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Anil drops ADAG from corporate logo

  
Analysis, Education
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Anil Ambani has dropped his name from the corporate logo for Reliance Anil Dhirubhai Ambani group, set up after the split of the Reliance empire in 2005.

The line ‘Anil Dhirubhai Ambani Group’, written under the logo, has made way for the just the company name. It will now on be known as the Reliance Group. The colour of the logo, too, has been changed from light blue to navy blue. And the red coloured arrow of the brand has been transformed to a triangle.

The design change has been done by Singapore-based Bonsey Design.

 

The websites of the group are already showcasing the new identity.

Head (branding) of the group, Sanjay Behl says, “Reliance is a rightful-brand for us. We are just contemporising it”. He says the group is now adding the Reliance master brand focus to Anil Ambani group of companies.

He said the ADAG group’s identity remains, but it will not be the master brand. The difference with the other Reliance, of Mukesh Ambani, is stylistic. While Mukesh Ambani-led Reliance is written in small letters, the ADAG Reliance is in capitals.

Behl said the focus of rebranding is to strengthen the brand identity and de-clutter it. In terms of magnitude, this will be much larger than the last branding exercise the group did in 2006.

The group now works in seven sectors with almost 27 businesses and most of these are consumer-facing ones.

About 250 million people are being contacted by some Reliance business or the other almost on a daily basis.

Defining A Great Trader

  
  Education
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Great traders that we have had the pleasure to know and to be around, on exchange floors and on trade desks, had certain repeatable traits that all level traders can learn, or take something from;

  • Empathy and the ability to listen.
  • Faith in their own ability to get things done, if life and in work.
  • Humility, and a willingness to accept defeat as graciously as accepting success.
  • Desire to work towards, and not to just expect, having more success than defeat.

They listened more than they spoke. They had two ears and one mouth and had learned to use them in the right proportion. The ability to listen, either to a mentor, to your inner self, or to the market, is critical for success.

They had an undying faith and belief in their own ability, and accepted that most things that went wrong were probably outside of their control, because they planned their work. Their brutal honesty with themselves and with others allowed them to develop a faith in their own ability that was beyond the norm.

They were humble, and understood that they were not smarter, stronger, nor wiser than others; they just knew that there were few others that had more faith in their own ability to follow something through and to achieve their goals. (more…)

Trading Wisdom from Richard D. Wyckoff

  
  Education
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“You can learn from this how to develop independent judgment, so that you need never ask anyone’s opinion or listen to anyone’s tips, or take anyone’s advice.  You can so train your judgment that you will know just what to do and when to do it.  When you are in doubt you will do nothing.” –Richard D. Wyckoff

Wyckoff was talking here about trading.  He was talking on the subject of studying the markets to determine how they operate.  You will find developing your own trading strategy/method can be the most rewarding and challenging experience of your lifetime.  You need to be comfortable with the risk, before you are comfortable with the reward.  There is an age old saying, ‘If you can’t stand the heat, then stay out of the kitchen.’

As traders, we are exposed on a daily basis to the trading concepts of risk and reward.  Personally, my own reward to risk tolerance took some time for me to feel comfortable with it.  How much do you want to risk on each trade, and how much are you looking to make at a minimum?

Are you at its minimum profit objective going to make more money than you risk?  So if you would take two trades, and one would win and the other would hit your stop loss, would you turn a small profit on your trading?  Obviously, the goal of every trader should be the three general trading rules. (more…)

The Trading Mindset & Common Psychological Issues

  
  Education
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Plutchik’s Wheel of Emotions


How does someone know that they reached the trader’s mindset? Here are a few characteristics:

1. No anger whatsoever.
2. Confidence and being in control of the self
3. A sense of not forcing the markets
4. An absence of feeling victimized by the markets
5. Trading with money you can afford to risk
6. Trading using a chosen approach or system
7. Not influenced by others
8. Trading is enjoyable
9. Accepting both winning and losing trades equally
10. An open mind approach at all times
11. Equity curve grows as skills improve
12. Constantly learning on a daily basis
13. Consistently aligning trades with the market’s direction
14. Ability to focus on the present reality
15. Taking full responsibility for your actions

Developing the trader’s mindset takes time. It usually takes traders 2-5 years before they can read through the above list and honestly say that it describes themselves.

Let’s take 100 traders using the same trading system or approach. It is highly likely that no two of them will trade it exactly the same way in all aspects. Why is this? Because our mindsets, beliefs, and understandings are unique. It is no surprise that most traders fail and the reason why is because they lack the trader’s mindset. This article covers those in Stage III and IV within the 4 Stages of Learning. More importantly, it applies to those that survived Stage II.

There are two parts to fixing any psychological problems:

1. Recognizing that it exists
2. Accepting it so you can move on

In trading, this is where it’s so crucial to take responsibility for your own actions because it induces change and you can start making improvements. If you don’t recognize and accept a problem, then you won’t get anywhere!

What are some of these issues that I speak of? Here are a few along with their causes and/or effects:

1. Anger over a losing trade – Traders usually feel as if they are victims of the market. This is usually because they either 1) care too much about the trade and/or 2) have unrealistic expectations. They seek approval from the markets, something the markets cannot provide.

2. Trading too much – Traders that do this have some personal need to “conquer” the market. The sole motivation here is greed and about “getting even” with the market. It is impossible to get “even” with the market.

3. Trading the wrong size – Traders ignore or don’t recognize the risk of each trade or do not understand money management. There is no personal responsibility here.

4. PMSing after the day is over – Traders are on a wild emotional roller coaster that is fueled by a plethora of emotions ranging throughout the spectrum. Focus is taken off of the process and is placed too heavily on the money. These people are very irritable akin to the symptoms of premenstrual syndrome.

5. Using money you can’t afford to lose – Usually, a trader is pinning his/her last hopes to make money. Traders fear “losing” the “last best opportunity”. Self-discipline is quickly forgotten but the power of greed drives them, usually over a cliff.

6. Wishing, hoping, or praying – Do this in church, but leave this out of the market. Traders do not take control of their trades and cannot accept the present reality of what’s happening in the market.

7. Getting high after a huge win – These traders tie their self-worth to their success in the markets or by the value of their account. Usually, these folks have an unrealistic feeling of being “in control” of the markets. A huge loss usually sobers them up pretty quickly.

8. Adding to a losing position – Also known as doubling, tripling, quadrupling down, typically, this means that the trader does not want to admit the trade is wrong. The trader’s ego is at stake and #6 comes into effect as the trader is hoping the markets will “work in their favor”.

9. Compulsive trading – Similar to #2, except these traders have an addiction to trading and quite possibly gambling issues. They need to constantly be trading, even if there is no rational reason to do so. They are always excited whether they win or lose.

10. Afraid of “pulling the trigger” – This usually means that the trader does not have a system or approach already in place. They have not calculated risk/reward and many times, these trades are unplanned. This also comes after a string of losses. They don’t want to be “wrong again”. There is no trust from within. (more…)

Trading Journals

  
  Education
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The image to the left should be recognizable by most of us as the American alphabet. It is from these 26 letters that billions of people are able to communicate on a daily basis. We learn the alphabet early on with rhymes and rote memorization so that we may contribute to society through our interactions. We all progress at different speeds, but eventually we all get to the point where we can recognize all the letters in the alphabet. It is at that point that we build upon that foundation and begin to spell words like C-A-T and T-R-E-E. These words are then combined to form sentences which consist of several words. From those sentences we form paragraphs and so on until we are able to write and communicate with others through pattern recognition.

This ability of pattern recognition isn’t anything new or even earth shattering–it’s common sense. Just like the alphabet, which is in a pattern, we can discern the different patterns in lots of things. Take a look at the image below and you can recognize a pattern as well where there are higher highs and higher lows. Unlike the alphabet and some other patterns that have a beginning and an end, some patterns are continuous. Such would be the case for a chart that shows price action in a publicly traded company.

We could begin to see patterns in the line above and learn to predict or assume what has the higher probability of occurring next. As an example, looking at this pattern above we might safely assume that the odds are greater that the line will move lower from here as it has in the past. This does not necessarily mean that it will, but the odds are in the favor of such a move. It is this assumptive process that will serve not as an ends, but more of a means to and end. This pattern recognition assumes that the next move would be lower and thus helps us to proceed further. Information that we’ve gathered from the past can help us predict what the future may hold and this is the basic tenet of technical analysis.

Technical analysis can even be performed on your own trading account and patterns begin to emerge where you can recognize when your trading is “on” as your account grows and when the dollar amount pulls back you can assume that your trading is “off.” This ability to recognize the patterns as your account fluctuates in price is a decent beginning, but nowhere near the wealth of information that can be gleaned from your trading history.

Trading journals are one of the most underused indicators that every trader has at their disposal. Why is it that such a powerful indicator is underused? I’d venture a guess that a majority of traders don’t keep a trading journal because of the time it takes to keep one. I could be wrong, but over the years as I’ve mentored traders from all walks of life, time was the number one reason for failure. Second on the list was not knowing what a trading journal was so after reading this article, you now have no excuses as to why you don’t keep a trading journal.

Below is a list of what I’d recommend to have in a trading journal and, as with anything in life, you’ll get out of the journal what you put into it.

•Date
•Symbol
•Position
•Setup
•Current Market Conditions
•Expectations
•Price Target and Reason
•Stop Price and Reason
•Entry Time and Reason
•Exit Time and Reason
•Outcome Of Trade and Analysis

 

If you are able, ATTACH CHARTS TO ALL ENTRIES! Remember the pattern recognition? Something may not have stood out in the heat of the moment, but several weeks later you may see similar chart patterns to this one. It is at that time that you begin to find common threads and themes of your trading which will allow you to exploit those things you do well and avoid those things you do poorly.

The above should be easily done and would suffice for the most part. However, if you really want to excel at this then a comment section is where the real clarity comes from as you listen to yourself. Take a moment and run through questions like this to get a better understanding of what’s going of for you at that moment and document it. Here’s some examples of what you could ask yourself:

•Why did you allocate what you did to each trade?
•Why did you enter the trade?
•Did it meet all of your criteria?
•Why did you trail the stop where you did?
•Why did you exit when you did?
•How is your percentage reliability of trades over time?
•Does it fluctuate? If so, why?
•What do you think about each trade as you make it?
•Are you most nervous about your best trades?
•Does your gut tell you anything consistently?
•Which trades worked the best and worst?
•Were there any common elements of your trades?
•Are there blocks you notice that cloud your objectivity?
•Are you making the types of returns that were your goal in terms of risk/reward?
•Why or why not?
 
If you take the time to address questions like these then patterns will begin to emerge and you begin to understand yourself and your individual trading style. As I’ve said before, you need to treat trading as a business as doing so helps you control your emotions. It is impossible to not be emotional when trading but it is possible to control your emotions.
 
The last suggestion I would have is that you simply open up a blog and use that as your trading journal. There are several free services out there that allow you to create a blog and upload images, etc. The neatest thing about using a blog for your trading journal is the search function as each post or entry you make allows the use of tags or keywords. As an example, for every trade you make that is bullish, put the keyword bullish as a tag and later you’ll be able to search for that keyword. With a few clicks of the mouse you can see every entry that you ever made in your trading journal that has the tag bullish in it. Take a few moments and read through them and start recognizing patterns.

Spotting the Best Trades

  
  Education
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Let me begin by telling you of my system for isolating trades with odds 10 to 1 in my favor. Those are million dollar odds. Unfortunately, I still haven’t developed a method for calling all the big moves all the time. What I have done is develop a set of criteria that will, when they coincide, tell you the odds are heavily in favor of either an up or down move.

This method seldom speaks, but when it does, you have as close to a sure thing as you’ll ever get. As you will see, this method will not call all the swings, but that’s not its purpose. Its function is to segregate the super trades from trades that are questionable.

Trading in this manner is much easier because it allows you to take a longer term view of the market. I have found there is no need to monitor the market on a trade-by-trade basis, or, at times, even a daily basis. The signals are so strong that you don’t need to concern yourself with a microscopic view.

I use two major tools for selecting “bankable trades”. They are: 1) premium relationships, and 2) open interest. When these two click, the odds are 75% in your favor. To further substantiate the 75% probability, I also check contrary opinion, the market’s reaction to news, trend direction, and a few chart formations.

by Larry Williams, excerpt from his book, How I Made $1,000,000 Trading Commodities Last Year.

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