Archives of “inevitability” tag

rss

The Ten Best Things Ed Seykota Ever Said.

  
  Education
#  #  #  #  #  #  #  #  #  #  #  #  #  #  #  #  #

Arguably one of the greatest traders of all time with his trend following system.

Charles Faulkner tells a story about Seykota’s finely honed intuition when it comes to trading: I am reminded of an experience that Ed Seykota shared with a group. He said that when he looks at a market, that everyone else thinks has exhausted its up trend, that is often when he likes to get in. When I asked him how he made this determination, he said he just puts the chart on the other side of the room and if it looked like it was going up, then he would buy it… Of course this trade was seen through the eyes of someone with deep insight into the market behavior

The Ten Best Things Ed Seykota Ever Said:

Psychology

“To avoid whipsaw losses, stop trading.”

“It can be very expensive to try to convince the markets you are right.”

“A fish at one with the water sees nothing between himself and his prey. A trader at one with his feelings feels nothing between himself and executing his method.”

Risk Management

“The elements of good trading are cutting losses, cutting losses, and cutting losses.”

“Here’s the essence of risk management: Risk no more than you can afford to lose, and also risk enough so that a win is meaningful. If there is no such amount, don’t play.”

“In your recipe for success, don’t forget commitment – and a deep belief in the inevitability of your success.”

Trading System

“The trend is your friend except at the end when it bends.”

“If you want to know everything about the market, go to the beach. Push and pull your hands with the waves. Some are bigger waves, some are smaller. But if you try to push the wave out when it’s coming in, it’ll never happen. The market is always right.”

“Systems don’t need to be changed. The trick is for a trader to develop a system with which he is compatible.”

“I don’t predict a nonexisting future.”

Ed Seykota is a legend in the trend following community and has returns that would make Bernie Madoff  jealous, because his are real. If you can fully grasp what Ed is saying in these quotes it will improve your trading dramatically.

4 Trading Quotes for Today's Trading Session

  
  Education
#  #  #  #  #  #  #  #  #  #  #  #  #  #  #

“You must practice being a successful trader first. From that state of mind you will get information about what to do, and that will produce what you want to have.”

“Excellence is about stepping outside the comfort zone, training with a spirit of endeavor, and accepting the inevitability of trials and tribulations. Progress is built, in effect, upon the foundations of necessary failure.” 

 “Amateurs keep thinking what trades to get into, while professionals spend just as much time figuring out their exits.”

“Confidence doesn’t come from being right all the time: it comes from surviving the many occasions of being wrong.” Brent Steenbarger, The Daily Trading Coach “When you attain some degree of control over yourself, you can then see how other traders are not in control of what happens to them.”

STOCK TRADING IS ABOUT ATTITUDE

  
  Education
#  #  #  #  #  #  #  #  #  #  #  #  #  #  #  #  #  #  #

“If you want to be good at something, practice.  Practice deliberately, and do so for many years.”  Mike Bellafiore, One Good Trade

If the activities that lead to greatness were easy and fun, then everyone would do them and they would not distinguish the best from the rest.”  Geoff Colvin, Talent Is Overrated

“He that is good for making excuses is seldom good for anything else.” Benjamin Franklin

“Commitment, perseverance, and discipline are the characteristics that move people beyond desire to action, that differentiate mediocrity from greatness, and that separate greatness from superstardom.”  Doug Hirschhorn, 8 Ways to Great.

“I always felt that my greatest asset was not my physical ability, it was my mental ability.”  Bruce Jenner

“Those who are motivated by the love of the game attain a deeper sense of satisfaction from their work than those who are driven solely by the pursuit of wealth.” Brian Shannon, Technical Analysis Using Multiple Time Frames

“A free lunch is only found in mousetraps. “ John Capuzzi (more…)

The Stock Trader's Steps to Success

  
  Education
#  #  #  #  #  #  #  #  #  #  #  #  #

Mark Douglas, in his classic book on trading behavior entitled THE DISCIPLINED TRADER: DEVELOPING WINNING ATTITUDES, describes what he believes are the three steps to a trader’s ultimate, long term success.  The following steps have very little to do with technical anaysis and everything to do with the trader’s mental resources.  Douglas explains that the “more sophisticated you become as a trader, the more you will realize that trading is completely mental.  It isn’t you against the markets, it’s just you” (204).  So, if it is just you what are the steps?

1.  STAY FOCUSED ON WHAT YOU NEED TO LEARN.  The trader needs to stay focused on mastering the steps to achieving his goals and not the end result, knowing that the end result, money, will be a by-product of what he knows and how well he can act on what he knows.   A big part of what the trader needs to learn is how to accept missed opportunities.  “Except for the inability to accept a loss, there isn’t anything that has the potential to cause more psychological damage than a belief in missed opportunities.  When you release the energy out of the belief that it is possible to miss anything, you will no longer feel compelled to do something, like getting into trades too early or too late.” (205).

2.  LEARN HOW TO DEAL WITH LOSSES:  Douglas outlines two trading rules for dealing with losses both of which are designed to help the trader deal with any threat of pain and confront, head on, the inevitability of a loss.  The first is to predefine what a loss is in every potential trade.  By predefine Douglas means “determine what the market has to look like or do, to tell you that the trade no longer represents an opportunity” (206).   Secondly, “execute your losing trades immediately upon perception that they exist.  When losses are predefined and executed without hesitation, there is nothing to consider, weigh, or judge and consequently nothing to tempt yourself with” (207). 

3.  BECOME AN EXPERT AT ONE MARKET BEHAVIOR: Simplicity and focus is the mother of success.  “You need to start as small as possible and then gradually allow yourself to grow into greater and greater amounts of market information.  What you want to do is become an expert at just one particular type of behavior pattern that repeats itself with some degree of frequency. To become an expert, choose one simple traing system that identifies a pattern.  Your objective is to understand completely every aspect of the system.  In the meantime, it is important to avoid all other possibilities and information” (209).

Three simple steps yet ironically it is in the simplicity that traders find the most difficulty.  Trading is not difficult, we make it so.  Remember this the next time you enter a trade. 

Dear Readers & Traders………..Don’t miss to read this Book !!101% it should be in your Library.-Technically Yours ,Anirudh Sethi

Go to top