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The Market Mistress is Stalking You

  
  Education
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Have you ever had to deal with a stalker? It could just as easily be the Market Mistress.
And to understand the market mistress we must better understand each of the
following:
Common Stalker Characteristics
   – Jealous
   – Manipulative
   – Narcissistic
   – Deceptive
   – Obsessive and compulsive
   – Falls instantly in love
   – Socially awkward or uncomfortable
   – Needs to be in control
   – Depends on others for sense of self
   – Unable to cope with rejection
   – Sense of entitlement (you owe me!)
   – Unable to take NO for an answer
   – Does not take responsibility for own feelings or actions.

Traders' Resolutions for the New Year-2013

  
  Education
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What are our top trading resolutions for 2013?

D  iscipline
R  esults
I  ntegrity
V  ictory (Over Emotions)
E  ducation

Discipline

Most traders could benefit from being more disciplined with their trading. Discipline in trading takes many forms. But it can be summarized as just doing what we know needs to be done.
For example, a common New Year’s resolution is to lose weight. Losing weight is simple in theory—we just need to eat healthy foods and exercise more. Just say no to the doughnut and yes to the salad—simple! Of course, sticking to your plan is anything but easy, which is where discipline comes into play. Just do what we know needs to be done.
If I could target only two things to be more disciplined in next year’s trading they would be:

  1. Cut losing trades: Do everything to keep losses small.
  2. Let profits run: Don’t fall prey to the fear of a small profit slipping away. (more…)

ALERT :RBI Tax to dry FII Tap ?

  
Analysis, Economy, Education
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taxForeign investors funneled more than $15 billion to Indian equities in 2009, sending stocks up more than 75% and strengthening the rupee . With expected positive growth rates for the year and higher interest rates differentials that favor emerging markets, investors are looking to India as a good place to stash their wealth.

The Reserve Bank of India (RBI) has already taken the necessary precautions to stave off a potential asset bubble forming in India’s stock and real estate markets. India’s officials are welcoming the fund inflows with open arms, but Finance Minister Pranab Mukherjee says monetary tools will be implemented if inflows become disruptive to the economy.

RBI could stem inflows by:

We are expecting very soon by Next month or First week Jan’10

  • Imposing taxes on inflows; this is considered to be the most likely tactic the government would take, especially when it comes to inflows that could lead to a housing bubble
  • Auctioning quotas for foreign credit to increase the cost of raising funds
  • Using market intervention bonds and raising cash reserve ratios

Everyone is afraid of each other

  
  Education
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The warrior of the light knows: everyone is afraid of each other.

This fear can generally be seen in two forms: through aggression, or through submission. They are two sides of the same problem.

That is why, upon being confronted by a someone who inspires terror, the warrior recalls: the other man is insecure, stressed, or scared. He has overcome similar obstacles, and has lived the same problems.

But he knows how to deal with the situation better.
Why? Because he uses fear as a motor, not as a brake.

Thus the warrior learns from his opponent, and keep cool, waiting for the storm to pass

Listen to Market

  
  Education
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The market has a lot to say, just pay attention and you will find loads of useful information. For example, the principle “Do not add to your positions unless the markets prove it”. This is shockingly true in the Futures markets. The players in the futures markets are generally those with high risk appetite. Most of the time they are well equipped, skilled and well informed. It is not a surprise that they are correct most of the time.

22- Books Everyone Should Read on Psychology and Behavioral Economics

  
  Education
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In no order and with no attribution:

  1. Risk Savvy: How to Make Good Decisions by Gerd Gigerenzer
  2. The Righteous Mind: Why Good People Are Divided by Politics and Religion by Jonathan Haidt
  3. The Checklist Manifesto: How to Get Things Right by Atul Gawande
  4. The Darwin Economy: Liberty, Competition, and the Common Good by Robert H. Frank
  5. David and Goliath: Underdogs, Misfits, and the Art of Battling Giants by Malcolm Gladwell
  6. Predictably Irrational, Revised and Expanded Edition: The Hidden Forces That Shape Our Decisions by Dan Ariely
  7. Thinking, Fast and Slow by Daniel Kahneman
  8. The Folly of Fools: The Logic of Deceit and Self-Deception in Human Lifeby Robert Trivers
  9. The Hour Between Dog and Wolf: Risk Taking, Gut Feelings and the Biology of Boom and Bust by John Coates
  10. Adapt: Why Success Always Starts with Failure by Tim Harford
  11. The Lessons of History by Will & Ariel Durant
  12. Poor Charlie’s Almanack
  13. Passions Within Reason: The Strategic Role of the Emotions by Robert H. Frank
  14. The Signal and the Noise: Why So Many Predictions Fail–but Some Don’tby Nate Silver
  15. Sex at Dawn: How We Mate, Why We Stray, and What It Means for Modern Relationships by Christopher Ryan & Cacilda Jetha
  16. The Red Queen: Sex and the Evolution of Human Nature by Matt Ridley
  17. Introducing Evolutionary Psychology by Dylan Evans & Oscar Zarate
  18. Filters Against Folly: How To Survive Despite Economists, Ecologists, and the Merely Eloquent by Garrett Hardin
  19. Games of Strategy (Fourth Edition) by Avinash Dixit, Susan Skeath & David H. Reiley, Jr.
  20. The Theory of Political Coalitions by William H. Riker
  21. The Evolution of War and its Cognitive Foundations (PDF) by John Tooby & Leda Cosmides.
  22. Fight the Power: Lanchester’s Laws of Combat in Human Evolution by Dominic D.P. Johnson & Niall J. MacKay.
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