Monday, 30 September 2019
Quote for the day
"Our greatest weakness lies in giving up. The most certain way to succeed is always to try just one more time." - Thomas A. Edison
Sunday, 29 September 2019
Quote for the day
"Don’t let the noise of others’ opinions drown out your own inner voice." - Steve Jobs
Saturday, 28 September 2019
Quote for the day
"Do not be embarrassed by your failures, learn from them and start again." - Richard Branson
Friday, 27 September 2019
Quote for the day
"Don't aim for success if you want it; just do what you love and believe in, and it will come naturally." - David Frost
Thursday, 26 September 2019
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 honors the servant and has forgotten the gift." - Albert Einstein
Wednesday, 25 September 2019
Quote for the day
"The test of a first-rate intelligence is the ability to hold two opposed ideas in mind at the same time and still retain the ability to function." - F. Scott Fitzgerald
Tuesday, 24 September 2019
Quote for the day
"We are still masters of our fate. We are still captains of our souls." - Winston Churchill
Monday, 23 September 2019
Sunday, 22 September 2019
Quote for the day
"Sometimes the most brilliant and intelligent minds do not shine in standardized tests because they do not have standardized minds." - Diane Ravitch
Saturday, 21 September 2019
Quote for the day
"Be as smart as you can, but remember that it is always better to be wise than to be smart." - Alan Alda
Friday, 20 September 2019
Quote for the day
"A smart man makes a mistake, learns from it, and never makes that mistake again.But a wise man finds a smart man and learns from him how to avoid the mistake altogether." - Roy H. Williams
Thursday, 19 September 2019
Wednesday, 18 September 2019
Quote for the day
"If something is wrong, fix it now. But train yourself not to worry, worry fixes nothing." - Ernest Hemingway
Tuesday, 17 September 2019
Quote for the day
"Investment success accrues not so much to the brilliant as to the disciplined." - William J. Bernstein
Monday, 16 September 2019
Quote for the day
"When we strive to become better than we are, everything around us becomes better too." - Paulo Coelho
Sunday, 15 September 2019
Quote for the day
"At the end of the day, you are solely responsible for your success and your failure. And the sooner you realize that, you accept that, and integrate that into your work ethic, you will start being successful. As long as you blame others for the reason you aren't where you want to be, you will always be a failure." - Erin Cummings
Saturday, 14 September 2019
Quote for the day
"The definition of investment is the deferring ofpresent consumption for future consumption. So, you dohave to be willing to defer. And there are a couple of tricks that you can use to save money. One of them is simply to pay yourself first." - William J. Bernstein
Friday, 13 September 2019
Thursday, 12 September 2019
Quote for the day
"I like to encourage people to realize that any action is a good action if it's proactive and there is positive intent behind it." - Michael J. Fox
Wednesday, 11 September 2019
Quote for the day
"We are dying from overthinking. We are slowly killing ourselves by thinking about everything. Think. Think. Think. You can never trust the human mind anyway. It's a death trap." - Anthony Hopkins
Tuesday, 10 September 2019
Quote for the day
"You have to understand what market history looks like. What market history tells you is that the very, very best investments are made when things look the worst." - William J. Bernstein
Monday, 9 September 2019
Quote for the day
"Be nice to people on your way up because you'll meet them on your way down." - Wilson Mizner
Sunday, 8 September 2019
Understanding a Trader’s Emotions
The hardest thing about trading is not the math, the method, or the stock picking. It is dealing with the emotions that arise with trading itself. From the stress of actually entering a trade, to the fear of losing the paper profits that you are holding in a winning trade, how you deal with those emotions will determine your success more than any one thing.
To manage your emotions first of all you must trade a system and method you truly believe will be a winner in the long term.
You must understand that every trade is not a winner and not blame yourself for equity draw downs if you are trading with discipline.
Do not bet your entire account on any one trade, in fact risking only 1% of your total capital on any one trade is the best thing you can do for your stress levels and risk of ruin odds.
With that in place here are some examples of emotional equations to better understand why you feel certain emotions strongly in your trading:
Despair = Losing Money – Trading Better
Do not despair look at your losses as part of doing business and as paying tuition fees to the markets.
Disappointment = Expectations – Reality
Enter trading with realistic expectations. You can realistically expect 20%-35% annual returns on capital with great trading. More than that is possible but unlikely.
Regret = Disappointment in a loss+ Caused by lack of Discipline
If you followed your trading plan and lose money because the market did not move in your direction so be it, but if you went off your plan and traded based on your feelings and opinions then you should feel regret and stop being undisciplined.
Enjoying your Trading = Winning Trades – Fear of Ruin
Trading is much more enjoyable when you are risking 1% of your capital in the hopes of making 3% on your capital with a zero chance of ruin. It is not enjoyable when you are putting a huge percentage of your capital on the line in each trade and are only a few bad trades away from your account going to zero.
Wisdom = Square Root of Experience through years of successful trading
To get good at trading you have to trade real money. Wisdom comes from putting real money on the line for years and proving to yourself that you can come out a winner in the long term.
Faith in your system = Belief through back testing + Experience of winning with it for years
While you have to hold the opinion of whether each trade is a winner or loser it is different for your trading method. A lot of emotional trading can be overcome when you do not have doubts about your method. When you hold an almost religious fervor over believing in your method, system, risk management, and your own discipline you will overcome many of the emotional problems that arise with other traders in the heat of action.
To manage your emotions first of all you must trade a system and method you truly believe will be a winner in the long term.
You must understand that every trade is not a winner and not blame yourself for equity draw downs if you are trading with discipline.
Do not bet your entire account on any one trade, in fact risking only 1% of your total capital on any one trade is the best thing you can do for your stress levels and risk of ruin odds.
With that in place here are some examples of emotional equations to better understand why you feel certain emotions strongly in your trading:
Despair = Losing Money – Trading Better
Do not despair look at your losses as part of doing business and as paying tuition fees to the markets.
Disappointment = Expectations – Reality
Enter trading with realistic expectations. You can realistically expect 20%-35% annual returns on capital with great trading. More than that is possible but unlikely.
Regret = Disappointment in a loss+ Caused by lack of Discipline
If you followed your trading plan and lose money because the market did not move in your direction so be it, but if you went off your plan and traded based on your feelings and opinions then you should feel regret and stop being undisciplined.
Enjoying your Trading = Winning Trades – Fear of Ruin
Trading is much more enjoyable when you are risking 1% of your capital in the hopes of making 3% on your capital with a zero chance of ruin. It is not enjoyable when you are putting a huge percentage of your capital on the line in each trade and are only a few bad trades away from your account going to zero.
Wisdom = Square Root of Experience through years of successful trading
To get good at trading you have to trade real money. Wisdom comes from putting real money on the line for years and proving to yourself that you can come out a winner in the long term.
Faith in your system = Belief through back testing + Experience of winning with it for years
While you have to hold the opinion of whether each trade is a winner or loser it is different for your trading method. A lot of emotional trading can be overcome when you do not have doubts about your method. When you hold an almost religious fervor over believing in your method, system, risk management, and your own discipline you will overcome many of the emotional problems that arise with other traders in the heat of action.
Source: www.newtraderu.com
Quote for the day
"If we're growing, we're always going to be out of our comfort zone." - John C. Maxwell
Saturday, 7 September 2019
The 7 Key Emotions of the Winning Trader
One thing that trips up new traders is that they are surprised at the emotions that flood into them when they begin the process of trading with real money. Their ego engages and they do not want to be wrong and they sure don’t want to lose money. The negative downward emotional spiral takes down more traders than the math, risk management, or markets ever will. Once the negativity begins it is hard to stop, so travel down the right emotional road if you truly want to be a winning trader, here is what that looks like:
Choose the emotions that you participate in carefully.
1.Contentment: The trader must be satisfied that they are trading the right system for their risk tolerance and beliefs about the market.
3. Optimism: Winning traders believe that they are always getting closer to that next big winner.
4. Positive Expectations: To be successful the trader must expect that in the long run his robust system will produce profits and not lose faith during draw downs.
5. Enthusiasm: The winning trader enjoys the trading process and loves playing the game that is the markets.
6. Passion: The traders that end up as the big winners are the ones that have the drive to keep learning, keep growing, and put in the work needed because of the energy that comes from their passion.
7. Empowerment: The best traders in the market can not even imagine doing anything else but trading. They truly get joy from the freedom of being a trader and love what they do.
Source: www.newtraderu.com
Choose the emotions that you participate in carefully.
1.Contentment: The trader must be satisfied that they are trading the right system for their risk tolerance and beliefs about the market.
2. Hopefulness: A trader must have the belief that he will win in the long term and it is worth the effort to capture the future profits.
3. Optimism: Winning traders believe that they are always getting closer to that next big winner.
4. Positive Expectations: To be successful the trader must expect that in the long run his robust system will produce profits and not lose faith during draw downs.
5. Enthusiasm: The winning trader enjoys the trading process and loves playing the game that is the markets.
6. Passion: The traders that end up as the big winners are the ones that have the drive to keep learning, keep growing, and put in the work needed because of the energy that comes from their passion.
7. Empowerment: The best traders in the market can not even imagine doing anything else but trading. They truly get joy from the freedom of being a trader and love what they do.
Friday, 6 September 2019
Thursday, 5 September 2019
Wednesday, 4 September 2019
Quote for the day
"We should not judge people by their peak of excellence; but by the distance they have traveled from the point where they started." - Henry Ward Beecher
Tuesday, 3 September 2019
Monday, 2 September 2019
Quote for the day
"It is impossible for a man to learn what he thinks he already knows." - Epictetus
Sunday, 1 September 2019
Quote for the day
"The successful man will profit from his mistakes and try again in a different way." - Dale Carnegie
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