Archives of “humility” tag

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3 Trading Truth

  
  Education
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TRUTHLINKSHumility:  We are in a business with change.  I have never met a person who has been successful at anything who thought they had it all figured out.  Yes, celebrate and enjoy but tomorrow you start over at the beginning.  Celebrate later and not until the play is over.

Perspective: Trading is emotional.  Eliminating the highs and lows is important because it takes out so much energy.  Yes it would have been cool to dive into the end zone but I would have had to pick myself off the ground and had to be on the extra point team the next play. The low is never as low or the high is never as high as it is in reality, generally.  Having perspective is how it all evens out.

Preparation:  When asked why athletes make better traders I always respond because they are willing to work long hours for the few times when it all lines up.  For football, you train 6 months the play a season.  You have 12 games.  You spend 4 days preparing, 1 day playing, 1 day reevaluating, and 1 day resting.  We prepare for those times and we always are waiting for the next time.  One trade can make your day, one week can make your month, one month can make your year, one year can make your career. (more…)

Discipline

  
  Education
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discipline-0Every day, every trade requires 100% discipline.

Discipline = Emotional Mastery, A Formula Of Confidence/Caution + Humility.

Confident but no caution = Arrogance. Cautious but not Confident = a lack of Conviction, Weakness.

A freedom from pride & Arrogance is Humility. A Weak Trader will never win in the long run.

A Super Trader = A Disciplined Trader. In Discipline, No Weakness Can Exist.

 

Trading Secret

  
  Education
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“The most important warrior secret of all: Your level of success in the world of financial markets is entirely up to you and has nothing to do with what the markets are doing. There will always be bull markets and bear markets. The occurrence of good or bad luck, if luck exists at all, evens out over time. Great success and the attaining of warrior trader status come about as a result of commitment, a never-ending willingness to learn, steadfast determination, and that rare ingredient, a touch of humility. Throughout the ages, all great warriors have had these same characteristics.”

Lessons Learned

  
  Education
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“So far in 2009, what are the  the most important thing I had  learned about investing, trading, and/or the markets?”

lessons-learned

  • Success takes longer than expected

  • That you must learn to trade and trust yourself and not to become so dependent on the opinions of others, which ultimately keeps you from becoming the best you can be
  • Keep it simple
  • The very best profit opportunities occur in the midst of extreme emotional sentiment
  • Always think opportunistic verses too bullish or bearish
  • Persistence and dedication to a daily routine is key
  • Developing an edge is the first step for trading successfully. Without that, disciplined trading will only make sure you gradually losing money
  • The market is one unforgiving bitch!
  • It is challenging to find non-correlated markets
  • You have to respect the market even if you think it is under some kind of manipulation
  • Keep your eyes open and powder dry
  • If you fall in love with a stock keep 100 shares and let the rest go
  • I’ve learned to be patient in waiting for my patterns to appear
  • The value of ETFs
  • The importance of finding special situations that will be profitable no matter what the market does
  • Stay away from light volume when the only thing trading is the black boxes
  • The importance of focusing only on one technical setup in order to improve one’s skill set
  • I now think that buy and hold is a serious mistake
  • Think big and think long term
  • Don’t try to predict the markets
  • Don’t be afraid in bear markets, just another opportunity
  • The odds are stacked against the retail investor
  • There’s no such thing as a sure thing
  • The harder I work at it the more likely I am to succeed
  • Conserving one’s capital is vital
  • I know the rules – I just need to notch-up my discipline
  • Smaller entry positions can be helpful
  • Opportunities are everywhere
  • The market is primarily psychologically driven
  • Trade with the trend instead of trying to pick tops and bottoms
  • Know where and when to get out before you get in
  • As Johny Cash put it “You got to walk that lonesome valley, you got walk it by yourself. Nobody else can walk it for you. You got to walk it by yourself.”
  • The difficulty of avoiding over-optimization/curve fitting
  • Overtrading can be, and often is, a recipe for disaster
  • To breathe before executing a trade
  • Trading is not a profession for pessimists
  • Never feel confident even when winning. Humility is a good thing
  • You need to be quick and brutal with the trading decisions
  • It is okay to sit out a potential move – risk management over reward chasing
  • Don’t bet the farm in either direction
  • There is no consistent logic to trading the market
  • Some trades need to be taken when they appear, not just when you are ready
  • There’s no rule that quality stocks must go up
  • Don’t chase any overbought stocks
  • When a sector (like financials) look so hopeless as it did in March there is potential to make a lot of money if things turn around even just a little
  • Hope is a four-letter word and has no place in a trading strategy
  • Patience. It is ok to sit out once in awhile
  • Wait until you have an proven strategy supported by data before trading for keeps

  • Anything can happen. Trading is all about probabilities

  • Technically Yours-ANIRUDH SETHI ,BARODA ,INDIA

 

Defination of Great Trader

  
  Education
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Great traders that we have had the pleasure to know and to be around, on exchange floors and on trade desks, had certain repeatable traits that all level traders can learn, or take something from;

  • Empathy and the ability to listen.
  • Faith in their own ability to get things done, if life and in work.
  • Humility, and a willingness to accept defeat as graciously as accepting success.
  • Desire to work towards, and not to just expect, having more success than defeat.

They listened more than they spoke. They had two ears and one mouth and had learned to use them in the right proportion. The ability to listen, either to a mentor, to your inner self, or to the market, is critical for success.

They had an undying faith and belief in their own ability, and accepted that most things that went wrong were probably outside of their control, because they planned their work. Their brutal honesty with themselves and with others allowed them to develop a faith in their own ability that was beyond the norm.

They were humble, and understood that they were not smarter, stronger, nor wiser than others; they just knew that there were few others that had more faith in their own ability to follow something through and to achieve their goals. (more…)

12 Trading Rules

  
  Education
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121. Loss of opportunity is preferable to loss of capital

2. Picking safe, readable, and ultimately high probability trades is the way to go

3. Use logical profit objectives for all positions. Know your exits and stick to them

4. Markets are squirrelly animals – make your trading plans ahead of the market

5. Don’t buy new highs or sell new lows – wait for the market to come to you. Buy retracements. If you miss the train, don’t beat yourself up – another one will come by shortly

6. Above all, follow your own trading plan and no one else’s

7. Trade quietly – with the exception of a mentor, tell no one about your positions, profits, or losses. This is especially true for those who are close to you, like your wife, husband, or friends. This self-gratification process or sharing process will put you under psychological pressure to win on every trade and can be a primary reason for failure to follow your plan

8. Don’t carry a sizeable position when traveling. The market will always catch you off guard at the most inopportune time

9. You are only one trade from humility. A swelled head does not belong on a trader’s shoulders

10. Add to your knowledge before attempting to add to your wallet. Newbie traders think they can become pros with little more than a computer and hope. In this business, hope is a four letter word. Show me a humble trader, and I’ll show you someone ready to learn

11. Develop your sense of humor – you’ll definitely need it

12. Help other traders whenever you can. This is more practical than philosophical – giving keeps the ego in line and when you need help, and you will, you’ll find it.

Trading quote

  
  Education
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“The word ‘trading’ is not the way I think of things. I may be a trader in the sense that my frequency of transactions is relatively high, but the word ‘investing’ would apply just as much, if not more. In my mind, trading implies an anticipation of a sale at the time of purchase. Good trading is a peculiar balance between the conviction to follow your ideas and the flexibility to recognize when you have made a mistake. The balance between confidence and humility is best learned through extensive experience and mistakes. There should always be respect for the person on the other side of the trade. Always ask yourself: Why does he want to sell? What does he know that I don’t? All great traders are seekers of truth. The markets are always changing, and the successful trader needs to adapt to these changes.”

Defining A Great Trader

  
  Education
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Great traders that we have had the pleasure to know and to be around, on exchange floors and on trade desks, had certain repeatable traits that all level traders can learn, or take something from;

  • Empathy and the ability to listen.
  • Faith in their own ability to get things done, if life and in work.
  • Humility, and a willingness to accept defeat as graciously as accepting success.
  • Desire to work towards, and not to just expect, having more success than defeat.

They listened more than they spoke. They had two ears and one mouth and had learned to use them in the right proportion. The ability to listen, either to a mentor, to your inner self, or to the market, is critical for success.

They had an undying faith and belief in their own ability, and accepted that most things that went wrong were probably outside of their control, because they planned their work. Their brutal honesty with themselves and with others allowed them to develop a faith in their own ability that was beyond the norm.

They were humble, and understood that they were not smarter, stronger, nor wiser than others; they just knew that there were few others that had more faith in their own ability to follow something through and to achieve their goals. (more…)

Trading Quotes

  
  Education
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“Rich people don’t make big bets. Really rich-and smart-people don’t make big bets. First they are not out to “prove” anything, they are out to make more money, and second, they know that risk control is as important as the other two legs of speculation, selection and timing. That is all this business of … trading gets down to, selection, timing, and risk control.”

“Trading well is not easy, but it is something you can learn if you have the perseverance combined with the humility to be realistic about your own strengths and weaknesses.”

“Most often, traders have four fears. There’s the fear of being wrong, the fear of losing money, the fear of missing out and the fear of leaving money on the table. I found that basically, those four fears accounted for probably 90% to 95% of the trading errors that we make. Let’s put it this way: If you can recognize opportunity, what’s going to prevent you from executing your trades properly? Your fear. Your fears immobilize you. Your fears distort your perception of market information in ways that don’t allow you to utilize what you know.”

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