If you know anyone in the Diamond business, they’ll tell you that they are in a real “crisis”.
Prices have fallen down sharply.You can learn more about this industry via the site powered by the .Rapaport report
I find real value in large stones today.Feel safer in that industry compare to Gold right now.
The real good news ? Rough diamonds are really hard to get now 🙂
In the book Trading In The Zone, Mark Douglas makes some great statements that I truly believe are important. He states:
I AM A CONSISTENT WINNER BECAUSE:
What you’ll notice about his statements is that it is he is assuming that you have already done the first set of bullets up top; that you have already created a plan and you already have a set of RULES. Now you might ask, how do I know if my set of rules now will work next month or next year? GREAT question. The market dates back all the way into the late 1700’s. There is literally a few HUNDRED years of data. That’s why I say that back testing is KEY. Now that doesn’t mean that you need to back-test 200 years of data. Not even close. You want to back-test a reasonable time depending on your time-frame of trading. For example, if I plan on trading based on a daily system, then I might back-test the last 5-6 years. If I’m going to trade based on an intra-day 3 minute chart, I would probably backtest about a year. There is no way to KNOW what is going to happen, but trading really boils down to probabilities. Time and time again the same things tend to repeat themselves. Why do you think the markets tend do to the same things over and over. Why does it seem that certain stocks that are in the same class look the same from a chart perspective? How come a company will report great quarterly results, but still go down? It’s because there is a greater number of traders that BELIEVE that this is where an equity is too much or too little. Why do you think there are people who are talking about a “recession” right now? Again, it’s because the same things seem to be occurring that did prior to a previous recession and people have that BELIEF.
So what does all this mean? What can you gather from all this? Well, a few things actually. One is to make sure you create, find and organize a PLAN for trading. Think about it as if you wanted to open up a company. Do the research and find out how some of these traders got started and what they did. Once you’ve done that, write down your plan and look at your questions from up top. Once you can answer ALL of them, then you are moving toward being a consistently profitable trader. Then take a look at what Mark Douglas wrote. You have to own these statements mentally. You have to truly believe that you are a consistent winner because of all of the statements above.
“Plan your trade, and trade your plan” – Anonymous
Probably you have heard of Peter Lynch. But did you know that in 13 years, from 1977 to
1990, the Fidelity Magellan Fund he managed grew from $20m to a whopping $14b?!
One of his famous buy, Subaru, was already up twentyfold when he bought the stock and he made sevenfold after that.
Quotes from Peter are as follows:
“Go for a business that any idiot can run – because sooner or later, any idiot is probably going to run it.”
“If you stay half-alert, you can pick the spectacular performers right from your place of business or out of the neighborhood shopping mall, and long before Wall Street discovers them.”
“Investing without research is like playing stud poker and never looking at the cards.”
“Absent a lot of surprises, stocks are relatively predictable over twenty years. As to whether they’re going to be higher or lower in two to three years, you might as well flip a coin to decide.” (more…)
Ego: I never feel the need to prove myself to anyone by saying that I am always right, or that I am some trading genius that has it all figured out, nobody is. But I have one friend in particular that thinks he can trade in stocks, yet every trade he has ever made has been a complete failure, but you could never get him to admit it. He has more excuses and more reasons why he thinks he is still right, even though he constantly losing money. Leave your ego out of the markets, admit when you’re wrong, and stay humble when you’re right.
Impatience: Not having enough patience has forced me to put on some horrible trades, having patience has lead to some of my most profitable ones. Pretty self explanatory.
If you are serious about your trading there are some concepts you must know in significant details. Those concepts will help you build a strong foundation on which you can build a trading system. There are seven concepts you should study:
Think for myself 
Momentum : If you understand this you will understand trends and mean reversion. You will understand why and how momentum works in the market. Most indicators are momentum based. Trend following and buying strength also works, so does mean reversion. They are all part of the momentum phenomenon. · The best trades come when the crowd leans the wrong way. In other words, the majority piles in one way but profits come from trading it the other way.
· Market direction is only as strong as the leadership that guides it. Stocks play follow-the-leader even when the charts tell a different tale.
· Follow the professionals in quiet times and the public in wild times.
· Good timing on bad stocks makes more money over time than bad timing on good stocks.
