Quote for the day

"Under capitalism, man exploits man. Under communism, it's just the opposite." - John Kenneth Galbraith

Quote for the day

"A speculator is a man who observes the future, and acts before it occurs." - Bernard Baruch

Quote for the day

"Great investment opportunities come around when excellent companies are surrounded by unusual circumstances that cause the stock to be misappraised." - Warren Buffett

10 Famous Failures That Will Inspire You to Be a Success

By Elizabeth Andal

Failure occurs everyday, in school, jobs, housework, and within families. It is unavoidable, irritating and causes pessimism. While the thought of flinging your hands in the air and walking away is all too appealing, take a second to connect with the people who have been there and survived.

Here are a few successful failures who all failures around the world should consider.

1. J.K. Rowling

During a Harvard commencement speech, Harry Potter author J.K. Rowling outlined the importance and value of failure. Why? Simply because she was once a failure too. A few short years after her graduation from college, her worst nightmares were realized. In her words, “I had failed on an epic scale. An exceptionally short-lived marriage had imploded, and I was jobless, a lone parent, and as poor as it is possible to be in modern Britain, without being homeless. The fears that my parents had had for me, and that I had had for myself, had both come to pass, and by every usual standard, I was the biggest failure I knew.” Coming out of this failure stronger and more determined was the key to her success.

2. Steve Jobs

The now revolutionary Apple started off with two men in a garage. Years later we all know it as a $2 billion company with over 4000 employees. Yet, almost unbelievably, Steve Jobs was fired from the very company he began. The dismissal made him realise that his passion for his work exceeded the disappointment of failure. Further ventures such as NeXT and Pixar eventually led Jobs back to the CEO position at Apple.

“I didn’t see it then, but it turned out that getting fired from Apple was the best thing that could have ever happened to me,” Jobs said in 2005.

Lost your job today? Keep kicking and you could be just like this guy!

3. Bill Gates

Bill Gates was a Harvard dropout. He co-owned a business called Traf-O-Data, which was a true failure.

However, skill and a passion for computer programming turned this failure into the pioneer of famous software company Microsoft ,and the then 31-year-old into the world’s youngest self-made billionaire.

In his own words: “It’s fine to celebrate success but it is more important to heed the lessons of failure.”

This isn’t to say that dropping out of Harvard will make you into a billionaire, but maybe that shiny degree isn’t worth as much as the drive and passion to succeed.

4. Albert Einstein

The word ‘Einstein’ is associated with intelligence and synonymous with genius. Yet it is a famous fact that the pioneer of the theory of general relativity, Albert Einstein himself, could not speak fluently until the age of nine. His rebellious nature led to expulsion from school, and he was refused admittance to the Zurich Polytechnic School.

His earlier setbacks did not stop him from winning the Nobel Prize in Physics in 1921. After all, he believed that “success is failure in progress.” To this day, his research has influenced various aspects of life including culture, religion, art, and even late night TV.

Just because you haven’t achieved anything great yet, doesn’t mean you can’t be an Einstein yourself.

5. Abraham Lincoln

Failing in business in 1831, suffering a nervous breakdown in 1836, defeated in his run for president in 1856, Abraham Lincoln was no stranger to rejection and failure. Rather than taking these signs as a motivation for surrender, he refused to stop trying his best.

In this great man’s words: “My great concern is not whether you have failed, but whether you are content with your failure.”

Lincoln was elected in 1861 as the 16th President of the United States of America.

The amount of rejection you receive is not a defining factor. Success is still within your reach.

6. Michael Jordan

“I’ve missed more than 9000 shots in my career. I’ve lost almost 300 games. 26 times, I’ve been trusted to take the game winning shot and missed. I’ve failed over and over and over again in my life. And that is why I succeed.” This quote by retired basketball legend Michael Jordan in a Nike advertisement speaks for itself.

It would be an easy misconception that Jordan’s basketball skills revolve around natural talent. In fact, in his earlier years, basketball coaches had trouble looking past the fact that Jordan didn’t reach the minimum height. It was years of effort, practice, and failure that made the star we know today.

7. Steven Spielberg

Regarded as one of the most influential filmmakers of all time, Steven Spielberg is a familiar household name. It is surprising to realise therefore that the genius behind Jaws and E.T. had poor grades in high school, getting him rejected from the University of Southern California three times.

While he was in college, he caught the eye of executives at Universal, who signed him as a television director in 1969. This meant that he would not finish his college degree for another 33 years.

Perseverance and acceptance of failure is the key to success, after all. “Even though I get older, what I do never gets old, and that’s what I think keeps me hungry.” Bad grades in high school aside, there is no questioning the genius involved.

To date, Spielberg has directed 51 films and has been awarded three Oscars.

8. Walt Disney

Mickey Mouse creator Walt Disney dropped out of school at a young age in a failed attempt at joining the army. One of his earlier ventures, Laugh-o-Gram Studios, went bankrupt due to his lack of ability to run a successful business. He was once fired from a Missouri newspaper for “not being creative enough.”

Yet today, The genius behind Disney studios is responsible for generations of childhood memories and dreams. From Snow White to Frozen, Disney will continue to entertain the world for generations to come.

The logic behind this is simple: “… we don’t look backwards for very long. We keep moving forward, opening up new doors, and doing new things, because we’re curious… and curiosity keeps leading us down new paths.”

9. Vincent Van Gogh

During his lifetime Vincent Van Gogh suffered mental illness, failed relationships, and committed suicide at the age of 37.

He only ever sold one painting in his life, pinning him a failure as an artist. However that did not put a damper on his enthusiasm and passion for art.

He would never know that years and years after his death he would become known as a key figure in the world of post-impressionism, and ultimately, one of the greatest artist that ever lived. He would never know that he became a hot topic in art classes and his image was going to be used in TV, books and other forms of popular culture.

In the words of this great, but tragic man, “If you hear a voice within you say ‘you cannot paint,’ then by all means paint, and that voice will be silenced.”

10. Stephen King

As a paranoid, troubled child, tormented by nightmares and raised in poverty, it is no surprise that Stephen King grew up to the title: “Master of Horror”.

An addiction to drugs and alcohol were his mechanisms to cope with the unhappiness he felt with his life. The frustration he felt towards multiple rejections by publishers in combination with illicit substances caused him to mentally contemplate violence towards his own children.

These intense emotions were those that he focused onto his writing. This became his new coping mechanism, and this is how the master author we know today grew to success.
Source: www.lifehack.org

Quote for the day

"You can be a victim or you can be rich, but you can't be both. Listen up! Every time, and I mean every time, you blame, justify, or complain, you are slitting your financial throat." - T. Harv Eker

Growth Mindset vs. Fixed Mindset

Quote for the day

"I remember saying to my mentor, 'If I had more money, I would have a better plan.' He quickly responded, 'I would suggest that if you had a better plan, you would have more money.' You see, it's not the amount that counts; it's the plan that counts." - Jim Rohn

What Is The Best Trading Method?

By Stephen Burns

“You don’t trade the markets; you only trade your beliefs about the markets.” – Van Tharp

Just like there is no ‘Holy Grail’ trading system that never loses, there is also not one ‘best’ trading method.

All trading methods have good points and bad points with advantages and disadvantages.

Many traders make the mistake of thinking their way is the best and only way to trade. In my experience, I have made money through multiple trading methods and seen other traders do the same. The real keys to profitable trading is in risk management, reactive technical analysis, and discipline not in a specific time frame. There is good news and bad news about every trading methodology. It is not about finding the right trading methodology it is about finding the right trading methodology for you. It has to fit the amount of screen time you can spend trading, your personality, risk tolerance, and account size. It’s not the time frame that you pick to trade that determines your success, but your work in back tests and research of the price action in that historical time frame that makes all the difference.

Day traders: The good news is that you have no overnight risk. The bad news is most day traders watch the market action almost all day long and day trading is the most stressful type of trading for most people. It requires lots of screen time and quick reflexes to take entries and exits.

Trend followers: The good news is that you will be on the right side of major market trends, and you will not have to take very many entries and exits. The bad news is that you will not make money in trendless and choppy markets. Many trend following systems even underperform in range bound markets.

Swing traders: The good news is you are profitable more times than not buying at high probability supports and shorting into resistance levels. The bad news is that in trending and parabolic markets you have to take stop losses quickly or risk big moves against you.

Growth Investors: The good news is that you can buy the stock in a company you study and see the high probability that it will continue to grow, and have rising profits and sales to drive the stock price up. You can make a lot of profits by being in the right company in a bull market. The bad news is that in bear markets the downward storm sinks all ships, even the strongest ones.

Option traders: The good news is that you can control your total risk of loss through contract size, and at the same time capture a move through leverage. The bad news is that options can expire worthless, or go to near zero while you are holding them. Also with options you have to be sure that they are liquid enough to trade, or the bid/ask spread will be very expensive in entering and exiting them. Also, with options, you have to be right about the direction of the move and the time period in which it will take place.

The right question is “What is the best trading method for you?” The best trading method is one that you can stick with and trade over the long term. You need a method that fits who you are and what you want to accomplish as a trader.

Source: www.newtraderu.com

Quote for the day

"Our incomes are like our shoes; if too small, they gall and pinch us; but if too large, they cause us to stumble and to trip." - John Locke

The 10 Commandments of Emotional Intelligence

These 10 rules will help you make emotions work for you, instead of against you.

Emotional intelligence is the ability to identify emotions (in both yourself and others), to recognize the powerful effects of those emotions, and to use that information to inform and guide behavior.

It begins with learning how emotions work, but it goes much further. Specifically, how do you start putting that knowledge into practice?

That's the topic of my forthcoming book, EQ, Applied: The Real World Guide to Emotional Intelligence. If you'd like a sneak peak, consider how heeding the following "10 commandments" can make emotions work for you, instead of against you.

I. Thou shalt ponder thy feelings.

Emotional Intelligence begins by learning to ask the right questions, like "What is my current mood, and how might that influence my decisions today?" or "What are my strengths and weaknesses?"

This is one way to begin building self-awareness, which will yield valuable insights that can be used to your advantage.

II. Thou shalt learn from other perspectives.

When listening to others, don't focus on right or wrong; rather, work to understand how perceptions differ, and the reasons behind this.

That includes learning to take negative feedback, which can expose blind spots and lead to self-improvement.

III. Thou shalt learn to "pause."

"The pause" is as simple as taking a moment to stop and think before you act or speak. (But beware: While easy in theory, it's difficult to practice.)

Don't expect perfection. But practice consistently, and the pause will prevent you embarrassment and could save countless relationships.

IV. Thou shalt practice empathy.

Instead of judging or labeling others, work hard to see things through their eyes. Ask questions like, "Why does this person feel this way?" and "What's going on behind the scenes?"

Do this, and you'll enjoy a clearer understanding of the world around you, and build deeper, more connected relationships.

V. Thou shalt praise others.

By focusing on the good in others, and then specifically telling them what you appreciate, you inspire others to be the best version of themselves.

VI. Thou shalt apologize.

"I'm sorry" can be the two most difficult words to say. But they can also be the most powerful.

Acknowledge your mistakes and apologize when appropriate, and you'll develop qualities like humility and authenticity, naturally drawing others to you.

VII. Thou shalt forgive.

Refusing to forgive is like leaving a knife in a wound--you never give yourself the chance to heal.

Instead of hanging on to resentment while the offending party moves on with his or her life, forgiving gives you the chance to move on, too.

VIII. Thou shalt not freeze others in time.

Refuse the temptation to judge others too quickly, without considering context and extenuating circumstances. Remember that everyone has a bad day (or even a bad year).

Instead, make it a practice to consistently and honestly re-evaluate your relationships, and you'll be sure to get the most out of them.

IX. Thou shalt control thy thoughts.

When you experience a negative situation, you may not have much control over your feelings. But by focusing on your thoughts, you can control your reaction to those feelings.

As the saying goes: "You can't stop a bird from landing on your head. But you can keep it from building a nest."

When you focus on your thinking, you resist becoming a slave to your emotions. Instead, you acknowledge those feelings and can then move forward in a way that's in harmony with your goals and values.

X. Thou shalt not stop learning.

Emotional intelligence isn't about achieving perfection, or reaching a certain level of "EQ." It's about continuous learning and growth.

Yes, it's often when you feel you've "mastered" one of these 10 commandments that you will make your greatest mistakes. But it is how you handle those mistakes that will determine just how emotionally intelligent you truly are.

Source: www.inc.com

Quote for the day

"Intelligent people make decisions based on opportunity costs." - Charlie Munger

Quote for the day

"Difficulty creates the opportunity for self-reflection and compassion." - Suzan-Lori Parks

Quote for the day

"In every crisis, if you look carefully, you will spot an opportunity. My insistence is on finding and seizing that opportunity. I never try to side-step a crisis. Rather, the more monstrous the crises, the more I am tempted to rush at it, grasp it by the horns and man-oeuvre it until it gives me what I want" - Verghese Kurien

Quote for the day

"Wherever there is danger, there lurks opportunity; whenever there is opportunity, there lurks danger. The two are inseparable. They go together." - Earl Nightingale

Risk, fear and worry - (Apply to trading too)

They're not the same.

Risk is all around us. When we encounter potential points of failure, we're face to face with risk. And nothing courts risk more than art, the desire to do something for the first time--to make a difference.

Fear is a natural reaction to risk. While risk is real and external, fear exists only in our imagination. Fear is the workout we give ourselves imagining what will happen if things don't work out.

And worry? Worry is the hard work of actively (and mentally) working against the fear. Worry is our effort to imagine every possible way to avoid the outcome that is causing us fear, and failing that, to survive the thing that we fear if it comes to fruition.

If you've persuaded yourself that risk is sufficient cause for fear, and that fear is sufficient cause for worry, you're in for some long nights and soon you'll abandon your art out of exhaustion. On the other hand, you can choose to see the three as completely separate phenomena, and realize that it's possible to have risk (a good thing) without debilitating fear or its best friend, obsessive worry.

Separate first, eliminate false causation, then go ahead and do your best work.

http://sethgodin.typepad.com/

Quote for the day

"Courage is the greatest of all virtues, because if you haven't courage, you may not have an opportunity to use any of the others." - Samuel Johnson

Assad's Rules of Trading

Trading rule No 1: Never chase. Forget about the Dollar loss for a moment as the real damage comes from the distraction it creates.

Trading rule No 2: Wait for the break. Most traders buy inside the range, get impatient and as a result they sell on first sign of strength which ends up being the breakout.

Trading rule No 3: Don't ride the ticks and Dollar profits. It creates emotional turmoil and is draining. Prevention is best cure. Takes the fun out of the game.

Trading rule No 4: Price action trumps everything. Management lie or mislead but price action (money flow) never lies.

Trading rule No 5: Sell the news or a least sell partials. Markets discount everything and over the long run you will be better off.

Trading rule No 6: Always stay in control. Do NOT put yourself in news related coin toss trades, where the risk cannot be managed.

Trading rule No 7: Mind your own business, avoid conflict. If you take offence because someone has disagreed with your trade, then you are such a precious little petal.

Trading rule No 8: Do NOT set targets as all this creates is a premature EXIT. Run a trailer and let that take you out.

Trading rule No 9: Minimise whipsaw at all costs. It's a trader killer. The root cause of trading failure more often than not, starts with whipsaw.

Trading rule No 10: Do NOT buy stretched breakouts. More often than not they recoil back into the range to flush traders out.

Trading rule No 11: Start will long term charts and look to catch major breaks/moves. These tend to follow through and it makes it easier to run with winners.

Trading rule No 12: DO NOT trades Forex short-term. It is a mugs game, news driven by central banks. It is like betting on the greyhounds.

Trading rule No 13: Turn trading rules into habit. There is no point in having trading rules if you don't apply them!

Trading rule No 14: And the most important; only tell your wife about your losers. :-)

Trading rule No 15: Hit those stops, no questions asked. Hitting your stop and watching a stock rally hurts but not htting your stop and watching the stock fall hurts a hell of alot more.

Source: http://www.asenna.com.au/

Quote for the day

"Next to knowing when to seize an opportunity, the most important thing in life is to know when to forego an advantage." - Benjamin Disraeli

Quote for the day

"A good opportunity is seldom presented, and is easily lost." - Publilius Syrus

Quote for the day

"Progression and achievement belong to those who have learned to use the opportunity of now. Our strides of today will determine our locations tomorrow." - Marvin J. Ashton

Quote for the day

"We are all here for some special reason. Stop being a prisoner of your past. Become the architect of your future." - Robin Sharma

Quote for the day

"You were born to win, but to be a winner, you must plan to win, prepare to win, and expect to win." - Zig Ziglar

Quote for the day

"Everyone seems to have a clear idea of how other people should lead their lives, but none about his or her own." - Paulo Coelho

Quote for the day

"One cannot and must not try to erase the past merely because it does not fit the present." - Golda Meir

Quote for the day

"Successful investing professionals are disciplined and consistent and they think a great deal about what they do and how they do it." - Benjamin Graham

10 Signs You're an Average Trader

If you scored 10/10 then you've definitely got room for improvement! Here’s an explanation for this top 10 list:

1. You have no trading plan – you need to treat your trading like a business and plan how you’re going to trade. If you don’t have a trading plan, then Google for it, there are loads of free resources out there to get you started.
2. You have no money management rules – You can start with the 1% rule and work from there. Calculate your risk for each trade and ensure it’s 1% or less of your trading capital.
3. You’re prone to emotional swings – If you feel tremendous excitement when you win a trade, then something’s wrong. Sure at first it’s exciting, but after a while your trading just becomes a process and the emotional aspects should start to fade.
4. You’re nervous when in a trade – This is usually a result of trading too big for your account size. See point 2.
5. You try to predict rather than react – Leave the predictions for the economists. For every trade have a thesis for how you’re going to respond for different scenarios. Think in terms of “if x then y” type statements instead.
6. You revenge trade – The market doesn't give a shit if you win or lose. Who are you having revenge on? This is more likely a result of you’re own unconscious desire to blow up your account and to go back to doing whatever it was before you played around in the markets.
7. You don’t cut your losses fast enough – Don’t just wait for your trade to “bounce back”, man up and take the loss. You can always re-enter if you see a good set-up.
8. You watch every tick – Watching price action and reading the tape are important, but you should be able to multi task and not just stare at level 2 all day. Only watch the tape when you’re about to place a trade or exit, or at other levels you've set alerts for. Let your platform to watch every tick for you.
9. You never review your trades – If you’re an emotional trader, then this part of the process is the most boring for you. But if you've been trading for a while and want to get the most out of your system/strategy, then this is where you can make some good improvements. Just finding one tweak to either your entries/exists or position sizing or indicator set-up can really pay and boost your P&L.
10. You’re losing MONEY – Sure, we all have losing trades (except some uber gurus), it's part of the game. But if you’re losing money consistently, then chances are you've got to fix something from the list above.

This isn't an exhaustive list and even if you ticked a few boxes, then all is not lost. There are as many ways to successfully trade the markets as their are market participants. As with most things, you need experiment with different approaches, keep what works and change what doesn't.

Source: http://www.tradingmemes.com/

Quote for the day

“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.” - Robert Kiyosaki

Quote for the day

“A lot of people with high IQs are terrible investors because they’ve got terrible temperaments. You need to keep raw, irrational emotion under control.” - Charlie Munger

Journey of Success

Quote for the day

“You get recessions, you have stock market declines. If you don’t understand that’s going to happen, then you’re not ready, you won’t do well in the markets.” - Peter Lynch

Find out: Which investor you shouldn't be

Your investment style is an extension of your own personality. A calmer demeanour would most probably have a conservative approach to investing and would choose safer deposits over riskier returns. Their approach would be in stark contrast to the route adopted by the hyper lot who take risks hoping it results in higher returns. And there are also those that are comfortable with striking a balance between risk and return: the moderates.

No matter which style of investing you choose for yourself, there are a few personality traits that are best kept away when managing your money. So, while it is very interesting to note the kind of investor that you are (or could be), it is probably more enlightening to realize the kind of investor that you should never turn into. Here are three types of investors that you should be wary of: (We hope they don't seem familiar to you!)

The Hoarder
Its one thing to stock up on the best sales in town, but it’s really quite another to pack your house with so much that you probably have to sleep on the porch! That’s precisely the problem with the Hoarder.

Characteristic: He is so carried away with accumulating all possible investment avenues that he simply doesn't have the time to focus on reviewing his portfolio and is most often stuck with funds that he could do without. His portfolio would probably resemble a sort of supermarket of funds, complete with a section on new launches (NFOs) and cash-backs (Dividend paying funds). On the face of it, the Hoarder might seem like the eternal optimist, clinging on to a fund even when it has repeatedly disappointed over the years.

However, do not confuse his lack of reviewing to be optimism. The only real reason that the Hoarder stays with a poor performing fund is because he is too busy adding some more to his portfolio.

Word of Advice: Dear Hoarder, don't make your investment strategy an end-of-season sale. Remember, the only things that can grow in a hoarded space are Cobwebs. May be its time for you to clean out the closet!

The Bundle of Nerves
The Bundle of Nerves is always looking for the slightest movement in the market to drive him into action, either to add a new fund or to let go of an old one. Keeping his portfolio constant is not his style. And, yes, he keeps his financial advisor on his speed dial.

Characteristic: The Bundle of Nerves doesn’t need caffeine to stimulate him; a minor market fluctuation should do the trick. He believes that “Change” (or rather Churn) is the key to having a successful portfolio. An avid follower of investment shows, stock market predictions and financial channels’ minute-by-minute update, the Bundle of Nerves needs to see constant movement in his investments to feel at ease – either by increasing or reducing the number of his funds. The Bundle of Nerves lacks the most important skill in investing: Patience!

Word of Advice: Dear Bundle of Nerves, that uncomfortable, edgy feeling that you go through every time the markets move isn't going anywhere -- until you do something about it. It's time to figure out if the constant changes are worth keeping you up and pacing the floor at all hours. May be it’s time to slow down a little. The next time you think of a portfolio shuffle, count to three. Thousand.

The Sitting Duck
The Sitting Duck is just plain nice! Financial jargon does not make sense to him, and write-ups in financial dailies appear alien, and none of the financial expert columns he wrote to relevantly answered his query, yet he is more worried about not doing enough to be an ideal investor to an omnipotent and benevolent advisor.

Characteristic: The Sitting Duck is excited about investing, and he trusts blindly. Most first time investors believe that their financial advisor or investment guru will have an answer for absolutely everything related to investments. It takes them a while to understand that their advisor too is human, and that it is only human to err. It helps to note that the part in the discussion where the investor is asked for his views on the proposed “get-rich-quick” plan also offers scope for refusal. The Sitting Duck fails to see that a proposal proposes, and that he has the absolute right to dispose of it.

Word of Advice: Dear Sitting Duck, if it feels like you're being cheated and looks like you're being cheated, take it for granted. You are being cheated. Don't let it continue. The next time you sit with your advisor to discuss a new plan, keep your cell phone handy, and have a friend call you. It's up to you to decide whether it's an 'emergency' or 'a wrong number.'

While every individual has different objectives, beliefs and level of knowledge, whatever type of investor you are, we hope you are not a hoarder, a bundle of nerves or a sitting duck. We've told you about what type of an investor you should not be, so let’s focus on traits you can follow to become an ideal investor:

- Adopt a long-term perspective when it comes to investing your hard earned savings. Assess your income and the financial goals you would like to achieve, also understand the level of risk you are willing to take.

- Once you have decided the amount you want to invest, and calculated the risk you can take, choose the investment product carefully.

- If you are investing through an advisor, ensure that he is focused on your financial objectives, and is not trying to work on his goals at your expense. Before you sign the dotted line, make sure to ask your financial advisor some important questions.

- As a long-term investor, you shouldn't panic when your investments experience short-term movements. When tracking the activities of your investments, you should look at the big picture instead of small hurdles.

- And most importantly, remember that there are many ways to be successful and no one strategy is inherently better than any other. However, once you find your style, stick with it.

There are exceptions to every rule, but we hope that these tips and common-sense principles we've discussed do benefit you. Remember, just as your personality reflects in your investment style, the success of your investments would reflect in your lifestyle. Be a confident, sensible and long term investor.

Happy Investing!

Edited Article from http://www.moneycontrol.com

Quote for the day

“The person who starts simply with the idea of getting rich won’t succeed; you must have a larger ambition.” - John D. Rockefeller

The Blind Traders and the Market

There is an old parable known as “the blind men and the elephant.” In this story, there are four blind men who are asked to determine what an elephant looks like. The first blind man feels the leg of the elephant and says, “The elephant is like a tree because it is large and round like a pillar.” The second man feels the tail and says, “The elephant is like a rope because it is small and coarse.” The third man feels the ear and says, “The elephant is like a fan because it is flat and thin.” The fourth man feels the trunk and says, “The elephant is like a snake because it is long and curves.” 

A king comes to the four blind men and says, “all of you are correct.” The king goes on to explain that each one had drastically different descriptions of the elephant because they are all feeling different parts. So, they are all correct. The elephant has all the features described by the four blind men.

This parable is a good analogy describing different types of profitable traders. Many of the arguments that erupt between traders on social media are due to not understanding the others time frames or not understanding the other trader’s position sizing, stop loss level, or expected winning percentage. Also too many cult members of Elliot Wave, Trend 

Following, Market Profile, Day Traders, and option traders etc. think their way of trading price action is the only way when their way is only one of many paths to profitability. 

There are as many ways to trade price action to be profitable as there are profitable traders.

The elephant in the room is that profitable traders do a few things in common:

• They manage their losses to keep them small regardless of their winning percentage.

• They trade position sizes that bring their potential risk of ruin through a string of losses to virtually zero.

• They are an expert in their own profitable strategy.

• Their emotions are not used in trading decisions.

• Their ego does not pick position sizing, entries, or exits.

• They go with the flow of what is actually happening not what they want to happen.

• They trade a robust methodology.

• They do the work required to be successful.

• They are comfortable with what they are doing.

• Their trading fits their risk tolerance and personality.

Many profitable traders only see the aspects of the markets that make them profitable. Seeing the full dynamics of the markets and all the opportunities to make money is a step toward enlightenment.

Quote for the day

“This company looks cheap, that company looks cheap, but the overall economy could completely screw it up. The key is to wait. Sometimes the hardest thing to do is to do nothing.” - David Tepper

Top Ten Side Effects of Greedy Trading

"Greed is so destructive. It destroys everything." – Eartha Kitt

If I was a trading doctor I would look for these 10 symptoms in a trader before I diagnosed them as a greedy trader. Greedy trading can result in blindness to danger, dizziness for profits, and a loss of trading capital. Look for these ten warning signs:

1. Greed causes the trader to only look at the best case scenario for profits and ignore the worst case scenario for losses in every trade.

2. Greedy traders trade WAY to big a position size.

3. A Greedy trader’s #1 priority is getting rich quick while ignoring the risk of ruin.

4. Traders that are greedy tend to believe they can have returns bigger than the best traders in the world right at the beginning.

5. Greed makes traders have absurd targets for their trades.

6. Greedy traders tend to buy stocks that are down 50% believing they will double and go back to where they were.

7. Greed distorts a trader to focus on the money not the homework involved to make the money.

8. Traders take trades where the odds are way against them because of the greed of wanting to make huge returns on one trade. (Far out of the money options)

9. Greedy traders trade with no plan and no method they are just pursuing profits randomly.

10. Greedy traders are always looking for the easy path to money not to the real path of hard work and experience.

Source: http://newtraderu.com

Quote for the day

“Investing puts money to work. The only reason to save money is to invest it.” - Grant Cardone

The 5 Pillars of Financial Health

By Mark Mikhael

Getting on your feet financially isn't rocket science. It's simple, but it requires a proactive and persevering mindset. Here are five principles that apply to every person on the planet when it comes to their financial health. I call it the BISEED and you'll see why.

1. Budget

The first step to taking charge of your finances is understanding where your money is coming from and where it's going. Once you've painted this financial landscape of your situation, you'll be ready to strategically move forward, get out of debt, and go further. The second step of budgeting, has to do with deciding what's a priority, how you can spend less on expenses, and then plan and project your short and mid-term financial situation. There's nothing new here. But then again, most people get budgeting right and then just stop. That’s a financially fatal mistake!

2. Invest

Your budget may not look great. Money-sucking-black-holes (personal loans!), high mortgages and lots of unexpected expenses makes you wonder, “How in the world am I ever going to get out of this!?” Glad you asked: make your money work for you. This is also how you break free from the mentality that money buys you things. Money's power isn't in how much it can buy—and really, it can never buy the most important things of life; love, joy and health—but money's power rests in it’s ability to be multiplied. That’s what investing is: money multiplying.

How do you invest then? You first invest by giving because that breaks the powerful hold of money on you. And then, wherever you are, whatever the economic situation and whatever your budget—invest in any of the millions of ways you can.

Now, most people just jump in the water without knowing how to swim. Why traumatize yourself? Before you invest, spend time—days, weeks, even months—learning about investing and exploring opportunities that come your way.

3. Save

But never for the long term! Saving cash in an account will always generate a loss—we're talking years here. But saving is an excellent strategy, not to build wealth, but to reach specific, short and mid-term goals. Saving is also good to smooth out the rough edges of your monthly and yearly budgeting cycle, as life happens and that means many unexpected expenses arise.

4. Entrepreneurial Endeavours (EEs)

A huge lie many people swallow is the belief that they're not cut out to start or run a business. They come up with all sorts of excuses to convince themselves this, but the truth is, it's all about what you are willing to do and learn. Being an entrepreneur is different from being an investor, because you are doing the work that you love, preferably, to earn money. Many times people jump into EEs because they have no other choice, but why wait till the pressure builds like that? (Speaking of which, I highly recommend the great movie Joy!) And why deny yourself the personal rewards of running a business? There are a virtually infinite number of ways you can start engaging in EEs. Whether you start something on the side or even grow further to the point where you quit your day job, dream big, and enjoy the journey!

5. Debt

Debt is last because if you focus on debt, it's bound to bring you down, down, down. So before you drown, face your dragons head on. Debt is just a number, it's not who you are. Speaking of dragons, why are you in debt? Because you spend more than you earn. So, the answer is easy, right? Spend less! Not really. Go out there and invest and make business. You're most powerful weapon is your mind, so exercise and nurture it to grow financially. That said, the real way to get out of debt is to both increase your income (investing and EE's or even getting a better job) AND spending less.

BISEED. Buy Seed. That's what money is. It's a seed, and like the seeds you sow, when handled correctly, money will multiply.

Here's to your bright financial future! Cheers.

Source: http://www.lifehack.org/

Quote for the day

“The individual investor should act consistently as an investor and not as a speculator.” - Ben Graham

Quote for the day

“Formal education will make you a living; self-education will make you a fortune.” - Jim Rohn

Quote for the day

“A market downturn doesn’t bother us. It is an opportunity to increase our ownership of great companies with great management at good prices.” - Warren Buffett

Quote for the day

"Diligence is the mother of good luck." - Benjamin Franklin

Quote for the day

"Shallow men believe in luck. Strong men believe in cause and effect." - Ralph Waldo Emerson

Quote for the day

"Only when you combine sound intellect with emotional discipline do you get rational behavior." - Warren Buffett

20 Trading Wisdom Thoughts

1. Be faithful & honest with yourself in your trading, be diligent & consistent & it will bring you Prosperity.

2. Those who work their plan will prosper, but those who chase fantasies lack judgment.

3. Steady plodding brings prosperity; hasty speculation brings poverty.

4. Those who want to do right will get a rich reward. But those who want to “get rich quick” will quickly "fail".

5. Trying to “get rich quick” is wrong & leads to poverty.

6. Wealth taken from gambling quickly disappears; wealth from diligent effort & hard work grows.

7. Follow the rules & keep your financial life intact; ignoring them means financial ruin.

8. A person without self-control is as defenseless as a city with broken-down walls.

9. The wise control their temper. They know that anger causes mistakes.

10. The intelligent are always open to new ideas, in fact they look for them.

11. Get all the advice that you can & be wise all the rest of your life.

12. Fools despise advice; ‘the wise’ consider each suggestion.

13. Fools think they need no advice, but ‘the wise’ listen to others.

14. To learn, you must want to be taught. To refuse correction is stupid.

15. Anyone willing to be corrected is on the path to success. Those who refuse correction have lost their chance.

16. Hard work brings prosperity; playing around brings poverty.

17. If you love sleep, you will end up in poverty. Stay awake, work hard, & there will be plenty to eat.

18. The foolish will lose in the end, ‘the wise’ will end up with the winnings.

19. The wise save up for the future, but the foolish spend whatever they get.

20. Truth stands the test of time; lies are soon exposed.

Source:http://tradingconceptsinc.com