Archives of “Communication” tag

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US Major indices close lower but it could’ve been worse

  
Analysis, PODCAST, US Market
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No new records today

The major US stock indices all closed lower, snapping the record close string at five.

  • Dow has its worst performance since August 4
  • S&P has its largest decline in nearly a month
  • NASDAQ posts a two day declinne
  • S&P and Dow snap a five day win streak/5 days of record closes
  • The Dow was down over 500 ppoints at it’s lows
  • Consumer Discretionary -2.31%
  • Industrials –1.06%
  • Communication services -0..99%
  • Energy -0.92%
  • Technology fell -0.87%
  • Healthcare rose 1.12%
  • Consumer staples rose 0.34%
The final numbers are showing:
  • S&P index -31.46 points or -0.70% at 4448.25. The index at its low was down -1.39% or -62.14 points
  • NASDAQ felt -137.58 points or -0.93% at 14656.18. The index was down -242.9 points or -1.64% at it’s lows
  • Dow fell -282.122 points for -0.79% at 35343.28. It’s low price was down  -505.009 points or -1.42%
  • Russelll 2000 fell -26.24 points or -1.19% at 2177.17

China press warn of the danger of Trump administration downplaying the coronavirus

  
  Analysis
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China’s Global Times with the piece. GT is not the most, err, independent of media but given the Chinese experience with the dangers of COVID-19 they do have a point:

  • coronavirus continues to spread rapidly across the US
  • officials including President Donald Trump and some in the public still seek to downplay the risk of the deadly virus
  • an apparent bid to avoid disruptions to economic activities by arguing the common flu is more fatal than COVID-19
  • raises questions about whether the epidemic can be contained effectively
  • irresponsible for public health security

NOW is all that matters when it comes to executing that next trade

  
Analysis, Education
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Lao-Tzu was an ancient Chinese philosopher and writer who coined the following phrase:

‘If you are depressed you are living in the past.
If you are anxious you are living in the future.
If you are at peace you are living in the present’

In relation to trading, living in the past may relate to a bad trade you made. Maybe you risked too much and took a heavy loss. Or perhaps you made an impulse trade centred on FOMO which ended badly.

If you replay negative experiences over and over, it can lead to depressing thoughts. And an inability to move forward, clean the slate and inability to execute the next trade. It can also lead to revenge trading and the urge to make up for past losses quickly.

On the flip side if you are living in the future, anxiety can set in. You end up worrying about your future trades and the money side of things. The bills you have to pay. A list of endless hypotheticals start entering your mind.

Yet when it comes to trading, or anything else in life, living in the NOW is crucial. Learning from the past and planning for the future are ok. Yet executing and focusing on what you are doing right now is most important.

We need to remember as well that the market doesn’t care about our past losses. Nor does it care about our future bills. So although worrying about these things is natural, it’s not going to help us succeed with our next trade. In fact it will likely create unwanted blockages towards future success.

Being and working in the present though eliminates negative thoughts and reduces anxiety. It means you are working afresh from a blank slate. With that next trade being completely independent of any other you have recently made.

Doing the right thing right now is what is important. Not the mistake you made last time. That is ‘old news’ and no longer matters. So focus purely on what is in front of you. Plan the trade, trade the plan and refuse to be tempted by impulse or micromanagement. Two actions that are often influenced by past actions combined with future expectations.

Trade in the NOW and affirm to yourself that the NOW is all that matters when it comes to executing that next trade.

Google Commercial- 6 Lac Hits in 2 Days (Really Great )

  
Education, Video
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Google commercials have always been quite engaging. Google India is out with a 3.5 minute heart-warming advertisement titled ‘Google Search: Reunion’. The Reunion advertisement tells you a story of how two friends got separated during the time of India and Pakistan partition. The Indian grand daughter Suman plans to bring them together again and uses Google search as the medium to search for her grand fathers long lost friend in Pakistan. She succeeds using Google search and its allied services.
Reports suggest this is the first in the series of 5 advertisements. The video is touching half a million views in just a day of its launch.

Bullshit Baffles Brains

  
Analysis, Education
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Bullshit baffles brains. It’s that simple. …When you talk bullshit, it’s like you’ve thrown a baseball at someone – it is up to them to consider what you’ve said, ie. to catch the ball. It is up to them to understand or respond what you’ve said. If your words are made up of some big meaningless words which take your audience time to understand, then you’ve achieved your goal. Most people, who do not want to appear foolish, will happily nod and agree with you just to be seen that they’ve understood to avoid embarrassment. A bit of practice of talking crap and train yourself to reinforce people’s agreement by your own body language (like holding eye contact and gently nodding) will grant you a even more positive response. Of course, the voice level and everything will all come into play. Basically – sound convincing. Like so many other researches have found, actual words are a small part of communication. The body language, appearance, way of talking, etc all form a part of the overall communication process. The paced, non repetitive, confusing but yet convincing words are simply window dressing.

An excerpt I love:

The Four Cardinal Principles of Trading

  
  Education
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  • Trade with the trend;
  • Cut losses;
  • Let profits run;
  • Risk control.


To most traders, these principles are nothing new. What was interesting to me was the variety in the different interpretations of each of those principles in their own trading system or method. As an example, some people relied on just price action, whereas others used indicators. This was all on top of the different timeframes or intended holding period.

Again, this just proves that, working around some basic concepts, there are thousands of ways you can trade and make money in the markets. The trick is to find the way that works for you, which has a positive expectancy, covers those four principles, and which you are fully comfortable with. This will then allow you to develop and use the correct mindset to follow your method.

10 Things A Trader Can Know

  
  Education
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While we can’t know where prices will go, what the next breaking news will be, or how much profit we will make in our next winning trade there are a few things we can know:

  1. We can know how big of a position we will take on our next entry.

  2. We have to know where price will go to prove us wrong and cause us to exit a trade. You have to know where you are getting out before you get into a trade.

  3. We should know how much we could lose if our trade goes against us and we are stopped out.

  4. We should know the highest probability entries that we would take.

  5. We should know the watch list that we will be trading from and not take any wild card trades before understanding chart patterns and historical price performance.

  6. We should know what our total portfolio risk is at any one time if all our positions turn into losers at the same time.

  7. We should understand how the leverage works before we trade futures or option contracts.

  8. We should understand the potential maximum draw down of a string of losers based on our position sizing and winning percentage.

  9. We should know whether the market we are trading is in an up trend or a down trend in our time frame.

  10. We should always have a trading plan that tells us what to do based on what the market is doing. We should know how to react to each days price action based on our current positions.

 

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