Archives of “The Theory of Moral Sentiments” tag

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8 important points about life

  
Education, Life
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Today let’s look at eight beautiful Life Changing Lessons to learn from the inspirational author, Paulo Coelho. Notice how beautifully these lessons align with the data on what actually makes people happy long-term.

We are all here for a purpose.
“No matter what he does, every person on earth plays a central role in the history of the world. And normally he doesn’t know it.”
“Everybody has a creative potential and from the moment you can express this creative potential, you can start changing the world.”

The only thing standing between you and your dream are your fears.
“Don’t give in to your fears. If you do, you won’t be able to talk to your heart.”
“There is only one thing that makes a dream impossible to achieve: the fear of failure.”

Mistakes are part of life.
“When you find your path, you must not be afraid. You need to have sufficient courage to make mistakes. Disappointment, defeat, and despair are the tools God uses to show us the way.” (more…)

10 Things A Trader Can Know

  
  Education
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While we can’t know where prices will go, what the next breaking news will be, or how much profit we will make in our next winning trade there are a few things we can know:

  1. We can know how big of a position we will take on our next entry.

  2. We have to know where price will go to prove us wrong and cause us to exit a trade. You have to know where you are getting out before you get into a trade.

  3. We should know how much we could lose if our trade goes against us and we are stopped out.

  4. We should know the highest probability entries that we would take.

  5. We should know the watch list that we will be trading from and not take any wild card trades before understanding chart patterns and historical price performance.

  6. We should know what our total portfolio risk is at any one time if all our positions turn into losers at the same time.

  7. We should understand how the leverage works before we trade futures or option contracts.

  8. We should understand the potential maximum draw down of a string of losers based on our position sizing and winning percentage.

  9. We should know whether the market we are trading is in an up trend or a down trend in our time frame.

  10. We should always have a trading plan that tells us what to do based on what the market is doing. We should know how to react to each days price action based on our current positions.

 

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