Archives of “personality” tag

rss

Trade To Win, Not To Lose!

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

TradetowinWhen athletes are consumed by not losing rather than by winning, the game is over, often before it has even started. The same precept applies to trading. As crazy as it sounds, most traders aren’t making the money they could be — and the reason, I’d argue, is the fear of losing it. Traders are far too worried about giving money back. This paralyzing phobia can transform talented, elite professionals into disappointing underperformers.

How many times have you been up in a trade and started to think about the money? Your head tells you to bank it quickly and then play it safe. After all, you made your mark for the day, or even the week, so your job is complete. That’s not the mark of a trader; that’s the mark of an accountant.

 Trading is an occupation based on fleeting moments of opportunity. (more…)

Three most important elements that all great traders share

  
  Education
#  #  #  #  #  #  #

  1. Self Awareness:  They know their personality and how they are hardwired as a person. They then develop a trading style that is in-line with their personality.

  2. Know your edge:  They know what their ideal set-up looks like. They trade only when they have an edge and they vary the size of their trades based on how much edge they have: Big Edge = Big Trade; Small Edge= Small Trade; No Edge = No Trade.

  3. Accountability:  They keep a daily trading journal so they can review what they are doing well/poorly, game plans, trade sizes, etc.

 

Nine Business Lessons From Celebrities

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

If you pay attention, you can find inspiration and lessons that you can apply to your business everywhere you look…

  • Lance Armstrong: Be disciplined. No business will succeed without a lot of hard work and discipline. Commit to it. Stick with it. Eventually, you’ll reach your destination.
  • Paula Deen: Be yourself (and be bold about it). You will naturally succeed if you build a base of followers who are naturally attracted to your personality. Don’t worry about being liked by everybody. Just let your own unique personality shine through.
  • Mr. Rogers: Be positive. I can’t imagine making it in business without a whole lot of optimism.
  • Ellen Degeneres: Have fun. The daily grind, even when you work for yourself, can be dull at times. Doing something you love, surrounding yourself with clients and connections that energize you, and taking time to appreciate the good things in life make it all worthwhile, and who doesn’t enjoy a good laugh every once in a while? (more…)

The Ten Cardinal Rules for Traders

  
  Education
#  #  #  #  #  #  #  #  #  #  #  #  #  #  #  #
1. Learn to function in a tense, unstructured, and unpredictable environment.
2. Be an independent thinker versus a conventional thinker.
3. Work out a way to handle your emotions and maintain objectivity.
4. Don’t rely on hope and fear in the conventional sense.
5. Work continuously to improve yourself, giving importance to self-examination and recognizing that your personality and way of responding to events are a critical part of the game. This requires continuous coaching.
6. Modify your normal responses to certain events.
7. Be willing to face problems, understand them, and recognize that they are in some way related to your behavior.
8. Know when problems can be resolved and then apply methods to solve them. That may mean giving up some control in order to gain a different control. It may mean changes in your personality, learning self-reliance, or giving up independence and ego to become part of a trading team.
9. Understand the larger framework in which trading occurs—how the complexity of the marketplace and your personality both must be taken into account in order to develop the mastery of trading.
10. Develop the right mind-set for trading—a willingness to commit to the kinds of changes in personal habits and beliefs that will drastically alter your life. To do this requires a willingness to surrender to the forces of the game. In order to be able to play at a maximum level, you have to let go of your ego and your need to have things your way.Do the hard thing. – Richard Dennis

Trade Your Plan

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

Trading is a journey and a competitive activity. Why would you not plan your trades? Are you relying on someone else to plan them for you? Are you thinking there is something magical about the markets and all you have to do is click the mouse or call your broker and money flows into your account? If any of these are true, you are setting yourself up for failure.

Make a plan. This plan is what resonates with your brain structure, trading personality and money attitudes. Make it as simple as possible and then trade it consistently, day after day. If the plan is not working, change it until you get one that works for you. If it is working and generating profits for you, keep it. Don’t try to fatten it up, give it more bells and whistles or get greedy with it. If it’s broken, fix it and if it isn’t then leave it alone. Keep it simple and keep going with it.

Look at your plan every night after the market close. Write down how it worked for you that day and then contemplate and write down how you will use it the next day. In your nightly preparations and your preparations before the market opens, review your plan, Ensure that you are ready to execute, that you know what you are going to do, when you are going to do it, and then just do it—then execute ruthlessly. This is one way to empower yourself and grow in confidence as a trader. Winning in the markets, sports, business and life is about superior positioning, planning, reviewing, reworking, and executing over and over again until you get it right in a way that is seamlessly competent.

What is important in trading

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

Trade with your personality

Regardless of what has been working for other people, you have to trade a system that suits your personality. It either has to compliment your strengths, overcome your weaknesses or both. That is not to say that a system that someone else creates cannot work for you, but you have to figure our your own unique way of trading it.

You have to have an edge

You have to have a specific, definable edge over the market. Like with any other endeavor, if you are not skilled, you will not do well. The best traders understand the edge that they have over the markets and constantly exploit it for profit.

Work hard, work smart

All of the top traders worked hard to refine their technique and constantly improve themselves in order to become better traders. It is not only about putting in a lot of hours, it is also about being open to ways of improving that may seem foreign or strange at the beginning.

No loyalty to a position

Top traders know how to cut losses short and take profits when the target is hit. They don’t get too excited about a position and make a business decision to take the profit or take the loss, based on the parameters of their system.

Why do only 5% of the traders who day-trade end up successful?

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

5percentTwo reasons – #1) Many just want an indicator that is going to reveal the market to them and it is too competitive for that to work.

#2) The vast majority don’t approach the challenge in a way that will work. To a large degree, this isn’t the trader’s fault because most do what they have been taught by scores of “experts”.

Here is what will work. Guaranteed.

1. Never forget that the only thing you want to do is predict that others will buy higher or sell lower in your timeframe.

2. Settle on a strategy (and set of tactics) that suits your personality and thinking patterns.

3. Plan to use your judgment in the midst of making decision and entering trades! You are not a robot and you will never become one. Your brain is going to kick-in with its built-in facility for decision making in uncertain situations. In other words, you won’t be able to stop it from making judgments and compelling you to act so… work with it.

4. Learn to optimize that judgment through simplicity, practice, keeping records and knowing your feelings and emotions.

5. Manage your Psychological Capital (Mental Energy) more carefully than you manage your trades.

The money will follow. Your brain will work, your pattern recognition will work and your plan (a realistic one) will indeed be realized.

Nine Business Lessons From Celebrities

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

If you pay attention, you can find inspiration and lessons that you can apply to your business everywhere you look…

  • Lance Armstrong: Be disciplined. No business will succeed without a lot of hard work and discipline. Commit to it. Stick with it. Eventually, you’ll reach your destination.

  • Paula Deen: Be yourself (and be bold about it). You will naturally succeed if you build a base of followers who are naturally attracted to your personality. Don’t worry about being liked by everybody. Just let your own unique personality shine through.

  • Mr. Rogers: Be positive. I can’t imagine making it in business without a whole lot of optimism.

  • Ellen Degeneres: Have fun. The daily grind, even when you work for yourself, can be dull at times. Doing something you love, surrounding yourself with clients and connections that energize you, and taking time to appreciate the good things in life make it all worthwhile, and who doesn’t enjoy a good laugh every once in a while?

  • Bill Cosby: Keep learning. I used to be so intimidated by what I didn’t know. But I’ve come to realize that such a list is endless, so I just continue to work at it, and I learn more and more each day about how to build a successful business.

  • Carol Burnett: Be creative. Sometimes you have to improvise. You figure it out, and you come to enjoy the journey.

  • Oprah: Build a platform. To succeed in business, you have to have a group of people who believe in you, who want to hear what you have to say, and who want to support you in everything you do.

  • Jim Carrey & Steve Carell: Don’t take it all so seriously. You’re going to mess up, and you will look silly on occasion. Learn to be OK with that.

  • Maya Angelou: Be resilient. Things will not always be easy, but if you refuse to give up and keep bouncing back, they manage to work themselves out.

Focus on You

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

It is never the system or author writing the trading book that fails.
It is YOU! It is your lack of focus.
Focus on yourself and then you can focus on trading successfully.

Trading is at least 98% psychological. It’s a mental state of mind based upon your beliefs of what may happen. Books, systems and technical indicators can only take you so far! You must accept and understand that the market is all in your head. It is you versus the other trader. If you don’t understand YOU, how will you ever understand other traders; thus taking advantage of market moves based on their mental state of mind and their underlying beliefs.

Many investors, both novice and experienced, drift from book to book to book and system to system to system, never understanding why they produce inconsistent profits. They are confused, looking at too many things, complicating the entire process while ignoring the essentials to success.

Keep it simple.

Why complicate things when simplicity works; especially when it comes to trading? We know that trading may be the most difficult endeavor that any human may attempt to undertake.

Thousands of different systems work in the stock market so we can conclude that it is the user that ultimately fails because of lack of concentration and motivation to stay the course. Wall Street is not for drifters and most people can’t play the game profitably because they never sharpen their own mental skills while applying basic money management techniques. They focus on the wrong set of skills.

We all see people come and go every day: rags to riches to rags. They are motivated for weeks, months and sometimes years but most fizzle away after they fail and can’t figure out what they are doing wrong. Some investors copy a system from a so-called guru and may find success for a while but they don’t tailor it to their personality, integrate it with their investing style and focus on their mental state of mind, therefore, it will become obsolete and they will fail. Working hard to become successful in the market is fine but understand that working smarter will always take you further.

Our goal as traders and investors is to understand the crowd and anticipate how they will act and react based on the thoughts we had, prior to focusuing on the proper skills, when we were just one of the sheep (waiting to be slaughtered)!

Focus on what is important and the success will follow.

Stop focusing on iffy stochastics, Bollinger bands, MACD, ADX, earnings releases and bogus news stories. Yes they can aid you to success but the main focus is on you!

Personally speaking, I require specific fundamentals, price, volume and basic daily and weekly charts to succeed but they are secondary tools. They can help me make money as long as I am focusing on the overall picture which is my mental focus and my emotional balance.

I know I am getting all “Dr. Perruna” on you but it is true.

Once your conscious mind understands how the beliefs of the crowd work, your subconscious mind takes over and intuition kicks in and you start making some of the best decisions of your life by flawlessly following your system.

As Jesse Livermore said:

“Wall Street never changes, the pockets change, the stocks change, but Wall Street never changes, because human nature never changes”

Why? Because humans never change!

Once you understand this and learn to trade other humans, you will become successful. Yes, you will need some of the tools mentioned above but don’t focus your attention in this area. Focus when investing by mastering the beliefs of the crowd and you will always be one step ahead.

10 Pitfalls of Trading & Answers

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

What are the 10 major mistakes that these traders make that cost them dearly?

  1. Having no trading plan

When you don’t have a plan, you don’t have a template to follow. It becomes very costly when your emotions are high and you have to make decisions on the fly.

  1. Using strategies that do not match your personality

You hear of a trading strategy that has worked very well and you are anxious to follow it. One important factor to consider is: does it match who you are and your lifestyle?

  1. Having unrealistic expectations

Most traders assume that it is very easy to make money in trading. They have unrealistic expectations with regard to their initial capital, their risk profile and how much money they can expect to make.

  1. Taking too much risk

Usually when traders are down, they want to make their money back very quickly. Therefore, they increase their position size without thinking about the risk/rewards.

  1. Not having rules to follow

Most traders think if they have rules to follow, they are restricting themselves. It is on the contrary. Having rules allows you to be more flexible since you have thought about lots of issues beforehand.

  1. Not being flexible to market conditions (more…)
Go to top