Archives of “making money” tag

rss

Coast is Clear

  
  Education
#  #  #  #  #  #  #  #  #  #

1. Swear off the stock market forever. Look, the reality is that making money in the stock market is hard. Most of us just don’t have the emotional makeup to do it. That’s OK. If during the last 10 years you’ve found yourself making big behavior mistakes over and over, then stop. You might be  better off just committing yourself to a life of owning only certificates of deposit, given how poor your stock returns could be if you trade too much.

2. Act like you have a blind trust. Find someone you trust, give them your money, tell them to buy you an index fund and then have them update you again in five years. This could be a financial planner like me, but you could also enlist a trustworthy friend who won’t charge you anything for the privilege.

I know that there are people who have been successful, people who behaved correctly. If you are one of them, congratulations and keep doing what you’ve been doing.

But we have to recognize that the way most of us have been doing things hasn’t worked, and it probably won’t work in the future.

5 Trading Wisdom

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

“Never let the fear of striking out get in your way” – Babe Ruth

“If you can’t take a small loss, sooner or later you will have to take the mother of all losses” – Ed Seykota

“Don’t think about what the market is going to do. You have absosutely no control over that. Think about what you are going to do if it gets there.” – William Eckhardt

“I turned from a loser to a winner when I was able to separate my ego needs from making money. When I was able to accept being wrong. Before that, admitting I was wrong was more upsetting than losing money” – Marty Schwartz

“The worst mistake a trader can make is to miss a major profit opportunity. 95% of the profits come from only 5% of the trades” – Richard Dennis

Dealing with entry timing

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

How do you personally get around from being “too early” or “too late” on an entry?

There are a few things that have helped me get over missing a trade or “being right” and not making money.

  • Opportunity vs profit. I thought the market owed me profits.  Now, I see the bars on the chart not as profit but an opportunity to profit.  The market does not owe me anything.  I owe it to myself to execute my plan to the best of my ability.  Good things happen.
  • Important feedback. If a trade develops in a way that I had not anticipated, it means I did not notice a change.  It is now up to me to understand why or determine it was an aberration.  Either way the market is giving me valuable feedback.
  • Unlimited time horizon. One of the side effects of trading is missing trades.  It is something that you have to get over.  It is a fact of life.  The next trade is always more important than the last one.  You should have more experience and knowledge, right?  Knowledge of yourself, the market, and the interaction between the two.

Said in one sentence.  I get over missing trades because I do not have a sense of entitlement, willing to use the feedback, and know that it is just one trade in 1000′s or hopefully 10,000′s.

Principles to being "Super Rich "

  
Education, Life
#  #  #  #  #

#1: Give Your Talents Until They Can’t Live Without It: “Wake up in the morning and find out what you want to give as opposed to what you want to get. Through this practice of becoming a good giver you become a good getter.”

#2: Relentlessly Pursue Your Goals Without Appearing Needy.

#3: If You Don’t Love it, Leave it Alone: “I want to stress is that making money just for the sake of getting paid is a pedestrian activity that you can rise above.” If you don’t love it, don’t do it.

#4: Let Go of the Results: “You really have no control over the results, you have control over the action.”

#5: Get Open: “You want to always be open, creative and fluid as possible, and never become rigid, old or tight.”

Success is the mother of confidence

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

How do you build confidence?  There are many ways but only one process: multiple small successes.  I am very much an advocate for boring trading.  What I mean by that is I trade the same edge over and over again without variation.  By trading the same edge over and over again I know when to get in and when to get out.  I know what to look for when a trade is working and I can safely add to my position.  On the other hand, I know what to look for when the trade is not working and I can exit with a small loss.  By following the rules EVERY TIME you can succeed, not in making money every time (impossible!), but by following the same plan every time.  These small successes give you the confidence to trust yourself each and every time your edge presents itself.  This is true in any new venture, whether it be golf, bowling, drawing, flying, etc.  Each small success gives birth to greater confidence which in turn brings further successes.  You can then replace a vicious circle of failure with a confident circle of success.  It is so EASY to want the lottery ticket or the home run every time at bat but HARD to accept when the numbers do not add up or when all the preparation leads to nothing more than the hard earned single.

Four Multi-Millionaire Traders Share Their Thoughts On Trading

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

number4“The key is consistency and discipline,” says Richard Dennis who grew $400 into $200,000,000.

“The key is consistency and discipline.  I don’t think anybody winds up making money in this business because they started out lucky.”

For legendary trader Richard Dennis, the importance of being consistent isn’t just theory.  In 1984, on a bet, Dennis trained 23 individuals off the street to religiously follow a set of trading rules.  His point was to provide that discipline was the key to trading success.  All but 3 of those beginner traders made over 100% return their very first year of trading and Dennis won his $1,000,000 bet.  Consistent discipline is also what is taught in the “Futures in Motion” advisory service.

“It’s perseverance” declares Tom Baldwin who started with $25,000 and made untold millions trading upwards of $2 billion dollars a day in T-Bond futures.

“It’s perseverance.  You don’t need any education at all to do it … because it is like any job.  If you stand there long enough, you have to pick it up.” (more…)

Marty Schwartz- Trading Quotes

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

The marketplace is an arena and other traders are the adversaries.

I turned from a loser to a winner when I was able to separate my ego needs from making money. When I was able to accept being wrong. Before that, admitting I was wrong was more upsetting than losing the money.

When I became a winner I went from ‘I figured it out, therefore it can’t be wrong’ to ‘I figured it out, but if I’m wrong, I’m getting the hell out, because I want to save my money and go on to the next trade.’

By living the philosophy that my winners are always in front of me, it is not so painful to take a loss. If I make a mistake, so what!

My attitude is: Never risk your family’s security.

Whenever you get hit, you are very upset emotionally. Most traders try to make it back immediately; they try to play bigger. Whenever you try to get all your losses back at once, you are most often doomed to fail.

After a devastating loss, I always play very small and try to get black ink, black ink. It’s not how much money I make, but just getting my rhythm and confidence back.

Before taking a position always know the amount you are willing to lose.

The most important thing is money management, money management, money management. Anybody who is successful will tell you the same thing.

I always take my losses quickly. That is probably the key to my success.

The best advice I can give to the ordinary guy trying to become a better trader is Learn to take losses. The most important thing in making money is not letting your losses get out of hand.

The Easiest Daytrade To Make

  
Analysis, Education
#  #  #  #  #  #  #  #  #  #  #  #  #  #  #  #  #

ss-7853536-potOfGold Essentially there are 3 timeframes to trade when it comes to “daytrades”:

1) the open

2) the close

3) and everything else in between

As you know by now, #3 is really the toughest to trade. It is the lowest probability trade of the three types, and your stops frequently get hit. Frequently, even if we get the direction right it is not very profitable because we get whipsawed like crazy. However, this is where many trades can be made, so the scalps do add up to a good chunk if you know what you’re doing.

So those who had joined us and getting Intraday calls-ofcourse having upperhand and minting money. (more…)

Concept of Risk

  
  Education
#  #  #  #  #  #  #  #

concept of riskSuccessful trading has absolutely nothing to do with making money and everything to do with trading successfully. Making money will only ever be a by-product of successful trading. Successful trading is not a by-product of making money. When you attach trading to money and money to emotions and emotions to money you’ll have taken your first loss but you won’t know it yet.

Trading has everything to do with personal psychology, rules, systems, discipline, focus and skill. Like anything else that’s skill based, once you start it takes time and practice to become skilful. Ultimately trading is about making decisions between two choices, to buy or sell. As simple as these two choices are the variables that effect the decisions surrounding them can be as complex as the human mind can make them.

Go to top