I cam across this yesterday and though it might be interesting for some weekend technical analysis reading. I haven’t read it yet.
Its from the Market Technicians Association, the August issue of “Technically Speaking”.
Free download etc. etc. The link is here.
Whats in it? …
A trading bias is the tendency that leads traders and investors to follow a predetermined path in a trade or investment even when it appears they are wrong from a fundamental or technical perspective or both. A bias about a trade occurs when there is a loss of perspective because their opinions or predictions are held even after they are proven wrong. When you have losses in the timeframe that should have lead to profits it is time to reevaluate your entry. When traders and investors hold on to a bias many times it is because they lose the ability to accept evidence that shows them they were wrong. To break the spell of a bias toward your market position let moving averages be your trend signals, let stop losses be your risk managers, and let the price action prove you wrong. How do you know when you are wrong? You are losing money. Abandon your bias in favor of a trading plan and a system that reacts to price action.
ATMs in Hindi-speaking states will now generate receipts in Hindi, along with English, as the Home Ministry has asked the Reserve Bank of India to direct banks to procure only those ATMs that can print receipts in Hindi.
The ministry has also instructed two major foreign suppliers of ATMs to upgrade the software in the existing ATMs to ensure printouts in Hindi.
The Department of Financial Services has written to the Home Ministry, saying the matter is under consideration. “We will be perusing this matter… the issue is that the printout of the receipt (from the ATM) should come in the language in which the transaction is being made,” a Home Ministry spokesperson said.
At present, only ATMs procured by the Union Bank of India from Diebold firm have the facility to print in Hindi.
There are things that we do as traders that set us back in our journey to success and lose us money. There are other things that traders do that just destroy themselves. Many of the following things are done daily by the 90% of traders that lose money in the market consistently. If we want to be a longer term winner trading the markets we have to take these lessons to heart and over come our natural instincts by doing the opposite.
In India u can fight for Poverty or can try to stop Corruption…….But u can’t stop INSIDER TRADING-It’s our Challenge
Insider trading is a fluid concept. Until 1980, the practice was not illegal in the UK. Prior to then, tipping off favoured clients about market-sensitive company information was a stockbroker’s job description, rather than an illegal activity. Times have changed and so has the pace of financial markets.
In 2009, Samantha Bee, one of the cast members on The Daily Show, the satirical US television programme, said that “if I know about a stock’s activity the day before, it’s called insider trading. But if I know about a stock’s activity one second before, it’s called high-frequency trading.”
Now, however, Eric Schneiderman, the New York attorney-general, is waging war on what he calls “insider trading 2.0”. He is taking aim at the precise time sensitive information is delivered electronically.
Mr Schneiderman’s office is currently investigating the market data industry. In July, under pressure from Mr Schneiderman, Thomson Reuters suspended its practice of releasing consumer survey data from the University of Michigan (UoM) two seconds earlier to high-frequency trading clients who paid an additional fee. Clients paying for Thomson Reuters’ financial information terminals will continue to receive the data five minutes ahead of the general public, who have to make do with a press release. (more…)
1. All successful traders use methods that suit their
personality; You are neither Waren Buffett nor George Soros nor Jesse Livermore; Don’t assume you can trade like them.
2. What the market does is beyond your control; Your reaction to the market, however, is not beyond your control. Indeed, its the ONLY thing you can control.
3. To be a winner, you have to be willing to
take a loss;
4. HOPE is not a word in the winning Trader’s vocabulary;
5. When you are on a
losing streak — and you will eventually find yourself on one — reduce your position size;
6. Don’t underestimate the time it
takes to succeed as a trader — it takes 10 years to become very good at anything;
7. Trading is a vocation — not a
hobby
8. Have a business/trading plan;
9. Identify your greatest weakness, Be honest — and DEAL with it (more…)
Jesse Livermore was a pioneer in the trading world. He was one of the very first trend traders, rule based discretionary traders, and traders of pure price action. He was a trail blazer. It was not his methodology that was his undoing, it was other short comings. After reading books about the life of this trading legend along with his own, here are my eight observations that I believe was his ultimate undoing.
Traders often pass through a series of 5 stages before becoming successful. In order, these are:
The largest academic study ever conducted on day trading shows that most traders lose money …. even during a bull market. Only 5% of active traders were able to earn significant profits two years in a row.
Are 95% of traders dumb? Hardly. As a trading coach for more than a decade, I believe traders are among the intelligent and motivated individuals.
Even so, most traders get fooled by news or price action and behave in ways that limit or erase profits.
Is this self-sabotage? Fear of success? A hidden wish to fail? I don’t think so. The struggles of most traders arise for a different reason: the trading environment turns our own reward-seeking and self-protective instincts against us.
Trading for a living is harder than it seems at first. You were probably not mentally or emotionally prepared for the randomness in the market you trade.
There is a saying that goes: “Doing the same thing over and over and expecting different results is the definition of insanity.” In trading, however, it’s the very definition of normal. Let me explain.
We constantly get tricked and trapped due to random price action. Our job as traders is to behave consistently and predictably in the face of very different results than we expect. This is a skill few have practiced in daily life, where results are more directly linked to action.
1. Develop information avenues for market conditions and upcoming events
There are many factors that go into driving price action. Quite a few of these things are publicly known and broadcast far in advance. Find yourself a website that offers a calendar of upcoming economic events that can have an affect on currencies you trade. There is always the threat of getting whipsawed out of a position that looks pristine with the impact that news has on the markets.
Listening to analysts and advisers can provide insight on circumstances you may have overlooked. On the other hand, you want to be careful about basing your trading decisions on the information provided by one or two other people. Each trading you decision you make needs to be the right one for you, for your strategy, for your profitability. There are a lot of analysts out there and not all of them have a good grasp on what they are talking about.
2. Strive for consistency to generate repeated, positive results
Humans are creatures of habit. Working to turn your habit into instinct will provide a significant edge in your trading analysis. How do you do that? Repetition. A trader must continuously practice their method, edge, and trading circumstances to make it a natural extension of themselves. One could look at a martial artist as a metaphor for this practice. The martial artist practices, practices, and practices more to make their maneuvers an extension of their person so they don’t have to think about them when the time arises. Traders should do the same to incorporate their trading plan and practices into successful execution. (more…)
