rss

Richard Dennis – Market Wizard (Must Read )

On the right psychological mindset:

For a lot of traders, it doesn’t matter so much whether their first big trade is successful or not, but whether their first big profit is on the long or short side. Those people tend to be perennial bulls or bears, and that is very bad. Both sides have to be equally OK. There can’t be anything psychologically more satisfying about one than the other. If there is, your trading is going to go askew.

On taking losses:

Since then, I have learned that when you have a destabilizing loss, get out, go home, take a nap, do something, but put a little time between that and your next decision. When you are getting beat to death, get your head out of the mixer. Looking back, I realized that if I had had a trading rule about losses, I wouldn’t have had that traumatic experience.

 

You mentioned that before you developed a mechanical trading system, you paid close attention to the trading process. Did you keep a log of what you did right and wrong, or was it a matter of memory?

Yes, I would write down observations and think about them. I thought about everything I was doing.

(more…)

Just Drop These 15 TOXIC Thoughts

Here are fifteen toxic thoughts to ban from your self-talk:

1) “It’s too late.” – No matter who you are, no matter what you did, no matter where you’ve come from, you can always change and become an improved version of yourself.  Peace, strength and understanding will come to you when you manage to tune out the noisy judgments of others, in an effort to better hear the soft and steady hum of your own inner strength.  And once you hear it, you will realize that it’s not too late to be what you might have been.

 2) “If only I was stronger, smarter, more attractive, etc.” – The absolute worst loneliness is to not be comfortable with yourself.  It’s always better to be true to yourself, and risk incurring the ridicule of others, rather than trying to live a lie, only to incur your own self-contempt.  Remember, almost everything that happens to you is a direct reflection of what you believe about yourself.  You can’t possibly outperform your level of self-esteem.  You can’t draw from yourself more than you think you are worth.

 3) “What I have to say is not that important.” – Silence makes the inner battle much harder and longer.  Speak your truth.  Let it out… before it kills you!  Honestly, this is one of the saddest things about so many people – their most important thoughts and feelings often go unspoken and barely understood.  (Read Love Yourself Like Your Life Depends On It.)

 4) “The less risks I take, the less regrets I will have.” – You miss 100% of the shots you never take.  Choices, chances and changes – start making them.  You must make a choice to take a chance, or your life will never change.  In the end, more so than the mistakes we make along the way, we regret the chances we didn’t take, relationships we were afraid to have, and the decisions we waited too long to make. (more…)