thought for The Day
“It takes courage to admit you are wrong. It takes courage to face it when you have lost money and not blame it on the other guy or blame it on circumstance. It takes courage to admit that it is your mistake.”
The Mind of a Trader, by Alpesh B. Patel
“It takes courage to admit you are wrong. It takes courage to face it when you have lost money and not blame it on the other guy or blame it on circumstance. It takes courage to admit that it is your mistake.”
The Mind of a Trader, by Alpesh B. Patel
My Thought!
The Stock Market is terribly sensitive, it can be generous and it can be very ruthless, but it has no bias against anyone. If one is polite to the market, respects it and is very grateful to whatever it is ready to give, then that person shall not suffer terrible consequences. If one treats the market as a stupid tool in order to get rich quick, and doesn’t respect it enough, then the first thing the market will do is to teach a horrible lesson to that person. One must see the market as the most respectful partner who could be generous but it has its own requirements as well. The markets don’t give up anything if they don’t see a dedication, humbleness and of course respect, not greed. 😱
The Stock Market is terribly sensitive, it can be generous and it can be very ruthless, but it has no bias against anyone. If one is polite to the market, respects it and is very grateful to whatever it is ready to give, then that person shall not suffer terrible consequences. If one treats the market as a stupid tool in order to get rich quick, and doesn’t respect it enough, then the first thing the market will do is to teach a horrible lesson to that person. One must see the market as the most respectful partner who could be generous but it has its own requirements as well. The markets don’t give up anything if they don’t see a dedication, humbleness and of course respect, not greed. 😱
neil
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Boogle said
"the succesful investor is one who even at the heights of euphoria and the depths of despair realises that this too will pass".
the crisis is only in our minds.
A bear market is only the natural cousin of a sustained rally,if we have enjoyed the party , we must also learn to clean up after!!
🙂
"the succesful investor is one who even at the heights of euphoria and the depths of despair realises that this too will pass".
the crisis is only in our minds.
A bear market is only the natural cousin of a sustained rally,if we have enjoyed the party , we must also learn to clean up after!!
🙂
neil
Legendary member
- Messages
- 5,169
- Likes
- 752
Judgment
Nothing tells in the long run like a good judgment, and no sound judgment can remain with the man whose mind is disturbed by the mercurial changes of the stock exchange. It places him under an influence akin to intoxication. What is not, he sees, and what he sees, is not.
- Andrew Carnegie
😛
Nothing tells in the long run like a good judgment, and no sound judgment can remain with the man whose mind is disturbed by the mercurial changes of the stock exchange. It places him under an influence akin to intoxication. What is not, he sees, and what he sees, is not.
- Andrew Carnegie
😛
"Your human nature prepares you to give up your independence under stress. When you put on a trade, you feel the desire to imitate others and overlook objective trading signals. This is why you need to develop and follow trading systems and money management rules. They represent your rational individual decisions, made before you enter a trade and become a crowd member."
Trading for a Living, by Alexander Elder.
Trading for a Living, by Alexander Elder.
You will inevitably feel stress from the guilt and shame of your losses. As cognitive dissonance theory states that people tend to reduce stress by either taking an action or changing their belief, you might convince yourself that the losses were a fluke and shrug off your misfortune and move on. You might even try to think about past good trades in an effort to forget the last bad trades.
But ignoring your losing trades in this fashion is the worst mistake you can make. This is because you can learn more from your losing trades than from your winning trades. Your losing trades allow you to learn the weaknesses of your system and also to explore your own vulnerability and thresholds."
The Undergroundtrader.com Guide to Electronic Trading, by Jea Yu.
But ignoring your losing trades in this fashion is the worst mistake you can make. This is because you can learn more from your losing trades than from your winning trades. Your losing trades allow you to learn the weaknesses of your system and also to explore your own vulnerability and thresholds."
The Undergroundtrader.com Guide to Electronic Trading, by Jea Yu.
"Investors with large amounts of capital obtained from a windfall or from inheritance are much more likely to suffer large losses because they are less likely to truly feel the pain of losing money. Because they did not go through the arduous process of earning it themselves, they view their capital as 'found money.' In comparison, the long-term trader is able to feel the pain of losing and, accordingly, takes the necessary steps to mitigate his losses and to reduce the likelihood of incurring similar losses in the future. Financial survival in the markets is very difficult without the capacity to feel pain, for pain and fear can function as a protective covering, which the psychiatrists claim allows the organism the opportunity to recover and return to a neutral state."
The Mind of the Markets, by F. J. Chu.
The Mind of the Markets, by F. J. Chu.
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