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Think About It

1241180807_smWinners are those with the best ideas. Small ideas are worth a small sum, and big ideas are priceless. Ideas that make money cost money and the most valuable rewards go to ideas with the most value. The age of the big thinker is now. It is an era where profits go to the prophets:

• Big thinkers are on fire.
• Big thinkers never lose in their imaginations.
• Big thinkers bet the farm.
• Big thinkers marinate in thought.
• Big thinkers think better together.
• Big thinkers don’t take no for an answer.
• Big thinkers turn reality into fantasy.
• Big thinkers live their lives with purpose.
• Big thinkers think with their hearts.

49 Trading Rules for Traders

  1. Usually they liquidate the good trades and keep the bad ones. Many traders don’t realize the news they hear and read has, in many cases, already been discounted by the market.
  2. After several profitable trades, many speculators become wild and unconservative. They base their trades on hunches and long shots, rather than sound fundamental and technical reasoning, or put their money into one deal that “can’t fail.”
  3. Traders often try to carry too big a position with too little capital, and trade too frequently for the size of the account.
  4. Some traders try to “beat the market” by day-trading, nervous scalping, and getting greedy.
  5. They fail to pre-define risk, add to a losing position, and fail to use stops.
  6. They frequently have a directional bias; for example, always wanting to be long.
  7. Lack of experience in the market causes many traders to become emotionally and/or financially committed to one trade, and unwilling or unable to take a loss. They may be unable to admit they have made a mistake, or they look at the market in too short a timeframe.
  8. They overtrade.
  9. Many traders can’t (or don’t) take the small losses. They often stick with a loser until it really hurts, then take the loss. This is an undisciplined approach…a trader needs to develop and stick with a system.
  10. Many traders get a fundamental case and hang onto it, even after the market technically turns. Only believe fundamentals as long as the technical signals follow. Both must agree.
  11. Many traders break a cardinal rule: “Cut losses short. Let profits run.”
  12. Many people trade with their hearts instead of their heads. For some traders, adversity (or success) distorts judgment. That’s why they should have a plan first, and stick to it.
  13. Often traders have bad timing, and not enough capital to survive the shake out.
  14. Too many traders perceive futures markets as an intuitive arena. The inability to distinguish between price fluctuations which reflect a fundamental change and those which represent an interim change often causes losses.
  15. Not following a disciplined trading program leads to accepting large losses and small profits. Many traders do not define offensive and defensive plans when an initial position is taken.
  16. Emotion makes many traders hold a loser too long. Many traders don’t discipline themselves to take small losses and big gains.
  17. Too many traders are underfinanced, and get washed out at the extremes.
  18. Greed causes some traders to allow profits to dwindle into losses while hoping for larger profits. This is really lack of discipline. Also, having too many trades on at one time and overtrading for the amount of capital involved can stem from greed.
  19. Trying to trade inactive markets is dangerous.
  20. Taking too big a risk with too little profit potential is a sure way to losses. (more…)

Simple Rule for Traders

Would you like to get someone to hand you all their money?

No, you don’t need a gun.

You don’t need to blackmail or kidnap anyone.

I swear that what I’m about to show you is NOT Illegal!

I guarantee that this article will change everything you have heard, seen or tried in stock market trading.

This is the best lesson you will ever learn in stock market trading.

Trading is part rational and part emotional. People often act on an impulse even if they know they have harmed themselves time and time again in the process of so doing. A winning trader becomes too confident about his positions and misses sell signals. A fearful trader beaten up by the market becomes too fearful and sells too early. When he sees the stock immediately rise again, overshooting his original profit target, he can no longer stand the pain of missing the rally and buys way above his original entry point. The stock stalls and slides and he watches in horror as it sinks like a rock. In the end, he can’t take any more pain and sells out for a loss—right near the bottom. The original plan to buy may have been rational, but actually executing on his plan created an emotional storm.

Emotional traders do not pursue their best long-term interests. They are too busy bragging about a winning position and how smart they were for buying a stock or complaining and coming up with conspiracy theories about a losing position.

Your goal is to take money from emotional amateur traders. (more…)