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How to Become a More Disciplined Trader-15 points

  
  Education
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1.Treat trading as a business.
2. Get someone to keep you on track.
3. Review your trades.
4. Set reasonable trading goals.
5. Tackle the easy problems first.
6. Review your performance.
7. Make trading rules and keep them visible at all times.
8. Make a trading plan.
9. Make a game plan.
10. Have a trading strategy to follow.
11. Ask yourself before every trade, “Is this the right thing to do?”
12. Do your homework.
13. Work hard to improve.
14. Use hypnosis.
15. Just do it.

Warren Buffett: Markets are like sex

  
  Education
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There’s nothing like getting a big bang for your buck, and no one knows that more than billionaire investor Warren Buffett.

The 83-year-old founder of Berkshire Hathaway, whose investments have consistently beaten the stock market over the past 50 years, shared a few tips in this year’s annual letter to shareholders, including comparing the stock market with sex.
Mr Buffett said new investors tend to buy shares when the markets are rising and optimism is high, only to get disillusioned when prices fall.
Quoting the late money manager Barton Biggs, whose attention to emerging markets in the 1980s marked him as one of the world’s first and foremost global investment strategists, Mr Buffett added: “A bull market is like sex. It feels best just before it ends.”

He advised investors to “keep things simple” by “accumulating shares over a long period, and never sell when the news is bad and stocks are well off their highs”.

Wolrd Bank Says -Quality of education in South Asia poor

  
Analysis, Education
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A World Bank report today presented a disappointing picture of student-learning in South Asian countries including India, saying much of what is taught is “procedural” or rote-based.

The study, which was the first comprehensive analysis on performance of South Asian educational systems said “many South Asian teachers barely know more than their students”.

“Students are poorly prepared in practical competencies such as measurement, problem-solving and writing of meaningful and grammatically-correct sentences,” the report said.

It said that one quarter to one third of those who graduate from primary schools lack basic numeracy and literacy skills that would enable them to further their education.

Strongly recommending raising teacher quality, the report cited surveys conducted in India and Pakistan, showing that teachers perform poorly in math and language tests based on the curriculum they are supposed to teach.

“Higher and clear standards must be enforced, absenteeism curbed and non-merit-based promotions halted,” it suggested. (more…)

20 Naked Truth For Traders

  
  Education
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1.    You have to have passion for learning to trade; passion is the energy that you need to take you to your goals.

2.    You have to have the perseverance to keep going after you want to give up.  90% of new traders quit when they were very frustrated while 100% of successful traders didn’t quit until they reached their goals

3.    New traders spend too much time looking for what to trade instead of focusing on who they are as traders.  You have to know who you are as trader first then you can start building your trading system.

4.    Traders have to be able to manage their stress by trading inside their current comfort zone. Traders have to grow themselves and trade size step by step.

5.    The vast majority of new traders fail simply because they did not do their homework before they started trading.

6.    A trader has to build a trading system that matches their own personality and risk tolerance levels.

7.    A trader that chooses to be master a specific type of trading method or trading vehicles has a much better chance of success than the traders that just dabble in many different things and never make much progress.

8.    A trader has to write a good trading plan while the market is closed to guide their trading while the market is open. (more…)

10 Friends & 10 Enemies of Traders

  
  Education
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A Trader’s 10 Best Friends

  1. Studying the markets to understand what works. $Study
  2. You are comfortable with uncertainty. ????
  3. Being optimistic about winning in the long term. #Winning
  4. You manage risk very carefully on each trade. #RiskofRuin
  5. Thinking in probabilities and asymmetrical trades. #RiskReward
  6. Following your trading plan. #Discipline
  7. Accepting losses. #StopLoss
  8. Letting winners run. #TrendFollowing
  9. A plan on exactly how you will trade. #TradingPlan
  10. A robust trading system. #EDGE

A Trader’s 10 Worst Enemies

  1. Scared to enter a trade.#Fear
  2. Feeling the need to be right on every trade. #Pride
  3. Entering a trade too late or taking profits too soon. #Impatience (more…)

How to Become a Disciplined Trader

  
  Education
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  1. The psychology of price movement
    • The market prices flow back and forth like a tug of war between those who believe and expect the market to go up–and consequently buy–and those that believe the market will go lower–and consequently sell.
    • This means for one side, in their minds, that “the market” will make them winners; their beliefs will be validated.  All the traders on the other side, however, will be made losers; they will feel the market took something away from them and will naturally be disappointed.
  2. The steps to success
    • Once you trust yourself to always do what needs to be done, there will be nothing to fear because the markets won’t be able to do anything to you, as a result of your inability to respond appropriately.
    • Second, by passing up other opportunities that you are not an expert at yet, you will be releasing yourself from any compelling desire to trade.  Any compelling behavior is usually the result of some fear.
    • Staying focused on what you need to learn–> Deal with losses–> Become an expert at just one market behavior–> Learning how to execute a trading system flawlessly–> Learn to think in probabilities–> Learn to be objective–> Learn to monitor yourself

Ten Tasks of Top Traders

  
  Education
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  1. Daily self analysis:   Successful trading is 40% risk control and 60% self-control.
  2. Daily mental rehearsal:   Practice being disciplined in your mind before you trade daily.
  3. Developing a low risk idea:   Trade with the odds on your side with a defined risk.
  4. Stalking:   Wait for the entry. Utilize patience and don’t pull the trigger to soon.
  5. Action:   Take the entry when the signal is hit. Do not freeze up. Be definitive.
  6. Monitoring:   Keep an eye on what is happening with your position.
  7. Abort:  Be ready to cut your losses, when you are wrong and hit your stop loss.
  8. Take profits:  Use trailing stop or profit target when one is hit. Allow the market to take you out.
  9. Daily briefing:   Think through your trading & what you did right/wrong based on your trading plan.
  10. Periodic review:   Is your trading working? Do adjustments need to be made?
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