Saturday 31 March 2018

Quote for the day

“There are just four kinds of bets. There are good bets, bad bets, bets that you win, and bets that you lose. Winning a bad bet can be the most dangerous outcome of all, because a success of that kind can encourage you to take more bad bets in the future, when the odds will be running against you. You can also lose a good bet no matter how sound the underlying proposition, but if you keep placing good bets, over time, the law of averages will be working for you.” – Larry Hite

Friday 30 March 2018

Quote for the day

"Yesterday is not ours to recover, but tomorrow is ours to win or lose." - Lyndon B. Johnson

Thursday 29 March 2018

Colombo Stock Exchange Trade Summary 29-Mar-2018

Quote for the day

"Money can't buy you happiness but it does bring you a more pleasant form of misery." -  Spike Milligan

Wednesday 28 March 2018

Colombo Stock Exchange Trade Summary 28-Mar-2018

Quote for the day

"The only way to bring peace to the earth is to learn to make our own life peaceful." - Gautama Buddha

Tuesday 27 March 2018

Colombo Stock Exchange Trade Summary 27-Mar-2018

Quote for the day

"It is always wise to look ahead, but difficult to look further than you can see." - Winston Churchill

Monday 26 March 2018

Colombo Stock Exchange Trade Summary 26-Mar-2018

Quote for the day

"The only way to predict the future is to have power to shape the future." - Eric Hoffer

Sunday 25 March 2018

Quote for the day

"The hardest job kids face today is learning good manners without seeing any." - Fred Astaire

Saturday 24 March 2018

Quote for the day

"Genius might be the ability to say a profound thing in a simple way." - Charles Bukowski

Friday 23 March 2018

Thursday 22 March 2018

Colombo Stock Exchange Trade Summary 22-Mar-2018

Quote for the day

"There is a sacredness in tears. They are not the mark of weakness, but of power." - Washington Irving

Wednesday 21 March 2018

Colombo Stock Exchange Trade Summary 21-Mar-2018

Quote for the day

"Anger makes you smaller, while forgiveness forces you to grow beyond what you were." - Cherie Carter-Scott

Tuesday 20 March 2018

Colombo Stock Exchange Trade Summary 20-Mar-2018

Quote for the day

"Frustration, discouragement, and depression mean you are working against yourself." -   Jaggi Vasudev

Monday 19 March 2018

Colombo Stock Exchange Trade Summary 19-Mar-2018

Quote for the day

"Trust is the glue of life. It's the most essential ingredient in effective communication. It's the foundational principle that holds all relationships." - Stephen Covey

Sunday 18 March 2018

The top 10 causes of big losses in trading

1. Too stubborn to exit when proven wrong: You just refuse to take a loss, you think a loss is not real as long as you do not exit a trade.

2. Too much ego to take a loss: You are on the wrong side of the market trend but think if you hold a losing position you can be proven right on a reversal. While you are waiting to be proven right your loss gets bigger and bigger.

3. Too much hope for a reversal: You think the market just can’t keep moving against you and must reverse at current price levels.

4. Trading too big a position size: The bigger you trade the bigger your potential loss and the more likely that your emotions will override your trading plan.

5. Buying in a downtrend: Bulls in bear markets lose money as markets make lower highs and lower lows.

6. Selling short in an uptrend: Bears in bull markets lose money as the market makes higher highs and higher lows.

7. No trading plan: When you don’t have a plan for your trades you plan to fail.

8. No trading system: If you do not have a quantified and proven price action trading system then your trades are just random in nature. Big losses will happen due to the random nature of entries and exits.

9. Bad position sizing parameters: Big losses will occur when position sizing is not based on historical volatility and worst case scenarios.

10. No discipline: No self control to create a systematic trading process and even if there is one, then no discipline to follow a predetermined method.
www.newtraderu.com

Quote for the day

"You have to remember that the hard days are what make you stronger. The bad days make you realize what a good day is. If you never had any bad days, you would never have that sense of accomplishment!" - Aly Raisman

Saturday 17 March 2018

Everyone is a Trader

So many people will quickly judge traders and investors as gamblers. In many families you can’t discuss trading openly without judgmental stares, rolling eyes, and disapproval. The general public does not understand that on a deeper level everyone is a trader in some way. We trade one thing in order to receive another thing. Not many people really judge if they are making a good trade in time, energy, effort, and stress for what they receive in return. Let’s think about this…

Employees get up before their shift begins, get ready for work, and drive to their employer. Then the work begins. It could be an 9am to 5pm job with a lunch or a long day as a salaried employee before being done and then driving back home. Employees must consider not just the time, but the energy and effort that it takes to earn a paycheck, not to mention the opportunity cost. Could you be doing something more profitable with your time? Does the pay from the job make up for the sacrifices? Most never examine if their job is worth it. They just feel they must have one and changing the current one is harder than sticking with it. Some people trade time for a paycheck.

Sometimes people stay in a terrible marriage for too long, stay connected to a dysfunctional family, or hang out with friends that are bad influences. Staying in a situation that makes them miserable is their path of least resistance instead of pursuing a path that could lead to a happier life. They trade a potentially better future for a known and familiar now. They prefer certainty with unhappiness for a different possibility with some life changes. Some trade happiness for security.

Many politicians only end game is votes and being elected. They are more actors than statesman. Their sponsors and donors get returns on their campaign contributions. They do what they must for the sake of success and power not what is right or fair. Some trade principles for politics.

There are people that have principles and then there are people that can be bought for a price. Greed and ego can lead people to do things for money that are illegal of immoral. Some people have morals and other have a price. Some trade ethics for cash.

Then there are financial traders. They trade money to buy things that could go up in value. They trade exposure to risk of their capital for the potential for capital gains. Some people trade risk for profits.

Everyone trades one thing for another, the question is whether the exchange is worth it. Everyone is a trader. The next time you are judged for being a trader with rolling eyes you can ask your judge: “What do you trade your time, money, and energy for?”

www.newtraderu.com

Quote for the day

"A competent and self-confident person is incapable of jealousy in anything. Jealousy is invariably a symptom of neurotic insecurity." - Robert A. Heinlein

Friday 16 March 2018

Colombo Stock Exchange Trade Summary 16-Mar-2018

Quote for the day

"Don't shrink to meet the expectations of others, grow to become the person you want to be." - Kris Carr

Thursday 15 March 2018

Colombo Stock Exchange Trade Summary 15-Mar-2018

Quote for the day

"Humans hardly ever learn from the experience of others. They learn - when they do, which isn't often - on their own, the hard way." - Robert A. Heinlein

Tuesday 13 March 2018

Monday 12 March 2018

Colombo Stock Exchange Trade Summary 12-Mar-2018

Quote for the day

"Never give up on what you really want to do. The person with big dreams is more powerful than one with all the facts." - H. Jackson Brown, Jr.

Sunday 11 March 2018

Quote for the day

"We should not look back unless it is to derive useful lessons from past errors, and for the purpose of profiting by dearly bought experience." - George Washington

Saturday 10 March 2018

Quote for the day

"Experience tells you what to do; confidence allows you to do it." - Stan Smith

Friday 9 March 2018

Colombo Stock Exchange Trade Summary 09-Mar-2018

Quote for the day

"Every time there are losses, there are choices to be made. You choose to live your losses as passages to anger, blame, hatred, depression and resentment, or you choose to let these losses be passages to something new, something wider, and deeper." - Henri Nouwen

Thursday 8 March 2018

Colombo Stock Exchange Trade Summary 08-Mar-2018

Quote for the day

"Gratitude makes sense of our past, brings peace for today, and creates a vision for tomorrow." - Melody Beattie

Wednesday 7 March 2018

Colombo Stock Exchange Trade Summary 07-Mar-2018

Quote for the day

"You may encounter many defeats, but you must not be defeated. In fact, it may be necessary to encounter the defeats, so you can know who you are, what you can rise from, how you can still come out of it." - Maya Angelou

Tuesday 6 March 2018

Sunday 4 March 2018

Quote for the day

"Money is the wise man's religion." - Euripides

Saturday 3 March 2018

Quote for the day

“If trading (or any other job or endeavor) is a source of anxiety, fear, frustration, depression, or anger, something is wrong  - even if you are successful in a conventional sense.” – Jack D. Schwager

Friday 2 March 2018

Thursday 1 March 2018

Quote for the day

"Real knowledge is to know the extent of one's ignorance." - Confucius