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Ed Seykota Quotes Collection

Markets

The markets are the same now as they were five or ten years ago because they keep changing-just like they did then.

Short-Term Trading

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

Outcomes

Win or lose, everybody gets what they want out of the market. Some people seem to like to lose, so they win by losing money.

I think that if people look deeply enough into their trading patterns, they find that, on balance, including all their goals, they are really getting what they want, even though they may not understand it or want to admit it.

Market Trends

The trend is your friend except at the end where it bends.

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.

Predicting the Future (more…)

Trading Mindset Upgrade Profit Opportunity -Anirudh Sethi

Image result for Trading MindsetAnybody that has traded for an expanded timeframe comprehends the significance of having the correct attitude with regards to trading beneficially. Truth be told, without the correct attitude, it’s practically difficult to deliver reliable outcomes. In addition, the greatest test I’ve seen for some traders understands what the right mentality involves, and after that making it perpetual so it turns out to be second nature while connecting with the business sectors. Most traders concentrate on creating techniques with a specific end goal to profit. Henceforth, there is no other path around. In any case, your mentality is regularly “the missing connection” with a specific end goal to perform better. To get consistent returns you need to concentrate on the mental part the same amount of as the trading numbers. For the individuals who have not traded much, this may sound somewhat abnormal. What does brain science need to do with hard and cool trading numbers? In the wake of trading for a few years, you’ll find that trading is absolutely not as simple as it appears to be, an incredible inverse. On the off chance that you can’t take after the principles of the procedure, you essentially have no technique.

Target is Most Valuable Consequence of Trading Mindset

Your mindset and convictions will be a noteworthy deciding component in your trading come about. Consider this illustration, where the same fruitful trading approach is utilized by a hundred traders and ordinarily no two of them will trade it the very same way. Why? Since every trader has a one of a kind conviction framework, and their convictions will decide their trading style and their trading comes about. That is the reason even with a gainful and demonstrated trading approach; numerous traders will come up short. They don’t have the best possible conviction framework to empower them to trade well. At the end of the day, they do not have ‘The Trader’s Mindset’. When you experience mental issues it is best to perceive the issues, simply know about them and don’t deny they exist. Keeping in mind the end goal to settle mental issues, we should first wind up plainly mindful of the issues that are making the issues altogether mind. This is a lot of what truly matters to analysis. The therapist or psychotherapist tries to get the patient initially to perceive issues that are causing their issues. The patient must trust that these issues are making the issue altogether for the patient recuperates. The reason this procedure can take so long, maybe even years, is on the grounds that the patient needs to perceive their issues as well as must acknowledge that there genuinely is an issue. They should assume liability for their issues to recuperate. (more…)

The Wisdom of Bear Stearns’ Ace Greenberg

In his awesome new book The Rise and Fall of Bear Stearns, Ace Greenberg spends the majority of the time setting the record straight from divergences from he thought was the truth. The majority of these divergences came from the mouth of Jimmy “I put it to my mouth and I did inhale” Cayne.

This is a blog about trading so I’ll spare you all the details, but frankly, my take on the whole she-bang as delineated in the book, is that dealing with Cayne was like dealing with a teenager for 30 years. He was a complete pain in the ass, but every now and then he’d make a big play in the game, so his parent (Greenberg) would be proud. Cayne’s ego would be his undoing. He fell on his own saber.

Greenberg gives Cayne credit where it was due and appears genuine. I could not tolerate anyone like Cayne and it’s why I enjoy being a prop trader. If you bust my chops enough, I can tell you to “go forth and procreate with yourself.”

What you’ll get from this book is a great history of Bear Stearns, during which Greenberg spent the majority of the career we know him to have had. Bear was 21 years old when Greenberg started and he spent the next 61 years there. (more…)

20 Points of Successful Traders

  • They have the resilience to come back from early losses and account blow ups.
  • They focus on what really matters in trading success.
  • They have developed a trading method that fits their own personality.
  • They trade with an edge.
  • The harder they work at trading the luckier they get.
  • They do the homework to develop a methodology through researching ideas.
  • The principles they use in their trading models are simple.
  • They have mental and emotional control is key while winning or losing.
  • They manage the risk to avoid failure and pain.
  • They have the discipline to follow their trading plan.
  • Market wizards have confidence and independence in themselves as traders
  • They are patient with winning trades and impatient with losing trades.
  • Emotions are dangerous masters to the trader; they know how to manage their own emotions.
  • Market wizards evolve as a trader to avoid eventually failing in a method that has lost its edge over time.
  • It is not the news but how the market reacts to that news is what they watch for.
  • The fully understand the right way to position size for their goals of returns and drawdowns based on their risk/reward and winning percentage.
  • Market wizards understand comfortable trades are usually losing trades while the more uncomfortable trades are usually the winners.
  • They are good losers. Cutting losses when proven wrong and even reversing the direction of their trades when the price action dictates it.
  • The best traders are always learning through their own mistakes.
  • Passion for trading was the fuel for their eventual success.

Evaluating Yourself as a Trader-Anirudh Sethi

Image result for Evaluating YourselfTrading firms frequently assess traders before contracting them. One of the approaches to assess a trader is to get some information about their greatest trading lament in the course of the most recent six months. At the point when the trader depicts the lament is normally a vast losing trade. A trader as of late asked me how I assess my execution as a trader and keeping in mind that to numerous, the appropriate response may appear glaringly evident, as a general rule, there’s unquestionably more than one answer. That is on the grounds that there are various approaches to assess our execution as traders. However, we should take a gander at 2 general classes with the end goal of this post. The most widely recognized approach to assess execution is constructing simply with respect to the consequences of P&L, win rate, and maximum picks up versus maximum loss, draw down profundity from account highs, and so on. That is the fast conclusion the vast majority hop to, and those insights are unquestionably vital, especially to the individuals who essentially need to know the primary concern. The main issue with the information is that it just recounts some portion of the story. Numerous traders know the main issue. However, they aren’t sure where to find solutions relating to how to enhance it. It is critical for you to recall that you can just trade your convictions about the market. So what are the key convictions that are managing you? To truly comprehend what’s controlling your trading, you should list your convictions.

Learners Make Best Traders
Evaluating trade achievement rates or potential outcomes are exclusively credited to those traders who say, “I committed an error. I didn’t know what truly occurred until the point that I backpedaled and broke down what I did. I discovered I clutched a supposition that wasn’t justified.” These traders acknowledge the obligation that they made the mistake and attempted to make sense of why. They grasp affliction instead of keeping running from it. This is the best demeanor to develop on the off chance that you need to improve as a trader. Numerous traders hide missteps and loss away from plain view. This is never a smart thought. Going up against deficiencies is difficult, yet concealing them just guarantees you will encounter them—and their agony—once more. Another approach to talking with potential traders is to get some information about something in their trading that they are especially glad for, once more, finished the previous six months. Many will discuss extraordinary trades that were made. They would clarify in detail a period when they performed particularly well. That is justifiable. We as a whole jump at the chance to give the splendor a chance to sparkle. Be that as it may, it is the calmer, less ostentatious things that truly matter over the long haul. When somebody reveals to me that they are most glad for the exertion they put into their trading in the course of the most recent six months, I sit up and pay heed. As traders, our attention ought to be on the things we can do each day to convey our trading to a larger amount. These incorporate our day by day work, work on trading to enhance particular trading abilities, contemplating outlines and market development, tending to constraints in our trading execution, and pondering approaches to manage challenges and turn out to be better traders. Another approach to assessing our execution as traders are too intently looking at our trading procedure. With a specific end goal to achieve this, however, we need to put forth some troublesome inquiries in the look for reality, some of which may be like
• “Did I have a particular arrangement for that trade and tail it?”
• “Am I taking plays which I comprehend and which are appropriate for my trading time allotment?”
• “Am I trading too substantial, and accordingly settling on poor choices as I react just to my P&L?”
• “Am I setting myself up for the trading day by getting my work done?”
• “Am I trading capable?”
• “Do I have some dependable techniques which can create a benefit after some time?” (more…)

15 Trading Rules For Day Traders

Trading rule No 1. Never chase. Forget about the Rupee loss for a moment as the real damage comes from the distraction it creates.

Trading rule No 2. Wait for the break. Most traders buy inside the range, get impatient and as a result they sell on first sign of strength which ends up being the breakout.

Trading rule No 3. Don’t ride the ticks and Rupee profits. It creates emotional turmoil and is draining. Prevention is best cure. Takes the fun out of the game.

Trading rule No 4. Price action trumps everything. Management lie or mislead but price action (money flow) never lies.

Trading rule No 5. Sell the news or a least sell partials. Markets discount everything and over the long run you will be better off.

Trading rule No 6. Always stay in control. Do NOT put yourself in news related coin toss trades, where the risk cannot be managed.

Trading rule No 7. Mind your own business, avoid conflict. If you take offence because someone has disagreed with your trade, then you are such a precious little petal.

Trading rule No 8. Do NOT set targets as all this creates is a premature EXIT. Run a trailer and let that take you out.

Trading rule No 9. Minimise whipsaw at all costs. It’s a trader killer. The root cause of trading failure more often than not, starts with whipsaw.

Trading rule No 10. Do NOT buy stretched breakouts. More often than not they recoil back into the range to flush traders out.

Trading rule No 11. Start will longterm charts and look to catch major breaks/moves. These tend to follow through and it makes it easier to run with winners.

Trading rule No 12.  Turn trading rules into habit. There is no point in having trading rules if you dont apply them!

Trading rule No 13. And the most important; only tell your wife about your losers. 🙂

Trading rule No 14. Hit those stops, no questions asked. Hitting your stop and watching a stock rally hurts but not htting your stop and watching the stock fall hurts a hell of alot more.

Trading rule No 15. Avoid Blue Channels during trading hrs.Never Trade on TV Flashes ,Don’t trade on Result day -Untill u are having sure Result with u.Don’t trade on  Data flashes about Options -Everything is leaked and known by few Top people 

5 Reasons Traders Lose Money

  1. Your method or system doesn’t work. This is a big one, and one of the hardest to fix. If you’re buying random stocks based on chatroom tips, that won’t work. If you’re buying based on what you think about the news, that won’t work. If you’re using some untested technical pattern, that won’t work. The only way you can build enduring success is to have a system that is your own and in which you fully understand the edge and variability of the system results. The only way (that I know) to do this is either to be taught such a system in enough detail that you own it, or do develop your own. Finding a system that works is not easy. I think most traders who fail probably failed because they were doing something that didn’t work and couldn’t work.
  2. You are impatient and take impulse trades. So, you have a system and it works, but if you don’t have the patience to wait for setups, then you essentially don’t have a system at all! Too many traders force trades or execute trades out of boredom. Don’t do this—it will destroy whatever edge you have in your system.
  3. You take trades on the wrong size. Any trading methodology depends on the balance of a large number of winners and losers. If you are randomly doing some trades bigger and some smaller, you can easily wipe out that edge. (On the other hand, some traders do make good, disciplined use of varying position sizes, but this is also a well-developed and tested part of their methodology.) Be consistent and disciplined in everything you do; that’s why the market pays you.
  4. You ignore stops. What do you do when a trade hits your stop? You get out. End of story. If you can’t develop this one skill, you can’t be a trader. You cannot afford, even once, to ignore your stop. Maybe the trade will work out this one time; maybe your prayers will be heard and the bad loss will turn around and become a winner? Ok, great, now what? Now you’ve just had a serious break of discipline and have had a bad learning experience as well because you got paid to do something wrong! The ongoing impact of a mistake like this and the false learning will ripple through your trading career for months or years. Don’t do this—respect your stops.
  5. You get out of winning trades without any reason. I think this is one of the great, underappreciated problems of learning to trade. Many people can develop the discipline to respect their stops, but then cave under the pressure of a winning trade. The thought of a winning trade reversing and giving back profit, the pressure of knowing the open winning trade would cover many losing trades, or the simple greed of wanting to ring the cash register—these can be overwhelming psychological pressures. It’s just as important to manage your winners with discipline, and that your trading plan has clear rules for when and how you get out of winning trades as well as losers.

The solution to most of these problems is not exciting: have a plan that works and execute that plan with discipline. Of course, there’s a lot more we can do at each step, but being aware of these errors will help protect against some of the worst, and most avoidable, mistakes that wait for the developing trader.

Are You Doing These 7 Mistakes ?

*  You’re a momentum trader and you’re trading a slow, low volatility market;
*  You’re a trend trader and you’re trading a choppy, range market;
*  You’re a research-oriented big picture trader and you’re getting caught up in short-term price action;
*  You’re a skilled short-term trader and you’re locked in a longer-term directional market view;
*  You’re a contrarian fader and you’re getting run over in high volume directional flows;
*  You’re an independent thinker, but you’re distracted and influenced by the views of others;
*  You’re a trader who reads others well at the table, but you’re isolated from other traders;
A great way to lose money is to not understand yourself and how you’re wired cognitively.  If you’re a deep thinker, you’ll lose money sitting at the trading table.  If you’re a fast thinker, you’ll lose money dabbling with investment theses.  The route to success is to be who you are when you’re functioning at your best.  Working on improving your discipline, controlling your emotions, and following your process is not helpful if you’re sitting at the wrong table to begin with.

20 Reasons :Why 95% Traders Not Making Money

  1. They risk too much to try to make so little.
  2. They trade with the probabilities against them.
  3. They think trading is easy money.
  4. Instead of focusing on learning how to trade they focus on getting rich.
  5. They blow up due to improper position sizing.
  6. With no understanding of the mathematical risk of ruin they are doomed after the first long string of losing trades.
  7. Blindly following a guru that leads them down the road of destruction.
  8. They don’t do their homework.
  9. They trade opinions not robust systems. (more…)

40 Great Quotes from Ed Seykota

  1. “If I am bullish, I neither buy on a reaction, nor wait for strength; I am already in. I turn bullish at the instant my buy stop is hit, and stay bullish until my sell stop is hit. Being bullish and not being long is illogical.”
  2. “Fundamentalists figure things out and anticipate change. Trend followers join the trend of the moment. Fundamentalists try to solve their feelings. Trend followers join their feelings and observe them evolve and dis-solve.”
  3. “The feelings we accept and enjoy rarely interfere with trading.”
  4. “Systems don’t need to be changed. The trick is for a trader to develop a system with which he is compatible”
  5. “It can be very expensive to try to convince the markets you are right.”
  6. “There are old traders and there are bold traders, but there are very few old, bold traders.”
  7. “I would add that I consider myself and how I do things as a kind of system which, by definition, I always follow.”
  8. “Systems trading is ultimately discretionary. The manager still has to decide how much risk to accept, which markets to play, and how aggressively to increase and decrease the trading base as a function of equity change.”
  9. “Trying to trade during a losing streak is emotionally devastating. Trying to play “catch up” is lethal.”
  10. “The elements of good trading are: 1, cutting losses. 2, cutting losses. And 3, cutting losses. If you can follow these three rules, you may have a chance.”
  11. “Losing a position is aggravating, whereas losing your nerve is devastating.”
  12. “The markets are the same now as they were five to ten years ago because they keep changing – just like they did then.”
  13. “Luck plays an enormous role in trading success. Some people were lucky enough to be born smart, while others were even smarter and got born lucky.”
  14. “Having a quote machine is like having a slot machine at your desk – you end up feeding it all day long. I get my price data after the close each day.”
  15. “A losing trader can do little to transform himself into a winning trader. A losing trader is not going to want to transform himself. That’s the kind of thing winning traders do.”
  16. “If you can’t take a small loss, sooner or later you will take the mother of all losses.”
  17. “It is a happy circumstance that when nature gives us true burning desires, she also gives us the means to satisfy them. Those who want to win and lack skill can get someone with skill to help them.”
  18. “Risk no more that you can afford to lose, and also risk enough so that a win is meaningful.”
  19. “Dramatic and emotional trading experiences tend to be negative. Pride is a great banana peel, as are hope, fear, and greed. My biggest slip-ups occurred shortly after I got emotionally involved with positions.”
  20. “Be sensitive to subtle differences between ‘intuition’ and ‘into wishing’.”
  21. “The trading rules I live by are: 1. Cut losses. 2. Ride winners. 3. Keep bets small. 4. Follow the rules without question. 5. Know when to break the rules.”
  22. “I usually ignore advice from other traders, especially the ones who believe they are on to a “sure thing”. The old timers, who talk about “maybe there is a chance of so and so,” are often right and early.”
  23. “I set protective stops at the same time I enter a trade. I normally move these stops in to lock in a profit as the trend continues. Sometimes, I take profits when a market gets wild. This usually doesn’t get me out any better than waiting for my stops to close in, but it does cut down on the volatility of the portfolio, which helps calm my nerves. Losing a position is aggravating, whereas losing your nerve is devastating.”
  24. “I intend to risk below 5 percent on a trade, allowing for poor executions.”
  25. “I don’t judge success, I celebrate it. I think success has to do with finding and following one’s calling regardless of financial gain.” (On losing streaks and over-trading) “Acting out this drama could be exciting. However, it also seems terribly expensive. One alternative is to keep bets small and then to systematically keep reducing risk during equity drawdowns. That way you have a gentle financial and emotional touchdown.”
  26. “In order of importance to me are: 1) the long term trend, 2) the current chart pattern, and 3) picking a good spot to buy or sell.”
  27. “Win or lose, everybody gets what they want out of the market. Some people seem to like to lose, so they win by losing money.”
  28. “Fundamentals that you read about are typically useless as the market has already discounted the price, and I call them “funny-mentals”. However, if you catch on early, before others believe, you might have valuable “surprise-a-mentals”.”
  29. “If you can’t measure it, you probably can’t manage it… Things you measure tend to improve.”
  30. “The key to long-term survival and prosperity has a lot to do with the money management techniques incorporated into the technical system.”
  31. “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”
  32. “To avoid whipsaw losses, stop trading”
  33. “Pyramiding instructions appear on dollar bills. Add smaller and smaller amounts on the way up. Keep your eye open at the top.”
  34. “Markets are fundamentally volatile. No way around it. Your problem is not in the math. There is no math to get you out of having to experience uncertainty.”
  35. “Our work is not so much to treat or to cure feelings, as to accept and celebrate them. This is a critical difference.”
  36. “Before I enter a trade, I set stops at a point at which the chart sours.”
  37. “Trading requires skill at reading the markets and at managing your own anxieties.”
  38. “The positive intention of fear is risk control.”
  39. “Speculate with less than 10% of your liquid net worth. Risk less than 1% of your speculative account on a trade. This tends to keep the fluctuations in the trading account small, relative to net worth. This is essential as large fluctuations can engage {emotions} and lead to feeling-justifying drama.”