Archives of “Human Interest” tag

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10 Greedy Characteristics

  
  Education
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1.  You find yourself forgetting your rules.  Which during day trading is the last thing you want to happen since your profit margins are often based on smaller movements.

2.  When reviewing your pre-market plays, every stock looks like a winner.

3.  Shortly after opening your position you see a price target that is much higher but you have no justification for the target.

4.  Trading feels stressful all of the time.  From the minute you get up in the morning, until you close your last position.  Instead of approaching trading with a calm head, you have a constant feeling of fighting and living on the edge.

5.  You stop reviewing your trades.  If someone were to ask your win/loss percentage over the last week you would have no idea; however, you would know how much money you need to make for the week.

6.  You abandon limit orders and start placing more and more trades at market.  Most of the times this will occur when you are trying to get into the position, because you can’t stand the idea of not being in on the winning trade.

7. You start to over trade.  If you normally put on 3 trades per day, you will now find yourself placing 6 or more trades per day.  This sort of behavior will run its course as the increase in trading activity while abandoning your day trading rules always points to losing money. (more…)

15 Trading Paradoxes

  
  Education
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Here are 15 paradoxes that I have learned on my own path to consistent profitable trading.

 

  1. The less I trade the more money I make.
  2. All my biggest profits were made on option contracts I bought not ones I sold.
  3. My number one job as a trader is to manage risks not make money.
  4. The best traders in history were the best risk managers not the best at entries and exits.
  5. The ability to admit you are wrong about a trade and get out is more important than being confident in a wining trade and staying in no matter what.
  6. Winning traders think like a casino losing traders think like gamblers.
  7. Opinions, projections, and predictions are worthless, trade the price action. (more…)

Paul Tudor Jones Quotes on Trading Method

  
  Education
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“I believe the very best money is made at the market turns. Everyone says you get killed trying to pick tops and bottoms and you make all your money by playing the trend in the middle. Well for twelve years I have been missing the meat in the middle but I have made a lot of money at tops and bottoms.”

“The secret to being successful from a trading perspective is to have an indefatigable and an undying and unquenchable thirst for information and knowledge.”

“The concept of paying one-hundred-and-something times earnings for any company for me is just anathema. Having said that, at the end of the day, your job is to buy what goes up and to sell what goes down so really who gives a damn about PE’s?”
“The whole world is simply nothing more than a flow chart for capital.”

8 important points about life

  
Education, Life
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Today let’s look at eight beautiful Life Changing Lessons to learn from the inspirational author, Paulo Coelho. Notice how beautifully these lessons align with the data on what actually makes people happy long-term.

We are all here for a purpose.
“No matter what he does, every person on earth plays a central role in the history of the world. And normally he doesn’t know it.”
“Everybody has a creative potential and from the moment you can express this creative potential, you can start changing the world.”

The only thing standing between you and your dream are your fears.
“Don’t give in to your fears. If you do, you won’t be able to talk to your heart.”
“There is only one thing that makes a dream impossible to achieve: the fear of failure.”

Mistakes are part of life.
“When you find your path, you must not be afraid. You need to have sufficient courage to make mistakes. Disappointment, defeat, and despair are the tools God uses to show us the way.” (more…)

7 -Market Wisdom

  
  Education
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  1. First Things First
    You sure you really want to trade ? It is common for people who think they want to trade to discover that they really don’t.
  2. Examine Your Motives
    Why do you really want to trade ? Did you say excitement ? Then don’t waste your money in market, you might be better off riding a roller coaster or taking up hand gliding.
    The market is a stern master. You need to do almost everything right to win. If parts of you are pulling in opposite directions, the game is lost before you start.
  3. Match The Trading Method To Your Personality
    It is critical to choose a method that is consistent with your your own personality and conflict level.
  4. It Is Absolutely Necessary To Have An Edge
    You cant win without an edge, even with the world’s greatest discipline and money management skills. If you don’t have an edge, all that money management and discipline will do for you is to guarantee that you will gradually bleed to death. Incidentally, if you don’t know what your edge is, you don’t have one.
  5. Derive A Method
    To have an edge, you must have a method. The type of method is not important, but having one is critical-and, of course, the method must have an edge.
  6. Developing A Method Is Hard Work
    Shortcuts rarely lead to trading success. Developing your own approach requires research, observation, and thought. Expect the process to take lots of time and hard work. Expect many dead ends and multiple failures before you find a successful trading approach that is right for you. Remember that you are playing against tens of thousands of professionals. Why should you be any better ? If it were that easy, there would be a lot more millionaire traders.
  7. Skill Versus Hard Work
    The general rule is that exceptional performance requires both natural talent and hard work to realize its potential. If the innate skill is lacking, hard work may provide proficiency, but not excellence.
    Virtually anyone can become a net profitable trader, but only a few have the inborn talent to become supertraders ! For this reason, it may be possible to teach trading success, but only upto a point. Be realistic in your goals.

Don't Think-Just Do It : 15 Points

  
  Education
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1. You have to NEED to make it.

Wanting to make it is not enough. It must be your one true calling. If you’re willing to be broke, with no direction home, you might possibly make it. Sacrifice is the key element. If you’re not willing to sacrifice your home, your relationship, forgo children and sleep on the floor when you’re forty, don’t expect to make it in music, certainly don’t expect to sustain.

2. You have to be great.

Good is not good enough. You’ve got to blow our minds.

3. You can’t do it alone.

That’s an Internet fiction, from a decade past, that if you just posted something online it could cut through the noise. You need a team:

a. A lawyer

b. A manager

c. An agent.

A lawyer to make sure you don’t sign bad deals that hobble you forever.

A manager to play interference, he who sells himself and makes his own deals is destined to piss people off.

And an agent to get you gigs.

An agent is hardest to get. A manager is never easy. But no act ever made it without a manager. (more…)

Contradictions

  
  Education
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Contradictions are what make love grow. Conflicts are what allow love to remain by our side.
Life is too short for us to keep important words, for example, ‘I love you’, locked in our hearts.
But do not always expect to hear the same words back. We love because we need to love. Otherwise, love loses all meaning and the sun ceases to shine.

And yet, even when Love does not appear, we remain open to its presence. Sometimes, when loneliness seems about to crush everything, the only way to resist is to keep on loving.

Our great goal in life is to love. The rest is silence.

We need to love. Even when it leads us to the land where the lakes are made of tears, to that secret, mysterious place, the land of tears!
Tears speak for themselves. And when we feel that we have cried all we needed to cry, they still continue to flow. And just when we believe that our life is destined to be a long walk through the Vale of Sorrows, the tears suddenly vanish.

Because we managed to keep our heart open, despite the pain.
Because we realised that the person who left us did not take the sun with them or leave darkness in their place. They simply left, and with every farewell comes a hidden hope.

It is better to have loved and lost than never to have loved at all.

10 Life Lessons

  
Education, Life
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This is a better talk than I imagined. Robert L. Joss, Professor of Finance and Dean Emeritus of the Stanford Graduate School of Business, offers 10 life lessons.

10. Life is like cricket
9. Life is too short to deal with “bad” people
8. Run it like you own it
7. Don’t forget to manage side-ways
6. Don’t take yourself too seriously
5. Without fear — there is no courage
4. Life is full of “character building experiences”
3. Find the words
2. Use CAT and GSB learning throughout your life
1. Don’t forget to renew yourself

 

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