every good trader knows: Markets never go straight up or straight down.
In one of Livermore’s more famous moves, he made a massive fortune betting against the markets in 1929, earning $100 million in short-selling profits during the crash. In today’s dollars, that would be a cool $12.6 billion.
That’s part of the reason why an earlier biography of his life, entitled Reminiscences of a Stock Operator, has been a must-read for experienced traders and beginners alike.
A gambler and speculator to the core, his insights into human nature and the markets have been widely quoted ever since.
Here are just a few of his market beating lessons:
On the school of hard knocks:
The game taught me the game. And it didn’t spare me rod while teaching. It took me five years to learn to play the game intelligently enough to make big money when I was right.
On losing trades:
Losing money is the least of my troubles. A loss never troubles me after I take it. I forget it overnight. But being wrong – not taking the loss – that is what does the damage to the pocket book and to the soul.
On trading the trends:
Disregarding the big swing and trying to jump in and out was fatal to me. Nobody can catch all the fluctuations. In a bull market the game is to buy and hold until you believe the bull market is near its end. (more…)
Buffett: Capitalism Works
Here’s a recent interview with Warren Buffett in which he discusses a broad array of topics. It’s worth 15 minutes if you have the time, but here’s the bullet points:
- The US economy is still growing and “will continue” to grow into 2014.
- Confidence creeps into a system while fear overwhelms it quickly. It takes time to get the confidence back.
- The American system has always persevered. We’ve questioned capitalism time and time again, but the system works.
- We’re 6 TIMES better off now than when Buffett was born.
- The recovery is being driven by the “natural juices of capitalism and not the government”.
- Advice for entrepreneurs: listen to your customers.
- The capitalist system works because it unleashes human potential.