EBITDA-Humour or Making Fool ?

EBITDA (earnings before interest expenses, taxes, depreciation and amortization): Earnings before I tricked the dumb auditor.

EBIT (earnings before interest expenses and taxes): Earnings before irregularities and tampering.


10 things you have to give up right now

1.  Give up caring what other people think of you. I know it seems counter intuitive as we humans are primal pack animals that don’t want to be cast from the village; but spending time worrying what others think, is a waste of energy. You’ll never please everyone and it’s none of your business what others think of you.

2. Give up trying to please everyone. Unless you’re living life to the beat of your own drum, your tribe won’t be able to find you. Be the best version of YOU you can be, and you’ll naturally attract in the people that are supposed to surround you.

3. Give up participating in gossip. 100% of the time, those sharing gossip with you will gossip about you. Believing gossip is like gambling everything on a horse sight unseen. It’s naive.

4. Quit worrying. Where thoughts go, energy flows. Worry is investing time and energy in something you don’t want to have happen. Learn to let go and trust.

5. Let go of insecurity. When we take ourselves too seriously, we think everyone else does too. There is one version of you on the planet. Be it, own it and quit worrying about it. No one really cares or watches you that closely. (more…)

25 Rules of Trading Discipline


  1. The market pays you to be disciplined.
  2. Be disciplined every day, in every trade, and the market will reward you. But don’t claim to be disciplined if you are not 100 percent of the time.
  3. Always lower your trade size when you’re trading poorly.
  4. Never turn a winner into a loser.
  5. Your biggest loser can?t exceed your biggest winner.
  6. Develop a methodology and stick with it. don?t change methodologies from day to day.
  7. Be yourself. Don?t try to be someone else.
  8. You always want to be able to come back and play the next day.Once you reach the daily downside limit, you must turn your PC off and call it a day. You can always come back tomorrow.
  9. Earn the right to trade bigger. Remember: if you are trading poorly with two lots you must lower your trade size down to a one lot.
  10. Get out of your losers.
  11. The first loss is the best loss.
  12. Don?t hope and pray. If you do, you will lose.
  13. don?t worry about news. it?s history. (more…)

The Trading Plan- Discipline

Trying to win in the markets without a trading plan is like trying to build a house without blue prints – costly (and avoidable) mistakes are virtually inevitable. A trading plan simply requires a personal trading method with specific money management and trade entry rules.
Discipline was probably most frequent word used by the exceptional trades that I interviewed.
There are two reasons why discipline is critical. 

  • Its a prerequisite for maintaining effective risk control.
  • You need discipline to apply your methods without second guessing and choosing which trade to take.

A final word, remember that you are never immune to bad trading habits – the best you can do is to keep them latent. As soon as you get lazy or sloppy, they will return !

The Market Makes You Feel Bad Majority of the Time

  • Unless you nail it right exactly, you will feel frustration / regret / fear in all other outcomesTraders are always choosing among the lesser of the evils. Feeling regretful is practically inescapable.
    • When you get the trade direction wrong
    • When you got out too early
    • When you got out too late
    • When you miss a trade
  • Regret Theory says that people have the desire to avoid future regret when they make their decisions.

The three stages to becoming a successful trader

  • Your ability to execute your trades is a function of the amount of fear you generate or the lack of it.  Fear is always the result of your beliefs about the threating nature of the environment.
  • Essentially, what you fear is not the markets but rather your inability to do what you need to do, when you need to do it, without the hesitation.
  • If you can’t execute your trades properly, even when you perceive the most perfect opportunity, it is because you have not released yourself from the pain contained in the memories of past trading experiences and because you still don’t trust yourself to act appropriately in any given set of conditions.
  • You were either immobilized by the fear of failure or you are struggling with a belief (value) system that say you don’t deserve the money.  Otherwise, you would have acted on your perception.


Success does not come from having one’s work recognised by others. It is the fruit of the seed that you lovingly planted.

When harvest time arrives, you can say to yourself: ‘I succeeded.’

You succeeded in gaining respect for your work because you did not work only to survive, but to demonstrate your love for others.

You managed to finish what you began, even though you did not foresee all the traps along the way. And when your enthusiasm waned because of the difficulties you encountered, you reached for discipline. And when discipline seemed about to disappear because you were tired, you used your moments of repose to think about what steps you needed to take in the future.
You were not paralyzed by the defeats that are inevitable in the lives of those who take risks. You didn’t sit agonising over what you lost when you had an idea that didn’t work.
You didn’t stop when you experienced moments of glory, because you had not yet reached your goal.
And when you  have to ask for help, you did not feel humiliated. And when you learned that someone needed help, you showed them all that you had learned, without fearing that you might be revealing secrets or being used by others.
To him who knocks, the door will open.
He who asks will receive.
He who consoles knows that he will be consoled.

10 Facts About Trading

  • You cannot control which stock on your watch-list is going to breakout so try not to have any biases.
  • You cannot control the outcome of a trade, but you can control your entry, stop, and size, focus on what you can control.
  • You are going to be wrong 50% of the time; you must know that, and if you do know it then you must accept it.  No matter how much you think you know or how much more data you are in-taking you will more than likely still be wrong 50% of the time.  More knowledge does not make you a better trader.  Learn to accept losses. (See videos below)
  • If you don’t learn how to accept losses you will revenge trade, you will hold on to stocks hoping they will comeback, you will buy a stock based on technicals and when the stock goes down you will find yourself searching for news to hold on to it.  Accept the loss.
  • A good set up is a good set up regardless of the outcome of the trade.
  • A gain on a trade does not mean that it was a good set up.  Lately this bull market has forgiving many sins that give traders a false sense of talent.  In a bull market all of your sins are forgiving, don’t you ever forget that.
  • Don’t fret about missing a trade, set ups come and go like buses.
  • 80% of your gains will likely come in a stretch of 3 months. Know your process, have faith in it, and accept the fact that it will not work 12 months out of the year.  Don’t jump from strategy to strategy just because your process is currently in the winter months.
  • Sometimes you are going to sell early and wish you would’ve held on, other times you will hold on a little bit longer and wish you would’ve sold early- -this is just part of the game.
  • Price targets for the most part are useless.



Go to top