Archives of “shortcuts” tag

rss

42 Ways To Trade Like A Market Wizard

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

What if you could read the principles for success for some of the world’s greatest traders? Well you can, here is how author Jack Schwager summed up the the similarities of the ‘Market Wizards’ he spent years interviewing in his second book.

The following is a summarized excerpt from Jack D Schwager’s book, The New Market Wizards. I highly recommend this book for all active traders.

  1. First Things First
    You sure you really want to trade ? It is common for people who think they want to trade to discover that they really don’t.
  2. Examine Your Motives
    Why do you really want to trade ? Did you say excitement ? Then don’t waste your money in market, you might be better off riding a roller coaster or taking up hand gliding.
    The market is a stern master. You need to do almost everything right to win. If parts of you are pulling in opposite directions, the game is lost before you start.
  3. Match The Trading Method To Your Personality
    It is critical to choose a method that is consistent with your your own personality and conflict level.
  4. It Is Absolutely Necessary To Have An Edge
    You cant win without an edge, even with the world’s greatest discipline and money management skills. If you don’t have an edge, all that money management and discipline will do for you is to guarantee that you will gradually bleed to death. Incidentally, if you don’t know what your edge is, you don’t have one.
  5. Derive A Method
    To have an edge, you must have a method. The type of method is not important, but having one is critical-and, of course, the method must have an edge.
  6. Developing A Method Is Hard Work (more…)

Hard work

  
  Education
#  #  #  #  #

Hardwork-ASRShortcuts rarely lead to trading success.Develping your own approach requires research ,observation ,and thought.Expect the process to take lots of time and hard work.Expect many dead ends and multiple failures before you finds a successful trading approach that is right for your.Remember that you are playing against tens of thousands of professionals.Why should you be any better ?If it were that easy ,there whould be a lot more millionaire traders.

What are you certain about the market or trading?

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

If I do not take it will take from me.
You are only as good as your last trade.
Rigidity and complacency ends careers.
Always get paid for taking risk.
A trend never ends when it should.

I am certain that the only way for me to have a chance to be a successful trader is to do daily work and not become lazy or use shortcuts.

I am certain I would rather take every planned trade and lose than not execute a planned trade.

I am certain I am always uncertain before taking a trade. I am certain when I am most relaxed in my mind is when I am doing the right thing regardless of the outcome.

I am certain there is no mathematical (technical) formula to beat the market. If there was, there wouldn’t be a market.

I am certain that opportunities are easier made up for than losses. I add one more: I am certain that the habits or procedures we resist represents our true trading system at that moment.

I am certain that trying to ‘predict’ will end in failure.

I am certain that most of my trades that I convince myself to make investments will end up losing money.  I am certain that if I do not plan a trade including stop loss  points I will be sorry.  I am also certain that I will violate both of the above sometime in the next month.

I am certain that I know myself…. or at least I think I do for the moment.

I am certain that uncertainty is a concept that most traders need to come to terms with before any sort of success will be attained.

Focus

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

The goal of a successful professional in any field is to reach his personal best. You need to concentrate on trading right. Each trade has to be handled like a surgical procedure – seriously, soberly, without sloppiness or shortcuts. This is a stock trading risk management plan. A loser cannot cut his losses quickly. When a trade starts going sour, he hopes and hangs on, and his loses pile up. And as soon as he gets out of a trade, the market comes roaring back.

  • Trends reverse when they do because most losers are alike. They act on their gut feeling instead of using their heads. The emotions of people are similar, regardless of their cultural background or educational levels.
     
  • Emotional traders go into risky gambles to avoid taking certain losses. It is human nature to take profits quickly and postpone taking losses. Emotional trading destroys those who lose. Good money management and timing techniques will keep you out of the hole. Losing traders look for a “sure thing”, hang on to hope, and irrationally avoid accepting small losses.

Developing A Method is Hard Work

  
  Education
#  #  #  #  #  #

MgmtLesson

Shortcuts rarely lead to trading success. Developing your own approach requires research, observation, and thought. Expect the process to take lots of time and hard work. Expect many dead ends and multiple fail-ures before you find a successful trading approach that is right for you. Remember that you are playing against tens of thousands of profession-als. Why should you be any better? If it were that easy, there would be a lot more millionaire traders.

Developing a method is Hard work

  
  Education
#  #  #  #  #  #

HARD-WORKShortcuts rarely lead to trading success. Developing your own approach requires research, observation, and thought. Expect the process to take lots of time and hard work. Expect many dead ends and multiple fail-ures before you find a successful trading approach that is right for you. Remember that you are playing against tens of thousands of profession-als. Why should you be any better? If it were that easy, there would be a lot more millionaire traders.

Go to top