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What’s Your Trading Blood Type? -#AnirudhSethi

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…)

OPEC+ likely to roll over production – report

OPEC+ is ‘likely’ to make a similar decision to the last meeting on April 1, according to 4 Reuters sources.
They say some had hoped to reverse cuts but more covid and lockdowns are delaying those plans.
The report also notes that Iran is increasing shipments and defying US sanctions.
WTI is at the highs of the day, up $2.92 to $60.72.

Do Not Override Your System During the Trading Day

  • You should try to express your enthusiasm and ingenuity by doing research at night, not by overriding your system during the day.
  • Overriding is something you should do only in unexpected circumstances – and then only with great forethought. If you find yourself overriding routinely, it’s a sure sign that there’s something that you want in the system that hasn’t been included.
  • You can be creative in research but don’t trade creatively; in other words, stick to your systems.
  • If your trading system is inadequate, you shouldn’t use it. If your system is good, then stick to it faithfully.
  • In the meantime search vigorously for improvement. When the new system is ready you can change to it – you are not thereby failing to stick to your system. So there need be no conflict between persistence and change.

Hesitating on Entry and Ending Up Chasing the Market

  • Reasons
    • You just had a string of losses and you don’t dare to enter the next trade.
    • You are not sure whether to take the entry signal, you do not trust your system completely.
    • You were not paying full attention to the market, so your mind was not prepared to play, so you got stuck in indecision.
    • You take too long to weigh all the arguments for the bull and bear sides.
    • Chased market for fear of missing out. End up entering trades with stops being too far away.
    • Might be the case where you detected hesitation, and you know hesitation is bad, and you simply brush hesitation aside without thinking and just enter the position.
  • Solutions
    • If you hesitated and missed the proper entry, wait for a retracement.
    • If no retracement occurs, no choice but to miss the trade.
    • It is better to take trades with limited risk rather than trades with bad risk:reward ratios.
    • If the bull / bear case is 50-50, stay out.

Learn to be wrong and Who cares?

1.) Learn to be wrong. Traditional education trains us into thinking that we have to be right to get the grade. With investing and trading, focusing on being right will bring assymetric risk to your methodology and will eventually lead to a blowout at least once. – Steven Place

2.) First, invest in yourself.  That is, acquire as much knowledge as possible and analytical skills in a wide variety of disciplines and develop the ability to abstract yourself from the present. Become a mathematician, economist, political scientist, psychologist, sociologist, and futurist. – Gary Evans

3.) You are not a market-timing genius and neither is anyone selling services to you! There is a long-term path to progress, with several good ways to get aboard.  Be interested, be watchful, but do not be too confident. – Jeff Miller

4.) First, understand that ultimately you are responsible for the outcome of your investments and that they shouldn’t blame bad markets, bad advisors, or bad luck if they lose money.  Secondly, always try to stay as objective and unemotional as you can about what you invest in.  And lastly, remember that discipline and risk management is the key.  You can lose all the profits from five well managed trades or investments with one poorly managed one. 

Synthesized happiness (sour grapes)

  • By cutting off that possibility (or imposing a self-restriction on my flexibility), my psychological immune system gets triggered to synthesize happiness.
  • My non-conscious processes immediately ‘downgraded’ the idea of trend continuation (if I can’t get on, the trend must be bad), and boosted the idea that the trend will end.

Fear and Greed

Greed and fear are borne from the same parents. They feed on each other. A falling market prompts more selling just as a rising market feeds on itself. 
It’s a concept that I just had to learn myself.

Why do stocks that are undervalued continue to be undervalued? 

Why do stocks that are overvalued continue to be overvalued? 

These momentum types of traits are of the same nature.

Fear prompts more aggressive panic selling ; that’s why stocks that are already slumping continue to be sold and enter a vicious cycle ;

Could be margin calls causing them to fall even further . 

 This same self reinforcing process operates in the same way on why stock prices can be propelled into the stratosphere. A great story can go on forever whenever the herd mentality is strong. Investors copy each other buying and selling. Greed prompts more euphoria until the loudest and most vociferous voice of the bull market must admit that the honeymoon is over and when it happens; it is a sobering and humbling experience.
When these happen; the most conservative option is to cut costs and hope for the best.