2. “Intellectual capital will always trump financial capital.”
3. “Every day I assume every position I have is wrong.”
4. “Losers average losers.”
5. “You adapt, evolve, compete or die.”
6. “Trading is very competitive and you have to be able to handle getting your butt kicked.”
7. “The whole world is simply nothing more than a flow chart for capital.”
8. “At the end of the day, the most important thing is how good are you at risk control.”
9. “Always think of your entry point as last night’s close.”
10. “I will keep cutting my position size down as I have losing trades. When I am trading poorly, I keep reducing my position size. That way, I will be trading my smallest position size when my trading is worst.”
11. “Don’t be a hero. Don’t have an ego. Always question yourself and your ability. Don’t ever feel that you are very good. The second you do, you are dead.”
12. “Markets trend only about 15 percent of the time; the rest of the time they move sideways.”
trading
Tuesday 12 January 2016
Monday 11 January 2016
The first week of 2016 to the year marks the worst start in the history of the stock market.
The devaluing Chinese yuan, slack global growth, divergences in the major averages, the slide in junk bonds, the slide in oil and other commodities reaching multi-year lows, and the prospect of rate hikes all contributed to the market's troubles.
Friday 8 January 2016
"DON’T HOPE AND PRAY. IF YOU DO YOU WILL LOSE."
DON’T HOPE AND PRAY. IF YOU DO YOU
WILL LOSE.
When I was a new and undisciplined trader, I can’t tell you how many times that I prayed to the “Emini god”. My prayers were a plea to help me out of a less‐than‐pleasant trade position. I would pray for some sort of divine intervention that, by the way, never materialized. I soon realized that praying to the “Emini god” or any other "financial markets God” was a wasted exercise. Just get out!
When I was a new and undisciplined trader, I can’t tell you how many times that I prayed to the “Emini god”. My prayers were a plea to help me out of a less‐than‐pleasant trade position. I would pray for some sort of divine intervention that, by the way, never materialized. I soon realized that praying to the “Emini god” or any other "financial markets God” was a wasted exercise. Just get out!
Thursday 7 January 2016
"GET OUT OF YOUR LOSERS"
GET OUT OF YOUR LOSERS
You are not a “loser” Because you have a losing trade on.
You are, however, a loser if you do not get out of the losing
trade once you recognize that the trade is no good. It’s amazing to
me how accurate your gut is as a market indicator. If, in your gut,
you have the idea that the trade is no good then it’s probably no
good. Time to exit.
Wednesday 6 January 2016
Tuesday 5 January 2016
"YOU ALWAYS WANT TO BE ABLE TO COME BACK AND PLAY THE NEXT DAY."
YOU ALWAYS WANT TO BE ABLE TO COME
BACK AND PLAY THE NEXT DAY.
Never put yourself in the precarious position of losing more
money than you can afford. The worst feeling in the world is
wanting to trade and not being able to do so because the equity
in your account is too low and your brokerage firm will not allow
you to continue unless you submit more funds.
The most important rule is survival. If you don't survive, you can't keep on playing.
The most important rule is survival. If you don't survive, you can't keep on playing.
Monday 4 January 2016
wondering
today you can, it's the first business day of the year, do it now
https://www.youtube.com/watch?v=Svi-efuZBR8
https://www.youtube.com/watch?v=Svi-efuZBR8
Sunday 3 January 2016
Wednesday 30 December 2015
"BE YOURSELF. DON’T TRY TO BE SOMEONE ELSE."
BE YOURSELF. DON’T TRY TO BE SOMEONE
ELSE.
"In all of my years as a trader I never traded more than a 50 lot on
any individual trade. Sure, I would have liked to be able to trade
like colleagues in the pit who were regularly trading 100 or 200
lots per trade. However, I didn’t possess the emotional or
psychological skill set necessary to trade such big size. That’s OK.
I knew that my comfort zone was somewhere between 10 and
20 lots per trade. Typically, if I traded more than 20 lots, I would
“butcher” the trade. Emotionally I could not handle that size. The
trade would inevitably turn into a loser because I could not trade
with the same talent level that I possessed with a 10 lot."
Learn to accept your comfort zone as it relates to trade size. You are who you are.
Learn to accept your comfort zone as it relates to trade size. You are who you are.
Tuesday 29 December 2015
"THE FIRST LOSS IS THE BEST LOSS"
THE FIRST LOSS IS THE BEST LOSS
Once you come to the realization that your trade is no good it’s
best to exit immediately. “It’s never a loser until you get out” and
“Not to worry, it’ll come back” are often said tongue in cheek, by
traders in the pit. Once the phrase is stated, it is an affirmation
that the trader realizes that the trade is no good, it is not coming
back and it is time to exit
Saturday 26 December 2015
"YOUR BIGGEST LOSER CAN’T EXCEED YOUR BIGGEST WINNER."
YOUR BIGGEST LOSER CAN’T EXCEED YOUR
BIGGEST WINNER.
Keep a trade log of all your trades throughout the session. If, for
example, you know that, so far, your biggest winner on the day is
five e‐Mini S&P points, then do not allow a losing trade to exceed
those five points. If you do allow a loss to exceed your biggest gain
then, effectively, what you have when you net out the biggest
winner and biggest loss is a net loss on the two trades. Not good.
Friday 25 December 2015
"NEVER TURN A WINNER INTO A LOSER."
NEVER TURN A WINNER INTO A LOSER.
We have all violated this rule. However, it should be our goal to try
harder not to violate it in the future. What we are really talking
about here is the greed factor. The market has rewarded you by
moving in the direction of your position, however, you are not
satisfied with a small winner. Thus you hold onto the trade in the
hopes of a larger gain, only to watch the market turn and move
against you. Of course, inevitably you now hesitate and the trade
further deteriorates into a substantial loss.
There’s no need to be greedy. It’s only one trade. You’ll make many more trades throughout the session and many more throughout the next trading sessions. Opportunity exists in the marketplace all of the time. Remember: No one trade should make or break your performance or the day. Don’t be greedy.
There’s no need to be greedy. It’s only one trade. You’ll make many more trades throughout the session and many more throughout the next trading sessions. Opportunity exists in the marketplace all of the time. Remember: No one trade should make or break your performance or the day. Don’t be greedy.
Thursday 24 December 2015
"ALWAYS LOWER YOUR TRADE SIZE WHEN YOU’RE TRADING POORLY."
ALWAYS LOWER YOUR TRADE SIZE WHEN
YOU’RE TRADING POORLY.
All good traders follow this rule. Why continue to lose on five
lots (contracts) per trade when you could save yourself a lot of
money by lowering your trade size down to a one lot on your
next trade? If I have two losing trades in a row, I always lower my
trade size down to a one lot. If my next two trades are profitable,
then I move my trade size back up to my original lot size.
It’s like a batter in baseball who has struck out his last two times at bat. The next time up he will choke up on the bat, shorten his swing and try to make contact. Trading is the same: lower your trade size, try to make a tick or two ‐ or even scratch the trade ‐ and then raise your trade size after two consecutive winning trades.
It’s like a batter in baseball who has struck out his last two times at bat. The next time up he will choke up on the bat, shorten his swing and try to make contact. Trading is the same: lower your trade size, try to make a tick or two ‐ or even scratch the trade ‐ and then raise your trade size after two consecutive winning trades.
Tuesday 22 December 2015
"BE DISCIPLINED EVERY DAY, IN EVERY TRADE, AND THE MARKET WILL REWARD YOU. BUT DON’T CLAIM TO BE DISCIPLINED IF YOU ARE NOT 100 PERCENT OF THE TIME."
BE DISCIPLINED EVERY DAY, IN EVERY TRADE,
AND THE MARKET WILL REWARD YOU. BUT
DON’T CLAIM TO BE DISCIPLINED IF YOU ARE
NOT 100 PERCENT OF THE TIME..
Being disciplined is of the utmost importance, but It’s not a
sometimes thing, like claiming you quit a bad habit, such as
smoking. If you claim to quit smoking but you sneak a cigarette
every once in a while, then you clearly have not quit smoking. If
you trade with discipline nine out of ten trades, then you can’t
claim to be a disciplined trader. It is the one undisciplined trade
that will really hurt your overall performance for the day,
Discipline must be practiced on every trade.
Monday 21 December 2015
"THE MARKET PAYS YOU TO BE DISCIPLINED"
THE MARKET PAYS YOU TO BE DISCIPLINED.
Trading with discipline will put more money in your pocket and
take less money out. The one constant truth concerning the
markets is that discipline = increased profits.
Friday 18 December 2015
Monday 14 December 2015
Friday 11 December 2015
He started to sing as he tackled the thing That couldn't be done, and he did it.
Somebody said that it couldn't be done,
But he with a chuckle replied
That "maybe it couldn't," but he would be one
Who wouldn't say so till he'd tried.
So he buckled right in with the trace of a grin
on his face. If he worried he hid it.
He started to sing as he tackled the thing That couldn't be done, and he did it.
Somebody scoffed: "Oh, you'll never do that;
At least no one ever has done it";
But he took off his coat and he took off his hat,
And the first thing we knew he'd begun it.
With a lift of his chin and a bit of a grin,
Without any doubting or quiddit,
He started to sing as he tackled the thing
That couldn't be done, and he did it.
There are thousands to tell you it cannot be done,
There are thousands to prophesy failure;
There are thousands to point out to you one by one,
The dangers that wait to assail you.
But just buckle in with a bit of a grin,
Just take off your coat and go to it;
Just start to sing as you tackle the thing
That "cannot be done," and you'll do it.
But he with a chuckle replied
That "maybe it couldn't," but he would be one
Who wouldn't say so till he'd tried.
So he buckled right in with the trace of a grin
on his face. If he worried he hid it.
He started to sing as he tackled the thing That couldn't be done, and he did it.
Somebody scoffed: "Oh, you'll never do that;
At least no one ever has done it";
But he took off his coat and he took off his hat,
And the first thing we knew he'd begun it.
With a lift of his chin and a bit of a grin,
Without any doubting or quiddit,
He started to sing as he tackled the thing
That couldn't be done, and he did it.
There are thousands to tell you it cannot be done,
There are thousands to prophesy failure;
There are thousands to point out to you one by one,
The dangers that wait to assail you.
But just buckle in with a bit of a grin,
Just take off your coat and go to it;
Just start to sing as you tackle the thing
That "cannot be done," and you'll do it.
by Edgar A. Guest
Tuesday 8 December 2015
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