A world that’s more riot than profession, the trading floors of Chicago are a place where gambling your family’s mortgage is all in a day’s. At a time when markets are unhinged, FLOORED offers a unique window to this lesser-known world of finance. These men may not have degrees, but they’ve got guts, and penchant for excess that solicits simultaneous feelings of revulsion- and a desire to root them on. But like many aspects of our economy, technology is changing the way these traders do business, and these eccentric pit denizens aren’t the type to take kindly to new tricks. Computerized trading may take the emotion out of the job, but it may also take some of these old-timers out- dinosaurs in a young man’s game.
Archives of “riot” tag
rssThe realization that you are alone
At some point in time the realization strikes that you are alone in the market – there is only you. The illusion that the market can ‘do’ anything to you falls away and it becomes obvious that you are 100% responsible for everything that happens to your account. You either give yourself money, or else you give your money away – there is nothing else.
The market is one of the few arenas where there are no external constraints, except in the case of a margin call. It never forces you to take a position, long or short, or tells you to get out of your position. It does not say how long to stay in a position or what time to exit, how much profit or loss is enough. There are no external constraints at all, and as such people run riot. You are relying on yourself 100% and there is only ever you to blame.
The above is a core part of a winning trading psychology, yet its difficult to adopt. Shifting the blame is a basic way we defend our ego every single day of the week – yet in the market this practice is absolutely unsupported by price action. How can any other market participant be doing something to you if he is totally unaware of your existence or what position you hold?
Its necessary to really ponder this until the truth of it shines out:
You are alone…
17 Points for Traders
- Patient with winners, and impatient with losers
- Making money more important than being right
- View TA as a picture of where traders are lining up to buy and sell
- Before they enter every trade they will know their profit target and/or stop exit
- Approach trade no.5 with the same conviction as the previous 4 losing trades
- Use naked charts
- Comfortable making decisions with incomplete information
- Do not think of markets as expensive or cheap
- Aggressive with trade size when doing well and modest when not
- Realize the market will be open tomorrow
- Judge their trading success on anything but money (more…)
You are alone…
At some point in time the realization strikes that you are alone in the market – there is only you. The illusion that the market can ‘do’ anything to you falls away and it becomes obvious that you are 100% responsible for everything that happens to your account. You either give yourself money, or else you give your money away – there is nothing else.
The market is one of the few arenas where there are no external constraints, except in the case of a margin call. It never forces you to take a position, long or short, or tells you to get out of your position. It does not say how long to stay in a position or what time to exit, how much profit or loss is enough. There are no external constraints at all, and as such people run riot. You are relying on yourself 100% and there is only ever you to blame.
The above is a core part of a winning trading psychology, yet its difficult to adopt. Shifting the blame is a basic way we defend our ego every single day of the week – yet in the market this practice is absolutely unsupported by price action. How can any other market participant be doing something to you if he is totally unaware of your existence or what position you hold?
Its necessary to really ponder this until the truth of it shines out:
You are alone…
IMF/EU Bails Out Greece (€110 billion), Papandreou Text, Greek Finance Minister, Riots (Videos)
Greece got a bailout Sunday from the IMF (International Monetary Fund) and EU (European Union). There will be harsh austerity measures (increase in taxes, lower public sector wages, pension reform), read this Reuters article: Greek cabinet to discuss tough new austerity steps and listen to the Greek Financia Minister speak below. Specifically on the bailout, WSJ reported that,”Greece reached a historic deal with other euro-zone countries and the International
Monetary Fund for a three-year, €110 billion ($146.5 billion) bailout”. [full WSJ article] The bailout also includes a €10 Billion support fund for banks (Bloomberg). Find the full text of Papandreou addressing his Cabinet on the bailout here. Below are videos from RussiaToday, Reuters and EUX.tv featuring Greek Finance Minister Giorgos papaconstantinou outlining the austerity package, riot videos and more.
Will this be a short financial capitulation event transferred to main street in Greece?