Wednesday, 14 April 2021

Quote for the day

"Every conflict we face in life is rich with positive and negative potential. It can be a source of inspiration, enlightenment, learning, transformation, and growth-or rage, fear, shame, entrapment, and resistance. The choice is not up to our opponents, but to us, and our willingness to face and work through them." - Kenneth Cloke

Tuesday, 13 April 2021

Quote for the day

"The quality of our lives depends not on whether or not we have conflicts, but on how we respond to them." - Thomas Crum

Monday, 12 April 2021

Quote for the day

"Relationships are based on four principles: respect, understanding, acceptance and appreciation." -Mahatma Gandhi

10 Ways to Get Rich Without Luck Alone

The majority of millionaires and billions in the world were not born into their level of wealth, they earned or they created it in most cases. Too many times the children of the wealthy are more consumers than producers. Here are 10 principles for wealth building that are primarily based on skill and some luck can help when you are doing the right thing at the right time in the right place.

1. Your goal should be wealth not material things. The things you own should be cash flowing assets or things that grow in value over time and not things that burden you with large payments or go down in value.

2. Understand wealth is not bad, capitalists do not steal money they create it through providing value. 
Capitalists create products, jobs, and businesses and are rewarded with money from what their creation is worth.

3. Your goal should be wealth and not status. There are a lot of blue collar business owners that created businesses that are not glamorous but make a lot of money. There are a lot of millionaires driving paid off used cars and living in middle class homes.

4. Wealth is not built by selling your time to an employer, real wealth is created through owning equity in companies. That is how the wealthiest people in the world got so rich owning huge stakes in their own company like Warren Buffett, Bill Gates, and Jeff Bezos.

5. Wealth creation is equal to the size of value created for the most people.

6. The path to wealth is easiest through creating a business about something you are already passionate about. It will take thousands of hours and you will quit if you don’t love what you are doing.

7. The internet has removed a lot of the edges that traditional businesses use to have in the marketplace. The barrier of entry has been mostly removed for an aspiring capaitalist for production, distribution, and creation of their own products or services.

8. The power of compounding can turn a small business into a big business or a small amount of capital into a large amount of money over time with consistent growth.

9. Never stop learning, college can be the beginning of your education but it should never be the end of your learning and growing.

10. Your financial returns and wealth are usually correlated with the amount of risk and uncertaninty you are willing to take on.
Source: www.newtrader.com

Sunday, 11 April 2021

Quote for the day

"Constant effort and frequent mistakes are the stepping stones to genius." - Elbert Hubbard

Saturday, 10 April 2021

Quote for the day

"Fear is the path to the dark side. Fear leads to anger. Anger leads to hate. Hate leads to suffering." - George Lucas

Trading Psychology: 10 Things that Separate Winners from Losers

Even if you have a valid trading system and good risk management if you don’t have the right trading psychology you will not be able to execute it consistently over the long term.

Here are the 10 principles of trading psychology that separate the winning traders from the losing traders.

1. Stop looking for a Holy Grail of trading. There is no perfect trading strategy that works every time, quit looking for it and focus on a profitable system that fits your own risk tolerance and return goals.

2. Accepting that all trading systems and traders have losing trades and drawdowns. Not wanting to lose can cause a trader to never take the risks needed to have winning trades.

3. Stop asking for other people’s predictions and opinions. Focus on what is happening in the markets and what it is signaling not what you or anyone thinks should happen.

4. Have entry signals that tell you the best time to get into a trade. Get into a trade when the risk/reward ratio is favorable.

5. Have exit signals that tell you the best time to get out of a trade. Have a plan to exit a trade and lock in profits while they are still there.
 
6. Exit a trade when price action shows your trade didn’t work out. Admit when you are wrong and keep your losses as small as possible.

7. Trade based on your system not your emotions or ego. Don’t let your own fear, greed, or ego direct your decisions in the markets.

8. Keep a positive mindset. Focus on the success of following your system with discipline and everything good that happens in your trading. Be careful to not focus on the negative.

9. Overcome the fear of trading real money. There comes a time to trade after you do all your homework. After you build a trading system with an edge and understand position sizing and the reality of an equity curve then you have to start trading your capital. Some never have the confidence in their system and their self to execute it and start trading.
 
10. Focus on your future goals not your present setbacks. If you focus on your long term goals and are willing to do whatever it takes to be successful only time separates you from success.

To trade you must have the faith in your trading system that it will be profitable over the long term and confidence in yourself to trade it with discipline.
Source:www.newtraders.com