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Thought For A Day

  
Education, Life
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The only thing that can change it is you. You have to make change happen yourself.

You are the Director of your life. You are the Producer. You are the Lead Actor. You are the Choreographer and Makeup Artist. You write the soundtrack. Your name is next to every title on the credits at the end of your life story.

You.

This post will not change your life. It is just words floating around in cyberspace, written by me, some guy who lives in Poona. I can’t change your life, I’ve never even met you.

You are responsible for the decisions you make. They happen between your ears and they are entirely within your control.

This post will not change your life. Only you can do that.

Updated at 12:16/19th May/Baroda

What is Money

  
Analysis, Education
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I came across the nugget of wisdom last night in Farmer Boy.

He waited till Father stopped talking and looked at him.
“What is it, son?” Father asked.
Almanzo was scared. “Father,” he said.
“Well, son?”
“Father,” Almanzo said, “would you–would you give me–a nickel?”
He stood there while Father and Mr. Paddock looked at him, and he
wished he could get away.
“What for?”
Almanzo looked down at his moccasins and muttered:
“Frank had a nickel. He bought pink lemonade.”
“Well,” Father said, slowly, “if Frank treated you, its’ only right
you should treat him.” Father put his hand in his pocket. Then he
stopped and asked:
“Did Frank treat you to lemonade?”
Almanzo wanted so badly to get the nickel that he nodded. Then he
squirmed and said:
“No, Father.”
Father looked at him a long time. Then took out his wallet and opened
it, and slowly he took out a round big silver half-dollar. He asked:
“Almanzo, do you know what this is?”
“Half a dollar,” Almanzo answered.
“Yes. But do you know what half a dollar is?”
Almanzo didn’t know it was anything but half a dollar.
“It’s work, son,” Father said. “That’s what money is; it’s hard work.”

……

“How much do you get for half a bushel of potatoes?”
“Half a dollar,” Almanzo said.
“Yes,” said Father. “That’s what’s in this half-dollar, Almanzo. The work that raised half a bushel of potatoes is in it.”Almanzo looked at the round piece of money that Father held up. It looked small, compared to all that work.”You can have it, Almanzo,” Father said. Almanzo could hardly believe his ears. Father gave him the heavy half dollar.”It’s yours,” said Father.  “You could buy a suckling pig with it, if you want to. You could raise it and it would raise a litter of pigs,worth four, five dollars apiece. Or you can trade that half-dollar for lemondade, and drink it up. You do as you want, it’s your money.”

Defination of 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…)

Everyone has a plan, until they get punched in the mouth

  
  Education
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I heard Mike Tyson say this years ago, and it immediately stuck with me because of so many ties it has to trading your trading plan with focus, discipline, and repetition.

Our main focus in training new and veteran traders is to build a belief in the system through repetition. After seeing the performance of a trade over 150 times within a 2 month period, it becomes evident that you begin to move away from a fear-based internal dialogue regarding your trade. You already know the system is consistently profitable, so the only X-factor in the entire process is that little 6-inch universe between your ears. Now, the focus of accuracy has everything to do with you, the trader, following your rules with consistency and repetition and nothing to do with the system.

Now back to my original point. We have seen the trades. We know the system is profitable. We have simulated the system and are showing a profit. We are ready to trade live hard earned cash that we have an emotional attachment to. Every dollar we are trading equals a loaf of bread, so to speak. Our hard earned trading capital is now taking the INEVITABLE equity draw-down, as dictated by the system. We WILL lose trades, traders, this is a fact that we must embrace on all levels. But remember, contraction leads to expansion. Your draw-down will inevitably lead to a run-up. The KEY is NOT TO MISS IT!

Now, we’ve had the draw-down, and to put it bluntly we’ve “Been punched in the mouth”. THIS is where the magic happens. At this very moment what will you do? Will you let the fear and painful associations of the market dictate your trading executions? Or will you draw upon your training, having fully accepted that this equity swing is nothing more than another step to consistent profitability?

Will you continue to place those next trades with consistency? Will you remove all mpulsive trades from your trading style? Will you follow the trading plan that you’ve put so much thought and process into developing for yourself?

If you have a pen, WRITE THIS DOWN and tape it to your Monitor:

“WHEN I TRADE MY PLAN WITH CONSISTENCY AND REPETITION THE MONEY WILL FOLLOW.”

Remember, every trader gets punched in the mouth. The magic is how you apply
your trading when this happens.

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