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Archives of “game” tag
rssDont take too much Risk
One of the most devastating mistakes any trader can make is risking too much of their capital on a single trade. One thing is certain in trading and that is if you lose all your capital you are out of the game. Why risk so much you could be prevented from continuing? There is a saying in
poker than going all-in (risking all your chips) works every time but once. This is true of trading.
If you risk all your account on every trade it only takes one loser to wipe you out (and no trading method is 100% accurate), so you will be out of the game at some point it is only a question of time. (more…)
Get Comfortable With Being Uncomfortable
| “In the trading world, you will either make money or lose money on any given trade. All that matters in the end is making more money when you’re right than you lose when you’re wrong. Knowing this, traders have learned to accept failure as part of the game, but they also use the information they acquire from their mistakes as a learning tool. Frequently, what they learn from losing money is more valuable than what they learn when they make money” |
Lessons Learned
Lessons learned from the past few years… Taking smart risks means cutting back when necessary and getting back in the game when the opportunity arises. To borrow an example from sports psychology, the fear of re-injury is a feeling experienced by athletes long after they have been hurt and are on the road to recovery. The same holds true for investors who saw their holdings collapse in 2008.
True top performers train themselves to rely on their short-term memories, avoiding a mindset of fear that leads to missed opportunities to grow and prosper. The average person can learn from the example of elite investors and traders — never take winning or losing personally – especially when it comes to money. View each situation on its own merits. If there is a great opportunity for success, then take the risk. If not, then don’t. The formula sounds simple enough, but emotions continually cloud our better judgment.
Trading Slogans
Statistic makes the money.
I just control the risk.
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I control my risk.
The market controls my win.
I just go with the market.
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THINK – Control your risk !!!
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MAKE MONEY
1. Setups
2. Statistic
3. Risk managment
4. Disciplin
5. Setup Training
6. Learn Rulebook, every day
WORK HARD !!! DAY for DAY !!!
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LAZY TRADERS LOSE !!!
THEY JUST LOSE !!!
I HATE LAZY PEOPLE !!!
I AM A WORKAHOLIC AND I LOVE IT !!!
BECAUSE ITS ME WHO MAKES MILLIONS, EASY !!!
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SETUP TRAINING,
makes my money !!!
Do it every day !!!
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Market Promises
This is not going to endure me to my fellow traders but I think it is important that we all are reminded what the market promises us.I am not talking from my gold and diamond encrusted throne. I am not exactly killing it. I am not perfect; I do not make money every trade or every day. This is a reminder to me, more than a reminder to you.
Market Promises:
It promises a playing field, not the game.
It promises to reward risk, not proportionately.
It promises opportunity, it does not promise profits.
It promises a lesson, not learning.
It promises that the quality of indicators and analysis is proportionate to quantity of participants, not quality.
Once again I am not without my struggles; this market is not easy for me or anyone I talk to regularly. I have had to make changes that I did not want to make. I thought once 2008 happened it would always be like that. It has been a rude awakening. Is there something I missed? Let me know.
I SUCCEED BECAUSE I FAIL
Most of us remember the Michael Jordan “Failure” commercial. It is 30 seconds of pure wisdom for life and for trading. As the market continues its twists and turns and while many churn and burn their trading accounts, now might just be a good time to revisit the basketball legend and the commercial that explains his remarkable success…and can explain ours too!
I missed more than 9000 shots in my career.
I’ve lost almost 300 games.
26 times I have been trusted to take the game winning shot and missed.
I have failed over and over again in my life…and THAT IS WHY I SUCCEED.
Get Comfortable With Being Uncomfortable
In the trading world, you will either make money or lose money on any given trade. All that matters in the end is making more money when you’re right than you lose when you’re wrong. Knowing this, traders have learned to accept failure as part of the game, but they also use the information they acquire from their mistakes as a learning tool. Frequently, what they learn from losing money is more valuable than what they learn when they make money” |
Ed Seykota’s Magic Trading System
1: Do not stress about whipsaws – one good trend pays for them all.
A whipsaw is when you enter a stock, but get stopped out quickly. In a period of whipsaws, this may happen many times. This can be frustrating to a trader or investor, and it may cause them to change their system. But the fact is that one good trend will pay for all of these whipsaws, and if you change your system you lose the benefit of that!
2: When you Catch a Trend, ride it to the end.
Your system must be able to jump on a trending stock (for instance, up if you are going long), but then also be able to ride that trend to the end. Many novice traders will jump out of stocks before they are finished trending because they are scared the market has gone too far. Let your system tell you when the trend is ending, and only exit once it does.
3: When you show a loss, give the loss a toss.
Every single successful money manager ever interviewed has said something along the lines of: “Cut your losses short”. Get rid of your losses. Keep your winners. And once you have your system don’t second guess it! Being stopped out is part of the process.
4: We know if our risk is right when we make a lot of money, but can still sleep at night.
Risk is the amount of risk per trade (the price between your entry and your stop loss), and how much your total risk is (regarding how many positions you have open at one time). (more…)
Are you a discretionary trader?
How would you be able to tell? Here is a quiz that will help you decide. Answer Yes or No to the following questions.
- Do you sometimes buy newsletter recommendations without having a real plan for how you’ll get out of the trade?
- Do you occasionally (or often) take trades based upon some interesting indicator that you learned in a workshop (i.e., when you see that indicator go, you usually get into a trade, but again you have no real plan about how you’ll get out of the trade)?
- Do you trade three or more different systems in the same account?
- Do you trade more than ten different systems?
- Do you sometimes enter a trade and later not remember why?
- Are you unsure of how many systems you have?
- Do most of your systems lack a complete set of rules to guide your behavior?
- Are your systems equivalent to the setups used to get into the trades and nothing more?
- Are you unable to list the rules for the last trade you made?
- Are you able to list the rules for any of the last five trades you made?
If you answered Yes to as many as two of the questions above, you have some elements of a no-rules discretionary trader. However, if you answered Yes to 6 or more questions above, you definitely are a no-rules discretionary trader.
Chances are you seldom make money in the market because you are not playing a winning game. You probably make many mistakes. In fact, since you don’t have rules, I would consider everything you do to be a mistake until you have a set of rules in place. How can you effectively learn from any of your trading experiences if you do not know which ones are mistakes? (more…)