In life, as in trading, the right mindset is crucial for success. You must be confident in your decisions because they are based on cause and effect, not on emotions or opinion. Negative people who are unsure of themselves are not successful in any field. You need faith in yourself and your methods to be able to persevere and not give up before reaching success.
• You can risk too much and lose it all in your business, life, marriage, friendships or family. You have to measure the potential cost of every action. One affair can cost you your marriage, just like one big trade with too much risk can cost you all your capital.
• In business there are certain methods which bring in customers and turn a profit, and others which cause a business to turn away customers and lose money. Trading is similar: methods which turn a consistent and long-term profit are essential for success.
• Having unrealistic expectations in a marriage, job, or business will lead to unhappiness and failure just like it will in trading. You have to set realistic expectations so
you do not get discouraged easily and quit in any of these areas. You have to be satisfied that the results are worth your effort over the long term. You need to understand what to expect before you begin a marriage, a job, a business, or trading. >> Read More
“How do you lose money? It is either bad day trading or a losing position. If it’s a bad position that is the problem, then you should just get out of it.”
“Clear thinking, ability to stay focused, and extreme discipline. Discipline is number one: Take a theory and stick with it. But you also have to be open-minded enough to switch tracks if you feel that your theory has been proven wrong. You have to be able to say, “My method worked for this type of market, but we are not in that type of market anymore.”
“Until recently, I set goals on a monetary level. First, I wanted to become a millionaire before I was thirty. I did it before I was twenty-five. Then I decided I wanted to make so much a year, and I did that. Originally, the goals were all numbers, but the numbers are’t so important anymore. Now, I want to do some things that are not only profitable, but will also be fun.”
Dr Van K. Tharp
“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 behaviour and would be more likely to be a crowd follower. In addition, losing traders tend to be disorganized and impatient. Thet want action now. Most losing traders are not as bad as the composite profile suggest. They just have part of the losing profile.” >> Read More
The COMEX will default in the next week or several weeks and people will be “settled” with Dollars, no more metal will be delivered! So, knowing that “game over” has arrived, they are dumping a massive volume of paper contracts with impunity to push the metals prices as low as possible before the “default”. This way the “shorts” do not have to and will not be “covered” when “supply” cannot be obtained because of “an act of God”. They will be settled in cash (at a profit no less) because these “unforeseen” disruptions in supply. “Who could have seen it coming?” will be the mantra. I would suspect that banking stress and “bail ins” will also become prevalent globally. The pricing structure” will now push any and all physical sellers away from the markets and the “door” to safety is effectively being shut. Either you own metal or you don’t.
After the closure of the COMEX and LBMA doors there will be no availability and “price” will be meaningless. Your ability to protect yourself is right now for all intents and purposes being eliminated.
Click here for more on whether we are witnessing the long-awaited default of the COMEX & LBMA:
A new major study in Greece has found that heart attacks have increased during the economic crisis, giving an insight into the effects beyond monetary ones.
Open Democracy, which reports the findings, said heart attacks increased 29% after the crisis hit, compared with before, with women suffering hardest hit – up 39%. The researchers point out the unemployment rate for women is higher than men
Dr Emannouil Makaris, presenting his findings at a research talk at the American College of Cardiology’s annual meeting, said
Greek women have a higher unemployment rate than men, they are responsible for child care, and they also work outside the home – a formula for stress.
Unemployment is a stressful event and stress is connected with heart disease, but other issues also come with financial difficulties. In these times a lot of people do not have money to buy medications or go to their primary care doctor. The cost to society is high.
What are these principles?
- Knowing why you are in the trading business
You can start by asking yourself:
- Why are you in the trading business?
- What was your initial attraction to trading?
- Are you thinking about it as a business or a hobby?
- Are you passionate about your trading?
- Does trading feel like a lot of work?
- What are your trading goals?
- Are you enjoying the journey or just focusing on the end result?
- What do you want to get out of trading?
“The stress is beginning to show,” Kyle Bass warns during a wide-ranging interview with Bloomberg TV. “The beginning of the end,” is here for Japanese government bonds as he notes that while quantitiavely it is clear they are insolvent, “the qualitative perception of participants is changing.” But away from Japan specifically, there is a lot more on the Texan’s mind.“Things go from perfectly stable to completely unstable,” very quickly; even more so after 20 years of exponential debt build-up and Keynesian cover-ups; and it is this that he warns complacent investors that it is “really important to think about the capital at risk in your strategy.” For this reason he prefers to hold gold rather than Treasuries, as, ”when you think about the largest central banks in the world, they have all moved to unlimited printing ideology. Monetary policy happens to be the only game in town. I am perplexed as to why gold is as low as it is. I don’t have a great answer for you other than you should maintain a position.” His discussion varies from housing’s recovery to structured credit liquidity “money is being misallocated by the printing press” and the future of the GSEs, concluding with the rather ominous, “at some point in time, I would much rather would own gold than paper. I just don’t know when that time is.”
Bass on Japan: >> Read More
Edit Inc. has started selling its new Sukatto Note notepad, which is specially designed to help relieve stress, as the pages can be ripped from the pad in a psychologically satisfying manner.
The A4-size, 30-sheet notepad sells for 500 yen. The company developed the notepad to help people blow off steam by tearing up their written notes.
It intentionally chose paper that produces a loud, distinctive sound when ripped up. The notepad’s bleached kraft paper is normally used to make paper bags. The firm chose this particular type of paper over other kinds, such as copy paper, writing paper and wrapping paper.
Bleached kraft paper does not rip in straight lines, so the act of ripping it up is particularly enjoyable. The pages do not stick together after being ripped up, so people can throw them in tiny pieces in the air, almost like confetti.
Are we addicted to being right? Is being thought of as being right more important to us than actually being right?
You tell me…
From the Harvard Business Review:
In situations of high stress, fear or distrust, the hormone and neurotransmitter cortisol floods the brain. Executive functions that help us with advanced thought processes like strategy, trust building, and compassion shut down. And the amygdala, our instinctive brain, takes over. The body makes a chemical choice about how best to protect itself — in this case from the shame and loss of power associated with being wrong — and as a result is unable to regulate its emotions or handle the gaps between expectations and reality. So we default to one of four responses: fight (keep arguing the point), flight (revert to, and hide behind, group consensus), freeze (disengage from the argument by shutting up) or appease (make nice with your adversary by simply agreeing with him).
All are harmful because they prevent the honest and productive sharing of information and opinion. But, as a consultant who has spent decades working with executives on their communication skills, I can tell you that the fight response is by far the most damaging to work relationships. It is also, unfortunately, the most common.
29 January 2013 - 15:56 pm
1) Becoming Overly Focused on P/L During Trading - Watching your profits or losses tick up and down during a trade; becoming anxious about P/L and letting P/L, not a trading plan, dictate when you get out of a trade. It’s a recipe for performance anxiety. By focusing on process goals rather than P/L, you can stay grounded in good trading practices and minimize performance stresses.
2) Trading Much Larger After a Series of Winning Trades - It is common that traders become overconfident after a series of wins and decide to increase their risk by a factor of two or more. This often leads to large losing trades that wipe out much of the profit, generating frustation and discouragement. Just as it doesn’t make sense to plow into a trade after a large move has already occurred, it doesn’t make sense to plow into risk after a series of profitable trades.
3) Failing to Learn From Losing Trades - Traders often want to put losses behind them and not dwell on negatives. The downside is that they don’t learn from their losses and thus miss opportunities to understand what’s happening in markets and what they might be doing wrong. This is especially important following a series of losing trades: either you’re not seeing the markets well, or you’re not acting well on your perceptions. Both scenarios offer learning opportunities that can help generate profits down the line.
It’s common to think of trading as a stressful occupation, but much of the stress is self-generated. By staying focused on “best practices” in trading, we minimize fear and frustration and build confidence in our development.
17 January 2013 - 7:28 am
Fear - To make money in trading you must be willing to take some risk. The more you are scare of losing money the more likely you could lose. Bullish won’t dare to buy, bearish won’t dare to sell. Got profits quickly take and only 100% sure win then trade. A little bit of cautiousness is alright but trading is a game of risk and the more calculated risk you take the higher your chances of winning.
Impatience - You have a trading plan and strategies that tell you to enter a position only when certain conditions are met. But time and time again you jump in early before those conditions were met and end up losing because of impatience. There is a high chance of a retracement in a trend but you find yourself always buying at the high and selling at the low because you worry that you might miss the boat. Thats why being calm and patient could be the different between success and failure in trading.
. Stress - You are on a losing streat and must be feeling very useless and bottom of the world. Trading used to be a joy but now become a pain. If you are in this situation, don’t force yourself to trade. Your thoughts are likely to be irrational, not prudent and you are likely to lose even more. You need to get out of the markets completely for a few days and think of ways to get back your confidence before trading again.
-Above is Daily Chart of Nifty Future-
Last Close : 6019
Support @ 6000————–5992 level.If Breaks 5992 with volumes & stays below for 15-20 minutes will take to
Two Consecutive close below 6016 will take to 5968—-5952 level in PANIC !!
Today’s hurdle @ 6032——-6037.If crosses with volumes then only Rally..Otherwise ?
Above 6037 if sustains for 15 minutes will take to 6053-6058 level.
Will it Zoom to kiss 6100 First or Will Crash to kiss 5900 level ???
-More Details to our Subscribers -During Trading hrs.
Updated at 7:28/17th Jan/Baroda/India