"Wherever there is danger, there lurks opportunity; whenever there is opportunity, there lurks danger. The two are inseparable. They go together." - Earl Nightingale
Wednesday, 22 July 2020
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.
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/
Tuesday, 21 July 2020
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/
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/
Monday, 20 July 2020
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
Sunday, 19 July 2020
Saturday, 18 July 2020
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
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