Archives of “woes” tag

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Surviving Event Driven Choppy Environments: Trade YOUR System

  
  Education
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– Be careful of performance anxietyfingercross
– Don’t chase other systems
– If conditions are conducive (to your system), trade. If not, dont’.
– If you understand the market, then trade. If not, don’t.
– It’s okay to take occasional “stabs” in les-than-ideal conditions — just don’t bet the farm/get too aggressive.

– Pros woes: “It’s a sheer guessing game on a daily basis…and I will not play a guessing game.”

“If you understand the market, then trade. If not, don’t.”
I think if someone tells you that they totally ‘understand’ this market, they’re lying.

UAE backs Dubai's banks

  
Analysis, Economy, Education
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dubai-Nov. 30 (Bloomberg) — The yen weakened against higher- yielding currencies after the United Arab Emirates’ central bank said it “stands behind” the country’s banks, easing concern about a possible default by state-owned Dubai World.

The euro advanced for the first time in five days against the yen after the Abu Dhabi-based central bank of the U.A.E. said lenders will be able to borrow using a special facility tied to their current accounts. The Australian and New Zealand dollars rallied as demand rose for riskier assets after concern eased over credit losses in the Middle East.

“The decision by U.A.E. helped calm down credit woes,” said Akane Vallery Uchida, foreign-currency strategist in Tokyo at Royal Bank of Scotland Plc. “The yen, which was bought over jitters in Dubai, is being sold.”

The market is both carrot & stick

  
  Education
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Over the past year of my trading life I have identified several interwoven cycles of learning. The most obvious being that knowledge and practice combine into your overall understanding. Knowledge alone (book learning) does not equate to understanding – you also need to practice in the market. The two combined give you what we generally call experience. Experience seems to be the thing that makes the difference. Someone who has experience tends to do better over someone who has no experience, in any field. If you were having brain surgery, would you rather have a surgeon doing it who has experience or no previous experience? Yeah, enough said.

So over time, our understanding increases (our experience). But you may also notice that your ability to act on what you know seems to lag far behind, and this can be incredibly frustrating and puzzling. Don’t you wonder at it, every time you make the same stupid mistake over and over? Whats going on here?

The fact is that we have two brains (more actually, but lets stick to two for now) – an intellectual brain and an emotional brain. In the East, there is a common analogy of rider and horse. The horse (emotional brain) is stupid and only knows such things as fear, hunger, punishment and reward. The horse understands the difference between a carrot and a stick, but not much else. The rider struggles to make the horse go where he wants to go.

This is our problem in trading. Our emotional brain (the horse) understands fear and greed, and unfortunately these fight or flight level of instincts are stronger (and faster) than our intellectual brain; they have to be. If a mugger jumps out of the bushes you don’t have time to decide if its a mugger or your friend playing a trick on you, you just run.

In the market however, this mechanism is the cause of all our woes. The market provides both a carrot and a stick. A sudden break out (carrot) lures us into buying long, and then suddenly reverses and stops us out (stick). We are lead all over the charts in a random walk, one minute its carrot, the next minute its stick; we are the dumb money.

Who then is the smart money? Surely based on the above it is simply those individuals who can actually control the horse and act according to a trading plan. There is no conspiracy by the major institutions to steal your money from you – you simply hand it over to them or other traders (and they happen to be willing to take it). In the case of the smart money, the rider is in charge, but in the case of the dumb money the horse goes where ever his instincts take him, and the rider simply hangs on (until he falls off that is).

Signs of Depression

  
  Education
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Trading demands preparation ,concentration and executions.If your trading is getting worse or making no progress it could be a sign of mild depression.Some of the signs of mild depression are :

*Insomnia
*Lack of appetite
*Not wanting to do anything
*Not showering ,shaving or getting dressed in the morning.
*Feeling of inadequacies
*Not wanting to talk to friends
*Consumption of alcohol above normal amount.
*Spantaneious crying
*Need to be left alone
*Not wanting to talk on the telephone when it rings

This is just partial list.Should the symptoms become extreme please see a physician ,,there after excellent medications that can jolt you out of this condition.In addition there after some homeopathic remedies that just might to the trick.

1)Take a three to five day break and do not watch the monitor or the charts at any time.
2)Begin an exercise program-this increases the production of endorphins in our brain ,which help raise our spirits.

3)Find a hobby to take your mind off your woes.

4)Begin a positive thinking program into your daily routine-such as Tony Robbins-Personal Power Program.
5)Do something to help someone much more challenged than you.Battered wives and battered children,the homeless ,blind elderly people ,etc.

6)Change your diet to eat only wholesome foods with no additives.No soft drinks ,alcohol ,high sugar deserts.Flood your body with water ,fresh fruits and vegetables and small amounts of protein.

You do not need to devote a lot of time to any of these but a little of each one will yield recognizable results.If the conditions gets worse see your physician !

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