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What’s Your Trading Blood Type? -#AnirudhSethi

  
Analysis, Education
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Have you ever wondered what your trading blood type is? What about the type of trader that best suits you? What’s Your Trading Blood Type? will help answer these questions and more. It provides a personality quiz that identifies your trading style, as well as an in-depth explanation for each one. The quiz also compares your results to other common types of traders. It’s never been easier to figure out what kind of trader you are!

##What is a Trading Blood Type?:

The ability to observe the experiences of different traders is one of my greatest luxuries. I have learned that it’s possible for brokers in this business, over time, to match certain? blood types? with their correct trading diet. This isn’t meant medically but more figuratively; there are many variables that come into play when dealing with trades and we’ve found a way around these elements by matching blood type (in its metaphorical sense) with trader profile so that they can adopt an appropriate approach without wasting valuable capital or risking too much risk suddenly closing out profitable positions prematurely as well as holding on blindly through losers until all hope seems lost.

“Can’t tell what type of trader you are? That’s ok! It doesn’t take a magician to determine blood types based on personality. This is all about determining your capital, experience level, and risk profile so we can prescribe the perfect diet for just you.”

With the help of a trained expert, it’s not too difficult to prescribe an individual with their best trading type based on their personality. This is done by identifying what they have more success at and then prescribing them food that’ll work for this specific person as well as taking into account factors like capital, experience level, risk profile, and schedule.

##How to determine your blood and diet type?: (more…)

Emotions In Trading -Anirudh Sethi

  
Analysis, Education
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For many traders emotional trading is a problem and it stops them from being consistent in the market. We see what causes emotional trading in this article and I share six steps to greatly help reduce it, or stop it entirely.

Emotions in trading have always been one of the main causes of losses, and at the same time − the main driving force for all types of money. Remember the classic idea: buyers push the price up because of greed, and sellers sell because of fear of losses?

It still works perfectly in any market.

Popular training materials on market trading almost do not pay attention to managing emotions. This is understandable: any broker is the first participant in the trading process, which is vitally interested in having you leave your deposit to the market.

That is why most newcomers, especially those who passed the super-fast and super effective training in various brokerage kitchens, remain psychologically unprepared for trading. And even good technical training will not help such players save their money.

Assessing and reacting to market risk is one of the most important things you’ll have to do as a trader. Sadly, human being as a whole are so mediocre at this task, investors and traders reliably make decisions that economists consider “irrational.”

So obviously these are commonly more referred to as emotional trading.

 

Six Steps to Help You Stop Emotional Trading

Financial markets are a by-product of modern era and, in the grand scheme of things, our brains have evolved over millions of years for survival out in the open. They haven’t had the time to get good at making sound and perfectly rational financial decisions.

We have brain processes; an emotional one and a logical one that are constantly competing against one another for our future expression in the market. And normally, for the trader that has little to no market experience, who trades money they can’t afford to lose, or who has a short fuse overall, the stage is set for an incident.

But also more seasoned traders tend to make emotional trading decisions that they consider stupid in hindsight. Perhaps less often than inexperienced traders do, and with minor consequences, but those errors do happen.

Many a times, although we know with the logical part of our brain that we will get better results if we follow our trading rules, so many of us do exactly the opposite, despite clear knowledge of what we should do.

We remove stops, we cut winners short, we go in with too big of a size… I mean, we’re clearly

not purely rational beings ― and we can’t be because that would make us robots, not humans.

(more…)

Oil – Aramco says repairs to Saudi plant could take many months rather than weeks

  
Analysis, Crude
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DJ with the report on a more pessimistic outlook for repair time compared to what the market was led to believe last week.

Oil traders might like to take note, should be a bullish input (compared to otherwise)

Weekend HK press – China questions whether to continue trade talks with the US

  
  Analysis
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An opinion piece from an account associated with State media Economic Daily newspaper expressed pessimism about whether trade talks with the United States should continue

This in response to US President Trump’s new tariffs on China
  • It said Trump’s latest threats as “destructive”
  • “The US has again stepped back from their promises for two reasons: to pressure China into fulfilling [America’s] expectations in the deal, and to attain someone’s political aims by meddling in the Sino-US trade talks”
  • via South China Morning Post
Negatives build for  China proxy trades (such as AUD)
An opinion piece from an account associated with State media Economic Daily newspaper expressed pessimism about whether trade talks with the United States should continue 

Why Traders Fail ?Read These 20 points

  
  Education
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1. Lack of motivation. A talent is irrelevant if a person is not motivated to use it. Motivation may be external (for example, social approval) or internal (satisfaction from a job well-done, for instance). External sources tend to be transient, while internal sources tend to produce more consistent performance.

2. Lack of impulse control. Habitual impulsiveness gets in the way of optimal performance. Some people do not bring their full intellectual resources to bear on a problem but go with the first solution that pops into their heads.

3. Lack of perseverance and perseveration. Some people give up too easily, while others are unable to stop even when the quest will clearly be fruitless.

4. Using the wrong abilities. People may not be using the right abilities for the tasks in which they are engaged.

5. Inability to translate thought into action. Some people seem buried in thought. They have good ideas but rarely seem able to do anything about them.

6. Lack of product orientation. Some people seem more concerned about the process than the result of activity.

7. Inability to complete tasks. For some people nothing ever draws to a close. Perhaps it’s fear of what they would do next or fear of becoming hopelessly enmeshed in detail.

8. Failure to initiate. Still others are unwilling or unable to initiate a project. It may be indecision or fear of commitment. (more…)

Are you a Trader or Gambler?

  
  Education
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gamblerortrader
Why do you trade ?

Let me guess…

Because you want to make a crapload of money and be able to buy anything you wish?

While this is a perfectly valid reason, it will most likely lead to excessive greed and ultimately lead to your trading account’s destruction.

You might as well take your money to Vegas instead, and gamble it away.

Once your money is all gone, at least it was entertaining.

Greed is the worst motivation for trading. The market will always punish greed and will always reward moderation.

Never try to make all of your money on one trade.

Never try to make all of your money on one trade.

If you do, you are not trading, you are gambling!

There is a fine line between traders and gamblers. When there is real money on the line, there are always those who take blind chances.

If you want to be a successful, do NOT think like a gambler, do NOT take blind chances and do NOT solely rely on luck.

Luck comes and goes just like the gambler.

It’s the trader who remains.

Proven Model For Successful Goal Setting

  
  Education
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Following is a proven model for successful goal setting:

  1. Concise – ensure that your goal statement is simple and easy for both your conscious and unconscious mind to understand and then act upon.
  2. Realistic – when a goal is relatively easy for you to accept and is not too much of a leap from where you are currently, the unconscious mind can work with that and start having you put things in order for this to become a reality. E.g. If you are currently losing money in the market, it could be too big a jump for your unconscious mind if your first financial target goal was to make $1 million in the next 6 weeks. It could be far more effective to set this at $10,000.
  3. Ecological – the execution of all goals needs to be safe to yourself and safe for others. This is just a step to ensure that what needs to happen does not include any possible harm coming to yourself, any other person, animal or the planet. I think you get the picture.
  4. As now – always have your goal stated as if you have already achieved it. Nothing is more powerful for your unconscious mind than to have every part of you feel that the achieving of this goal has already happened.
  5. Timed and toward what you want – attach a time frame to your goal statement. Think about a realistic time frame that you can expect to work with this goal and always make the statement towards what you want not away from what you don’t want. You will see in the following goal statement example how to best do this.
  6. End Step/Evidence – you will need to ask yourself ‘ What will I be doing when I have achieved this goal that will mean I KNOW that it has happened?’ What do you have to see, hear or feel in order to know? Again, see the example below to give you clarity on this.

So, get busy and C.R.E.A.T.E. your trading goals from the process above. 

How Stress Produces Trading Losses

  
  Education
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  • Nothing is stressful unless it is perceived as being a thread (losing money)
  •  Worry has a great effect on human performance, because it represents conscious mental activity.  Since it is conscious, it takes up processing capacity.
  • Often, the trader is too preoccupied with the potential results of what he id doing, rather than the process of being a trader.
    1. Losses scare me. The model calms me.  Trade your plan.
    2. Concerned about losses.  Preoccupation. Tunnel vision
    3. View losses as negative because fear of not having money.  A loss is a character building exercise that is needed to go through to obtain positive expectancy.
    4. Low Volatility/High Volatility  Multiple Intra-weekly signals
    5. Close at a profit/Close at stop
    6. Nightly distractions (Family, Businesses, Work, Vacation, Lack of Internet)
    7. Greed leads to confirmation bias, other bias in holding position
    8. Money motivated, need results for success, freedom for family
    9. Need to evaluate relationships with parents/money deeper to get to depths of self-esteem
    10. Tasks
      1. Daily Self-Analysis
      2. Daily Mental Rehearsal
      3. Focus and Intention
      4. Developing a Low-Risk Idea
      5. Stalking
      6. Action
      7. Monitoring
      8. Take Profits/Abort
      9. Daily Debriefing
      10. Be Grateful for What Went Right
      11. Periodic Review

Discipline and Devotion

  
  Education
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No issue so pervades the trading psychology literature as that of “discipline”. It is very common for traders to lay their plans and define their setups, only to find that their actions undermine their careful preparation.
A good deal of the advice dispensed by trading coaches and psychologists addresses this discipline problem.
But what if the lack of discipline is not a problem? What if we view departures from trading plans and intentions as *information*, not as weakness? As it turns out, those departures can be quite informative.
You see, we naturally gravitate toward the nexus of our values (interests), talents (native abilities), and skills (acquired competencies). On average, we tend to enjoy doing what we’re good at and we tend to build skills when there is a foundation of talents to support them. The artist who spends long hours at the canvas doesn’t have to draw upon “discipline” to sustain an interest in painting. The hard work is hard play: the discipline stems from a devotion to a craft–and to the ability of that craft to crystallize the artists’ interests, talents, and skills. (more…)

Ways to Increase Willpower For Traders

  
  Education
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  • Plan in advance and operate on the basis of habit
    • You need to have a trading plan that covers all permutations that the market can possibly throw at you. You need less willpower to follow a clearly defined plan than to try adhering to broad principles in reaction to the market.
    • Keep practicing applying your trading plan, so that you can make following the rules a habit. It is like driving, the more you do the less effort it requires progressively.
  • Motivate yourself, remind yourself of the importance of what you are doing
    • You need to remind yourself of the importance of achieving good trading results, of the importance of not throwing your hard-earned money away.
    • Use visualization techniques to picture situations where you follow your trading plan successfully. Thinking that you have lots of willpower actually makes it so.
    • Think of some trader you admire that have lots of self-control and unfazed by market movements (e.g. Ed Seykota)
  • Exercise your willpower
    • Willpower is like a muscle, the more you exert your willpower in whatever tasks, the greater your capacity for self-control.
    • You can get yourself to follow rules such as sitting up straight, opening doors with your left hand, etc.
  • Have sufficient food
    • Exercising willpower uses up glucose. Being hungry means you don’t have the energy to exert willpower.
  • Have sufficient rest
    • You can replenish your ‘willpower’ stores through sleep. Get sufficient sleep every day.
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