Monday, 4 November 2013

Quote for the day

“Large interests are practically always in the market. They usually have their scale orders in on both sides so that they buy on declines and sell on rallies. They always have money with which to buy on declines, because they sell on the rallies. They thus realize a profit as well as supply funds for the next decline. If the public would learn to do this, there would be fewer stock market fatalities.” - Richard D. Wyckoff

04-Nov-2013 CSE Trade Summary

Crossings - 04/11/2013 - Top 10 Contributors to Change ASPI

Following Stocks Reached New High / Low on 04/11/2013

Top Ten Side Effects of Greedy Trading

"Greed is so destructive. It destroys everything." – Eartha Kitt

If I was a trading doctor I would look for these 10 symptoms in a trader before I diagnosed them as a greedy trader. Greedy trading can result in blindness to danger, dizziness for profits, and a loss of trading capital. Look for these ten warning signs:

1. Greed causes the trader to only look at the best case scenario for profits and ignore the worst case scenario for losses in every trade.

2. Greedy traders trade WAY to big a position size.

3. A Greedy trader’s #1 priority is getting rich quick while ignoring the risk of ruin.

4. Traders that are greedy tend to believe they can have returns bigger than the best traders in the world right at the beginning.

5. Greed makes traders have absurd targets for their trades.

6. Greedy traders tend to buy stocks that are down 50% believing they will double and go back to where they were.

7. Greed distorts a trader to focus on the money not the homework involved to make the money.

8. Traders take trades where the odds are way against them because of the greed of wanting to make huge returns on one trade. (Far out of the money options)

9. Greedy traders trade with no plan and no method they are just pursuing profits randomly.

10. Greedy traders are always looking for the easy path to money not to the real path of hard work and experience.