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5 Minutes of Daily Conditioning

  
  Education
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Deciding to be a profitable financial trader is the first step in becoming one. Trite you say? Not really. Missing this one step or doing it out of order xplains why 90% of brokerage accounts go to zero within the first year, many doing so in the first 4 months!

In addition to arbitrarily deciding to be a profitable financial trader, a more powerful and lasting way is to use psychological conditioning on yourself so that you CONSISTENTLY decide that you are a profitable trader Here’s my interpretation of the method for doing this that I learned from the famous success guru I alluded to in my comments two blogs back.

First, write out the sentence below on a piece of paper.

“FROM THIS MOMENT FORWARD, I AM A PROFITABLE TRADER”.

Second, consider the pain you have experienced before because you have not consistently thought of yourself as a profitable trader. Imagine experiencing that again in the present and future. Do this for 30 seconds. Notice how you feel as you do that. (more…)

Warren Buffett Teaches : Part – I

  
  Education
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Buffet learned how to involve in high probably investments since high-school. Back in those years, he and one of his friends bought a reconditioned pinball machine for $25. They put the game in a barber shop. They checked the coin box at the end of the first day and found $4. “I figured I had discovered the wheel,” says Buffet. Eventually the pinball business was netting $50 per week. By the time Warren graduated high school, he is an owner of a small farm in Nebraska and has $9,000 in his bank account (more…)

Sun TZU and Trading

  
  Education
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As a trader you must have three pieces working in synch. Your equipment, your trading tools, and your mind. The Art of War by Sun Tzu is a book that has been applied to every facet of human experience. While originally meant to be a book that taught war strategies the lessons it imparts can and will change your life. (more…)

7 Words for Traders

  
  Education
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  • Think risk first and profit second — Profitable traders view every potential and actual trade through the lens of risk or whether they are willing to truly accept the potential damage to their account as opposed to focusing on the potential reward of trades.7
  • Accept risk — Profitable traders truly accept the associated risks once they decide the potential reward is worth it.  These traders understand that in order to win consistently they MUST experience controlled losses.  They know that if they minimize losses and exercise patience with winners, they can reap incredible profits.
  • Think more/Trade less –  Profitable traders know that their profit on every trade lay in the short distance between their ears.  They understand that the siren song of securities is an invitation to trouble much of the time.  They spend more time assessing a security’s overall chart structure and identifying optimal transaction points rather than focusing on the physical activity of clicking an entry or exit.
  • Stalkers — Profitable traders are disciplined and patient.  They will pass up a good entry to wait for a great one.
  • Decisive — Profitable traders make decisions.  They know that as long as their decisions are framed properly (i.e. from a risk perspective), their first thought is generally the right one.
  • Forgetful — Profitable traders have short memories.  As we were told many years ago on a Wall Street trading desk, “If you have a losing trade, forget it quickly… the chance to profit is coming up.  If you have a winning trade, forget it even more quickly… the chance to give up those profits is coming up… stay in the moment.”
  • Group think — Profitable traders care little for any one trade.  They know they have already taken steps to minimize the impact of any single trade.  Instead they focus on groups of trades as groups are more indicative of their process… which is what’s really important.

Anirudh Sethi's Lessons From 2008 : Part – I

  
  Education
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 aslessons2008

Last week …Many Traders had asked me :Dear Anirudh Sethi… “What would you say is the most important thing you’ve learned about investing and/or trading in 2008?”
Here are some of the replies ….I had given (more…)

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