Saturday, 26 April 2014

6 Steps to Changing Your Bad Trading Habits

By Jared Martinez

Over the years, I have discovered six steps that can really help a person change for the better.

I always say that if you truly want to understand something then start by trying to change it. Yes, change can be a challenge for some people, because people react and adjust to change differently. However, change becomes more accepted when the need for it is understood.

Let's say you've recognized a bad trading habit that you want to change. I will help you to see the ‘next step’ for the needed change enabling success to not only find you—but stick around.

Dickson G. Watts ‘Speculation As A Fine Art’ – A Speculator’s Essential Qualities

The book ‘Speculation As A Fine Art’ by Dickson G. Watts is very short and only 45 pages long. Most of the book consists of quotes contained in the second part entitled ‘Thoughts on Life’. Dickson G. Watts was the president of the New York Cotton Exchange from 1878 to 1880 and that the last 85 years (that’s a while back) have changed a lot of things, but the rules of speculation set forth by Mr. Watts are still very effective in today’s market.

His list of ‘Essential Qualities of the Speculator’ and ‘Laws Absolute” show the timeless value of his insight:

Quote for the day

“It's not a matter of coming up with a one-size-fits-all model that is better than the standard Black-Scholes model. The key point is that the correct probability distribution is different for every market and every time period. The probability distribution has to be estimated on a case-by-case basis.” - John Bender