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The 7 Deadly Trading Sins

Here are the seven sins that traders commit that put them in the unprofitable purgatory of the markets.

  1. Sloth: The belief that trading is easy money new traders to be lazy and not put in the work at first to develop their own trading system and plan before trading. Work is required to learn how to trade and work in watching markets for your signals is not an option. Lazy trading is bad trading.
  2. Lust: The lust for material things causes traders to spend profits instead of compounding their capital. The goal of a trader should first be freedom and financial security not Lamborghinis and mansions.
  3. Pride: The inability to admit you are wrong in a trade can turn a small loss into a big loss.
  4. Wrath: Revenge trading is a path to doing more of the wrong thing. Being mad at a market that does not know you exist is illogical and irrational and leads to bad decisions.
  5. Greed: The fastest way to go broke in trading is by trying to get rich quick. The desire to get rich quick leads to bad decisions when speed to profits is the number one priority over common sense.
  6. Envy: Worrying about what other traders or investors are doing or how much markets you do not trade are trending is a waste of mental effort. Focus on your own system and process to keep your own edge.
  7. Gluttony: Trading too big, chasing a trend that is already extended, and over trading are all signs of doing a lot where less is much more healthy for your trading.

The Power of Habit-Book Review

A new year is right around the corner, and with it will come the usual host of resolutions—sadly, rarely kept. To be more precise, more than 40% of Americans make New Year’s resolutions and just 8% achieve their goals. Sometimes the goals they set are too daunting, sometimes too vague. And, perhaps the biggest problem with the whole resolution business is that people focus on goals rather than processes.
In 2012 Charles Duhigg, a Pulitzer Prize-winning journalist for The New York Times, wrote The Power of Habit, which spent 62 weeks on the paper’s best seller lists and was named one of the best books of the year by The Wall Street Journal and theFinancial Times. It is now being reissued with an afterword by the author.
I reviewed the book when it first came out and thought I would write a new post now that I have the reissued edition. But then I reread my original piece and decided that I probably couldn’t improve on it. So instead I’ll republish it here.
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“All our life, so far as it has definite form, is but a mass of habits,” William James wrote in 1892. Well, that might be a bit of an overstatement: a researcher in 2006 knocked that “mass” down to “over 40 percent.” Whatever the percentage, we are creatures of habit. In The Power of Habit: Why We Do What We Do and How to Change It (Random House, 2012) Charles Duhigg explores the work that neurologists, psychologists, sociologists, and marketers have done over the past two decades to figure out how habits work and how they change. It’s a fascinating tale. (more…)

Yesterday Sensex Rallied 777 :Properties of the number 777

Symbolism

  • This number joins together the principles of the man, 700, the cosmic plans, 70, and their image in the Archetype, 7, according to R. Allendy. It is the universal organization, 7 + 7 + 7 = 21, the general evolution.
  • Represent the celestial perfection, 7, on the 3 plans of the manifestation: matter, astral (mental or soul) and spirit.
  • It is the number of the sacred work of the sons of God for the establishment of the Kingdom of God on the Earth, mainly for the period of the seventh millennium after Adam where it is written that Satan will be chained for thousand years.
  • In esotericism, 777 means that virgin spirits (those to which God gave the life with the mission to rise towards the Creator, until to absorb themselves again in Him) will know 777 incarnations during seven revolutions that the wave of life accomplishes around the seven globes of the seven world periods. The symbolism of this number is therefore the ascension of the soul through the physical body.
  • According to the tradition of Himalayan masters, 777 is the number of the celestial man and symbolizes the transmutation which takes place at the time where the man becomes conscious of the necessity to cover the path of initiation, and that he perceives, even of an elementary manner, that the goal is in God.
  • The purity – does not father and is not fathered.

(more…)

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