5 Trading Lessons from a Market Wizard

By Steve Burns

Top Five Trading Lessons From Market Wizard Dr. Van. K. Tharp from the book “Market Wizards”:

“The composite profile of a losing trader would be someone who is highly stressed and has little protection from stress, has a negative outlook on life and expects the worst, has a lot of conflict in his/her personality, and blames others when things go wrong. Such a person would not have a set of rules to guide their behavior and would be more likely a crowd follower. In addition, losing traders tend to be disorganized and impatient.”

The profitable trader is able to manage stress, has a positive outlook on life and expects the best from themselves and their trading. They take responsibility for their wins and losses. They know who they are and are in touch with their goals. They have specific rules to guide their trading and are organized and patient.

“The simple truth is that most people are risk-aversive in the realm of profits – they prefer a sure, smaller gain to a wise gamble for a larger gain – and risk-seeking in the realm of losses – they prefer an unwise gamble to a sure loss. As a result, most people tend to do the opposite of what is required for success. They cut their profits short and let their losses run.”

Most traders are unprofitable because they take profits quickly but let losers run. Many traders can have a nice winning streak or be profitable in a bull market only to give back their profits with one big loss or lose all their bull market profits during the next bear market.

“Most people approach trading to make a lot of money, and that is one of the primary reasons they lose.”

The best way to go broke fast is try to get rich quick. Trying to speed up the process of big profits usually just leads to huge losses.

“If you are really committed, then not only are you certain that you are doing the right thing, but somehow events just seem to occur to help you.”

If you really want to be a profitable trader only time separates you from your goal. If you do the work, learn, grow, and persevere you will eventually get to where you are going if that is what you truly want.

“The realization that you are responsible for the results you get is the key to successful investing. Winners know they are responsible for their results; losers think they are not.”

Blaming high frequency traders, dumb money, option pinning, market makers, insider traders, or simply “them” for your trading losses is not going to do anything to help your trading. The only real metric to measure whether your trades are good trades is whether you followed your trading rules with discipline. We only control whether we follow or planned entries and exits then the market determines whether we make money or lose money.

Quote for the day

“If you care about ego and I don't, then I will always best you in the end, because ego is an impediment to growth and learning and thus to winning. Real strength is not ability to maintain a prideful self-image, but willingness to completely discard that image in pursuit of a higher goal.” -  Jack Sparrow

11 Secrets of Irresistible People

By Travis Bradberry

Some people, regardless of what they lack--money, looks, or social connections--always radiate energy and confidence. Even the most skeptical individuals find themselves enamored with these charming personalities.

These people are the life of every party. They're the ones you turn to for help, advice, and companionship.

You just can't get enough of them, and they leave you asking yourself, "What do they have that I don't? What makes them so irresistible?"

The difference? Their sense of self-worth comes from within.

Irresistible people aren't constantly searching for validation, because they're confident enough to find it in themselves. There are certain habits they pursue every day to maintain this healthy perspective.

Since being irresistible isn't the result of dumb luck, it's time to study the habits of irresistible people so that you can use them to your benefit.

Get ready to say "hello" to a new, more irresistible you.

1. They treat EVERYONE with respect.

Whether interacting with their biggest client or a server taking their drink order, irresistible people are unfailingly polite and respectful. They understand that--no matter how nice they are to the person they're having lunch with--it's all for naught if that person witnesses them behaving badly toward someone else. Irresistible people treat everyone with respect because they believe they're no better than anyone else.

2. They follow the platinum rule.

The golden rule--treat others as you want to be treated--has a fatal flaw: It assumes that all people want to be treated the same way. It ignores that people are motivated by vastly different things. One person loves public recognition, while another loathes being the center of attention.

The platinum rule--treat others as they want to be treated--corrects that flaw. Irresistible people are great at reading other people, and they adjust their behaviour and style to make others feel comfortable.

3. They ditch the small talk.

There's no surer way to prevent an emotional connection from forming during a conversation than by sticking to small talk. When you robotically approach people with small talk, this puts their brains on autopilot and prevents them from having any real affinity for you. Irresistible people create connection and find depth even in short, everyday conversations. Their genuine interest in other people makes it easy for them to ask good questions and relate what they're told to other important facets of the speaker's life.

4. They focus on people more than anything else.

Irresistible people possess an authentic interest in those around them. As a result, they don't spend much time thinking about themselves. They don't obsess over how well they're liked, because they're too busy focusing on the people they're with. It's what makes their irresistibility seem so effortless.

To put this habit to work for you, try putting down the smartphone and focusing on the people you're with. Focus on what they're saying, not what your response will be, or how what they're saying will affect you. When people tell you something about themselves, follow up with open-ended questions to draw them out even more.

5. They don't try too hard.

Irresistible people don't dominate the conversation with stories about how smart and successful they are. It's not that they're resisting the urge to brag. The thought doesn't even occur to them because they know how unlikable people are who try too hard to get others to like them.

6. They recognize the difference between fact and opinion.

Irresistible people handle controversial topics and touchy subjects with grace and poise. They don't shrink from sharing their opinions, but they make it clear that they're opinions, not facts. Whether discussing global warming, politics, vaccine schedules, or GMO foods, irresistible people recognize that many people who are just as intelligent as they are see things differently.

7. They are authentic.

Irresistible people are who they are. Nobody has to burn up energy or brainpower trying to guess their agenda or predict what they'll do next. They do this because they know that no one likes a fake.

People gravitate toward authentic individuals because they know they can trust them. It's easy to resist someone when you don't know who they really are and how they really feel.

8. They have integrity.

People with high integrity are irresistible because they walk their talk, plain and simple. Integrity is a simple concept but a difficult thing to practice. To demonstrate integrity every day, irresistible people follow through, they avoid talking bad about other people, and they do the right thing, even when it hurts.

9. They smile.

People naturally (and unconsciously) mirror the body language of the person they're talking to. If you want people to find you irresistible, smile at them during conversations and they will unconsciously return the favor and feel good as a result.

10. They make an effort to look their best (just not too much of an effort).

There's a massive difference between being presentable and being vain. Irresistible people understand that making an effort to look your best is comparable to cleaning your house before company comes--it's a sign of respect for others. But once they've made themselves presentable, they stop thinking about it.

11. They find reasons to love life.

Irresistible people are positive and passionate. They're never bored, because they see life as an amazing adventure and approach it with a joy that other people want to be a part of.

It's not that irresistible people don't have problems--even big ones--but they approach problems as temporary obstacles, not inescapable fate. When things go wrong, they remind themselves that a bad day is just one day, and they keep hoping that tomorrow or next week or next month will be better.

Bringing it all together.

Irresistible people did not have fairy godmothers hovering over their cribs. They've simply perfected certain appealing qualities and habits that anyone can adopt as his or her own.

They think about other people more than they think about themselves, and they make other people feel liked, respected, understood, and seen. Just remember: The more you focus on others, the more irresistible you'll be.

www.inc.com

Quote for the day

"Kindness is more important than wisdom, and the recognition of this is the beginning of wisdom." - Theodore Isaac Rubin

20-Nov-2015 CSE Trade Summary

Quote for the day

“No two ideals were ever more incompatible than the security of conformity and the freedom of individuality. After the choice is made, the rest is easy — unless you don't have the guts to stick by your choice.” - Hunter S. Thompson

19-Nov-2015 CSE Trade Summary