Trading Wisdom - One Liners

• Look at your trading as a series of probabilities, do not focus on any single profit or loss.

• Want what the market wants.

• Do your homework. Come prepared to each day’s trading.

• Never take a trade on the open in the direction of a that day’s gap.

• Don't risk too much of your trading capital on any single idea.

• Remain flexible.

• Believe what you see. If the market’s going up or down, it’s going up or down.

• Anything can happen. The wildness lies in wait.

• Verify your trading methods or systems.

• Caveat emptor ("Let the buyer beware.") when buying a trading system or hiring a mentor.

• Your own personal psychology will express itself regardless of your chosen method.

• An opinion isn't worth much, your own or someone else’s.

• Watch how the markets react to the news.

• Learn from your mistakes.

• Stay in the now. Don't trade yesterday, today. Don't trade tomorrow, today.

• Don't worry about a missed opportunity. Another one is on the way. Besides there were several that just passed of which you were totally unaware.

• If you don't risk, you can't make money. If you lose all your trading capital, you can’t trade. Find balance.

• Markets don't go in a single direction. The trend will wobble on it’s way to its destination.

• The trend is your friend. Unless you're a counter trend trader, and then only it’s end is your friend.

• Tomorrow’s another day, a whole new trading opportunity. Be optimistic.

• Forgive yourself. Take the lesson, and move on.

Source: Edited Article from - http://www.ruthroosevelt.com

Quote for the day

''Self-discipline begins with the mastery of thought." - Napoleon Hill

Quote for the day

"I believe that through knowledge and discipline, financial peace is possible for all of us." - Dave Ramsey

Quote for the day

"Self-discipline is the ability to make yourself do what you should do when you should do it, whether you feel like it or not." - Elbert Hubbard

Quote for the day

"We must all suffer from one of two pains: the pain of discipline or the pain of regret. The difference is discipline weighs ounces while regret weighs tons." - Jim Rohn

Quote for the day

"Discipline is the refining fire by which talent becomes ability." - Roy L. Smith

Quote for the day

"So long as men praise you, you can only be sure that you are not yet on your own true path but on someone else's." - Friedrich Nietzsche

Five Bear Market Mistakes

By  Neil Faulkner

It's easy to forget the mistakes we make. That's a mistake in itself. Here are five traps to avoid during a bear market.

1. Focusing on our short-term performance
One Fool reader once commented that a long-term, buy-and-hold strategy is a short-term strategy gone wrong. Sometimes that's true, but I think it's fair to say that most investors buy into the market with the aim of making money over years rather than months or weeks.

Indeed, over the next few decades, we're all going to be buying a lot of shares, aren't we? That's why we should be content with prices being low. Remember, it's at the end of the investment life that you get the greatest profits from compounding.

For the same reason, we shouldn't get overly concerned during bear markets. Prices do fall from time to time. Perhaps we'll have some extra cash in that period to invest further in quality shares. Regular investors should like bear markets and shouldn't be too bothered about solid shares under-performing for a while.

2. Becoming enduringly bearish
Who knows when 'the right time' to invest is? Economic indicators are wrong at least as often as they are right, and as mysterious as the Delphic Oracle's mutterings.

Let's say you disagree and want to time the market a little. If it's a rising market then things can quickly look over-priced. Only a madman would get in, wouldn't he? In a falling market, prices could just keep sinking, so you'd be crazy to buy something that's decreasing in value. But now we've reached the bottom and it's climbing again. Or is it? Is this a fake bottom, or a 'dead-cat bounce'? Or a dead-cat's fake bottom? Negativity is insidious, and a bit rude.

If you find yourself constantly negative, you'll worry so much about the right time to invest that you'll miss it by a great margin. The stock market, on average, rises more often than it falls and outperforms other investments (or at least it has historically). On that basis, the best time to invest is always now (or more precisely, as and when you have spare money to invest).

There are extremely rare times when all indicators are overwhelmingly in agreement (including the Delphic Oracle), but in general I don't think we shouldn't worry too much about exactly when we get into the market. It's far more important to ensure you spend most of your time invested and you put in as much money as you can reasonably afford.

3. Believing financial journalists are experts
I'm shooting myself and my colleagues in the feet for you. Hope you appreciate it. Thing is, what sells newspapers is what's happening now, not what's likely to happen to the stock market in 30 years. Papers love to be negative, so in a bear market they're extremely happy.

Journalists are not hired for their moderate views or long-term commitment to improving your wealth. They're hired to sell papers. Anyone who just buys shares and holds them forever isn't going to be all that interested in reading the financial pages on a regular basis, and so journalists don't write for this audience. If they do, the editor deletes the clause 'but...' from the phrase: 'A top economist predicts market crash, but...'

The most successful investors do their own research; they don't rely on papers to make buying or selling decisions.

4. Not spending enough time on your investments
Before you get addicted to buying and selling shares, it's tempting for beginners to just get buying, especially if their friend, mother or local pub landlord says that he's buying this or that share because he can't lose. No one should leap into stock-picking like that.

If you want to invest in a hurry, read up about index trackers and ETFs. Read everything you can on them. Take a look at what people are saying about them on our discussion boards and ask your questions there. It should take you just a few hours a day for a week or two to get comfortable with the idea of them. That's not much effort to lay the foundations of your future financial security.

Once your money is invested relatively safely, you can then take the time to truly learn what on Earth it is you're getting into when you're looking at individual shares. May I suggest you be as cynical about them as you like? Keep digging to find out what's wrong with the company and only then, if you find nothing serious, can you buy. In other words, concentrate on what might go wrong with a share before you consider what might go right. Your wallet will thank you for it.

5. Spending too long on your investments
On the other side, once you've got used to investing it can begin to get you a little too excited. Lots of people check their shares every morning or several times a day.

You know your friend who goes to the gym, and working out is all he talks about? Or how much your other friend talks about just clothes and fashion? You know how boring that is? You know how much you wish they'd just get a life? Well then.

Keep a balance. By not over-doing it, it'll also help you resist the costly temptation to over-trade. But that's going into a sixth mistake, and I just promised you five.
Source: www.fool.co.uk

Quote for the day

"The whole problem with the world is that fools and fanatics are always so certain of themselves, and wiser people so full of doubts." - Bertrand Russell

Quote for the day

"People often say, with pride, 'I'm not interested in politics.' They might as well say, 'I'm not interested in my standard of living, my health, my job, my rights, my freedoms, my future or any future.' ... If we mean to keep any control over our world and lives, we must be interested in politics." - Martha Gellhorn

Quote for the day

"Faith shows assurance while anticipation brings doubt." - Nancy Winningham

Quote for the day

"Hope is like the sun, which, as we journey toward it, casts the shadow of our burden behind us." - Samuel Smiles.

Quote for the day

"If a man will begin with certainties, he shall end in doubts; but if he will be content to begin with doubts, he shall end in certainties." - Francis Bacon

Quote for the day

"Most of our life we spend in anticipation but not in participation." - Debasish Mridha.

Quote for the day

"Fear is pain arising from the anticipation of evil." - Aristotle.

Quote for the day

"I believe there are two ingredients necessary to make every day a masterpiece: decisions and discipline. They are like two sides of the same coin; you could call them 'goal setting' and 'goal getting.' And they can't be separated because one is worthless without the other." - John C. Maxwell

Stock Market Crash - What Happens When the Stock Market Crashes?

To put it simply, the Stock Market is really people, humans who are either a buyer or seller and controlled by emotions. Fear and greed tend to dominate human emotions...and this is what causes a stock market crash or commonly a Crash!

When enough sellers offload a stock because of their own fear of loss based on something they've heard, it will cause the price of that stock to drop. In the event of a disaster or bad news, especially on a global scale, when those sellers panic and sellout on a mass scale, stock prices plummet!

This is what causes a crash...so where does the money go?

When you really think about it - there must be someone willing to buy for a desperate / nervy investor to successfully sell their shares doesn't there?

And if a company has good management, solid financial prospects, and offers a very good ground for investing in before a stock market crash occurs, then what has changed about that company during and after a market crash?

For most companies like that, the only thing that changes is their share price.

For the savvy investor......this represents an awesome buying opportunity. Buy when others are fearful the Warren Buffett saying goes.

So while the novice investor dumps their stock and leaves the market once conditions become undecided or volatile, the savvy investor rubs their hands together in glee. This is the guy who loves a stock market crash, because more often than not, the volatile times are when the best bargains are to be had, just ask Warren Buffett.

Throughout a bear market, the only thing that affects a company's falling share price is the downturn in economic and market conditions. And while we as humans tend to think the good times will never end while we're in them, we also give in to the assumption that when things are bad that they will remain that way forever.

During these conditions, those who are inexperienced, impatient and fearful will often oversell their shares. So a stock market crash is really just a means for transferring funds out of the hands of those who don't know what they are doing and into the hands of those who know exactly what they are doing.

By - Anthony Manly
Source: http://EzineArticles.com

Quote for the day

"You begin to build a better life by determining to make good decisions, but that alone is not enough. You need to know what priorities to set for your life." - John C. Maxwell,

Quote for the day

"Your life changes the moment you make a new, congruent, and committed decision. " - Anthony Robbins

Quote for the day

"Listen to the desires of your children. Encourage them and then give them the autonomy to make their own decision." - Denis Waitley

Quote for the day

"Great decision-making comes from the ability to create the time and space to think rationally and intelligently about the issue at hand." - Graham Allcot,

Quote for the day

"Maturity is the capacity to endure uncertainty." – John Huston Finley

Quote for the day

"Let go of certainty. The opposite isn’t uncertainty. It’s openness, curiosity and a willingness to embrace paradox, rather than choose up sides. The ultimate challenge is to accept ourselves exactly as we are, but never stop trying to learn and grow." – Tony Schwartz

Quote for the day

"If there’s one thing that’s certain in business, it’s uncertainty." - Stephen Covey

Quote for the day

"It is hard to fail, but it is worse never to have tried to succeed." - Theodore Roosevelt

Quote for the day

"Never confuse a single defeat with a final defeat." - F. Scott Fitzgerald

Quote for the day

"You can’t let your failures define you. You have to let your failures teach you." - Barack Obama

Quote for the day

"Failure is nature’s plan to prepare you for great responsibilities." - Napoleon Hill

Quote for the day

"I honestly think it is better to be a failure at something you love than to be a success at something you hate." - George Burns

Quote for the day

"Disappointment is really just a term for our refusal to look on the bright side." - Richelle E. Goodrich

Quote for the day

"Blessed is he that expects nothing, for he shall never be disappointed." - Benjamin Franklin

Quote for the day

"If we will be quiet and ready enough, we shall find compensation in every disappointment." - Henry David Thoreau

Quote for the day

"The habit of saving is itself an education; it fosters every virtue, teaches self-denial, cultivates the sense of order, trains to forethought, and so broadens the mind." - T.T. Munger