Archives of “hurdle” tag

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What Kind of Person is Best Suited to Trading?

  
  Education
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Great traders have a few personality traits that do give them a natural advantage.  That’s not to say you can’t succeed without them, just that it’ll be an uphill battle and a greater degree of reflection and self-correction will be required.  The trader with the best chance of success will be –

Independent.  Being happy with a good deal of autonomy will allow you to confidently execute your plan without needing 25 people to concur with your analysis.  Trading is a solitary game, and you need to be able to thrive on your own, to a large extent.  Support is great but when it comes down to it, it’s all up to you.

Decisive.  If you take hours to do something simple like choose a burger off a menu, the odds of you being able to see a trade set-up and coolly pull the trigger are greatly diminished.  Especially if you trade short time-frames that can be the difference between success and failure.

Insightful.  If a trader can honestly look at their skills, motivations and short-comings and actively work to rectify them, they have the tools to over-come nearly anything the market throws their way. (more…)

Diary of a Professional Commodity Trader -Book Review

  
  Education
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Brandt uses high/low/close bar charts as his primary trading (not, he stresses, forecasting) tools. He is for the most part a longer-term discretionary pattern trader who enters on breakouts that meet his stringent requirements. Since he knows that only 30 to 35% of his trades will be profitable over an extended period of time and up to 80% will be unprofitable over a shorter time frame, he is exceedingly cautious about leverage. For instance, his trading assets committed to margin requirements rarely exceed 15%.

In the first two parts of the book Brandt offers the reader a thorough course in identifying and categorizing trading signals, placing initial protective stops and subsequent trailing stops, pyramiding, and taking profits. The course addresses traders at all skill levels. For instance, he describes his own trading plan as simple, but some of its elements require a degree of judgment and sophistication that can only come with extensive practice. One example: “time phasing is a hurdle all traders must clear in order to be consistently successful.” (p. 88)

The third part of the book is Brandt’s five-month trading diary, and it’s a fascinating read. Not only does it describe individual trades but it shows how good traders evolve. Take month four, where the author is in a drawdown period. He writes that he has always known that there were flaws in his trading plan but that “good times provide cover for the deficiencies of a trading plan.” During tough times “markets have a way of exploiting flaws in a trading plan. … The challenge is to find the fundamental flaws, not just to make changes that would have optimized trading during the drawdown phase. … Almost always the changes [the author has made to his own plan] have dealt with trade and risk management, not with trade identification.” (p. 189) (more…)

Dow Jones -Hurdles :10209-10315-10350

  
Analysis, Education, US Market
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Double Bottom at 9774-9757 ?

Yesterday spurted by 273 points and closed at 10172 level.

Now ,What to expect ?

 

Just Watch :10209 level

Crossover above this level will take to recent high of 10315-10350 level.

The level of 10412 is Major Hurdle for Bull’s

Three Consecutive close above 10412 wil take to 10630-10703 level.

I will Update about Nasdaq Composite ,S&P500 in afternoon

Updated at 5:37/11th June/Baroda

Trading Thought

  
  Education
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Know what your tolerance for risk is.Traders who are able to make smart decisions can beat the market. However, the greatest hurdle to doing so is overcoming the emotional traps that cause traders to make bad decisions.The reason we succumb to our emotions is because we are afraid of losing. It is the risk we take that creates emotion; take too much risk and you are likely to make bad decisions.Therefore, you need to know what your limits are. What dollar amount of risk causes you anxiety? If you can not make a trade with out fear then you are taking too much risk. For some, that means never trading since they simply can not handle the risk of financial loss. However, over time and with success you will begin to build up your tolerance for risk, just take it one step at a time.

10 Market Insights from Mark Douglas

  
  Education
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They say that you cannot teach a man anything. You can only help him to find it within himself. “Trading In the Zone” by Mark Douglass is one of those rare books, which has played the role of an eye opener for many seasoned traders. It is a favorite read – not because it shares some hidden algorithms or tells a riveting story, not because it reveals some secret market formula or it analyzes the irrational exuberance of the crowd; but because it deals with the only hurdle that stays between a trader and his profit – his psychology.

Here are 10 of my favorite quotes from the book:

1. The four trading fears

95% of the trading errors you are likely to make will stem from your attitudes about being wrong, losing money, missing out, and leaving money on the table – the four trading fears

2. The proverbial empathy gap

You may already have some awareness of much of what you need to know to be a consistently successful trader. But being aware of something doesn’t automatically make it a functional part of who you are. Awareness is not necessarily a belief. You can’t assume that learning about something new and agreeing with it is the same as believing it at a level where you can act on it.

3. The market doesn’t generate happy or painful information

From the markets perspective, it’s all simply information. It may seem as if the market is causing you to feel the way you do at any given moment, but that’s not the case. It’s your own mental framework that determines how you perceive the information, how you feel, and, as a result, whether or not you are in the most conducive state of mind to spontaneously enter the flow and take advantage of whatever the market is offering.

4. The flaws of fundamental analysis

Fundamental analysis creates what I call a “reality gap” between “what should be” and “what is.” The reality gap makes it extremely difficult to make anything but very long-term predictions that can be difficult to exploit, even if they are correct. (more…)

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