“By far the biggest problem for professionals in investing is dealing with career and business risk: protecting your own job as an agent. The second curse of professional investing is over-management caused by the need to be seen to be busy, to be earning your keep. The individual is far better-positioned to wait patiently for the right pitch while paying no regard to what others are doing, which is almost impossible for professionals.” - Jeremy Grantham
Sunday, 30 November 2014
Saturday, 29 November 2014
Where in the World Are Top Tech Billionaires From?
The tech world is full of smart entrepreneurs, more than just the familiar names of Bill Gates and the late Steve Jobs. Many tech billionaires have found their way to the Silicon Valley. But where did they come from? Check out the infographic below.
Source: http://www.visualistan.com/
Quote for the day
“The market does reflect the available information, as the professors tell us. But just as the funhouse mirrors don’t always accurately reflect your weight, the markets don’t always accurately reflect that information. Usually they are too pessimistic when it’s bad, and too optimistic when it’s good.” - Bill Miller
Friday, 28 November 2014
CSE - Percentage wise Top 20 Gainers and Losers in November 2014 & YTD
Top Gainers in November 2014
Top Losers in November 2014
Top Gainers YTD (Year-to-date)
Top Losers YTD (Year-to-date)
Top Losers in November 2014
Top Gainers YTD (Year-to-date)
Top Losers YTD (Year-to-date)
Quote for the day
"If you don’t understand why you are in a trade, you won’t understand when it is the right time to sell, which means you will only sell when the price action scares you. Most of the time when price action scares you, it is a buying opportunity, not a sell indicator." - Martin Taylor
Thursday, 27 November 2014
Quote for the day
“Risk, then, comes in two flavours: "shallow risk," a loss of real capital that recovers relatively quickly... and "deep risk," a permanent loss of real capital.” - William Bernstein
Wednesday, 26 November 2014
Quote for the day
“Although nature commences with reason and ends in experience, it is necessary for us to do the opposite—that is, to commence with experience, and from this proceed to investigate the reason.” - Leonardo da Vinci
Tuesday, 25 November 2014
Quote for the day
“If the unusual never happened there would be no difference in people and then there wouldn't be any fun in life. The game would become merely a matter of addition and subtraction. It would make of us a race of bookkeepers with plodding minds.” - Reminiscences of a Stock Operator
Monday, 24 November 2014
Quote for the day
“Be your own person. Think against the herd, as they must lose in time.” - Mark Weinstein
Sunday, 23 November 2014
Starting a Trading Business
If a new trader wants to be a successful, they will need to treat their trading like they would operate a profitable business. Many traders lose a lot of money by approaching trading like it is a hobby. In trading, making money is the goal, and must be kept at the forefront of a trader’s mind if they are to be successful. Fun and excitement in trading can be expensive entertainment. The reality is that most of the time, trading is boring. A trader must treat the market like they would any other business, utilizing discipline and great care to grow their capital and be successful.
- You can’t open your trading business until you have a full business plan.
- Your inventory is your current positions; you have to buy them for less than you intend to sell them.
- Your customers are who you sell to; they have to be willing to pay more than you bought your positions for.
- Your mind is the manager of your business; you can’t let pride, fear, or greed lead to an unprofitable mistake.
- Your business must have insurance to manage risk. Stop losses and hedges are your insurance against big losses.
- Location is everything. You must conduct your business where there are ample buyers and sellers so you don’t get stuck with positions that no one wants.
- Your current positions are your employees. You have to keep the ones that produce gains, and fire the ones that lose.
- Expansion of your business can only happen after your first location is successful. Once you have mastered a system of entries and exits you can add new markets and systems.
- Your trading capital and your positions are your inventory. Lose that and you are out of business.
- The only reason to be in business is to make money. If you don’t make money, you need a new business plan.
Source: newtraderu.com
If you Want to be Rich, First Stop Being so Frightened
# If you are unwilling to fail, sometimes publicly, and even catastrophically, you stand little chance of ever getting rich.
# If you care what the neighbours think, you will never get rich.
# If you cannot bear the thought of causing worry to your family, spouse or lover while you plough a lonely, dangerous road rather than taking the safe option of a regular job, you will never get rich.
# If you have artistic inclinations and fear that the search for wealth will coarsen such talents, you will never get rich. (Because your fear, in this instance, is well justified.)
# If you are not prepared to work longer hours than almost anyone you know, despite the jibes of colleagues and friends, you are unlikely to get rich.
# If you cannot convince yourself that you are “good enough” to be rich, you will never get rich.
# If you cannot treat your quest to get rich as a game, you will never be rich.
# If you cannot face up to your fear of failure, you will never be rich.
# If you care what the neighbours think, you will never get rich.
# If you cannot bear the thought of causing worry to your family, spouse or lover while you plough a lonely, dangerous road rather than taking the safe option of a regular job, you will never get rich.
# If you have artistic inclinations and fear that the search for wealth will coarsen such talents, you will never get rich. (Because your fear, in this instance, is well justified.)
# If you are not prepared to work longer hours than almost anyone you know, despite the jibes of colleagues and friends, you are unlikely to get rich.
# If you cannot convince yourself that you are “good enough” to be rich, you will never get rich.
# If you cannot treat your quest to get rich as a game, you will never be rich.
# If you cannot face up to your fear of failure, you will never be rich.
Source: Extracted from http://www.vjianke.com/YN80J.clip
Quote for the day
“To get profit without risk, experience without danger, and reward without work, is as impossible as it is to live without being born.” - A. P. Gouthev
Saturday, 22 November 2014
Quote for the day
“I know that to be successful, I have to be frightened. My biggest hits have always come after I have had a great period and I started to think that I knew something.” - Paul Tudor Jones
Friday, 21 November 2014
Biggest Domain Sales in History
Here are the top deals for the most desired domain names and a comparison of how would their rank change adjusted to modern inflation.
Source: http://www.visualistan.com/
Source: http://www.visualistan.com/
Quote for the day
“The left holds that because markets are stupid models should be smart; the right believes that because models are stupid markets should be smart. Alas, it never hit both sides that both markets and models are very stupid.” - Nassim Taleb
Thursday, 20 November 2014
Quote for the day
“The intuitive mind is a sacred gift and the rational mind is a faithful servant. We have created a society that honours the servant and has forgotten the gift.” - Albert Einstein
Wednesday, 19 November 2014
Quote for the day
“Rather than targeting a desired rate of return, even an eminently reasonable one, investors should target risk.” - Seth Klarman
Tuesday, 18 November 2014
Quote for the day
“I would put it this way: I do not play according to a given set of rules; I look for changes in the rules of the game.” - George Soros
Monday, 17 November 2014
Quote for the day
“Good trading is a peculiar balance between the conviction to follow your ideas and the flexibility to recognize when you have made a mistake. You need to believe in something, but at the same time, you are going to be wrong a considerable number of times. The balance between confidence and humility is best learned through extensive experience and mistakes.” - Michael Steinhardt
Sunday, 16 November 2014
Habits of Unsuccessful People Vs Successful People
Check the habits of successful people that distinguish them from the unsuccessful people. Discover them in the infographic below.
Source: http://www.visualistan.com/
Trading Rules From A Professional Trader
Professional trader Richard Weissman was generous enough to post his trading rules in my facebook trading group and also gave me permission to share them with my blog readers. I have grown in my trading this year interacting with Richard and watching how he trades. He is also very generous in sharing his wisdom with other traders The following are lessons he has learned over many years of hard earned experience and turned into rules that could really help traders at all levels of development:
• Trade the market, not the money
• Always trade value, never trade price
• The answer to the question, “What’s the trend?” is the question, “What’s your timeframe?”
• Never allow a statistically significant unrealized gain to turn into a statistically significant realized loss (ATR)
• Don’t tug at green shoots
• When there’s nothing to do, do nothing
• Stop adjustments can only be used to reduce risk, not increase it.
• There are only two kinds of losses: big losses and small losses, given these choices – always choose small losses.
• Risk no more than 1% of AUM on any single position
• Never risk less than 1% of asset under management on any single position (as long as your models are performing well)
• Don’t Anticipate, Just Participate
• Buy the strongest, sell the weakest (RSI)
• Sideways markets eventually resolve themselves into trending markets and vice versa
• Stagger entries & exits – Regret Minimization techniques
• Look for low risk, high reward, high probability setups
• Correlations are for defense, not offense
• Drawdowns are for underleveraged trading and research
• Develop systems based on the kinds of “pain” (weaknesses) endured when they aren’t working or you’ll abandon them during drawdowns.
• Be disciplined in risk management & flexible in perceiving market behavior
• It’s not about the best RAROR, it’s about the best RAROR for your trading personality
Richard L. Weissman is a trader, trading system developer, and educator on trading and risk management. Weissman is a former member and trader at the New York Futures Exchange. He has written articles on trading and technical analysis for a variety of industry publications and provides independent consulting services to traders and risk managers on technical analysis, derivatives, and trading system development. Weissman is also the author of the Wiley titles Trade like a Casino and Mechanical Trading Systems.
Source: http://newtraderu.com/
• Trade the market, not the money
• Always trade value, never trade price
• The answer to the question, “What’s the trend?” is the question, “What’s your timeframe?”
• Never allow a statistically significant unrealized gain to turn into a statistically significant realized loss (ATR)
• Don’t tug at green shoots
• When there’s nothing to do, do nothing
• Stop adjustments can only be used to reduce risk, not increase it.
• There are only two kinds of losses: big losses and small losses, given these choices – always choose small losses.
• Risk no more than 1% of AUM on any single position
• Never risk less than 1% of asset under management on any single position (as long as your models are performing well)
• Don’t Anticipate, Just Participate
• Buy the strongest, sell the weakest (RSI)
• Sideways markets eventually resolve themselves into trending markets and vice versa
• Stagger entries & exits – Regret Minimization techniques
• Look for low risk, high reward, high probability setups
• Correlations are for defense, not offense
• Drawdowns are for underleveraged trading and research
• Develop systems based on the kinds of “pain” (weaknesses) endured when they aren’t working or you’ll abandon them during drawdowns.
• Be disciplined in risk management & flexible in perceiving market behavior
• It’s not about the best RAROR, it’s about the best RAROR for your trading personality
Richard L. Weissman is a trader, trading system developer, and educator on trading and risk management. Weissman is a former member and trader at the New York Futures Exchange. He has written articles on trading and technical analysis for a variety of industry publications and provides independent consulting services to traders and risk managers on technical analysis, derivatives, and trading system development. Weissman is also the author of the Wiley titles Trade like a Casino and Mechanical Trading Systems.
Source: http://newtraderu.com/
Quote for the day
“Systems trading is ultimately discretionary. The manager still has to decide how much risk to accept, which markets to play, and how aggressively to increase and decrease the trading as a function of equity change. These decisions are quite important — often more important than trade timing.” - Ed Seykota
Saturday, 15 November 2014
Sitting Is Killing You
Before the invention of television and the computer, humans spent a lot more time on their feet. Now many people spend most of their days sitting down whether its working away at the computer or relaxing in front of the television. All this inactivity is slowly killing us. This infographic shows why it is important for people to get off their bums and get active.
Source: www.visual.ly
Source: www.visual.ly
Why Trading is Like a Triathlon
“A triathlon is a multiple-stage competition involving the completion of three, continuous, and sequential endurance disciplines. While many variations of the sport exist, triathlon, in its most popular form, involves swimming, cycling, and running in immediate succession over various distances.” - Wikipedia
Trading is a three-dimensional competition that requires the management of three continuous, simultaneous, endurance disciplines. While a variety of trading methodologies and systems exist, profitable trading involves management of the trader’s psychology, attention to risk control, and dedication to trading a robust system over an extended time period.
Many traders make the mistake of thinking that simply knowing the right methodology will guarantee their success. In actuality, it is a three event marathon consisting of more than just entries; psychology and risk management have much more influence over longterm success. Entries have no meaning without the right exits, and no system is a winning system without the discipline to follow it.
Here are the three events in the trading race:
A trader’s psychology has to be one of confidence in order to trade it with discipline. Confidence comes from doing homework, back testing, chart studies, and experience. A trader has to trade position sizes that turn down the volume on their emotions. They must have the mental discipline to follow the plan that they carefully crafted when the market was closed, when the market is open. When a trader drifts into greed, fear, and ego, they will likely wreck on the rocks of reality. A successful trader needs the psychology of an entrepreneur, cultivating the fortitude to get through the small losses so they can make it to the big wins.
A trader’s risk management will determine their short term and long term success. Trade too big and the trader will give back all past profits with just a few losing trades. Trading huge position sizes insures that a trader will eventually give their whole trading account away to disciplined risk managers. If risk is not managed, no trading method will lead to profitability because some string of losses will eventually be too much to bear.
A trader’s methodology should be robust enough to have an edge over the markets and other traders. High probability entries and set ups based on historical price action is a good place to start. Planned exits to lock in profitable trades when right, and knowing where to get out if proven wrong, is critical to success. A good trading methodology is trading with a plan that defines entries, exits, and position sizing. Implementing a strong methodology increases the likelihood that a trader’s overall wins will exceed their overall losses within the time frame for expected profitability.
If you want to win the trading race, you must train for all three events.
Source: http://newtraderu.com/
Trading is a three-dimensional competition that requires the management of three continuous, simultaneous, endurance disciplines. While a variety of trading methodologies and systems exist, profitable trading involves management of the trader’s psychology, attention to risk control, and dedication to trading a robust system over an extended time period.
Many traders make the mistake of thinking that simply knowing the right methodology will guarantee their success. In actuality, it is a three event marathon consisting of more than just entries; psychology and risk management have much more influence over longterm success. Entries have no meaning without the right exits, and no system is a winning system without the discipline to follow it.
Here are the three events in the trading race:
A trader’s psychology has to be one of confidence in order to trade it with discipline. Confidence comes from doing homework, back testing, chart studies, and experience. A trader has to trade position sizes that turn down the volume on their emotions. They must have the mental discipline to follow the plan that they carefully crafted when the market was closed, when the market is open. When a trader drifts into greed, fear, and ego, they will likely wreck on the rocks of reality. A successful trader needs the psychology of an entrepreneur, cultivating the fortitude to get through the small losses so they can make it to the big wins.
A trader’s risk management will determine their short term and long term success. Trade too big and the trader will give back all past profits with just a few losing trades. Trading huge position sizes insures that a trader will eventually give their whole trading account away to disciplined risk managers. If risk is not managed, no trading method will lead to profitability because some string of losses will eventually be too much to bear.
A trader’s methodology should be robust enough to have an edge over the markets and other traders. High probability entries and set ups based on historical price action is a good place to start. Planned exits to lock in profitable trades when right, and knowing where to get out if proven wrong, is critical to success. A good trading methodology is trading with a plan that defines entries, exits, and position sizing. Implementing a strong methodology increases the likelihood that a trader’s overall wins will exceed their overall losses within the time frame for expected profitability.
If you want to win the trading race, you must train for all three events.
Source: http://newtraderu.com/
Quote for the day
“Most investors have a remarkable and deeply fascinating ability to blame others for their mistakes whilst giving themselves credit for all the correct investment decisions.” - Niels Jensen
Friday, 14 November 2014
Quote for the day
“Speculation is a hard and trying business, and a speculator must be on the job all the time or he'll soon have no job to be on.” - Reminiscences of a Stock Operator
Thursday, 13 November 2014
13-Nov-2014 CSE Trade Summary
Following Stocks Reached New High / Low on 13/11/2014
Crossings - 13/11/2014 & Top 10 Contributors to Change ASPI
Top 10 Gainer / Loser / Turnover / Volume for the day
Top 10 Foreign Activity for the Day
Quote for the day
“The trading experience is so intense that there is a natural tendency to want to avoid thinking about it once the day is over. I am that way when things are working. But, when they are not, it spurs me to want to think about what I'm doing and how I might do better. When things go bad, traders shouldn't stick their heads in the sand and just hope it gets better.” - Richard Dennis
Wednesday, 12 November 2014
How Mark Zuckerberg Started
How Mark Zuckerberg really started is not how the movie The Social Network showed it. Read on to find out the actual story of Mark Zuckerberg.
Source: http://www.visualistan.com/
Quote for the day
“The difference between successful people and very successful people is that very successful people say \'no\' to almost everything.” - Warren Buffett
Tuesday, 11 November 2014
Quote for the day
“If you are distressed by anything external, the pain is not due to the thing itself, but to your estimate of it; and this you have the power to revoke at any moment.” - Marcus Aurelius
Monday, 10 November 2014
Quote for the day
“A clear vision, backed by definite plans, gives you a tremendous sense of confidence and power.” - Brian Tracy
Sunday, 9 November 2014
The Evolution of the IT Professional
The ongoing technology evolution has hastened the necessity for more skilled IT professionals. The sector's rapid progress has been astounding. By tracing the past, we can see how it has molded the modern professional.
Source: http://www.visualistan.com/
Quote for the day
"I bought a company in the mid-'90s called Dexter Shoe and paid $400 million for it. And it went to zero. And I gave about $400 million worth of Berkshire stock, which is probably now worth $400 billion. But I've made lots of dumb decisions. It's part of the game." - Warren Buffett
Saturday, 8 November 2014
Who's Tracking Your Smartphone?
Companies, government organizations and criminal hackers use intrusive methods to harvest data from smartphones. Worst of all, many of these tactics occur without the smartphone user's knowledge and consent. By following these steps, you can limit the amount of data that can be accessed and travel without your movements being tracked.
Source: http://www.visualistan.com/
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