lets define the correct yardstick

Concentrate on results, not on being busy

Calculating how much your time is worth
helps you to work out how whether it is worth doing particular jobs. If you have to spend much of your time doing low-yield jobs, then you can make a good case for employing an assistant.


Activity logs
are useful tools for auditing the way that you use your time. They can also help you to track changes in your energy, alertness and effectiveness throughout the day. By analyzing your activity log you will be able to identify and eliminate time-wasting or low-yield jobs. You will also know the times of day at which you are most effective, so that you can carry out your most important tasks during these times.

An Action Plan
is a list of things that you need to do to achieve a goal. To use it, simply carry out each task in the list!

Prioritized To-Do Lists
are fundamentally important to efficient work. If you use To-Do Lists, you will ensure that:
You remember to carry out all necessary tasks
You tackle the most important jobs first, and do not waste time on trivial tasks.
You do not get stressed by a large number of unimportant jobs.
To draw up a Prioritized To-Do List, list all the tasks you must carry out. Mark the importance of the task next to it, with a priority from A (very important) to F (unimportant). Redraft the list into this order of importance.
Now carry out the jobs at the top of the list first. These are the most important, most beneficial tasks to complete.

Goal setting
is an important method of:
Deciding what is important for you to achieve in your life
Separating what is important from what is irrelevant
Motivating yourself to achievement
Building your self-confidence based on measured achievement of goals
You should allow yourself to enjoy the achievement of goals and reward yourself appropriately. Draw lessons where appropriate, and feed these back into future performance.

Scheduling
is the process by which you plan your use of time. By scheduling effectively, you can both reduce stress and maximize your effectiveness.Before you can schedule efficiently, you need an effective scheduling system. This can be a diary, calendar, paper-based organizer, PDA or a software package like MS Outlook or GoalPro 6. The best solution depends entirely on your circumstances.
Scheduling is then a five-step process:

1Identify the time you have available.
2Block in the essential tasks you must carry out to succeed in your job.
3Schedule in high priority urgent tasks and vital "house-keeping" activities.
4Block in appropriate contingency time to handle unpredictable interruptions.
5In the time that remains, schedule the activities that address your priorities and personal goals.
If you have little or no discretionary time left by the time you reach step five, then revisit the assumptions you have made in steps one to four.

Job analysis is a five-step technique for:
1. Review formal job documentation:
Look at your job description. Identify the key objectives and priorities within it.
Look at the forms for the periodic performance reviews. These show precisely the behaviors that will be rewarded and, by implication, show those that will be punished.Find out what training is available for the role. Ensure that you attend appropriate training so that you know as much as possible about what you need to know. Look at incentive schemes to understand the behaviors that these reward.

2. Understand the organization’s strategy and culture:
Your job exists for a reason – this will ultimately be determined by the strategy of the organizational unit you work for. This strategy is often expressed in a mission statement. In some way, what you do should help the organization achieve its mission (if it does not, you have to ask yourself how secure the job is!). Make sure you understand and perform well the tasks that contribute to the strategy.

Similarly, every organization has its own culture – its own, historically developed values, rights and wrongs, and things that it considers to be important. If you are new to an organization, talk through with established, respected members of staff to understand these values.

Make sure that you understand this culture. Make sure that your actions reinforce the company’s culture, or at least do not go against it. Looked at through the lens of culture, will the company value what you do? Check that your priorities are consistent with this mission statement and the company culture.

3. Find out who the top achievers are, and understand why they are successful:

Inside or outside the organization, there may be people in a similar role to you who are seen as highly successful. Find out how they work, and what they do to generate this success. Look at what they do, and learn from them. Understand what skills make them successful, and learn those skills.

4. Check that you have the people and resources to do the job:

The next step is to check that you have the staff support, resources and training needed to do an excellent job. If you do not, start work on obtaining them.

5. Confirm priorities with your boss:

By this stage, you should have a thorough understanding of what your job entails, and what your key objectives are. You should also have a good idea of the resources that you need, and any additional training you may need to do the best you can.
This is the time to talk the job through with your boss, and confirm that you share an understanding of what constitutes good performance in the role.

It is also worth talking through serious inconsistencies, and agreeing how these can be managed.

6. Take Action:
You should now know what you have to do to be successful in your job. You should have a good idea of the most important things that you have to do, and also the least important. Where you can drop the less-important tasks, do so. Where you can de-prioritize them, do so.
 
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real-time is money

1.if potential >=20c, and inter-market correlation>=50%
2.take snapshot price and bid/ask of nq order-book
3.if direction snapshot, correlation and PRICE "melt" and if techical noise<= 10c
5.if potential r/calculated r =>2
6.SIZE stop entry order at potential MCDM
7.exit stops at technical noise/10c 50/50
8.facilitate making money while always protecting current capital at risk
 
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Don Bright

EDUCATION
It so happens that my brother Bob and I are teaching a college course in Las Vegas, but I have not really seen any other trading courses. There are many finance classes, but those are always notoriously out of date. Active trading is necessary to keep up with the market. Academics generally do not, and have not, traded actively with their own money. You might see if Georgia Tech will authorize the Bright Trading internship program in Atlanta. We have credit programs at several universities and colleges. Keep your interest up; trading is a great profession!

Trading the S&P futures and their derivatives has gained a lot of popularity for several reasons. Primarily, the mergers and arbitrage houses (trading firms) use the products to hedge their stock positions, and by doing so they create liquidity in the product. Whenever there is good liquidity, there is usually room for some momentum trading. Most of the money made trading futures is made by the floor traders and the arbitrage firms. Generally, we use the futures as a primary indicator of short-term (one- to three-minute) moves in the market. We actually pay to have an audio squawk box piped into our offices.

The best way to learn how to trade the S&P futures is probably to go to the Chicago Mercantile Exchange website at www.cme.com and take the course they offer. I would prefer to do what my brother did when they listed the S&Ps on the mercantile exchange; actually trade in the pit. Many people out there claim to have a system, but, as always, be very cautious.

I would not rely on any system -- even those that have been backtested. The problem with backtesting is that it cannot take into account current market conditions. (No letters; I know some people claim that they can.) We have never seen a system that can come close to matching what an experienced, trained trader can achieve money-wise. The most important computer is the one under your scalp!

DAYTRADER VS. SHORT-TERM TRADER
Daytraders respond to the noise in the market, and they provide the liquidity necessary for the system to work at all. If you think about it, the NYSE specialists are the perfect examples of daytraders and have been making money for 200 years.

Trading is trading, and we prefer to be called "short-term traders," since we do so much more than merely daytrade. It takes a full understanding of how the markets work (and which strategies are working) to make a living month after month. Currently, some of our traders are doing correlated pairs trading, which requires holding many positions for days or even weeks.

TRADING DISCIPLINE
There is no magic to any of this, but you'll be surprised how big a benefit experience is after you have traded for a couple of years!
It takes quite a bit of time before a trader is proficient in exit strategies. One problem is the fear of missing a larger profit. But a profit is a profit, and there is no harm in taking one. For example, if you are ahead 20 cents, and decide to get out, but the stock continues in your direction, you can always get back in and make some more money. Look at each trade as if it were a new hand in a poker game. You get fresh opportunities and new risk, simple as that.

On the other hand, we give our traders a tool to gauge whether they are letting the losses run while cutting their profits short. Make a simple graph with a zero point in the middle. Plot each trade horizontally from the center point, with losses going to the left and profits to the right. Mark from the zero point (your entry price) with a line to your exit point (in cents), and then plot how much further the stock went in the same (positive) direction before it turned around by a nickel or so. This is an easy aid to show how well your exits are working.

TRADING PREPARATION
Do you prepare for the day, or do you simply start trading? I've heard you mention that you respond to the market, but is that always enough? -- JS

That's a good question, and sometimes I wonder if it's ever "enough"! However, we do our best to prepare our traders for each trading day. Our traders are connected each morning to a live chat that originates in New York, Vancouver BC, North Carolina, and Las Vegas. Four traders (me included) share the "numbers" for the day (support, resistance, pivots, and so on), and conduct a market commentary. By having more than one trader/commentator, we are able to gather insight from various perspectives. We respond to questions, and offer as much help as possible before the opening bell.

In addition, I post a weekly calendar for all traders that shows the economic numbers, earnings, and other data that is due out that week. I hope that each trader will take a second to see if this information will affect his or her core trading stocks.

TRADING JOURNAL
After a while, it just becomes a bit too time-consuming and distracting. It is great to continue the journal, with notes and analysis, when the trading day is finished, however. I had a very successful trader who claimed "I've never had a losing day -- look at my journal." I looked, and noticed some losing numbers. He explained, "I paid for some additional education once in a while, but I consider that money well spent." He went on to make a great deal of money, and I think the journal (with daily narratives and "objective" criticisms), along with his positive attitude, accounts for much of his success.

At Bright Trading, we suggest that our new traders keep track of their trades for the first few months in a format designed for tracking the reasoning behind the entries and exits. It doesn't do much good to simply keep track of prices and trade size without knowing why you got into the trade to begin with.

You should know several basics: Where were the Standard & Poor's 500 futures compared with the fair value of the futures at the entry point? If the futures are trading five points over fair value before the opening bell, the market would be expected to open up approximately 40 Dow Jones points (since one S&P point is equal to about eight Dow points).

In addition, where was the "group," the sector in which the stock is included (drugs, oil, and so forth)? Not only that, where was the market trend at the entry point? Those questions, as well as several other factors, are pertinent and should be explored when traders are making trading decisions. Then you should graph (simple square blocks) profit or loss, then see if you are holding losers longer than you are holding winners (95% of all new traders do this). There are many other criteria, too much to go into here -- but this is a start.

SEVERAL STRATEGIES
Here are nine of the basic strategies employed by most serious traders:

1. Relative strength
2. Momentum
3. Breakouts
4. Scalping


5. Post-opening (sectors and so on)
6. Pairs

7. Opening-only orders
8. M & A spreads
9. Contrarian volatility

There are more, and of course there are hybrid strategies that combine various techniques. It's important to understand what each technique involves and when to consider doing it. For example, say you are pairs trading. You generally short the appropriate stock first while looking at the relative strength of that stock vs. its peers and the overall market, being aware of the possible breakout price and following momentum. Using the trading basics for entries and exits is similar to using basic strategy when playing blackjack. You always do certain things with certain cards while changing your bet size, based on the overall card count of the deck. If you're playing breakouts, you don't buy based solely on the price of the stock; you check to see a premium to fair value in the futures, and whether the stock is stronger than its peer group.

Why is it necessary to run two or three systems concurrently? -- Gomu Vetrivel
Interesting question. First off, there is no system that will work for any protracted period of time. I have seen and used many systems over the years, and what worked last year obviously won't work now. Volatility has plummeted from above 50 to below 10, so it is safe to assume that any system developed using old data will have a tough time.

Think of the market as a pitcher in a baseball game, and the trader as the batter. The batter cannot simply swing the bat at an angle of x with a velocity of y, and expect to hit the ball. Nor can the trader expect the market to be predictable to a point of prolonged success.

We try to expose our new people to the basic seven or eight techniques, and teach them how to utilize a few in every decision process. For example, if you decide to become a pairs trader, you should still look at momentum for entry points, relative strength for the differential between the stocks, and of course, enveloping for better prices. And, yes, we even scalp out of an individual stock when the exit looks likely to be a reversal on the price.

We try to encourage our people to learn eight basic strategies and combine them during their decision-making process. We advise that they watch momentum; be aware of the relative strength of the sector; add in the premium in the futures versus the spot prices (and understand how they affect the stocks); and so on. By doing all of these things plus a lot of tape-reading, you will find that you can avoid the trap of sticking to one method and watching your money slip away as the market changes.

My best traders respond to the market as opposed to trying to predict the future. Use all the tools you can find (charts, volatility, fundamentals, and so on), and be prepared to swing the bat at whatever is thrown at you!

TRADING IN FLAT MARKETS
I am asked the same thing almost daily, it seems. Those of us who trade for a living get used to adapting to various types of market conditions. For example, when our individual stocks have a lower volatility, we are inclined to increase the share amount of each trade, and try to go in and out of the same stock with a smaller amount of profit. In addition, we are constantly looking for new methods to include in our trading arsenal. We search for new opening and closing (price) trends, automate our searches beyond the normal "filters" utilized by the "packaged" software developers, and so forth. Our momentum traders are realizing that they must make use of the new tools available to make up for a lackluster marketplace. As the overall volume has decreased, we make sure that we don't overtrade (a definite no-no), and look for more arbitrage and pair trades to make up for the momentary slowness.

RELIABLE CHART PATTERNS
When I use charts for identifying characteristics of a stock for trading, I try to determine the reason for the pattern's development in the first place.One of the first things I try to teach my college students who are interested in charting and other basics of trading is that patterns develop for a reason, and this reason is the motivation for the pattern formation, not vice versa.

TRADING NEWS
We are usually glad to be "in" when the stocks open far away from the previous close. It's the old adage, "Buy the rumor, sell the news" - and the reverse.
We try to always be aware of significant news and other factors within the sectors that we trade. I try to make sure my "boot-campers" are working together to follow the premarket news. I share what I can, but I want them to become self-sufficient and be able to understand the concepts involved prior to heading out on their own. Mid-trading day, we like to be flat when earnings are coming out. We generally have a good idea of the earnings based on the movement of the stock, but we often have surprises, as any trader understands.

Limit versus stop orders
Now to why I teach my traders to use limit orders. Our orders go directly to the NYSE (except for a few that go via ECN) on the DOT system (direct order turnaround), and don't have to stop at a brokerage firm. This electronic system allows the assistant specialist on the NYSE to fill the limit orders immediately, with whatever the best current bid/offer is. Market orders are usually batched and held by the specialist for a few seconds, which may mean price movements in the stock have taken place. We often enter buy orders above the offering price and sell orders below the bid price, knowing full well that we will get price improvement. This allows for a quicker execution, and you still get the better price. I personally do not use market orders except at the last second of any day when I feel the need to close a position before the bell rings.

MONEY MANAGEMENT
One of the simplest things I try to pass on to the students is, "If I cover now, I won't feel so bad if I think I can get back in at a better price." This will allow you to take the 10-cent loss, buy it back down 25 cents, and get into the idea of good entries and good exits. If you buy and wait, then you never want to sell at the bottom, or think "If I sell now, this thing will surely turn." At least by trading this way, in and out, you eliminate the larger losses, and it helps psychologically as well.

EXIT SIGNALS
I always believe that entry signals for trading are not so important compared with exit signals. Both "cut your loss" and "ride your profit" strategies are exit signals. What's a good strategy in terms of profit-taking signals? What criteria should I adopt in profit-taking mode?-- K.M. Lim, via e-mail

We try our best to teach our traders to read the tape for both entry and exit points. Since we may go in and out of the same stock many times each day, we use minor intraday changes in our indicators for both entries and exits. Sometimes the best exit is actually a small loss (cutting losses, as you mentioned). As far as taking profits is concerned, we use the same criteria, such as a rolling over of the Spoo (Standard & Poor's 500 futures) or a downturn in the trading sector index. Many times we buy a stock at, say, 51, sell it at 51.50 (it may downtick to 51.25 or so), buy it back for the upturn, and repeat this process.

Another strategy that many traders employ is "flipping" shares. This means that we may be long 2,000 shares of GE and see a strong potential for a quick selloff, so we sell 4,000 shares to take the profit and take advantage of the probable downturn.

HEDGING US DOLLAR
I trade in US dollars but count my assets in Canadian dollars. If I have US$100,000 invested, is there a simple, inexpensive method for hedging against a weakening US dollar? -- Kurb

You can hedge your position with Canadian dollar futures or options that trade on the Chicago Mercantile Exchange. I suggest that you go through the online training offered at the Cme -- check www.cme.com for more information.

Crutch pairs trading.
Since we execute the hard side first, generally we mean selling the short side first (stock A). If we see a big offer (5,000 shares or more) a penny or two away from the last price of the long side stock (stock B), we place our short-sale order for the first stock. After we are filled on the short side, we watch the offer on stock B while monitoring our short position. If the short stock goes down, creating a profit for us, we can take that profit at any point, thus closing that particular trade with a positive result. If, for example, the short stock starts moving to the upside, we hedge off (or pair up) by buying the B stock. Before entering the first trade, we have ascertained through analysis that it is theoretically better to have the pair on at these prices than to take a loss if the A stock goes against us - thus "crutch" pairs trading.

VALUATION OF PUTS VS. CALLS
In an interview with Jeff Yass, Jack Schwager asked him whether there is a logical reason why out-of-the-money? puts are always priced higher than the out-of-the-money calls. Yass replied: "There are actually two logical reasons. One I can tell you, the other I can't." He proceeds to explain that one reason is that financial panic to the downside is always a greater possibility than a panic run to the upside. But what is the second reason, the one he can't say? Always been curious -- illiquid

Okay, let's try to get back to basics. Many institutions have large portfolios of long stock. They often try to increase their overall yields by selling call options on the underlying securities. This is not to say that doing a covered write from scratch makes much sense (you're better off selling a naked put, which has virtually the same risk-reward ratio), but if you already own the stock, then bringing in some money via time decay can certainly help the overall return on the investment. This, in itself, causes a selling pressure on the calls, which may result in lower valuations.

Now to the crux: Price out a conversion at any particular strike price. A conversion, for those who don't know, is a three-way trade: buy stock, sell call, buy put. This results in a nearly risk-free position for the holder, but does not allow for much in the way of profits, either. The stock itself is the long position, and the options reflect a "synthetic" short position, thus making the overall position delta-neutral. Delta-neutral simply means that even if the stock were to rise or drop significantly, there would be no profit or loss. The only potential for loss, and the reason this position is not completely risk-free, is when the stock has a closing price, on expiration day, that is nearly the same as the strike price of the options. Since you shorted the calls, you don't know for sure whether the holders of these calls will exercise them. This leaves you vulnerable to having your stock called away from you.

CONVERSIONS
"Conversion" means the buying of puts and selling of calls at the same price, and also buying the underlying stock at the same time. Conversions are critical to valuations, because although calls or puts may look overvalued based on historical volatility, interest rates, and so on (option modeling), they probably aren't when compared to the full "three-way." If you look at the call, put, and stock, you will find that the net pricing will be near fair value (again, based on interest rates, days until expiration, dividends, and so on). On the trading floor, traders will use the three-way valuation as a way to hedge themselves. For example: if I end up selling 200 calls at a good high price to the public, I can either buy other calls to hedge, sell puts, or buy stock, in order to get "delta-neutral." If I end up with too much gamma (short-term delta movement), I can compensate by completing a three-way to level out (again, just locking in profits from the call sales by being able to then turn around, buy the calls back, sell the puts, and sell the stock at fair value).

Reverse conversions, or "reversals," refer simply to the other side of the conversion. This is where the traders sell stock, sell puts, and buy calls so they can collect interest on the short stock sale.

Conversions and the other side of the trade, called reversals or reverse conversions, are used for a variety of reasons by many players in our game of trading. These conversions are usually priced within a couple of pennies of fair value, which is based on interest rates and time until expiration. These calculations outweigh the valuations (Black-Scholes? or otherwise) when determining the pricing of options, and in determining if they are overvalued or undervalued. If the calls are overvalued based on historical volatility, you'll find that the puts are also overvalued. Always calculate the conversion before deciding to get involved in any options play.

WINNIG PERCENTAGE
For every 10 trades a person makes, what would you consider to be a good winning percentage? -Tim McIntyre
We look for about a 70% batting average. It is also extremely important to be sure that your winning trades are at least as good as your losing trades. You cannot allow your losers to eat up your winners (that sounds so obvious, but it can be hard for novices).
 

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self knowledge

SOCRATES said:
Only when you attain perfect self knowledge and all the faculties attached to it, like proper conduct, responsiblility, cognizance and response can you start to even think of being proficient in the markets.
 
Changing conduct/believes can cause a nervous sensations

There is nothing more difficult to take in hand, more perilous to conduct or more uncertain in its success than to take the lead in the introduction of a new order of things. Niccolo Machiavelli (1469 - 1527), The Prince (1532)


I was always puzzled by the fact that people have a great deal of trouble and pain when and if they are forced or feel forced to change a belief or circumstance which they hold dear. I found what I believe is the answer when I read that a Canadian neurosurgeon discovered some truths about the human mind which revealed the intensity of this problem. He conducted some experiments which proved that when a person is forced to change a basic belief or viewpoint, the brain undergoes a series of nervous sensations equivalent to the most agonizing torture.
Sidney Madwed
 
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responsiblility

If you don't accept responsibility for your own actions, then you are forever chained to a position of defense.
Holly Lisle, Fire In The Mist, 1992

I think of a hero as someone who understands the degree of responsibility that comes with his freedom.
Bob Dylan (1941 - )
 
cognizance

SYLLABICATION: cog·ni·zance
PRONUNCIATION: kgn-zns
NOUN: 1. Conscious knowledge or recognition; awareness. 2. The range of what one can know or understand. 3. Observance; notice: We will take cognizance of your objections at the proper time. 4. Law Acknowledgment, recognition, or jurisdiction; the assumption of jurisdiction in a case. 5. Heraldry A crest or badge worn to distinguish the bearer.
 
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response

A useful definition of liberty is obtained only by seeking the principle of liberty in the main business of human life, that is to say, in the process by which men educate their responses and learn to control their environment.
D. H. Lawrence (1885 - 1930)

The motivation for all personal behavior is to produce a sense of "FEEL GOOD," a sense of inner peace and well being. To expect a person to go against his desire to feel good or as good as he can feel under any momentary condition is illogical and irrational. In the observation of human behavior, one will notice every human act is a response to a personal need. This is true whether one signs a million dollar contract, scratches one's nose, rolls over in bed, or just day dreams his life away. People will do things which seem contrary to this concept, but the bottom line is they perceive some kind of payoff which will make them feel good. And the payoff is almost always emotional. When you ask people why they want to be financially independent, they might say that they could buy things without having to worry about where the money will come from. And when they worry, they don't FEEL GOOD. A drug addict, a compulsive eater, an alcoholic and anyone with a compulsive habit will continue with their habits because at the moment of action they believe and feel it will make them feel good. That is why breaking compulsive habits are so difficult.
Sidney Madwed
 
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we counted our spoons.

The louder he talked of his honor, the faster we counted our spoons.
Ralph Waldo Emerson (1803 - 1882), Conduct of Life
 
contrakt said:
The louder he talked of his honor, the faster we counted our spoons.
Ralph Waldo Emerson (1803 - 1882), Conduct of Life
That quote could talking about Socrates... I've never seen such a blowhard

Hey one of my spoons is missing :(
 
FuturesTrader71

Tell yourself to listen to the market instead of talking to it. You will become aware of what it is trying to tell you and will act accordingly without hesitation. It will even make you a better boyfriend/husband/mate.
 
steve46
Just speaking for myself. I remember my state of mind when getting filled. I remember "tick watching". I remember talking to the screen just like the previous poster. I remember (and this is my main point) the feeling of OVERWHELMING FEAR freezing me. I could see price moving to my stop, but I couldn't make myself hit the eject button. I was holding on, thinking I would get out as soon as I got back a few ticks, then when I did get them back, I would ask myself, what if it goes back into the black? I have to hold on, and well you all know what happens then, it simply drops like a rock and I am screwed.

It is that feeling of overwhelming fear that you have to guard against. You have to be able to take a step back, to acknowledge that you are afraid (or whatever you are feeling) and then you have to take control of yourself and be ready to act.
 
illiquid
The greater one's confidence in his own abilities, the easier it is to sidestep the emotional roller coaster and take advantage of crowd mentality.

It's all about centering your fears and expectations upon yourself where it belongs, where you have control -- and NOT on any one particular position within a particular market for a given trade. Fear that you will make the same mistake over and over again; hope that you will overcome that vicious cycle to move forwards. Fearing and hoping that the next tick will be up or down will just put you on the front seat of that roller coaster -- exactly where you don't want to be.
 
Vadym Graifer

As with most trading flaws, failure to keep stops roots in fundamental misconceptions about the very nature of the market and trading. Such misconceptions cause incorrect psychological makeup which, in turn, results in behavioral patterns harmful for a trader’s performance. In order to re-condition oneself it is necessary to work out fundamental, even philosophical if you will, understanding of the market as an environment in which a trader operates.

No matter how good the setup is, any given trade can fail. That’s why it’s imperative for a trader to distinguish between two kinds of losses.

The first kind is a loss caused by a trader’s mistake – failure to follow all the rules of system applied, or impulsive entry without any reason at all. Such losses must be taken as a lesson. The second kind is the case where every piece of puzzle was in place, yet the trade failed – such losses must be written off as a part of trading game, as a tribute to uncertainty of the markets.

The major trigger for the right approach here is a realization that by accepting the market as an uncertain environment, we already have accepted the possibility of losses. If we haven’t expected the market to work in our favor every time, there is no reason to feel foolish when it doesn’t.

It’s important to define what good and bad trades are. Unlike many think, a good trade is not always a winning trade; a bad trade is not always a losing trade.

- A good trade is a trade where you kept all your rules that you know to be working in a long run. A good trade can be a winning one when the market acts accordingly to what your system indicates. It can be a losing trade when the market acts against it, but it’s still a good trade.

- A bad trade is a trade made against your better judgment, against your rules. It can be a losing trade when a market acts as it “should”. It can be a winning trade when the market rewards your bad judgment, and it can be a very dangerous trap as a bad habit gets reinforced.

The last thing to say in conclusion is that a certain psychological barrier for a trader to overcome to start applying his stops with no hesitation. When this barrier is taken, things suddenly become so clear and automatic that a trader can’t even believe it was ever a problem for him. When this barrier is overcome, you feel that stops became natural part of your trading, that you take them with no slightest hesitation and forget about them instantly, moving on to search for your next trade, that taking stops do not trigger any negative emotions. This is wonderful feeling of total self-control. Not only will it do plenty of good to your trading performance, it’s a very rewarding feeling in itself.
 
contrakt said:
SOCRATES said:
Only when you attain perfect self knowledge and all the faculties attached to it, like proper conduct, responsiblility, cognizance and response can you start to even think of being proficient in the markets.

two questions and answers.
1. is anyone perfect? no
http://dictionary.cambridge.org/define.asp?key=58808&dict=CALD

2 is anyone proficient in the markets? yes
http://dictionary.cambridge.org/define.asp?key=63214&dict=CALD

one statement.
"socrates" offers a profusion of sanctimonious nonsense.
 
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contrakt said:
What strategy should I have today?
Exit on the Left. Enter on the Right.

edit:- this post originally responded to a post by contrakt asking what strategy he should have today and included a chart with up-trending channel lines drawn in. Post removed. Same chart without upper channel line appears in his post below.

You can't catch me out contrakt - I have spies everywhere
.... :cool:
 
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Hello Bramble

These trade
lines are more appropriate/pertinent for today
feb 8 06

s2=38.60
s1=38.37
r1=38.00
r2=37.50

12:52 has smh seen his top for today?
 

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