Monday 28 February 2022
Quote for the day
"The difference between impossible and possible is a willing heart." - Lolly Daskal
Sunday 27 February 2022
Quote for the day
"Endurance is not a desperate hanging on but a traveling from strength to strength." - Eugene Peterson
Saturday 26 February 2022
Are You A Bull Or A Bear?
Casual acquaintances who come to learn know I trade for a living (something I rarely volunteer without being asked) will always ask whether I’m a bullish or bearish on the market or economy. My reply often irritates them when I say “I'm neither one – I'm just an opportunist.”
What I mean by that is that I go out of my way to avoid placing myself into a neat and tidy category that can influence my analysis of the markets and the stocks I trade. Although I'm far from perfect and sometimes let my opinions cloud my judgment (I am human after all), I do really try to do everything I can to look for opportunities on both sides of the market.
Many investors and also traders try to fit themselves into one neat category based on their opinions or of others who've they have come to respect. Even worse, those views are frequently tainted by how their portfolio is currently positioned (people want to be right after all) which can be both dangerous and quite unprofitable.
Believe it or not, some of the most profitable trades I've taken have been ones that run contrary to my personal views.
Case in point, I know several traders who are struggling now because they are very bearish about the market. While in principle I agree many of their views, I cannot let those views cloud both my analysis and trading. While I'm fairly certain there will be a time when their views will be proven correct, in this business timing is everything. Opinions after all, don't pay the bills – only profitable trades do!
As you'll soon learn if you haven't already, there is no difference between being “early” and “wrong” in this market. Likewise, it pays to remember there were lots of hedge funds that went broke prior to March of 2000 because they shorted all of the Internet and tech stocks. These guys were proven to be right on the money much later on, but in reality they never were able to take full advantage of it because they lost so much money before the bear returned.
Remember this – in trading it isn't about who is right or wrong. Instead it is all about who can make money and take advantage of the most opportunities in the present. Opinions are terrific things, but in most cases, you would be wise to set them aside and trade the market you see rather than the market you think you should or want to see.
By Charles E. Kirk
http://www.kirkreport.com
What I mean by that is that I go out of my way to avoid placing myself into a neat and tidy category that can influence my analysis of the markets and the stocks I trade. Although I'm far from perfect and sometimes let my opinions cloud my judgment (I am human after all), I do really try to do everything I can to look for opportunities on both sides of the market.
Many investors and also traders try to fit themselves into one neat category based on their opinions or of others who've they have come to respect. Even worse, those views are frequently tainted by how their portfolio is currently positioned (people want to be right after all) which can be both dangerous and quite unprofitable.
Believe it or not, some of the most profitable trades I've taken have been ones that run contrary to my personal views.
Case in point, I know several traders who are struggling now because they are very bearish about the market. While in principle I agree many of their views, I cannot let those views cloud both my analysis and trading. While I'm fairly certain there will be a time when their views will be proven correct, in this business timing is everything. Opinions after all, don't pay the bills – only profitable trades do!
As you'll soon learn if you haven't already, there is no difference between being “early” and “wrong” in this market. Likewise, it pays to remember there were lots of hedge funds that went broke prior to March of 2000 because they shorted all of the Internet and tech stocks. These guys were proven to be right on the money much later on, but in reality they never were able to take full advantage of it because they lost so much money before the bear returned.
Remember this – in trading it isn't about who is right or wrong. Instead it is all about who can make money and take advantage of the most opportunities in the present. Opinions are terrific things, but in most cases, you would be wise to set them aside and trade the market you see rather than the market you think you should or want to see.
By Charles E. Kirk
http://www.kirkreport.com
Quote for the day
"All successful people learn that success is buried on the other side of frustration." - Tony Robbins
Friday 25 February 2022
Quote for the day
"If you so choose, every mistake can lead to greater understanding and effectiveness. If you so choose, every frustration can help you to be more patient and more persistent." - Ralph Marston
Thursday 24 February 2022
Quote for the day
"To conquer frustration, one must remain intensely focused on the outcome, not the obstacles." - T.F. Hodge
Wednesday 23 February 2022
Quote for the day
"I’ve come to believe that all my past failure and frustrations were actually laying the foundation for the understandings that have created the new level of living I now enjoy." - Anthony Robbins
Tuesday 22 February 2022
Quote for the day
"Frustration is a very positive sign. It means that the solution to your problem is within range, but what you’re currently doing isn’t working, and you need to change your approach in order to achieve your goal." - Anthony Robbins
Monday 21 February 2022
Quote for the day
"Success isn't always about greatness. It's about consistency, as consistent hard work leads to success, greatness will come." - Dwayne Johnson.
Sunday 20 February 2022
Quote for the day
"It's not what we do once in a while that shapes our lives. It's what we do consistently." - Anthony Robbins.
Saturday 19 February 2022
5 Most Powerful Financial Advice for Beginners in Stock Trading
Beginners in stock investment are often in need of effective advice. These advices are collective wisdom of the top gurus in stock trading investment. I will not be able to named it all because the source is just too many. For details, you can easily Google this up to find out more about the following advice.
If you asked whether its effective or not, yes its effective. But in reality an effective technique is not enough to reap profits. You still need financial education, talent, right attitudes and complete understanding of the stock market to succeed. Take this advice as only a tip of an iceberg, the real hard work still needs to be done in your part.
Advice #1: Aiming for Quick Money is the fastest way to lose BIG amounts of money.
Why? Getting rich quick in stocks is like shooting yourself in your own foot. Why? Its a matter of luck. And this “luck” factor is never been an effective strategy in stocks. Too often you read stories of getting rich quick in stocks, think twice before you believe in them. They are often marketing methods just tempting you to buy their systems.
The best investors in the world which is Warren Buffet takes his entire life to accumulate wealth. And only a very few investors in the world that can match his experience and skills. Why would you want to be rich quick when only a handful of financial experts succeed from their young until the old age?
This is where patience in stock trading is very important. If you read stories about holding to stocks for a very long time to reap profits is a sound advice. Assuming you pick-up a good stock because it will surely appreciate over time. Effective techniques such as cost averaging and long term stock investment needs years to reap its effective financial rewards.
Advice #2: Do not buy stocks with products you do not use
Its simply because if you are buying those products that you really need, it simply proves the company is indeed producing valuable products. This “need” by its customers can cause the stocks company value to increase. For example, I am a marathon runner and all the time, I used to love Nike Shoes because of durability, performance and quality. So when I invest some of my savings in stocks, I would definitely try to invest Nike shoes first, because its the products that I use and love.
Advice #3: Do not buy stocks for businesses you do not understand
Again, all too often you get stock reports from brokers and other financial services tempting you to buy that stock because its the next BIG thing. Simple say NO. Its because that would be a nice trap of investing into a business that you do not understand.
You should only invest in stocks of companies that you know how their business and money making really works. For example, supposing I am a webmaster and knows Google very well. I know that Google makes a lots of money from advertising online and is their main source of revenue. I even use Google products on my site and even make money from Google ads.
So it make sense that if I have an opportunity to invest in stocks, I would definitely pick Google on top of my list. Its the business that I understand.
Advice #4: Always assume you lose all your money in stocks tomorrow
This does not mean you should think negatively. In fact this advice helps you to re-consider risk and money management as a very important tool in stock trading. In financial risk management, it will teach you NOT TO INVEST ALL YOUR MONEY in stocks. The primary reason is security. Stock trading is a random game, you will never know what will happen tomorrow. So this means only invest a percent of your savings in stocks. Investing your entire savings is a big mistake. Typically how much percent depends on how risky you are. You might want to read this tutorial on how much to risk when trading stocks.
A lot of beginning investors in stocks would become bankrupt very soon because they let their entire savings invested in such a high risk environment.
Advice #5: Always Test everything on paper FIRST
You might have read about “paper trading”. Its a very effective tool that will let you test your techniques and trading methods and strategies without using real money. Other types of paper trading online are stock trading games that you could join for free. Most stock brokers have this kind for service. Of course, do not fool yourself. If it seems effective on paper does not mean its “100%” effective on real trading. Why? Its because if you are trading real money-> “greed”, “emotions” and “fear” will be joining your game. Your goal in paper trading is that you should invest in stocks confidently without the emotions, greed or fear being a factor in the decision making.
Source:http://www.stock-trading.me
If you asked whether its effective or not, yes its effective. But in reality an effective technique is not enough to reap profits. You still need financial education, talent, right attitudes and complete understanding of the stock market to succeed. Take this advice as only a tip of an iceberg, the real hard work still needs to be done in your part.
Advice #1: Aiming for Quick Money is the fastest way to lose BIG amounts of money.
Why? Getting rich quick in stocks is like shooting yourself in your own foot. Why? Its a matter of luck. And this “luck” factor is never been an effective strategy in stocks. Too often you read stories of getting rich quick in stocks, think twice before you believe in them. They are often marketing methods just tempting you to buy their systems.
The best investors in the world which is Warren Buffet takes his entire life to accumulate wealth. And only a very few investors in the world that can match his experience and skills. Why would you want to be rich quick when only a handful of financial experts succeed from their young until the old age?
This is where patience in stock trading is very important. If you read stories about holding to stocks for a very long time to reap profits is a sound advice. Assuming you pick-up a good stock because it will surely appreciate over time. Effective techniques such as cost averaging and long term stock investment needs years to reap its effective financial rewards.
Advice #2: Do not buy stocks with products you do not use
Its simply because if you are buying those products that you really need, it simply proves the company is indeed producing valuable products. This “need” by its customers can cause the stocks company value to increase. For example, I am a marathon runner and all the time, I used to love Nike Shoes because of durability, performance and quality. So when I invest some of my savings in stocks, I would definitely try to invest Nike shoes first, because its the products that I use and love.
Advice #3: Do not buy stocks for businesses you do not understand
Again, all too often you get stock reports from brokers and other financial services tempting you to buy that stock because its the next BIG thing. Simple say NO. Its because that would be a nice trap of investing into a business that you do not understand.
You should only invest in stocks of companies that you know how their business and money making really works. For example, supposing I am a webmaster and knows Google very well. I know that Google makes a lots of money from advertising online and is their main source of revenue. I even use Google products on my site and even make money from Google ads.
So it make sense that if I have an opportunity to invest in stocks, I would definitely pick Google on top of my list. Its the business that I understand.
Advice #4: Always assume you lose all your money in stocks tomorrow
This does not mean you should think negatively. In fact this advice helps you to re-consider risk and money management as a very important tool in stock trading. In financial risk management, it will teach you NOT TO INVEST ALL YOUR MONEY in stocks. The primary reason is security. Stock trading is a random game, you will never know what will happen tomorrow. So this means only invest a percent of your savings in stocks. Investing your entire savings is a big mistake. Typically how much percent depends on how risky you are. You might want to read this tutorial on how much to risk when trading stocks.
A lot of beginning investors in stocks would become bankrupt very soon because they let their entire savings invested in such a high risk environment.
Advice #5: Always Test everything on paper FIRST
You might have read about “paper trading”. Its a very effective tool that will let you test your techniques and trading methods and strategies without using real money. Other types of paper trading online are stock trading games that you could join for free. Most stock brokers have this kind for service. Of course, do not fool yourself. If it seems effective on paper does not mean its “100%” effective on real trading. Why? Its because if you are trading real money-> “greed”, “emotions” and “fear” will be joining your game. Your goal in paper trading is that you should invest in stocks confidently without the emotions, greed or fear being a factor in the decision making.
Source:http://www.stock-trading.me
Quote for the day
"With the increasing speed of business in today's economy, transparency isn't just desirable - it's essential." - Michael Thomas Sunnarborg
Friday 18 February 2022
Quote for the day
"Life’s tragedy is that we get old too soon and wise too late." - Benjamin Franklin
Thursday 17 February 2022
Wednesday 16 February 2022
Quote for the day
"If you want to live a happy life, tie it to a goal, not to people or things." - Albert Einstein
Tuesday 15 February 2022
Quote for the day
"Life is not a problem to be solved, but a reality to be experienced." - Soren Kierkegaard
Monday 14 February 2022
Quote for the day
"In three words I can sum up everything I’ve learned about life: It goes on." - Robert Frost
Sunday 13 February 2022
Quote for the day
"Life is ten percent what happens to you and ninety percent how you respond to it." - Charles Swindoll
Saturday 12 February 2022
Quote for the day
"In crucial things, unity. In important things, diversity. In all things, generosity." - George H. W. Bush
Friday 11 February 2022
Quote for the day
"There are two types of people who will tell you that you cannot make a difference in this world: those who are afraid to try and those who are afraid you will succeed." - Ray Goforth
Thursday 10 February 2022
Wednesday 9 February 2022
Tuesday 8 February 2022
Quote for the day
"Experience is not what happens to you--it's how you interpret what happens to you." - Aldous Huxley
Monday 7 February 2022
Quote for the day
"One way to boost our willpower and focus is to manage our distractions instead of letting them manage us." - Daniel Goleman
Sunday 6 February 2022
Quote for the day
"Anyone can be angry--that is easy. But to be angry with the right person, to the right degree, at the right time, for the right purpose, and in the right way--that is not easy." - Aristotle
Saturday 5 February 2022
Quote for the day
"When dealing with people, remember you are not dealing with creatures of logic, but with creatures of emotion." - Dale Carnegie
Friday 4 February 2022
Why Your Trading Isn't Working Out
A good physician knows that, before cure comes a diagnosis. You cannot treat a problem before you identify what that problem is.
All too often, traders assume that their performance problems are due to a single cause: trading the wrong chart pattern or indicator, having the wrong mindset, etc. As a result, they seek out one trading guru or coach after another, only to see their P/L head steadily south.
The reality is that there are quite a few reasons why trading might be unprofitable. Figuring out which might apply to you is the first step is getting the right help.
Here's a fourfold scheme that I have found helpful in conceptualizing trading problems:
1) Problems of training and experience - Many traders put their money at risk well before they have developed their own trading styles based on the identification of an objective edge in the marketplace. They are not emotionally prepared to handle risk and reward, and they are not sufficiently steeped in markets to separate randomness from meaningful market patterns. They are like beginning golfers who decide to enter a competitive tournament. Their frustrations are the result of lack of preparation and experience. The answer to these problems is to develop a training program that helps you develop confidence and competence in identifying meaningful market patterns and acting upon those. Online trading rooms, where you can observe experienced traders apply their skills, are helpful for this purpose.
2) Problems of changing markets - When traders have had consistent success, but suddenly lose money with consistency, a reasonable hypothesis is that markets have changed and what once was an edge no longer is profitable. This happened to many momentum traders after the late 1990s bull market, and it also has been the case for many scalpers after volatility came out of the stock indices. Here the challenge is to remake one's trading, either by retaining the core strategy and seeking other markets with opportunity or by finding new strategies for one's market. The answer to these problems is to reduce your trading size and re-enter a learning curve to become acquainted with new markets and methods. Figuring out how you learned the markets initially will help you identify steps you need to take to relearn new patterns.
3) Situational emotional problems - These are emotional stresses that are recent in origin and that interfere with decision making and performance. Some of these stresses might pertain to trading, such as frustration after a slump or loss. Some might stem from one's personal life, as in a relationship breakup or increased financial pressures due to a new home or child. Very often these problems create performance anxieties by putting the making of money ahead of the placing of good trades. The answer to these problems is to seek out short-term counseling to help you gain perspective on the problems and cope with them effectively.
4) Ongoing emotional problems - These are emotional patterns that predate trading and that show up in areas of life apart from trading. They include depression, anxiety, anger, attention deficits, and substance abuse. Such problems skew how people experience themselves and the world and lead to biases in processing information. As a result, it is difficult to trade (and manage risk) with consistency. The answer to these problems is to seek out competent professional help from a licensed psychologist or psychiatrist, including (possibly) counseling and medication assistance.
The important point is that not all trading problems are psychological in nature. Sometimes we need to work on the markets, sometimes we need to work on ourselves, and sometimes we need to do both. But first of all, we need to identify what our problems are. If you seek help for your trading concerns, make sure you do so from an individual who is experienced in both trading and psychology. If people only possess hammers, they'll treat you like a nail. You want mentors who possess multiple tools and who can design the kind of help that will be right for you.
For the trader, as the physician, diagnosing problems is the first step toward cure.
All too often, traders assume that their performance problems are due to a single cause: trading the wrong chart pattern or indicator, having the wrong mindset, etc. As a result, they seek out one trading guru or coach after another, only to see their P/L head steadily south.
The reality is that there are quite a few reasons why trading might be unprofitable. Figuring out which might apply to you is the first step is getting the right help.
Here's a fourfold scheme that I have found helpful in conceptualizing trading problems:
1) Problems of training and experience - Many traders put their money at risk well before they have developed their own trading styles based on the identification of an objective edge in the marketplace. They are not emotionally prepared to handle risk and reward, and they are not sufficiently steeped in markets to separate randomness from meaningful market patterns. They are like beginning golfers who decide to enter a competitive tournament. Their frustrations are the result of lack of preparation and experience. The answer to these problems is to develop a training program that helps you develop confidence and competence in identifying meaningful market patterns and acting upon those. Online trading rooms, where you can observe experienced traders apply their skills, are helpful for this purpose.
2) Problems of changing markets - When traders have had consistent success, but suddenly lose money with consistency, a reasonable hypothesis is that markets have changed and what once was an edge no longer is profitable. This happened to many momentum traders after the late 1990s bull market, and it also has been the case for many scalpers after volatility came out of the stock indices. Here the challenge is to remake one's trading, either by retaining the core strategy and seeking other markets with opportunity or by finding new strategies for one's market. The answer to these problems is to reduce your trading size and re-enter a learning curve to become acquainted with new markets and methods. Figuring out how you learned the markets initially will help you identify steps you need to take to relearn new patterns.
3) Situational emotional problems - These are emotional stresses that are recent in origin and that interfere with decision making and performance. Some of these stresses might pertain to trading, such as frustration after a slump or loss. Some might stem from one's personal life, as in a relationship breakup or increased financial pressures due to a new home or child. Very often these problems create performance anxieties by putting the making of money ahead of the placing of good trades. The answer to these problems is to seek out short-term counseling to help you gain perspective on the problems and cope with them effectively.
4) Ongoing emotional problems - These are emotional patterns that predate trading and that show up in areas of life apart from trading. They include depression, anxiety, anger, attention deficits, and substance abuse. Such problems skew how people experience themselves and the world and lead to biases in processing information. As a result, it is difficult to trade (and manage risk) with consistency. The answer to these problems is to seek out competent professional help from a licensed psychologist or psychiatrist, including (possibly) counseling and medication assistance.
The important point is that not all trading problems are psychological in nature. Sometimes we need to work on the markets, sometimes we need to work on ourselves, and sometimes we need to do both. But first of all, we need to identify what our problems are. If you seek help for your trading concerns, make sure you do so from an individual who is experienced in both trading and psychology. If people only possess hammers, they'll treat you like a nail. You want mentors who possess multiple tools and who can design the kind of help that will be right for you.
For the trader, as the physician, diagnosing problems is the first step toward cure.
http://traderfeed.blogspot.co.uk
Quote for the day
"Serenity comes from the ability to say yes to existence. Courage comes from the ability to say no to the wrong choices made by others." - Ayn Rand
Thursday 3 February 2022
Quote for the day
"Some people want it to happen, some wish it would happen, others make it happen." - Michael Jordan.
Wednesday 2 February 2022
Quote for the day
"The ability to say no is a tremendous advantage for an investor." - Warren Buffett
Tuesday 1 February 2022
Quote for the day
"Being relaxed, at peace with yourself, confident, emotionally neutral, loose, and free-floating – these are the keys to successful performance in almost everything." - Dr. Wayne W. Dyer.
Subscribe to:
Posts (Atom)