Be Not Afraid of Going Slowly ,Be Afraid Only of Standing Still
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Trading Secret
I feel certain that my discipline in executing each and every trade according to my trading methodology is the secret to my success. If you want to improve your trading, what you need to do is very simple. Before you enter any trade, imagine that you will have to explain this trade to a panel of your peers, by explaining to them the reason for your entry, your money, trade, and risk management guidelines, and why you exited the trade. Imagine having to explain why you chose this particular market and this particular time frame, along with how you set objectives for the trade, and how you determined where your initial protection would be. If you can truly do this, I strongly believe that you can be successful.
14 Meaningless Stock Market Phrases
14 Meaningless Phrases That Will Make You Sound Like A Stock-Market Wizard
“The easy money has been made.”
“I’m cautiously optimistic.”
“It’s a stockpicker’s market.”
“It’s not a stock market. It’s a market of stocks.”
“We’re constructive on the market.”
“Stocks are down on ‘profit taking.’”
“The trend is your friend.”
“More buyers than sellers.”
“There’s lots of cash on the sidelines.”
“We’re in a bottoming process.”
“Overbought.”
“Buy on weakness.”
“Take a wait-and-see approach.”
“It’s a show-me stock.”
Take the knocks
I’ve identified recently that one of the most important internal abilities a trader needs is a seemingly endless supply of resilience to take daily knocks in the market and get back up. For me this shows up as a “not happening day”…
Some days its happening, but some days its not. As soon as I realize I’m in a not happening day the most important thing to do is quit right now and start again tomorrow completely fresh. Just forget it, start over tomorrow.
Each day in the market has no connection for the trader to the one before, its a clean slate. You need to just bounce back like a ball, fresh as a daisy. The sins of yesterday are completely forgiven, but you will be judged on how you act today.
Strangely I notice that these days also often line up to some degree with market behavior. My not happening days can sometimes be accompanied by a daily print that whipsawed in an ugly confused fashion.
This is not always the case, sometimes the market trends cleanly but I just didn’t get what was going on, I was in the wrong state to be doing this. Other days my head is clear but the market is a nervous wreck.
It is a strength though to be able to realize quickly that today its just not happening for what ever reason and to leave it for another day. If I’m in a position and i feel like this, I’ll just cut it, start flat tommorow. Usually these are positions that are going nowhere or else going bad anyway.
Just Drop These 15 TOXIC Thoughts
Here are fifteen toxic thoughts to ban from your self-talk:
1) “It’s too late.” – No matter who you are, no matter what you did, no matter where you’ve come from, you can always change and become an improved version of yourself. Peace, strength and understanding will come to you when you manage to tune out the noisy judgments of others, in an effort to better hear the soft and steady hum of your own inner strength. And once you hear it, you will realize that it’s not too late to be what you might have been.
2) “If only I was stronger, smarter, more attractive, etc.” – The absolute worst loneliness is to not be comfortable with yourself. It’s always better to be true to yourself, and risk incurring the ridicule of others, rather than trying to live a lie, only to incur your own self-contempt. Remember, almost everything that happens to you is a direct reflection of what you believe about yourself. You can’t possibly outperform your level of self-esteem. You can’t draw from yourself more than you think you are worth.
3) “What I have to say is not that important.” – Silence makes the inner battle much harder and longer. Speak your truth. Let it out… before it kills you! Honestly, this is one of the saddest things about so many people – their most important thoughts and feelings often go unspoken and barely understood. (Read Love Yourself Like Your Life Depends On It.)
4) “The less risks I take, the less regrets I will have.” – You miss 100% of the shots you never take. Choices, chances and changes – start making them. You must make a choice to take a chance, or your life will never change. In the end, more so than the mistakes we make along the way, we regret the chances we didn’t take, relationships we were afraid to have, and the decisions we waited too long to make. (more…)
Do Your Homework
If you are not willing to study, if you are not sufficiently interested to investigate and analyze the stock market yourself, then I beg of you to become an outright long-pull investor, to buy good stocks, and hold on to them; for otherwise your chances of success as a trader will be nil. |
20 Nuggets from a Book : A Better Way to Make Money
1. The secret to losing money in the market is to know why. “The losers “were ‘playing the market’, not using it intelligently. The fellow at the other end of the deal, who was using it intelligently, not ‘playing the market’, is the one who got the money.”
2. “It is an undeniable fact that indiscriminate trading in a hectic market will send one to financial oblivion quicker than any other known process.”
3. “The most careful preparation-a systematic plan-is one of the essentials of success.”
4. “Market action is not complex but surprisingly simple. Yet it is often made to appear complex by newspaper forecasters and market letter writers.”
5. “Market action is human nature in action.”
6. All market movements are based on “two deep-seated and entirely natural emotions: the desire for gain and the fear of loss.”
7. “So anxious are people to find some talisman, some magic wand, that will help them secure the hidden riches of the market, that they will try anything from coin-flipping to crystal gazing to secure the desired assistance.”
8. “What marvelous results could be attained in the business of making money if those who buy stocks would take a little time to learn a few simple facts about the market in which they are blindly reposing their faith.”
9. “Market students are continually diverted from making true evaluations of securities and commodities because they study the statistics made by prices instead of the psychology of prices.”
10. “Adopt one system of trading and stick to it, just as you employ and stick to one physician in whom you learn to have confidence.” (more…)
Learning to do nothing
This is a lesson I keep needing to come back to. I can see that trading for amusement has been my own downfall a thousand times in the last few years, and to just sit at the sidelines can be painful.
I just read a brilliant quote by the trader John Piper.
“Once able to trade, it is very likely that a person will make the emotional decision to do just that when bored. This timing is unlikely to correspond with a low risk trading opportunity.”
“Once able to trade, it is very likely that a person will make the emotional decision to do just that when bored. This timing is unlikely to correspond with a low risk trading opportunity.”
Drawdown issues visualized
