| If your not sure and don’t have an edge, cash IS a strategy. If you are on a cold streak, reduce size by 70% and tighten stops for a week. Stocks aren’t people, they cant be trusted, an algorithm doesn’t care that you think you know the story or the chart. Don’t be “all in” in any name, you will blow up your account. It’s totally cool to change your mind right after a trade, the market changes by the minute, so should you. Pick one strategy and stick to it. This may take time if you are a beginner. You have to break a few eggs to make an omelet, so take losses but keep them very small. I haven’t taken someone else s idea in a long time, you have just as good a chance of being right or wrong as some other putz. Don’t have 15 technical indicators on your screen, that’s and EKG not a chart. Less is more. Don’t trade pissed off, it will crush your P&L Guess who wins when you “revenge” trade? Take partial profits on the way up and raise your stops. When you have three losing trades in a row, take a walk around the block. You may get an epiphany, at the very least it’s therapeutic. Realize early that the market will always be smarter than you. |
Archives of “eggs” tag
rssThe Farmer and The Calf: An Investment Story
| This story is about a farmer who received a calf from a rich man. Hopeful that the calf will be able to help him have a better life, the farmer did his best to take care of it. But as the calf grew, so did the farmer’s expenses.One day, he said to himself, “I don’t want to wait anymore for this calf to become an ox. I’ll just sell it and buy several sheep which are easier and much cheaper to take care of.”And so he did just that.After several months, he realized that breeding sheep were not as easy as he thought. And so he said to himself, “It takes too long for these sheep to give birth. I better just sell them and buy myself several hens which can lay eggs for me everyday.”And so he did just that.The plan worked very well, he was earning good from selling all the eggs. Life improved for the farmer. But after several months, the hens started to lay less and less eggs until one day, the hens couldn’t produce anymore.The farmer was devastated. In his anger, he cooked all the hens and had himself a feast.Later that week, he remembered the single calf that started it all and realized that after all his hard work, nothing had changed in his life. |
Wisdom Thoughts for Traders
If your not sure and don’t have an edge, cash IS a strategy.
If you are on a cold streak, reduce size by 70% and tighten stops for a week.
Stocks aren’t people, they cant be trusted, an algorithm doesn’t care that you think you know the story or the chart.
Don’t be “all in” in any name, you will blow up your account.
It’s totally cool to change your mind right after a trade, the market changes by the minute, so should you.
Pick one strategy and stick to it. This may take time if you are a beginner.
You have to break a few eggs to make an omelet, so take losses but keep them very small.
I haven’t taken someone else s idea in a long time, you have just as good a chance of being right or wrong as some other putz.
Don’t have 15 technical indicators on your screen, that’s and EKG not a chart. Less is more.
Don’t trade pissed off, it will crush your P&L
Guess who wins when you “revenge” trade?
Take partial profits on the way up and raise your stops.
When you have three losing trades in a row, take a walk around the block. You may get an epiphany, at the very least it’s therapeutic.
Realize early that the market will always be smarter than you.
Accepting Losses?
The markets do not know you!
You do not exist to them in any other form than as the other side of a transaction.
They do not care if it is your last cent, and your kids will not have milk, and on, and on.
Markets need losers so they can make money in this zero-minus-sum game.
But please … do remember that taking an acceptable risk reward ratio position and being wrong is not losing!
Whether you win or lose, you should always strive to remain at a comfortable emotional state. Building a
proper plan is enormously helpful in getting you to do just that.
Many people know what to do; yet very few are able to do what they know! It is the rules that force one
to take the proper actions.
Losers often think that the rules are made for others. Think that they are not for you?
Think again!
Fight the rules and you will have a very short career!
The stock markets can be a great place to turn your savings into wealth.
On the other hand, if you do not keep the fundamental investment rules and do not follow certain
simple stock investing basics, you can lose your shirt.
Anirudh sethi says that IF: (more…)