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Trading obstacles

  
  Education
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Trading obstacles

Have you ever been to a situation when you moved the stop because you couldn’t accept the lose, but ended up losing big chunk. Or you were too sure about the direction of the trade, you didn’t even put a stop loss but trade went opposite your way and ended up losing ten times more then what you suppose to lose. What about this scenario, you were sitting on big profit; you didn’t partial because of greed or overconfidence and ended up giving every thing to the market. Never been to this kind of situation, that’s great, but if been through this kind of horrible situation and still having this problem then you are not alone. We human naturally like that, can’t accept loses or in other word we like to win. In the trading word it is impossible to win 100% of the time, trading is game of probability .Very simple concept which part of the probability we don’t understand. Probably we understand probability but when we involve in a trade our ego overleaps the logical part of our brain.
What should we do, we will let our ego to ruin our trading career or we will say good bye to our ego.

1.Be honest to your self
2.Admit you mistake
3.Overconfidence is you enemy
4.Think logically
5.Try to keep record of every trade
6.Never revenge trade
7.Market is always right not you.

A Venerable Technique of Jesse Livermore

  
  Education
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One of intelligent honest things that Livermore did was to get out of one market by selling a related market, inducing the other traders to think that there was weakness in one market which would carry over to the related market. The art of indirection and letting people use their own intelligence and inferences to come to their own conclusion. for example if he wanted to get out of cotton, he’d sell some coffee. If he wanted to get out of a common, he’s sell the preferred or a related company that owned a big chunk of it, like sell Christiana which owned general motors et al. This technique one wonders how often is it used today. When it happens, is it artful indirection or chance? How to quantify and what predictions to be made? Would the robots be smart enough to do this?

Spiraling Growth in Understanding

  
  Education
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It seems to me that growth in understanding of any subject happens in upward spirals. The X factor in this equation is passing time. The result is that you can study the SAME materials you studied during the last period, yet now these very same words contain a whole new level of meaning.

This is why it is good practice to go back and re-study the basics again after a certain chunk of time has passed. I’ve been doing this for the last week or so, going over the basics again – and it is like I never really READ it before. The very same material now contains whole new layers of meaning for me… But what’s really happening is that my understanding has increased over passing time and I’m in a new learning cycle, seeing it all again with the eyes of the experience I gained since the round.

The Easiest Daytrade To Make

  
Analysis, Education
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ss-7853536-potOfGold Essentially there are 3 timeframes to trade when it comes to “daytrades”:

1) the open

2) the close

3) and everything else in between

As you know by now, #3 is really the toughest to trade. It is the lowest probability trade of the three types, and your stops frequently get hit. Frequently, even if we get the direction right it is not very profitable because we get whipsawed like crazy. However, this is where many trades can be made, so the scalps do add up to a good chunk if you know what you’re doing.

So those who had joined us and getting Intraday calls-ofcourse having upperhand and minting money. (more…)

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