Colombo Stock Exchange Trade Summary 24-Aug-2016

Quote for the day

"We seem to gain wisdom more readily through our failures than through our successes. We always think of failure as the antithesis of success, but it isn't. Success often lies just the other side of failure." - Leo Buscaglia

Colombo Stock Exchange Trade Summary 23-Aug-2016

Quote for the day

"Honesty is the first chapter in the book of wisdom." - Thomas Jefferson

Colombo Stock Exchange Trade Summary 22-Aug-2016

Quote for the day

"Knowledge is of no value unless you put it into practice." - Anton Chekhov

30 Habits of Wealthy Traders

By Tim Bourquin of Trader Interviews:

1. Wealthy traders are patient with winning trades and enormously impatient with losing trades. - it takes time to get comfortable with being uncomfortable; it's impossible to jump into brain surgery days after med school graduation.

2. Wealthy traders realize that making money is more important then being right. - now, making money is just the material reward of making the right decisions, but not always; protecting the down side is also based on making the right decisions.

3. Wealthy traders look at technical analysis as a picture of where traders are lining up to buy and sell. - seeing where buyers and sellers line up, may be the holy grail of trading IMO.

4. Before they enter any trade they know exactly where they will exit for either a gain or a loss. - I think it goes well with making the right decisions; plan your trades, trade your plan...I hear that every day on the Squawk Radio from Nebraska, Hoag, Eddie, Jayhawk, Bob...

5. Wealthy traders approach trade number 5 with the exact same mind set they did on the 4 previous losing trades. - back to strategy and trade plan; they both have to printable.

6. Wealthy traders use naked charts and focus on zones. - indicators are lagging, but combined with a solid strategy and trade plan could have decent results for beginning traders.

7. Wealthy traders realized a long time ago that being uncomfortable trading is OK. - goes hand in hand with the first statement.

8. The markets they trade fit their personality. They are a participant – not an on-looker. - it takes screen time to find all the pieces of the puzzle.

9. They stopped trying to pick tops and bottoms long ago – and stopped losing money doing so there is an edge trading tops and bottoms question is: does it fit traders personality and trading plan?

10. They stopped thinking about the market being “cheap” or “expensive”. - well, we trade leveraged products at TST.

11. Wealthy traders are willing to change sides, short to long and vice versa when the market tells them to do so. - ego, flexibility, market knowledge, all come together when trading both sides of the market.

12. Wealthy traders trade aggressively when trading well and modestly when they are not. - it is easy to lose site of this aspect of trading and swinging for the fences just because of a hunch is not receipt for success.

13. They realize the market will be open again tomorrow. - setting a daily cash goal will push a trader to over trade, take unnecessary risks which result in random results.

14. Wealthy traders will never add to a losing trade....EVER. - I remember a strategy in a old book of trading: scaling in a trade...right!!! Maybe if you're trading 5 – 10.000 S&P contracts. In my opinion this may be the #1 strategy to clean an account when mixed with ego and false hope.

15. Cash is the target but wealthy traders set goals for their trading that are anything but money. - what a concept! Oh, wait a minute, isn't this the concept TST teaches day in and day out?

16. They read trading books, but they read more “crowd” books too ex: The Wisdom of Crowds, The Art of Strategy, Markets, Mobs & Mayhem. - knowledge is power...it's all I got on this one.

17. They provide liquidity to the markets while watching price and volume. - grasping this idea is beyond me.

18. They have a way to gauge fear, greed and speed of transactions. One way: tick charts.

19. They practice reading the right side of the chart, not the left. - screen time again

20. Every wealthy trades has an “edge”. - Now, that's something new, right? Build a strategy, write a trade plan...could this have something to do with fining an “edge”?

21. Their position size is calculated exactly on risk tolerance. - this reminds me of the AHA moment I had after listening to Greg Weitzman webinar on TST http://www.youtube.com/watch?v=9V6RQmuVrRA I might say, it was the turning point for my trading plan.

22. Profit targets are based on Average True Range. - noted in my plan

23. One or two trades a month make their month. - Base hits, base hits, base hits...sounds like a broken record, but one must learn to like this broken record.

24. Confident decision makers in the face of incomplete information. - but it's not gambling. To the onlookers, traders are major risk takes, always flippin' the coin. I would call it organised chaos and one needs some fantastic glasses to see the 3D picture: discipline, discipline, discipline.

25. A losing trade is not a reflection on themselves as a trader. - based on my trading plan, out of 10 trading days, I can afford 4 losing days and at the end of a losing day I can say: “well, that's out of the way, now I can concentrate on the upcoming winning day”.

26. Their business isn't trading – it's fining the right trades. - I hear it all the time: “I’m going to try a short here and see what happens, hope for the best”. I know there is no trading plan when “trying” a trade and “praying” it works out. I was there a few months ago.

27. They write down or record every trade: price, thoughts, mood... - some new guy here at TST is putting an emphases on keeping a journal. Don't have time for that? Einstein wrote his thoughts and he was a genius.

28. Their conviction on an active trade remains unless something major changes. - When you have confidence in your trading plan, taking a bad trade is just a way to get to the good trade; recognising trend change helps with not letting winners turn into losers.

29. A winning trade does not result in taking on extra risk the next trade. - Nebraska always says: “trade 1 lot and let the winners build your account” and Dr. Andrew Menaker says: “ winners build confidence”.

30. They trade the reaction not the “news”.

Source: www.topsteptrader.com