Archives of “much money” tag

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THE FIBS TRADERS TELL

  
  Education
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1. The losing position wasn’t my fault, the market moved against me.

2. The trade was right and the market wrong.

3. I just have bad luck.

4. Eventually the stock will go up (or down)…eventually.

5. Bigger size equals bigger profits.

6. No need to close the postion just yet.  I can average down.

7.  Because I made so much money on the last trade I can take on more risk the next.

8.  If the market is going down I can’t make any money.

9.  I need to trade a larger account in order to be a better trader.

10. I’ve had many winners in a row, so now I need a big loser.

Any of these resonate with you?  I am sure there are others but there is not enough room here to elaborate.  Besides, I need to get back in the market.  It can’t move without me!

Value of human capital

  
  Education
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Engineers and scientists will never make as much money as business executives. Now a rigorous mathematical proof that explains why this is true:

Postulate 1: Knowledge is Power.
Postulate 2: Time is Money.

As every engineer knows,

Work

———- = Power
Time

Since Knowledge = Power, and Time =Money, we have

Work

——— = Knowledge
Money

Solving for Money, we get:

Work

———– = Money
Knowledge

Thus, as Knowledge approaches zero, Money approaches infinity regardless of the Work done.
Conclusion: The Less you Know, the more money you Make. 

Trading Slogans

  
  Education
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Statistic makes the money.
I just control the risk.
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I control my risk.
The market controls my win.
I just go with the market.
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THINK – Control your risk !!!
—————————–
MAKE MONEY
1. Setups
2. Statistic
3. Risk managment
4. Disciplin
5. Setup Training
6. Learn Rulebook, every day
WORK HARD !!! DAY for DAY !!!
———————————-
LAZY TRADERS LOSE !!!
THEY JUST LOSE !!!
I HATE LAZY PEOPLE !!!
I AM A WORKAHOLIC AND I LOVE IT !!!
BECAUSE ITS ME WHO MAKES MILLIONS, EASY !!!
———————————-
SETUP TRAINING,
makes my money !!!
Do it every day !!!
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HOPE, FEAR AND GREED

  
  Education
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The spectator’s chief enemies are always boring from within. It is inseparable from human nature to hope and to fear. In speculation when the market goes against you, you hope that every day will be the last day and you lose more than you should had you not listened to hope. And when the market goes your way you become fearful that the next day will take away your profit, and you get out too soon. Fear keeps you from making as much money as you ought to. The successful trader has to fight these two deep-seated instincts. He has to reverse what you might call his natural impulses. Instead of hoping he must fear; instead of fearing he must hope. He must fear that his loss may develop into a much bigger loss, and hope that his profit may become a big profit.-Jesse Livermore

3 Trading Wisdom Thoughts

  
  Education
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1) Focus on being profitable for the week – Individual trades may go against you and individual trading days can offer little opportunity. As a senior trader once explained to me, for the active trader, however, there are enough fresh opportunities in a week to make it reasonable to set a goal of being profitable for the week. You won’t reach your goal every single week, but the mere act of setting the goal keeps you focused. For example, you don’t want to lose so much money in a single day that you can’t make it back during the other days of the week. You also don’t want to lose so much money on a single trade that you can’t come back during the remainder of the day. When you really push yourself to be profitable every week, you don’t let individual days get away from you. And when you don’t let individual days get away from you, you start managing each trade carefully to ensure that your largest loss won’t exceed your largest gain. Time and again I’ve seen a consistent sign of progress among developing traders: they stop digging themselves into holes.
2) Take what the market gives you – Today I peeled out of several short positions after a spate of very negative TICK readings in the afternoon. I’ve learned that such concentrated selling often precedes nasty short-covering rallies. My S&P position hadn’t made as much profit as my NASDAQ and Russell positions, but the market doesn’t care about that. I took what the market gave me and started the week green. Did the market go down even further after I exited? Absolutely. As one experienced trader explained to me, when the market rewards your position right off the bat, you want to take something off the table. You might let a piece of your position ride if you have a longer-term opinion, but never give green a chance to become red. A winner that turns into a loser is a double loss. (more…)

Are U Bull or Bear ?

  
  Education
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Casual acquaintances who come to learn know I trade for a living (something I rarely volunteer without being asked) will always ask whether I’m a bullish or bearish on the market or economy. My reply often irritates them when I say “I’m neither one – I’m just an opportunist.”

What I mean by that is that I go out of my way to avoid placing myself into a neat and tidy category that can influence my analysis of the markets and the stocks I trade. Although I’m far from perfect and sometimes let my opinions cloud my judgment (I am human after all), I do really try to do everything I can to look for opportunities on both sides of the market.

Many investors and also traders try to fit themselves into one neat category based on their opinions or of others who’ve they have come to respect. Even worse, those views are frequently tainted by how their portfolio is currently positioned (people want to be right after all) which can be both dangerous and quite unprofitable.

Case in point, I know several traders who are struggling now because they are very bearish about the market. While in principle I agree many of their views, I cannot let those views cloud both my analysis and trading. While I’m fairly certain there will be a time when their views will be proven correct, in this business timing is everything. Opinions after all, don’t pay the bills – only profitable trades do!

Remember this – in trading it isn’t about who is right or wrong. Instead it is all about who can make money and take advantage of the most opportunities in the present. Opinions are terrific things, but in most cases, you would be wise to set them aside and trade the market you see rather than the market you think you should or want to see.

Words of eternal wisdom

  
  Education
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“I sometimes think that speculation must be an unnatural sort of business, because I find the average speculator has arrayed against him his own nature. The weaknesses that all men are prone to are fatal to success in speculation-usually those very weaknesses that makes him likeable to his fellows or that he himself particularly guards against in those other ventures of him where they are not nearly so dangerous as when he is trading in stocks or commodities… The speculator’s chief enemies are always boring from within. It is inseparable to hope and to fear. In speculation when the market goes against you, you hope that every day will be the last day-and you lose more than you should had you not listened to hope-to the same ally that is so potent a success bringer to empire builders and pioneers, big and little. And when the market goes your way you become fearful that the next day will take away your profit, and you get out-too soon. Fear keeps you from making as much money as you ought to. The successful trader has to fight these two deep-seated instincts. He has to reverse what you might call his natural impulses. Instead of hoping he must fear; instead of fearing he must hope. He must fear that his loss may develop into a much bigger loss, and hope that his profit may become a big profit. It is absolutely wrong to gamble in stocks the way the average man does.”

The Market is Not Flexible, But You Are

  
  Education
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In trading, and in anything in life, we need to be focus and committed to achieving excellence in what ever we do. However, you need to remember that there will always be more than one way to reach a destination. Yes, let me repeat, there will always be more than one way to achieving a goal.

Stay committed to your decisions but stay flexible in your approach.

If you believe what I say, and you should at least try to, then you’ll realise that the methodology that you’ve learnt about trading is the only thing you know at the moment. And, unfortunately for many, you don’t know what you don’t know.

To overcome that, you need to be hungry and curious about learning new markets and new trading systems all the time – continuous development. Nonetheless, you’ll also need to be discipline and structured about how you learn them. The last thing you want to do is to be jumping around trading everything that moves in the market place. Do you get my point?

Once you become a flexible trader, you can trade anything you want and make as much money (from the market) as you like. Right?

Now, the key question. If the market has no influence on you (as to how you make money), how can it have any influence on you now?

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