tag:blogger.com,1999:blog-68032799739627845742024-03-06T00:59:34.767-05:00PrudentTrader Blog<i>Trading is NOT about being right or wrong!<br>
Trading IS about Managing Money!</i>PrudentTrader.comhttp://www.blogger.com/profile/14769289782711294628noreply@blogger.comBlogger121125tag:blogger.com,1999:blog-6803279973962784574.post-10343151670540250112017-12-22T12:32:00.000-05:002019-01-01T12:33:14.808-05:00Christmas Gift Suggestions & A Recipe for a Happy New Year<div style="background-color: white; font-family: Verdana; text-align: left;">
<span style="color: #8000ff;"><b><u>Christmas gift suggestions:</u></b></span></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg-dpcxX_uQUgW6Vf9jigjrrIhBv-eCJJALpo10lscAOQTBxfUvzOFj6bP11zskcXoEN-qU2WmJNlLQJKJ_zvTzdjJitAX82m2ZwpYSaLVxpccqS1jfFe0ABGKYCVcqJhGNvTEjJahl4sk0/s1600/Christmas.PNG" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="729" data-original-width="481" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg-dpcxX_uQUgW6Vf9jigjrrIhBv-eCJJALpo10lscAOQTBxfUvzOFj6bP11zskcXoEN-qU2WmJNlLQJKJ_zvTzdjJitAX82m2ZwpYSaLVxpccqS1jfFe0ABGKYCVcqJhGNvTEjJahl4sk0/s320/Christmas.PNG" width="209" /></a><span style="background-color: white; font-family: "verdana";">To your enemy: </span><i style="background-color: white; font-family: Verdana;"><u>Forgiveness.</u></i><span style="background-color: white; font-family: "verdana";"> </span><br />
<span style="background-color: white; font-family: "verdana";">To an opponent:</span><i style="background-color: white; font-family: Verdana;"><u> Tolerance. </u></i><br />
<span style="background-color: white; font-family: "verdana";">To a friend:</span><i style="background-color: white; font-family: Verdana;"><u> Your Heart.</u></i><span style="background-color: white; font-family: "verdana";"> </span><br />
<span style="background-color: white; font-family: "verdana";">To a customer:</span><i style="background-color: white; font-family: Verdana;"><u> Service.</u></i><span style="background-color: white; font-family: "verdana";"> </span><br />
<span style="background-color: white; font-family: "verdana";">To all: </span><i style="background-color: white; font-family: Verdana;"><u>Charity. </u></i><br />
<span style="background-color: white; font-family: "verdana";">To every child: </span><i style="background-color: white; font-family: Verdana;"><u>A Good example.</u></i><span style="background-color: white; font-family: "verdana";"> </span><br />
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<span style="background-color: white; font-family: "verdana";">To yourself: </span><i style="background-color: white; font-family: Verdana;"><u>Respect.</u></i><span style="background-color: white; font-family: "verdana";"> </span></div>
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<span style="background-color: white; font-family: "verdana";">- </span><i style="background-color: white; font-family: Verdana;">Oren Arnold </i></div>
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<b style="background-color: white; font-family: Verdana;"><span style="color: blue;">Recipe for a Happy New Year </span></b><span style="background-color: white; font-family: "verdana";"></span><br />
<span style="background-color: white; font-family: "verdana";"><i>Author Unknown</i></span></div>
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<span style="background-color: white; font-family: "verdana";">To leave the old with a burst of song</span><br />
<span style="background-color: white; font-family: "verdana";">To recall the rights and forgive the wrong;</span><br />
<span style="background-color: white; font-family: "verdana";">To forgive the thing that binds you fast</span><br />
<span style="background-color: white; font-family: "verdana";">To the vain regrets of the year that's past;</span><br />
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<span style="background-color: white; font-family: "verdana";">To have the strength to let go your hold</span><br />
<span style="background-color: white; font-family: "verdana";">Of the non-worthwhile of the days grown old;</span><br />
<span style="background-color: white; font-family: "verdana";">To dare to go forth with a purpose true;</span><br />
<span style="background-color: white; font-family: "verdana";">To the unknown task of the year that's new,</span><br />
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<span style="background-color: white; font-family: "verdana";">To help your brother along the road</span><br />
<span style="background-color: white; font-family: "verdana";">To do his work and lift his load;</span><br />
<span style="background-color: white; font-family: "verdana";">To add your gift to the world's good cheer,</span><br />
<span style="background-color: white; font-family: "verdana";">Is to have and to give a Happy New Year.</span>PrudentTrader.comhttp://www.blogger.com/profile/14769289782711294628noreply@blogger.com9tag:blogger.com,1999:blog-6803279973962784574.post-6007916615378214002017-07-13T19:38:00.000-04:002017-07-13T19:38:55.009-04:00Ask Yourself Questions <div style="text-align: center;">
For true success ask yourself these four questions: </div>
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Why? Why not? Why not me? Why not now? </div>
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<b><i>James Allen</i></b></div>
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<span style="font-family: "georgia" , "times new roman" , serif;">It is said that somewhere in that super-computer we call our mind; everything we have heard, seen, felt, thought, touched, and tasted is retained. When we ask ourselves questions, we direct our subconscious mind to search that vast database, attempting to find a solution to a genuine problem, instead of trying to accept self-imposed limitations. Often, the answers are right there, all you have to do is ask! But the way you ask will be telling of the results. You must ask the question as a positive, genuinely and sincerely, while fully expecting to get an answer. </span><br />
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<span style="font-family: "georgia" , "times new roman" , serif;">Be very aware of how you speak to yourself. Learn to change recriminating and reproachful conversations with yourself into questions that direct your focus towards positive change. Beware of questions like "How can I be so stupid? Why is the world so unfair? Why can't I be rich, too? How can anyone treat me so badly?" If you ask questions in this manner your subconscious may well provide answers that have nothing to do with reality, like "Because you are undeserving. Because you were born to lose. Because you are ignorant, worthless, and undeserving." </span><br />
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<span style="font-family: "georgia" , "times new roman" , serif;">If the questions are loaded, they imply acceptance of a negative belief that needs to be </span><br />
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<span style="font-family: "georgia" , "times new roman" , serif;">challenged, not reinforced. Questions are so useful in changing the direction of your focus and they are also an essential element of evaluation, and evaluation is the way to get to the root of limiting values and associations that hold you back from achievement. </span><br />
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<span style="font-family: "georgia" , "times new roman" , serif;">If you are aware of how you talk to yourself, what you ask yourself, and what you demand of yourself, you can shift the focus of your mind away from negative associations and toward positive associations simply by consciously changing the tone and focus of the statements and questions you ask yourself. </span>PrudentTrader.comhttp://www.blogger.com/profile/14769289782711294628noreply@blogger.com4tag:blogger.com,1999:blog-6803279973962784574.post-28319003140049522552017-06-28T09:16:00.000-04:002017-06-28T09:17:11.141-04:00Changing Your MindSet<center>
If you don't know where you are going, </center>
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you'll probably end up somewhere else.</center>
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<b><i>- David Campbell</i></b></div>
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To be a successful trader over time, you must obtain the mindset; following the rules of your plan is pleasurable and breaking the rules is painful. When you follow the rules, you will still lose money sometimes, and losing money is always a little bit painful. You must convince yourself and understand that the pain is normal and natural; just like the occasional cut you receive. You must become able to accept, on an emotional level, that the pain is unimportant, that it will pass. Success is a process of change, and pain is part of that process. <br />
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The essential element of being successful is mastering the art of managing both our mental and physical states. Given adequate knowledge; the problem of changing, of taking effective action, depends on having the right motivation, to act upon our knowledge. Since we know the lack of <br />
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motivation; is the result of limiting associations, values, and beliefs, then it follows that in order to begin the process of change, we should examine the content of our minds and isolate those limits? <br />
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The objective is to achieve a mental state in which the pursuit of our goals is pleasurable and not pursuing them is painful. The way to change is to unlock your subconscious and discover your limiting associations and beliefs; then to replace those limiting associations, beliefs, and values with new ones that will put us on the path of our choosing. All of the Technical and Fundamental knowledge of the Stock Market will not make you money; if you have deep down inside you - limiting beliefs and values. Those limiting beliefs and values will eventually come to the surface and force you to deviate from your successful plans. <br />
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To achieve the changes you desire, there are three basic tools: the physical body, the conscious mind and the automatic workings of the subconscious mind. These three are already working all the time and they behave interactively, either supporting or destroying one another. This is not any easy task by any means. If you are serious about changing, I suggest you seek out other sources, much has been written and spoken about this subject and is available to you if you have the desire to change. PrudentTrader.comhttp://www.blogger.com/profile/14769289782711294628noreply@blogger.com2tag:blogger.com,1999:blog-6803279973962784574.post-16118633711375420832017-06-02T11:34:00.000-04:002017-06-02T11:34:30.141-04:00Want More? Then Give More<div style="text-align: center;">
<span style="background-color: white; color: #333333; font-size: 14px;"><span style="font-family: "georgia" , "times new roman" , serif;">The more credit you give away, the more will come back to you. </span></span></div>
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<span style="background-color: white; color: #333333; font-size: 14px;"><span style="font-family: "georgia" , "times new roman" , serif;">The more you help others, the more they will want to help you. </span></span></div>
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<b style="background-color: white; color: #333333; font-family: Georgia, "Times New Roman", serif; font-size: 14px;">Brian Tracy</b></div>
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<span style="font-family: "georgia" , "times new roman" , serif;">Have you ever met anyone who wanted less - Less wealth, poorer health, fewer friends, or a reduced status? Everyone wants more satisfaction, more of the good things in life, more wealth and more enjoyment. We want the feeling of knowing, "I am moving ahead. I have more this year than last year."</span><br />
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<span style="font-family: "georgia" , "times new roman" , serif;">There are two basic approaches to getting more: Act selfishly or behave generously. The selfish individual's thought patterns are dominated exclusively by themselves, their welfare, their benefits, their pleasures. "What is in it for me?" controls their every thought and action. They think the less I give, the more I will have for myself.</span><br />
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<span style="font-family: "georgia" , "times new roman" , serif;">Meanwhile the generous individual thinks differently. Their concern is directed primarily at helping others benefit, grow, enjoy life, and overcome obstacles. "How can I help and satisfy others?" influences everything they do. Sure they, too, want more. But the generous individual's actions center on the principle that the more they give of themselves to others, the more they will receive in return.</span><br />
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<span style="font-family: "georgia" , "times new roman" , serif;">Just one day spent in the real world will convince you that the selfish dominate in numbers and influence. One need only look back over the last 5 years or so at some corporate headlines. Companies dominated by the selfish, with no regard to their employees, their investors, or their shareholders. I do not need to repeat their names. Those selfish individuals, as it will turn out, received surprisingly little; considering what they now face. </span><span style="font-family: "georgia" , "times new roman" , serif;">More of the good things in life gravitate to the generous!</span><br />
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<span style="font-family: "georgia" , "times new roman" , serif;">Decide which group you belong to, and then to which group you wish to belong. Are you one who always says to yourself "What's in it for me?" Is that the group to which you really wish to belong?</span>PrudentTrader.comhttp://www.blogger.com/profile/14769289782711294628noreply@blogger.com1tag:blogger.com,1999:blog-6803279973962784574.post-20665984599448273302017-05-26T08:55:00.003-04:002020-05-15T13:43:09.880-04:00Suffer from Analysis-Paralysis?<blockquote style="color: #333333; font-family: georgia, "times new roman", "bitstream charter", times, serif; font-size: 13px; line-height: 19px;">
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If you're not making mistakes, then you're not doing anything. I'm positive that a doer makes mistakes.<br />
John Wooden</blockquote>
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When your hard earned money is on the line, there's a strong urge to be extremely careful. Why? If you should make a mistake, you could end up taking a big loss, or worse yet, you could find yourself in a major draw-down situation.</div>
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It's a natural human tendency to be averse to risk, but if you're not careful, you may be afflicted with a severe form of analysis-paralysis. Although it is often the case that an analysis of all possible alternatives and all possible consequences of one's decisions is the hallmark of good decision-making,<i> too much analysis can be and often is a distraction.</i></div>
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The question becomes; why are we consumed with making a mistake? Throughout our lives, we have been taught to make prudent decisions rather than acting on impulse. Great thinkers, such as Benjamin Franklin, advocated evaluating the pros and cons carefully before making a decision. Research studies have shown, for example, that cultivating a deliberative mindset helps people focus on and consider incoming information and decrease the influence of self-serving decision-making biases.</div>
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A study by psychologists Dr. David Armor and Dr. Shelly Taylor suggests that in some cases, it may be wise to just quickly choose an alternative and focus all your energy on achieving an objective. In a well-controlled experiment, participants were randomly assigned to one of two conditions. In the deliberative condition, participants were asked to decide between two equally effective strategies to obtain a reward, before using one of the strategies to reach an objective.<br />
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In a second condition, participants were not given a choice, so they would immediately focus all their energy on using a single strategy to achieve the desired goal. There were clear advantages to focusing on a specific strategy, rather than deciding between two options. Participants who did not have to choose, and did not deliberate, showed greater determination, commitment, curiosity, and confidence than those who did. They also viewed the task as less difficult and performed better.</div>
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Many investment/trading decisions must be made quickly before market conditions change. Through experience with the markets, you can analyze information quickly and reach a decision. While trading, it does not help to deliberate too much. It just doesn't pay off. You may not always be right, and you may have a few losing trades, but that's the nature of the game. Through a carefully devised trading plan and risk management, however, you can minimize the impact of a single losing trade, and make enough winning trades to come out ahead. So when you start to see yourself over-analyzing and becoming paralyzed, stop! Just put on the trade already. You'll trade more profitably in the long run.<br />
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Enjoy Your Weekend!</h2>
PrudentTrader.comhttp://www.blogger.com/profile/14769289782711294628noreply@blogger.com1tag:blogger.com,1999:blog-6803279973962784574.post-55775383346731736742017-05-04T09:01:00.000-04:002017-05-04T09:01:25.594-04:00Conquer Guilt<span style="font-family: Georgia, Times New Roman, serif;"><span style="background-color: white;">Take a chance! All life is a chance. The man who goes the furthest is generally the one who is willing to do and dare. The 'sure thing' boat never gets far from shore.</span><span style="background-color: white;"> - <b><i>Dale Carnegie</i></b></span></span><br />
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<span style="font-family: Georgia, Times New Roman, serif;">As traders/investors you surely understand profits are hardly a sure thing. Even the "<i>Market Wizards"</i> make mistakes and pay the price. When you experience what you consider to be severe draw-downs, don't feel bad about it. You're not the first person to have this experience nor will you be the last. Understand that psychologically it is almost impossible to avoid feeling uneasy. Facing losses is one of the most difficult issues to deal with emotionally. If you are an active professional, your identity and livelihood are on the line. If you are part-time, it's frustrating to feed your account from your day job, wondering if you'll ever make back the money you've lost. Depending on your personality and experience with the market, you may have trouble handling feelings of loss, guilt, and fear. Unless you get your emotions under control, you'll never be able to get back on track.</span><br />
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<span style="font-family: Georgia, Times New Roman, serif;">As normal human beings we feel guilty when we break a personal moral rule. Losing money can make almost anyone feel guilty. We want to live by the rules our parents and teachers taught us, and many of them taught us to work hard and save our money. A requirement of trading/investing is that we risk our money in hopes of monetary gains, and risking money may seem to go against how you were brought up. Well, if you want to make huge profits in the end, you're going to have to risk money, and in all likelihood, you're going to lose at least some of it before you develop the skills you need to trade/invest profitably across a variety of market conditions.</span><br />
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<span style="font-family: Georgia, Times New Roman, serif;">Are you going to lose money? Yes. Is it morally wrong? No. You must identify the beliefs underlying your guilt and change them. Ask yourself first; is your guilt warranted? Feelings of guilt are there to protect us; it isn't a good idea however, to rack up so many losses that you can't pay it back easily. If you trade money that you can't afford to lose, or that you will have difficulty paying back; guilt is a natural reaction. You must make sure that your losses are reasonable and are actually a short term setback. It will be hard to control guilt if it realistically reflects losses that will permanently harm your financial security.</span><br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiGMmzEtnVVxJEnlWddl1q42D_hceS0u6kDWj0NFP_viqbcIMDq2FBwLw1GWep8AkHKIeP786xGAxXQgROT0I7Z1oOWqIn_PR9X19KWZLlScm3LQ4K9Goi8GGLVsiZGA23C8_sp5_ow_D92/s1600/guilt.PNG" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="198" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiGMmzEtnVVxJEnlWddl1q42D_hceS0u6kDWj0NFP_viqbcIMDq2FBwLw1GWep8AkHKIeP786xGAxXQgROT0I7Z1oOWqIn_PR9X19KWZLlScm3LQ4K9Goi8GGLVsiZGA23C8_sp5_ow_D92/s200/guilt.PNG" width="200" /></a></div>
<span style="font-family: Georgia, Times New Roman, serif;"><br /></span>
<span style="font-family: Georgia, Times New Roman, serif;">If you determine that you can actually afford trading losses, and still feel guilty look at possible assumptions that may underlie your guilt. One possible reason; you may have been taught that money is sacred and that it is morally wrong to risk it and lose it for any reason. If you want to trade actively, you have to change the way you look at money. To a serious trader, money is merely a vehicle to make more money. It is just part of the tools you need to trade successfully. They think of "money" as "points" used to keep score of how well they are doing. A second possible reason you feel guilty; is the need to be perfect. You believe that you must not make trading errors. You may believe that if you do, you are inadequate. Losses are not personal; losses are a natural part of trading. It's possible that you are merely experiencing a temporary change in market conditions. You may need to change your approach, but it doesn't mean that you are inadequate. It just means that you need to explore more options. When you feel guilty, then you mull over about how bad things are. There's no time to mull while actively trading, however. It gets you nowhere. If you want to stay ahead of the crowd, you must actively problem solve. You must find new trading solutions, and guilt distracts you from freely searching for creative, fresh solutions.</span>PrudentTrader.comhttp://www.blogger.com/profile/14769289782711294628noreply@blogger.com0tag:blogger.com,1999:blog-6803279973962784574.post-28286304106815000922017-04-20T09:25:00.000-04:002017-04-20T09:25:17.890-04:00The Mindset of the Trader I think anything is possible if you have the mindset <br />
and the will and desire to do it and put the time in. <br />
<b><i>Roger Clemens</i></b><br />
<br />
Way back in the 1960's and 1970's one decision stocks became a popular way to invest. A one decision stock is one you buy and hold on to forever. Along with this philosophy a select group of stocks became known as <i>"The Nifty Fifty"</i>. Fifty stocks that were the ultimate one decision stocks; like IBM and GM. If you talk with some people who invested back then you'll sometimes hear them say: <i>"I learned my lesson a long time ago. I put my money in the markets and lost it; Never again!"</i> <br />
<br />
They searched for <i>"undervalued"</i> stocks, purchased shares, held them, and waited for them to increase in value. Sometimes it worked, often it didn't. The buy-and-hold strategy often misleads investors. The markets don't go in one direction forever, whether the trend is bullish or bearish. Only by anticipating the twists and turns of the market can you make "significant" profits. If you are striving to become a profitable trader, you must cast aside the buy-and-hold mindset of the long-term investor, and learn to think like a trader. <br />
<br />
The buy-and-hold strategy is still viewed as a viable trading strategy even in many business schools. Even in the wild 1990's fortunes were lost when the dot-com bubble burst, by people subscribing to that buy-and-hold strategy. Please note I am not addressing time frame. Had you purchased some of the dot-com stocks in 1995 let's say and sold them in 1998 or 1999 or even 2000, you still traded them. Your time frame just encompasses a much longer time frame than the very short-term trader. <br />
<br />
Whether you trade based on technical analysis or prefer fundamental analysis you must try to assess the potential for that company. Are they still growing profits? Does the company have new and exciting ideas they are or will be bringing to market? <br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhSSQgSMvyMAfFtjJQD8FqHu587QBCHUdEq_BNUkHT15HKIXHNKhc5DkuR3-pv7WCKfGaUtTlTaMQDiUntl3iWKz-68v9DTZr5oUiUQz7xd3FKkmZxXSpCQ0mVahU9cvcTroP8MfcVb105y/s1600/Capture.PNG" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhSSQgSMvyMAfFtjJQD8FqHu587QBCHUdEq_BNUkHT15HKIXHNKhc5DkuR3-pv7WCKfGaUtTlTaMQDiUntl3iWKz-68v9DTZr5oUiUQz7xd3FKkmZxXSpCQ0mVahU9cvcTroP8MfcVb105y/s200/Capture.PNG" width="198" /></a></div>
<br />
<br />
We never know for sure what the future holds. Who could have known five years ago the energy crisis was coming relatively soon and what that crisis would do to our domestic auto companies? It's difficult at best to make these forecasts. <br />
<br />
Stock prices do reflect the companies' fundamentals most often; however they also reflect market participants perceived notion of what the future holds. Did your holding just report horrible earnings and a not so great outlook? Did their stock price decline? No! Market participants are probably now looking to changing conditions in the not to distant future, hence buying appears in the face of seemingly bad news. Don't be confused by it, listen to the market. <br />
<br />
It may be hard to accept at first, but trading requires you to accept risk and uncertainty. It may take time and experience to accept, and you may get hurt along the way, but after a little while, you'll be able to accept uncertainty, and thrive on it. <br />
<div style="text-align: right;">
<span style="color: #999999;">Reprint from 2007 Newsletter</span></div>
PrudentTrader.comhttp://www.blogger.com/profile/14769289782711294628noreply@blogger.com1tag:blogger.com,1999:blog-6803279973962784574.post-73650148628544437982017-04-05T08:42:00.000-04:002017-04-05T08:43:31.282-04:00Striving for Perfection <div style="text-align: center;">
<span style="background-color: white; color: #333333;"><span style="font-family: "georgia" , "times new roman" , serif;">Strive for continuous improvement, </span></span></div>
<div style="text-align: center;">
<span style="background-color: white; color: #333333;"><span style="font-family: "georgia" , "times new roman" , serif;">instead of perfection. </span></span></div>
<div style="text-align: center;">
<span style="background-color: white; color: #333333;"><span style="font-family: "georgia" , "times new roman" , serif;">Kim Collins</span></span></div>
<br />
Lexus advertises the "The Relentless Pursuit of Perfection" and it seems an amiable goal; perfection. Unfortunately we are human and humans are not perfect. Perfection is a pursuit, but we can never really attain perfection. What we really do is strive to be better and better at who we are and what we do. Perfection however is out of the question, especially in our line of work. As traders the pursuit of perfection can be very costly if carried too far.<br />
<br />
Some traders are so obsessed with looking for the ultimate opportunities that they spend most of their time looking, rather than actually trading. They don't want to miss that once-in-a-lifetime trade. There's nothing wrong with searching for a good setup, but constantly looking for the ultimate setup is time consuming. Why do some traders spend too much time searching for the ultimate trade? It may be a fear of leaving money behind. They don't want to miss out on a rare opportunity.<br />
<br />
We want to believe that if we analyze the markets hard enough and long enough, we'll find the perfect setups and take home huge profits. This however can do us more harm than good. Spending so much time looking for the perfect setups, that really don't exist, will have us fail to trade the "available high probability setups". If you constantly search for the "perfect setup" it will restrict your actions and most often will cause unwanted and unneeded stress. Instead of moving forward; you stagnate.<br />
<br />
Many people work under the assumption that they must be thoroughly competent, adequate, and <br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhj6AYJz3cFhfN1Li5Oryz3iGDY7PAA2FRBLZuea2CEz0y4omon5GNj6cHoK_iljJLxDw91t5HBgcMNai2ARI5Q4QdgmcitFrGwxwixAHDGk3J0rz6QPlZqjPMTbTXbtWy7o6KILZUglLD4/s1600/Capture.PNG" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="191" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhj6AYJz3cFhfN1Li5Oryz3iGDY7PAA2FRBLZuea2CEz0y4omon5GNj6cHoK_iljJLxDw91t5HBgcMNai2ARI5Q4QdgmcitFrGwxwixAHDGk3J0rz6QPlZqjPMTbTXbtWy7o6KILZUglLD4/s200/Capture.PNG" width="200" /></a></div>
achieving in everything that they do. Psychologist, Dr. Albert Ellis, claims that holding such a belief produces fear and anxiety, which for traders often produces hesitation and self-doubt. As we grow up, we often face adverse consequences for not being proficient. We begin to believe that we must be thoroughly competent, adequate, and achieving in everything that we do. It is normal therefore that we come to believe; if we could just be perfect as a trader, we will make the most profits. Ironically, what happens is just the opposite<br />
<br />
A more adaptive approach is to realize that it's impossible as a trader to be thoroughly competent, adequate, and achieving all the time. Certainly, you should develop an extremely detailed trading plan and try to account for all adverse events that may go against your plan, but there are limits to what you can do. You don't need to be perfect. You don't need to trade the ultimate setups. You just need to make profits, even if it is just from trading mediocre setups. Searching for perfection can lead to stagnation if you aren't careful.PrudentTrader.comhttp://www.blogger.com/profile/14769289782711294628noreply@blogger.com1tag:blogger.com,1999:blog-6803279973962784574.post-781058492026855282017-03-23T10:26:00.000-04:002017-03-23T10:28:58.923-04:00When The Coach Goes Home..<i><span style="color: red;"><span style="background-color: white; font-family: "georgia" , "times new roman" , serif; line-height: 20px;">.<u>So Does The Motivation</u></span></span></i><br />
<blockquote class="tr_bq">
<blockquote class="tr_bq">
<blockquote class="tr_bq">
<span style="background-color: white; color: #333333; font-size: 14px;"><span style="font-family: "georgia" , "times new roman" , serif;">Affirmation without discipline</span></span><span style="background-color: white; color: #333333; font-size: 14px;"><span style="font-family: "georgia" , "times new roman" , serif;"><br />is the beginning of delusion.</span></span><b style="background-color: white; color: #333333; font-family: georgia, "times new roman", serif; font-size: 14px;"><br />Jim Rohn</b></blockquote>
</blockquote>
<span style="font-family: "georgia" , "times new roman" , serif;"><br /></span>
<span style="font-family: "georgia" , "times new roman" , serif;"><span style="background-color: white; line-height: 20px;"><span style="font-family: "helvetica neue" , "helvetica" , "arial" , sans-serif;">All </span></span><span style="background-color: white;">external motivation is temporary. External motivation is the kind that may wake you up, but it will not keep you awake for long. External motivation is motivation that comes to you from the outside. It may, and it often does, influence you to make a change, it cannot however make the change for you. And it cannot keep you from drifting off course, when the motivator is gone.</span></span> </blockquote>
<blockquote class="tr_bq">
<span style="background-color: white; font-family: "georgia" , "times new roman" , serif;">Many of you in your school years played sports. If you played and were fortunate enough to have an exceptional coach, you knew that he expected a lot from you but he also gave you lots of encouragement. He picked you up when you were down, he made you believe that you could win, and he let you know when you did a good job. He was a great motivator and he took your team all the way to the top. He was your friend, your ally, and your strongest supporter. You relied on him for your motivation and you got it.</span><br />
<span style="background-color: white; font-family: "georgia" , "times new roman" , serif;"><br /></span>
<br />
<div style="background-color: white;">
</div>
<span style="background-color: white; font-family: "georgia" , "times new roman" , serif;">The school year is over and you graduate moving on to college or the work force and the coach goes home. What does he take home with him? Your motivation, that's what! He was your motivation. Now you must receive your motivation from somewhere else, because the motivation was external and now it is gone. All external motivation works the same way. Keep giving us motivation and we will do better, take it away and we will gradually move back to where we were before the motivation began.</span><br />
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<span style="background-color: white; font-family: "georgia" , "times new roman" , serif;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjsDzAM-YTDPcwIci18rnkDP6E4z-sKDW2aA7LDYeT0YkEyb2w7f9UurqJ8u1U76wlRxw9VC8mM_M1ZxyYxxNF5GbluGdXIjREmJB-gN2ebfJLuCqIKbcvvISw8CJ4n787kzpWRhxCKV82m/s1600/Capture.PNG" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="130" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjsDzAM-YTDPcwIci18rnkDP6E4z-sKDW2aA7LDYeT0YkEyb2w7f9UurqJ8u1U76wlRxw9VC8mM_M1ZxyYxxNF5GbluGdXIjREmJB-gN2ebfJLuCqIKbcvvISw8CJ4n787kzpWRhxCKV82m/s200/Capture.PNG" width="200" /></a></span></div>
<br />
<span style="background-color: white; font-family: "georgia" , "times new roman" , serif;">That is why so many of the hopeful at so many motivational talks get so excited, full of energy, and then slow down or stop dead in their tracks within a few days or a few weeks. The inspiration is no longer there, because the speaker has left town. It takes more than a great speech to erase and replace those internal programs, which tell us we should know better than to believe that we are powerful champions of success.</span><br />
<span style="background-color: white; font-family: "georgia" , "times new roman" , serif;"><br /></span>
<br />
<div style="background-color: white;">
</div>
<span style="background-color: white; font-family: "georgia" , "times new roman" , serif;">An hour or two of someone else telling us the "we can do it!" simply does not have a chance. The intentions were great, the talk inspiring the ideas incredible. But when the coach goes home - so does the motivation.</span><br />
<span style="background-color: white; font-family: "georgia" , "times new roman" , serif;"><br /></span>
<br />
<div style="background-color: white;">
</div>
<span style="background-color: white; font-family: "georgia" , "times new roman" , serif;">I am not saying, or even implying that one should not to attend those seminars, or buy the books, or listen to cassettes. They all help, they all generate ideas, and this one may begin to move you in the right direction. Just do not overestimate the outcome unless you have truly unclogged your mind of most all of your previous negative thinking.</span><br />
<span style="background-color: white; font-family: "georgia" , "times new roman" , serif;"><br /></span>
<br />
<div style="text-align: right;">
<span style="background-color: white; color: #cccccc; font-family: "georgia" , "times new roman" , serif;"><i>Reprint; 2007 Prudent Trader Newsletter</i></span></div>
</blockquote>
PrudentTrader.comhttp://www.blogger.com/profile/14769289782711294628noreply@blogger.com1tag:blogger.com,1999:blog-6803279973962784574.post-75376547693246654762017-03-15T10:10:00.000-04:002020-02-27T09:22:00.788-05:00Taking on Greater Levels of Risk <br />
<span style="color: #333333; font-family: helvetica neue, helvetica, arial, sans-serif;"><span style="font-size: 14px;">Risk comes from not </span></span><br />
<span style="color: #333333; font-family: "helvetica neue", helvetica, arial, sans-serif; font-size: 14px;">knowing what you're </span><br />
<span style="color: #333333; font-family: "helvetica neue", helvetica, arial, sans-serif; font-size: 14px;">doing.</span><br />
<span style="color: #333333; font-family: helvetica neue, helvetica, arial, sans-serif;"><span style="font-size: 14px;"><b><i>Warren Buffett</i></b></span></span><br />
<br />
Education never stops. No matter how long you've been an investor you know and understand that your education is a never ending process. You purchase and read books, newspapers and magazines, to continue your learning and to continue to prosper. While continuing our education you come across books and articles about some of the elite and brilliant traders who have a rare talent for making huge profits in a field where few can excel. <i>"Market Wizards"</i> is how we refer to them and being human we can't help but dream of being just like them. <br />
<br />
Unfortunately, the facts tell us very few traders reach the top. The best most can do is evaluate and accept their abilities, and do their best. Pushing yourself too far and too fast doesn't work. It leads to frustration, and possibly failure. You must work at your own pace. This is especially true when one is attempting to take on greater levels of risk. Depending on your risk tolerance, taking on greater levels of risk can make you feel uneasy. If you want to make huge profits as a trader, you eventually need to learn to effortlessly take on greater levels or risk. <br />
<br />
Extending ones comfort zone is never easy. For most people, it is a gradual process. For example, first one must learn to put their hard-earned money on the line, and accept what it feels like to lose it. Taking a loss is disconcerting and a little frightening. Losing a few dollars is one thing, but as the amount increases substantially, so does the pressure. It takes a little practice to learn to risk ever-increasing amounts of money and take it in stride. Some people are natural born risk takers. Most traders however have come to their present state; by learning to manage money wisely. The idea of taking larger and larger risks to move beyond your comfort zone can be difficult. You may have a natural inclination to protect what you've worked so hard to accumulate. It's tough to not be a little wary. <br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEijHTFPyqtuUGh4bg2HzPVPJfigFNyTuSjXw601ycmogHJuWGn7Jfv4QVDkTHx2CTCGmCFS6EQDCC35cO8-44lmbLf6Ma25peqLKnfRLGutstvsYlC1UKIJSz9KG4cQk8kfvkH8cWvRtdtx/s1600/Manage+Risk.PNG" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="196" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEijHTFPyqtuUGh4bg2HzPVPJfigFNyTuSjXw601ycmogHJuWGn7Jfv4QVDkTHx2CTCGmCFS6EQDCC35cO8-44lmbLf6Ma25peqLKnfRLGutstvsYlC1UKIJSz9KG4cQk8kfvkH8cWvRtdtx/s200/Manage+Risk.PNG" width="200" /></a></div>
<br />
How do you learn to take on more risk? Again, it depends on your personality and the amount of trading capital in your account. You may need to train yourself to take on greater levels of risk. Move up gradually; don't make the mistake of moving too fast.<br />
<br />
Taking on greater and greater amounts of risk is fear-provoking. If you do it all at once, you move from relatively little fear and anxiety to terrifying amounts of fear and anxiety. To shocking for many. It's better to work up to it. You wouldn't try to run a 10-mile marathon tomorrow if you could barely run a mile today. You would build up your stamina and gradually work up to your objective. It's the same thing with trading. Increase the amount you risk gradually. The rate at which you increase it depends on your personality. Use your own judgment; if you can increase your risk a little each trade, good then try to keep up that pace. If you find that after a month, you've surpassed your comfort zone, well then reduce your risk. The key is to gradually increase your comfort zone, don't force yourself to go beyond your limits. Work at your own pace. If you try to do too much, too soon, you'll just feel overwhelmed and you may never reach your objective. If however you move up gradually, you will increase the likelihood that you will be able to increase the amount of risk you can handle.<br />
<br />
Trading is emotional. Taking on greater and greater amounts of risk is stressful. Instead of becoming overwhelmed, and possibly under mining your long-term financial goals, take it easy, and work at your own pace. You'll eventually be able to take on greater levels of risk, and trade more calmly, logically, and profitably.PrudentTrader.comhttp://www.blogger.com/profile/14769289782711294628noreply@blogger.com0tag:blogger.com,1999:blog-6803279973962784574.post-35181332345276099362017-03-03T08:17:00.000-05:002017-03-03T08:17:17.355-05:00Beat Stress Before It Beats You<blockquote class="tr_bq">
<span style="background-color: white; color: #333333;"><span style="font-family: "georgia" , "times new roman" , serif;">Adopting the right attitude </span></span><span style="background-color: white; color: #333333;"><span style="font-family: "georgia" , "times new roman" , serif;"><br />can convert a negative <br />stress </span></span><span style="background-color: white; color: #333333;"><span style="font-family: "georgia" , "times new roman" , serif;">into a positive one. </span></span><b><span style="background-color: white; color: #333333;"><span style="font-family: "georgia" , "times new roman" , serif;"><br />Hans Selye</span></span></b></blockquote>
<span style="background-color: white; font-family: "verdana";">Did news items ruin your plans this week? Adverse events, such as foul weather (think Oil, Agriculture, Shopping patterns), is just one of the many sources of stress an active trader must contend with. If you're not careful, you can become easily overwhelmed. When you are </span><i style="background-color: white; font-family: Verdana;">"stressed out"</i><span style="background-color: white; font-family: "verdana";">, you may not be able to think clearly, you won't read the markets objectively. You must do whatever you can to stay calm while trading.</span><br />
<span style="background-color: white; font-family: "verdana";"><br /></span>
<span style="background-color: white; font-family: "verdana";">Scientists have shown that stressful emotions can build up, and if not released, a person can become overloaded by stress. Laboratory animals placed in</span><br />
<span style="background-color: white; font-family: "verdana";"></span><br />
<div class="separator" style="clear: both; text-align: center;">
</div>
<span style="background-color: white; font-family: "verdana";">stressful situations, for example, die if the stressful events are continuous and </span><br />
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<span style="background-color: white; font-family: "verdana";">
enduring. You can't completely remove stress from your environment, but you can prevent the stressful aspects of trading from making you feel anxious and fearful. Here is a short plan to help you develop an effective stress reduction plan:</span><br />
<ul style="background-color: white; font-family: Verdana;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgUF9YDH-P5VU9RN5hnf5kwNSbemgd6lIqO5aIbOXK9ka_Kk_h3ND9q7hBazxOtBlWsBCG3FGNTNogEUoEujY4BAq8PPy3x3Pbe_x9jntjxyOd5wTff0Y6gUIcYH7LBTZp29gMFWPkTcloF/s1600/stress2-saidaonline.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgUF9YDH-P5VU9RN5hnf5kwNSbemgd6lIqO5aIbOXK9ka_Kk_h3ND9q7hBazxOtBlWsBCG3FGNTNogEUoEujY4BAq8PPy3x3Pbe_x9jntjxyOd5wTff0Y6gUIcYH7LBTZp29gMFWPkTcloF/s1600/stress2-saidaonline.jpg" /></a>
<li><b><i>Avoid caffeine.</i></b><br />Many people believe caffeine keeps them alert. The downside of caffeine however, is that caffeine will elevate your nervous system to the point that you feel on edge and ready to panic? Trading and life is stressful enough; you don't need to pre-elevate your nervous system.</li>
<li><b><i>Exercise regularly.</i></b></li>
Many successful traders view exercise as a key component to creating a calm and relaxed mindset. You don’t need to go to a gym, take a brisk walk around the block; it will clear your mind and give you new and fresh perspectives. We must all regularly release tension that builds up each day.
<li><b><i>Minimize background stress.</i></b></li>
Daily hassles, such as minor arguments with your spouse or others, or traffic congestion can, when added together, be as stressful as a major life event (such as the death of a loved one). Don’t ignore these events; don’t pretend they aren’t important enough to deal with now. Deal with the hassles and then minimize them as well as you can. Seemingly minor hassles can accrue and cause you great strain in the long run.
<li><b><i>Don’t attempt to exceed your trading skills.</i></b></li>
Do not put extra pressure on yourself by trying to achieve trading goals that are beyond your current skill level. As an example, keep your position sizes relatively small, consider scaling into a position as opposed to an all or nothing approach and have clearly defined risk limits. If you push yourself beyond your skill set in an attempt to achieve an unrealistic goal, you will feel an extreme sense of anxiety and fear. Take your time, you will get there!</ul>
PrudentTrader.comhttp://www.blogger.com/profile/14769289782711294628noreply@blogger.com0tag:blogger.com,1999:blog-6803279973962784574.post-12360697095819946502017-02-17T10:33:00.000-05:002017-02-17T10:33:43.646-05:00So You Want to be a Trader?<blockquote class="tr_bq">
<span style="background-color: white; color: #333333; font-size: 14px;"><span style="font-family: "georgia" , "times new roman" , serif;">Unless commitment is made, there are only <br /> </span></span><span style="background-color: white; color: #333333; font-size: 14px;"><span style="font-family: "georgia" , "times new roman" , serif;">promises and hopes... but no plans.<br /> </span></span><span style="background-color: white; color: #333333; font-size: 14px;"><span style="font-family: "georgia" , "times new roman" , serif;"><b><i>Peter Drucker</i></b></span></span></blockquote>
<span style="background-color: white; font-family: "georgia" , "times new roman" , serif;">You have made a decision: you're going to become a trader, master the markets and take home huge profits. Each year thousands upon thousands of people make the same decision. Most often the reason is to relieve them of a boring, mundane job. If this is you, the bad news is that the vast majority of these would be traders fail. Why? They have made an apparent decision to trade but they have </span><u style="background-color: white; font-family: georgia, "times new roman", serif;">not</u><span style="background-color: white; font-family: "georgia" , "times new roman" , serif;"> made the more important decision to make the proper commitment. You have to incorporate trading into your life and do whatever it takes to hone your trading skills to the point where you can master the markets.</span><br />
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<span style="font-family: "georgia" , "times new roman" , serif;"><i style="background-color: white;">"Until one is committed, there is hesitancy, the chance to draw back"</i><span style="background-color: white;"> - Goethe.</span></span></blockquote>
<span style="background-color: white; font-family: "georgia" , "times new roman" , serif;">In his book, "The Mentally Tough Online Trader," Robert Koppel observes, </span><i style="background-color: white; font-family: Georgia, "Times New Roman", serif;">"Top performing traders are committed to overcome any hardship or roadblock to achieve their goals."</i><span style="background-color: white; font-family: "georgia" , "times new roman" , serif;"> Besides capital you also must invest time and energy. It's impossible to digest all there is to know overnight. You just can't do it in an hour a week.</span><br />
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<span style="background-color: white;"><span style="font-family: "georgia" , "times new roman" , serif;">Learning about the markets and developing an intuitive feel requires time and practice. In some cases, it can take many years before you can trade the markets profitably. But to the trader who is fully committed, these are minor setbacks. Once you make the commitment to </span></span><br />
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<span style="background-color: white;"><span style="font-family: "georgia" , "times new roman" , serif;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiJt-7rCJjgZCaAIWeoleC2Y_K6_yCH7jADho7Ks1KsqDhALYeZi9vIwGRMw3nljuTGK8WoeDP8H3NdUKjDMFtr8dzQxG_sm_YHTexMb8mBayLkQBGZh2S1RudmHuSiSC74cg5RuPBjW9Wm/s1600/Attitude.PNG" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="175" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiJt-7rCJjgZCaAIWeoleC2Y_K6_yCH7jADho7Ks1KsqDhALYeZi9vIwGRMw3nljuTGK8WoeDP8H3NdUKjDMFtr8dzQxG_sm_YHTexMb8mBayLkQBGZh2S1RudmHuSiSC74cg5RuPBjW9Wm/s200/Attitude.PNG" width="200" /></a></span></span></div>
<span style="background-color: white;"><span style="font-family: "georgia" , "times new roman" , serif;">master the markets, you'll do whatever it takes to attain success.</span></span><br />
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<span style="font-family: "georgia" , "times new roman" , serif;"><span style="background-color: white;">Trading is serious business. You cannot treat it like a hobby. If you do not have the proper commitment, you will approach trading lightly. You will begin to feel that you might as well have fun, trade on impulse, and seek out excitement. Why not visit a casino once in awhile to satisfy that need. A casual, uncommitted attitude will prevent you from excelling. In fact a casual, uncommitted attitude will eventually wipe out your account balance. I have personally witnessed the effect of non-commitment, far too many times in my career. Don't make this mistake! </span><u style="background-color: white;">Trading the markets requires you to passionately commit to becoming the best trader you can be</u><span style="background-color: white;">.</span></span><br />
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<span style="background-color: white;"><span style="font-family: "georgia" , "times new roman" , serif;">If you want to make huge profits, it's not enough to decide to become a winning trader. You must also make a strong commitment to do whatever it takes to achieve enduring financial success.</span></span><br />
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<span style="font-family: "georgia" , "times new roman" , serif;"><span style="background-color: white;">If you forget you have to struggle for improvement you go backward. - </span><i style="background-color: white;">Geoffrey Hickson</i></span></blockquote>
PrudentTrader.comhttp://www.blogger.com/profile/14769289782711294628noreply@blogger.com1tag:blogger.com,1999:blog-6803279973962784574.post-34743255303192153302017-02-02T10:10:00.000-05:002017-02-02T10:10:31.857-05:00Trading With Discipline <blockquote class="tr_bq">
<span style="background-color: white; color: #333333;"><span style="font-family: "georgia" , "times new roman" , serif;">Planning is bringing the future into the</span></span></blockquote>
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<span style="background-color: white; color: #333333;"><span style="font-family: "georgia" , "times new roman" , serif;">present so that you can do something </span></span></blockquote>
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<span style="background-color: white; color: #333333;"><span style="font-family: "georgia" , "times new roman" , serif;">about it now. </span></span></blockquote>
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<span style="background-color: white; color: #333333;"><b><i><span style="font-family: "georgia" , "times new roman" , serif;">Alan Lakein</span></i></b></span></blockquote>
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In my decade and a half or so as a stock and commodities broker, I was exposed to many different trading styles as well as trader types. Some were very successful, some only slightly, most however, failed over time. Those that were very successful shared two common traits. First they had a trading plan, that was perhaps revised from time to time, but nevertheless followed religiously; and second they had untiring discipline.<br />
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Expert trader John Hayden author of "The 21 Irrefutable Truths of Trading" states: <i>"Without discipline, you will be unable to master your ego, create empowering beliefs, have faith, and develop confidence in your abilities. The lack of discipline will prevent your skill as a trader from progressing."</i><br />
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Making an occasional winning trade, that ignores your trading plan, may provide short-term pleasure, but entering trades unsystematically can adversely influence your ability to maintain discipline over the long term. Why? When you stop following your plan, you are being rewarded for a lack of discipline. You may start believing that abandoning your plan is therefore not a big deal. Then, whether consciously or unconsciously, you'll begin to think: <i>"I was rewarded once; maybe I will be rewarded again. I'll take a chance."</i> Positive outcomes from undisciplined trading are most often short-lived, and the lack of discipline will ultimately produce trading losses.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh-xH4u9qr02u91EcOXXzLgSK6ehi1BQAyH163d2DClkwngGQToiK75VS_aiOr2QlUHWfy89N4wcFGt2zrvifjsyKdV7r0MbIS-O09J5HOnHPbOy0VXgN77L8eeZgmb_4uf90E3EQSx2WW-/s1600/Capture.PNG" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="168" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh-xH4u9qr02u91EcOXXzLgSK6ehi1BQAyH163d2DClkwngGQToiK75VS_aiOr2QlUHWfy89N4wcFGt2zrvifjsyKdV7r0MbIS-O09J5HOnHPbOy0VXgN77L8eeZgmb_4uf90E3EQSx2WW-/s200/Capture.PNG" width="200" /></a></div>
Who cares if the win is from my plan or not? It's still a win, right! A win that results from following a trading plan reinforces discipline. A win that occurs by chance (deviating from your plan) will increase your bottom line temporarily, but may cause harm to your psyche and be responsible for future unexplained losses. It reinforces undisciplined trading.<br />
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Cultivating discipline is essential for consistent and profitable trading. Trading is a matter of getting the law of averages to work in your favor. You implement proven trading strategies, over and over, so that across a series of trades, the strategies work enough to produce an overall profit. You should trade consistently, following a specific trading plan on each and every trade. This will allow the law of averages to work in your favor. If you follow the plan sometimes and abandon it at other times, you throw off the probabilities, and you are likely to end up losing overall. <br />
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PrudentTrader.comhttp://www.blogger.com/profile/14769289782711294628noreply@blogger.com1tag:blogger.com,1999:blog-6803279973962784574.post-7810432284462421182016-12-20T10:53:00.000-05:002016-12-20T11:06:58.520-05:00Christmas Gift Suggestions and Recipe for a Happy New Year<div style="text-align: center;">
<span style="background-color: white; color: #333333;"><span style="font-family: "georgia" , "times new roman" , serif;">I will honor Christmas in my heart, </span></span></div>
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<span style="background-color: white; color: #333333;"><span style="font-family: "georgia" , "times new roman" , serif;">and try to keep it all the year. </span></span></div>
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<b style="background-color: white; color: #333333; font-family: Georgia, "Times New Roman", serif;"><i>Charles Dickens</i></b></div>
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<b style="color: #8000ff; font-family: Georgia, "Times New Roman", serif;"><u>Christmas gift suggestions:</u></b></div>
<span style="font-family: "georgia" , "times new roman" , serif;"><br style="background-color: white;" /><span style="background-color: white;">To your enemy: </span><i style="background-color: white;"><u>Forgiveness.</u></i><span style="background-color: white;"> </span><br style="background-color: white;" /><span style="background-color: white;">To an opponent:</span><i style="background-color: white;"><u> Tolerance. </u></i><br style="background-color: white;" /><span style="background-color: white;">To a friend:</span><i style="background-color: white;"><u> Your Heart.</u></i><span style="background-color: white;"> </span><br style="background-color: white;" /><span style="background-color: white;">To a customer:</span><i style="background-color: white;"><u> Service.</u></i><span style="background-color: white;"> </span><br style="background-color: white;" /><span style="background-color: white;">To all: </span><i style="background-color: white;"><u>Charity. </u></i><br style="background-color: white;" /><span style="background-color: white;">To every child: </span><i style="background-color: white;"><u>A Good example.</u></i><span style="background-color: white;"> </span><br style="background-color: white;" /><span style="background-color: white;">To yourself: </span><i style="background-color: white;"><u>Respect.</u></i><span style="background-color: white;"> </span></span><br />
<span style="font-family: "georgia" , "times new roman" , serif;"><br style="background-color: white;" /><span style="background-color: white;">- </span><i style="background-color: white;">Oren Arnold </i></span><br />
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<span style="font-family: "georgia" , "times new roman" , serif;"><b style="background-color: white;"><span style="color: blue;">Recipe for a Happy New Year </span></b><span style="background-color: white;"></span><br style="background-color: white;" /><span style="background-color: white;"><i>Author Unknown</i></span></span><br />
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<span style="background-color: white; font-family: "georgia" , "times new roman" , serif;">To leave the old with a burst of song</span><br />
<span style="font-family: "georgia" , "times new roman" , serif;"><span style="font-family: "georgia" , "times new roman" , serif;"><span style="background-color: white;">To recall the rights and forgive the wrong;</span><br style="background-color: white;" /><span style="background-color: white;">To forgive the thing that binds you fast</span><br style="background-color: white;" /><span style="background-color: white;">To the vain regrets of the year that's past;</span></span></span><br />
<span style="background-color: white; font-family: "georgia" , "times new roman" , serif;">To have the strength to let go your hold</span><br />
<span style="font-family: "georgia" , "times new roman" , serif;"><span style="font-family: "georgia" , "times new roman" , serif;"><span style="background-color: white;">Of the non-worthwhile of the days grown old;</span><br style="background-color: white;" /><span style="background-color: white;">To dare to go forth with a purpose true;</span><br style="background-color: white;" /><span style="background-color: white;">To the unknown task of the year that's new,</span></span></span><br />
<span style="background-color: white; font-family: "georgia" , "times new roman" , serif;">To help your brother along the road</span><br />
<span style="font-family: "georgia" , "times new roman" , serif;"><span style="font-family: "georgia" , "times new roman" , serif;"><span style="background-color: white;">To do his work and lift his load;</span><br style="background-color: white;" /><span style="background-color: white;">To add your gift to the world's good cheer,</span><br style="background-color: white;" /><span style="background-color: white;">Is to have and to give a Happy New Year.</span></span></span><br />
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<ul style="border: none; box-sizing: border-box; clear: both; color: #333333; font-family: Georgia, " margin: 15px 0px; outline: none; padding: 8px; width: 780.729px; word-spacing: 0.25em;"><i><b>From our Family to yours</b></i>, we wish you a Christmas that is joyful and warm. And a Happy, Healthy, and very Prosperous New Year!</ul>
PrudentTrader.comhttp://www.blogger.com/profile/14769289782711294628noreply@blogger.com2tag:blogger.com,1999:blog-6803279973962784574.post-73322790820678362322016-12-14T14:31:00.000-05:002016-12-14T14:31:34.375-05:00 Win or Lose: You Are A Winner Every Day <br />
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<tr><td colspan="2" height="1" style="margin: 0px;" width="650"><span style="font-family: "georgia" , "times new roman" , serif;">Few cases of eyestrain have been developed by looking on the bright side of things <b><i>Unknown. </i></b> </span></td></tr>
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<span style="font-family: "georgia" , "times new roman" , serif;">Have you ever spent the day making trade after trade and gotten nowhere? You may have wondered why you woke up that morning, or even bothered trading that day. Perhaps there have been a few days where you've felt this way this week. It's been a hard week so far. If you aren't doing very well, it is understandable. Uncertainty abounds. On days when you are feeling unproductive, it's vital to have an upbeat attitude, though. You need to lift your spirits. So what if a given trading day wasn't fruitful? Who cares if you lost money today? Take it all in stride. How can you be so carefree, you ask? Real money was lost, so how can anyone convince himself or herself to feel good? There are trading days when your rewards are tangible profits and you can bask in the glory of success, and then there are those days where you must chalk the day up to experience. You settle for saying, "Perhaps I learned something valuable today. Let's figure out what I learned and be grateful that I got something out of the day."</span><br />
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<span style="font-family: "georgia" , "times new roman" , serif;">What did you learn today? What did you experience? Did you make it through the day relatively unscathed? That's worth something. Maybe you learned that you could stand aside when you wanted to and get out of harm's way. It is something worth learning. Maybe you jumped into the markets too soon, and felt a little bit of regret from losses. Were the losses justified? Did you follow your plan, but the plan didn't work. If you lost because of a faulty plan, it's still valuable knowing that you could follow a plan. Losses due to impulsive decisions are another matter, however. If you traded impulsively, perhaps you learned how you might prevent impulsive decisions in the future. No matter what happened, though, you learned a valuable lesson.</span><br />
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<span style="font-family: "georgia" , "times new roman" , serif;">In the modern, competitive world, we are obsessed with winning races. We want to make more profits than the next trader, and when we fail to make profits, we feel beaten. But the only benchmark that should matter is your own. So what if you don't make profits every single day? Maybe you do not yet have the skills or financial resources to make a profit every day. Even if you consider the metaphor of winning a race with other traders, would you try to run a marathon without the proper amount of practice? Would you feel disappointed if you couldn't reach an athletic goal that you knew would take more training than you had? You definitely would not, so why make such high and lofty trading goals? Give yourself a break. Sometimes it is wise to just do your best and accept what you've achieved. When you set high goals that exceed your skills, you will usually feel discouraged, and that may make you feel like giving up. Rather than kicking yourself for not performing up to par, consider the fact that you have learned a valuable lesson today and every day, win or lose. You may not have achieved a high performance goal, but you have achieved a learning goal. In other words, you have moved one step closer to fully mastering the markets. Every little experience counts. So rather than beat yourself up for failing to reach your standards, pat yourself on the back for making it through another trading day. Remind yourself that you are a winner. Don't set overly high performance goals that you can't achieve. Focus on skill building, rather than on making huge profits. When you focus on skill building, you will feel better, and you will keep trying. And in the end you will make the huge profits you desire.</span><br />
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<span style="background-color: white; color: #999999; font-family: "helvetica neue" , "helvetica" , "arial" , sans-serif; font-size: 15px;"><br />The above is a reprint from the defunct “</span><em style="background-color: white; border: 0px; color: #999999; font-family: "Helvetica Neue", Helvetica, Arial, sans-serif; font-size: 15px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Innerworth Newsletter</em><span style="background-color: white; color: #999999; font-family: "helvetica neue" , "helvetica" , "arial" , sans-serif; font-size: 15px;">” written in 2006. Enjoy and save for yourself.</span></blockquote>
PrudentTrader.comhttp://www.blogger.com/profile/14769289782711294628noreply@blogger.com1tag:blogger.com,1999:blog-6803279973962784574.post-61079237387070157132016-11-22T11:00:00.000-05:002016-11-22T11:00:29.073-05:00Lincoln's Thanksgiving Day Proclamation<div class="separator" style="clear: both; text-align: center;">
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<i style="font-family: Georgia, "Times New Roman", serif; text-align: left;">Lincoln wrote a proclamation, which was issued on October 3, 1863. The New York Times published a copy of the proclamation two days later. The idea seemed to catch on, and the northern states celebrated Thanksgiving on the date noted in Lincoln's proclamation, the last Thursday in November, which fell on November 26, 1863.</i></blockquote>
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<span style="font-family: "georgia" , "times new roman" , serif;"><i>Washington, D.C.</i></span></blockquote>
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<span style="font-family: "georgia" , "times new roman" , serif;">October 3, 1863</span></div>
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<span style="font-family: "georgia" , "times new roman" , serif;">By the President of the United States of America.</span></div>
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<span style="font-family: "georgia" , "times new roman" , serif;">A Proclamation.</span></div>
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<span style="font-family: "georgia" , "times new roman" , serif;">The year that is drawing toward its close has been filled with the blessings of fruitful fields and healthful skies. To these bounties, which are so constantly enjoyed that we are prone to forget the source from which they come, others have been added, which are of so extraordinary a nature that they cannot fail to penetrate and soften the heart which is habitually insensible to the ever-watchful providence of Almighty God.</span></div>
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<span style="font-family: "georgia" , "times new roman" , serif;">In the midst of a civil war of unequaled magnitude and severity, which has sometimes seemed to foreign states to invite and provoke their aggression's, peace has been preserved with all nations, order has been maintained, the laws have been respected and obeyed, and harmony has prevailed everywhere, except in the theater of military conflict; while that theater has been greatly contracted by the advancing armies and navies of the Union.</span></div>
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<span style="font-family: "georgia" , "times new roman" , serif;">Needful diversions of wealth and of strength from the fields of peaceful industry to the national defense have not arrested the plow, the shuttle, or the ship; the ax has enlarged the borders of our settlements, and the mines, as well of iron and coal as of the precious metals, have yielded even more abundantly than heretofore. Population has steadily increased, notwithstanding the waste that has been made in the camp, the siege, and the battlefield, and the country, rejoicing in the consciousness of augmented strength and vigor, is permitted to expect continuance of years with large increase of freedom.</span></div>
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<span style="font-family: "georgia" , "times new roman" , serif;">No human counsel hath devised, nor hath any mortal hand worked out these great things. They are the gracious gifts of the Most High God, who while dealing with us in anger for our sins, hath nevertheless remembered mercy.</span></div>
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<span style="font-family: "georgia" , "times new roman" , serif;">It has seemed to me fit and proper that they should be solemnly, reverently, and gratefully acknowledged as with one heart and one voice by the whole American people. I do, therefore, invite my fellow-citizens in every part of the United States, and also those who are at sea and those who are sojourning in foreign lands, to set apart and observe the last Thursday of November next as a Day of Thanksgiving and Praise to our beneficent Father who dwelleth in the heavens. And I recommend to them that, while offering up the ascriptions justly due to Him for such singular deliverances and blessings, they do also, with humble penitence for our national perverseness and disobedience, commend to His tender care all those who have become widows, orphans, mourners, or sufferers in the lamentable civil strife in which we are unavoidably engaged, and fervently implore the interposition of the Almighty hand to heal the wounds of the nation, and to restore it, as soon as may be consistent with the Divine purposes, to the full enjoyment of peace, harmony, tranquility, and union.</span></div>
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<span style="font-family: "georgia" , "times new roman" , serif;">In testimony whereof, I have hereunto set my hand and caused the seal of the United Stated States to be affixed.</span></div>
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<span style="font-family: "georgia" , "times new roman" , serif;">Done at the city of Washington, this third day of October, in the year of our Lord one thousand eight hundred and sixty-three, and of the Independence of the United States the eighty-eighth.</span></div>
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<span style="font-family: "georgia" , "times new roman" , serif;"><b><i>Abraham Lincoln</i></b></span><br />
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<span style="font-family: "georgia" , "times new roman" , serif;"><b><i>Happy Thanksgiving from PrudentTrader.com</i></b></span></div>
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PrudentTrader.comhttp://www.blogger.com/profile/14769289782711294628noreply@blogger.com0tag:blogger.com,1999:blog-6803279973962784574.post-73991431503188189352016-11-03T07:41:00.000-04:002016-11-03T07:41:09.415-04:00Is Your Mind Open?<blockquote class="tr_bq">
<span style="background-color: white; color: #333333;"><span style="font-family: "georgia" , "times new roman" , serif;">I'm willing to meet with anyone, Democrat or Republican, who has a good idea, an open mind and a willingness to come together to tackle the challenges we face.<b><i><br /> Brad Schneider</i></b></span></span></blockquote>
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<span style="background-color: white;"><span style="font-family: "georgia" , "times new roman" , serif;">Do you have an open mind? Think about it a moment; an open mind is a free mind. Your inner winner image emerges as you open your mind to new ideas, new thoughts, new concepts, new people. If your mind is closed to new ideas and concepts, you are closing a door that imprisons your own mentality.</span></span><br />
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<span style="background-color: white;"><span style="font-family: "georgia" , "times new roman" , serif;">Prejudices occur when you close your mind and lock the doors. Intolerance cuts off the flow of ideas between your subconscious and your conscious mind. It also cuts off communication with others that may brighten your horizons.</span></span><br />
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<span style="background-color: white;"><span style="font-family: "georgia" , "times new roman" , serif;">About 100 years ago, The Wright Brothers decided to invent a flying machine. History tells us, the majority ridiculed them. In fact it was the closed minds of that majority; that rejected the concept, the idea. Luckily for us all The Wright Brothers listened to their inner selves. Your inner winner (self) is a voice that encourages you to try and try again. That voice will give you the courage in the face of ridicule.</span></span><br />
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<span style="background-color: white;"><span style="font-family: "georgia" , "times new roman" , serif;">If you are working on a project and seem to be stuck, or if you are unsure of what to do about your investing and trading dollars, then form a brainstorming partnership with at least one other friend. Share with them your problem, your confusion, your wishes, your desires, your </span></span><br />
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<span style="font-family: "georgia" , "times new roman" , serif;">concerns, and ask for help. Put the power of two or more brains to work on the situation. The Wright brothers succeeded because they put the power of more than one brain into their dream.</span><br />
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<span style="background-color: white;"><span style="font-family: "georgia" , "times new roman" , serif;">After more years in the markets than I sometimes care to admit, I still seek out others with new, different, and perhaps fresh ideas. It does not matter if they are 60 years in the market or just 1. Many times it is the new or relatively new trader who has a fresh and different perspective. While I may see caution written all over his or her words, it often sparks an idea that I will give further attention to.</span></span><br />
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<span style="background-color: white;"><span style="font-family: "georgia" , "times new roman" , serif;">You will discover that brainstorming forces your inner winner to come to the surface. The more you use it, the more it will work to assist you.</span></span>PrudentTrader.comhttp://www.blogger.com/profile/14769289782711294628noreply@blogger.com0tag:blogger.com,1999:blog-6803279973962784574.post-53776297587504217072016-10-05T07:51:00.000-04:002016-10-05T07:51:56.815-04:00Everyone Needs Their Ego Fed<blockquote class="tr_bq">
<span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;"><span style="background-color: white; color: #333333;"><span style="font-family: "georgia" , "times new roman" , serif;">Don't let your ego get too close to your position, </span></span>
<span style="background-color: white; color: #333333;">so that</span><span style="background-color: white; color: #333333;"><br />if your position gets shot down, your ego doesn't go with it. </span><span style="background-color: white; color: #333333;"><br /><b><i>Colin Powell</i></b></span></span></blockquote>
<span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;"><span style="background-color: white;"><span style="font-family: "georgia" , "times new roman" , serif;">The psychology of the market, as well as the psychology of the investor-speculator-trader, is of equal if not greater importance, than any market indicator.</span></span></span><br />
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<span style="background-color: white; font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;">According to a recent survey 97% of people feel they do not receive the praise, approval, and appreciation they deserve. Likewise 98% of people said they would perform better if they received more praise, approval, and appreciation. The government and business executives alike worry about low profits, inability to compete, and lack of initiative. You and I are concerned about how we get better cooperation from customers, employees, and family. How can we get other people to help us win our goals?</span><br />
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<span style="background-color: white; font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;">Your ego is your self. It is the most personal self-oriented part of your mind. Your ego is your underlying spiritual substance and regulates your mental state and self-esteem. It is by far the most sensitive part of your psychological and philosophical structure. A broken leg may heal in weeks; a damaged ego may never heal.</span><br />
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<span style="background-color: white; font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;">Just as the body needs food to sustain itself, ego food is mental nourishment that makes you feel better about yourself. Ego food takes the form of praise, encouragement, appreciation, and respect. It enlarges ones sense of self-worth makes them and you feel important. It also makes you and others feel useful and needed. Ego poison is the direct opposite of ego food. Ego poison consists of comments and actions that make you and others feel self-deprecated, unimportant, useless, </span><i style="background-color: white; font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">"bad"</i><span style="background-color: white; font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;">,</span><i style="background-color: white; font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">"stupid"</i><span style="background-color: white; font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;">, and </span><i style="background-color: white; font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">"small"</i><span style="background-color: white; font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;">.</span><br />
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<span style="background-color: white; font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;">What happens when we feed ego food? Ego food, when sincerely dispensed, will help you win friends, win employee cooperation, gain love and support from people closest to you. In short, help you succeed. In the business of risk taking, there are so many times you will temporarily damage your own ego, and create self-doubt. It's not you; it is the nature of the beast. If you practice giving sincere ego food to others, they in-turn will feed your ego at the times it is most needed.</span><br />
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<span style="background-color: white; font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;">At work, at home, in community environments people perform second rate because they feel scorned, overlooked, belittled, taunted, or punished. The result, they defend their egos by acting the role of saboteurs. Think about that for awhile, then the next time the opportunity presents itself decide whether you will feed ego food or ego poison? And also think about which you would rather receive, from your spouse, co-workers, friends, and fellow risk-takers?</span><br />
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<i><u><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;">There are two ways to own the tallest building in town. One way is to tear all the others down!</span></u></i></div>
PrudentTrader.comhttp://www.blogger.com/profile/14769289782711294628noreply@blogger.com0tag:blogger.com,1999:blog-6803279973962784574.post-75313868085838058492016-09-14T10:26:00.000-04:002016-09-14T15:58:43.204-04:00Don't Blame Circumstances<blockquote class="tr_bq">
<span style="font-family: "georgia" , "times new roman" , serif;"><span style="background-color: white; color: #333333; font-size: 14px; line-height: 20px;"><span style="font-family: "georgia" , "times new roman" , serif;">Part of being a man is learning to take responsibility for your successes and </span></span><span style="background-color: white; color: #333333; font-size: 14px; line-height: 20px;"><span style="font-family: "georgia" , "times new roman" , serif;">for your failures. You can't go blaming others or being jealous. Seeing </span></span><span style="background-color: white; color: #333333; font-size: 14px; line-height: 20px;"><span style="font-family: "georgia" , "times new roman" , serif;">somebody else's success as your failure is a cancerous way to live. </span></span><span style="background-color: white; color: #333333; font-size: 14px; line-height: 20px;"><span style="font-family: "georgia" , "times new roman" , serif;"><br /></span></span></span>
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<span style="background-color: white;"><span style="font-family: "georgia" , "times new roman" , serif;">We all from time to time face difficult problems, situations and circumstances. Whether it be in our personal lives, the business world and our jobs, or what to do in the marketplace. Our natural tendency is to blame the circumstances that surround us for the particular difficulty we are presently facing. Everything I know about the market said it was supposed to go up and it went down instead. How could I possibly have known this or that would happen?</span></span><br />
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<span style="background-color: white; font-family: "georgia" , "times new roman" , serif;">One of the hardest lessons, to not only learn, but accept and understand; is that circumstances are not negative or positive, circumstances are neutral. It is our thinking, our perspective, that make circumstances either positive or negative. Try and think of these difficult circumstance in this vain, - </span><i style="background-color: white; font-family: georgia, "times new roman", serif;">"Everything in the universe has its opposite."</i><span style="background-color: white; font-family: "georgia" , "times new roman" , serif;"> There is a </span><br />
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<span style="background-color: white; font-family: "georgia" , "times new roman" , serif;">North Pole and its opposite is the South Pole. If you live 150 miles from New York City, then it must be 150 miles from New York City to where you live. If something you considered bad happens in your life, there has to be something good about it.</span><br />
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<span style="background-color: white; font-family: "georgia" , "times new roman" , serif;">If you suffered a loss on a trade or series of trades, you have probably gained a good deal of knowledge as to the why, and you have probably gained even more knowledge about controlling risk. The gains in knowledge, over time, will far out balance the loss or losing streak you have just suffered, by rewarding you in the future.</span><br />
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<span style="background-color: white; font-family: "georgia" , "times new roman" , serif;">I hope it's clear, that every circumstance can be viewed in two ways. And it's the way we view the circumstance that determines its impact on our thinking and our mental state. No matter how bad the circumstance appears to be, taking another look, from another perspective, will reveal the potential good.</span><br />
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<span style="background-color: white; font-family: "georgia" , "times new roman" , serif;">Napoleon Hill, author of the classic </span><i style="background-color: white; font-family: georgia, "times new roman", serif;">"Think and Grow Rich,"</i><span style="background-color: white; font-family: "georgia" , "times new roman" , serif;"> wrote, </span><em style="background-color: white; font-family: georgia, "times new roman", serif;">"Every adversity, every failure and every heartache carries with it the seed of an equivalent or a greater benefit."</em><br />
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PrudentTrader.comhttp://www.blogger.com/profile/14769289782711294628noreply@blogger.com0tag:blogger.com,1999:blog-6803279973962784574.post-36425022702434834592016-08-31T11:10:00.000-04:002016-08-31T11:11:29.832-04:00Motivating Yourself<blockquote class="tr_bq">
<span style="font-family: Georgia, Times New Roman, serif;"><span style="background-color: white; color: #333333; line-height: 20px;">Always do your best. </span><span style="background-color: white; color: #333333; line-height: 20px;"><br />What you plant now, </span><span style="background-color: white; color: #333333; line-height: 20px;"><br />you will harvest later. </span><span style="background-color: white; color: #333333; line-height: 20px;"><br /><b><i>Og Mandino</i></b></span></span></blockquote>
<span style="background-color: white; font-family: "verdana";">When everything is going according to plan and you are </span><i style="background-color: white; font-family: Verdana;">"on"</i><span style="background-color: white; font-family: "verdana";">, you are in the most positive and highly motivated state you can attain. Your mind is set on it's path and you are in a state of total concentration and focus. Your mind is totally committed to what you are doing. The bad news however: This is not a state of mind you can just choose at will.</span><br />
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<span style="background-color: white; font-family: "verdana";">In any endeavor, the process of growth and achievement has four key elements: Goals; Actions; Awareness; and Change. Each one of these factors is crucial, but the foundation for the process is goals. Writing a few sentences or listing some things you'd like won't establish goals. Goals have no power until you experience them as real. You must experience them </span><u style="background-color: white; font-family: Verdana;">not</u><span style="background-color: white; font-family: "verdana";"> as something you merely want, but as something you need to sustain life - like food.</span><br />
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<span style="background-color: white; font-family: "verdana";">Your mind is a supercomputer that you can program to experience a goal as a fundamental need. Then your mind (supercomputer) will do everything it can to drive you toward your goal, and the rest of the steps will follow much more easily: what you do, the output of your mind, it all depends on the input. The input is simply: what you perceive, how you process the information, how you look at reality with your conscious mind, and how you have trained or failed to train your subconscious mind to function. </span><i style="background-color: white; font-family: Verdana;">Free will really means that you can change the programming in your mind.</i><span style="background-color: white; font-family: "verdana";"></span><br />
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<span style="background-color: white; font-family: "verdana";">Emotions determine motivation. We are driven by two fundamental forces at the</span><br />
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<span style="background-color: white; font-family: "verdana";"> emotional level, the desire to attain pleasure and the need to avoid pain. When we want something, is it the </span><i style="background-color: white; font-family: Verdana;">"thing"</i><span style="background-color: white; font-family: "verdana";"> we really want? What we really want is the change we think it will cause in our mental and physical state of being, that makes us want what we want. People who desire to lose weight do not care much about the actual</span><i style="background-color: white; font-family: Verdana;">"fat cells"</i><span style="background-color: white; font-family: "verdana";">. They want to change the way they feel about themselves. What they really want is to feel in control of their lives, to feel healthy and live longer, to feel more attractive to others, to feel more energetic and excited about life.</span><br />
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<span style="background-color: white; font-family: "verdana";">A profitable trading record can and often does have more losing trades than winning ones. If this is the case, then obviously the profits from the good trades must be larger than the losses from the more frequent losers. The most common error traders make is taking profits too early and allowing the loses to run to far. The reason is simple: at the time we are not motivated by the rules, we understand them but we don't realize them. Why do we do this? The need to avoid the pain of losing, and of being wrong drives us to deny rules we know to be right. To execute the rules is painful, but not executing them will increase your state of dissatisfaction and deplete your trading capital. I think upon self-examination, you will find some form of the pleasure/pain paradox is at work when you are having trouble moving towards your goals in your trading account and in life.</span><br />
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<span style="background-color: white; font-family: "verdana";">Just as we feed ourselves food everyday, we often need to feed our minds motivational food, to keep our focus, direction, and attitude. You can accomplish this with books, or very popular audio listening material. A <a href="http://www.brainyquote.com/quotes_of_the_day.html">Quote of the Day</a> site might help as well</span>PrudentTrader.comhttp://www.blogger.com/profile/14769289782711294628noreply@blogger.com0tag:blogger.com,1999:blog-6803279973962784574.post-49570008761678226222016-08-25T07:53:00.000-04:002016-08-25T07:53:31.886-04:00It's Not Necessary to Understand Everything <div style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;">
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<span style="font-family: "georgia" , "times new roman" , serif;">Look deep into nature, and then you</span></div>
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<span style="font-family: "georgia" , "times new roman" , serif;"><b><i>Albert Einstein</i></b></span></div>
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<span style="font-family: "georgia" , "times new roman" , serif;">Time is one of those things none of us can create. Achievers invariably manage to be time misers. They extract the essence from a situation, take out what they need, and do not dwell on the rest. In the markets, it is not necessary to be able to understand every aspect of a company's financial statement, or to understand every aspect of economic prospects to trade the markets. It is also not necessary to understand every technical indicator. There is a balance between understanding everything and picking what you need to know.</span> <span style="font-family: "georgia" , "times new roman" , serif;"> </span></div>
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<span style="font-family: "georgia";">Many successful people live by a very useful belief. They do not believe they have to know everything about something in order to use it. They know how to use what's essential without feeling a need to get bogged down in every detail. A very simple </span><br />
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example: I am sure all of you own a TV and a remote control device. How many know exactly how they work? What you do know is how to use it. Simply press the power button and the TV is on, press the channel button and it changes channels. It is not necessary to know the inner workings in order to use it. </span></div>
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<span style="font-family: "georgia";">In order to effectively use all that you are in this life, you should discover that there is a balance between use and knowledge.</span></div>
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<span style="font-family: "georgia";"><i>"You can spend all your time studying the roots, or you can learn to pick the fruit"</i>. - <i><b>Anthony Robbins.</b></i></span></blockquote>
<span style="font-family: "georgia";">There were probably plenty of scientists and engineers at major universities who knew more about computer circuitry than Steve Jobs and Steve Wozniak (founders of Apple Computer), but they were so effective at using what they had.</span></div>
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<span style="font-family: "georgia";">If you follow the markets every day, in time you will become proficient at extracting the information you need to make a decision. Whether it is looking through hundreds of charts, or the use of market scans looking for stocks fitting your personal criteria, or breaking down the marketplace into sectors and groups to determine what's hot and what's not. As you gain experience you will become very proficient at extracting the information you require. Then merely include these stocks, sectors, or groups you have found into a watch list where you will keep extensive notes on such things as: buy point, sell point, and your perceived risk and potential gain. </span></div>
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PrudentTrader.comhttp://www.blogger.com/profile/14769289782711294628noreply@blogger.com0tag:blogger.com,1999:blog-6803279973962784574.post-12606135830667983872016-08-10T12:45:00.000-04:002016-08-10T12:52:04.251-04:00Blaming Circumstances<blockquote class="tr_bq">
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<span style="font-family: Georgia, Times New Roman, serif;"><span style="font-family: georgia, 'times new roman', serif;"><span style="background-color: white; color: #333333;">You must take personal responsibility. You cannot change the </span></span><span style="font-family: georgia, 'times new roman', serif;"><span style="background-color: white; color: #333333;">circumstances,</span></span> <span style="font-family: georgia, 'times new roman', serif;"><span style="background-color: white; color: #333333;">the seasons, or the wind, but you can change </span></span><span style="font-family: georgia, 'times new roman', serif;"><span style="background-color: white; color: #333333;">yourself. That is something you h</span></span><span style="background-color: white; color: #333333;">ave charge of. </span> </span></blockquote>
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<span style="background-color: white; font-family: "georgia" , "times new roman" , serif;">We all from time to time face difficult problems, situations and circumstances. Whether it be in our personal lives, the business world and our jobs, or what to do in the marketplace. Our natural tendency is to blame the circumstances that surround us for the particular difficulty we are presently facing. Everything I know about the market said it was supposed to go down and it went up instead. How could I possibly have known this or that would happen?</span><br />
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<span style="font-family: "georgia" , "times new roman" , serif;"><span style="background-color: white;">One of the hardest lessons, to not only learn, but accept and understand; is that circumstances are not negative or positive, circumstances are neutral. It is our thinking, our perspective, that make circumstances either positive or negative. Try and think of these difficult circumstance in this vain, - </span><i>"Everything in the universe has its opposite."</i><span style="background-color: white;"> There is a North Pole and its opposite is the South Pole. If you live 150 miles from New York City, then it must be 150 miles from New York City to where you live. If something you considered bad happens in your life, there has to be something good about it.</span></span><br />
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<span style="background-color: white;"><span style="font-family: "georgia" , "times new roman" , serif;">If you suffered a loss on a trade or series of trades, you have probably gained a good deal of knowledge as to the why, and you have probably gained even more knowledge about controlling risk. The gains in knowledge, over time, will far out balance the loss or losing streak you have just suffered, by rewarding you in the future.</span></span><br />
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<span style="background-color: white;"><span style="font-family: "georgia" , "times new roman" , serif;">I hope it's clear, that every circumstance can be viewed in two ways. And it's the way we view the circumstance that determines its impact on our thinking and our mental state. No matter how bad the circumstance appears to be, taking another look, from another perspective, will reveal the potential good. </span></span><br />
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<span style="font-family: "georgia" , "times new roman" , serif;"><span style="background-color: white;">Napoleon Hill, author of the classic </span><i>"Think and Grow Rich,"</i><span style="background-color: white;"> wrote, </span><em>"Every adversity, every failure and every heartache carries with it the seed of an equivalent or a greater benefit." </em><span style="background-color: white;"></span></span><br />
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PrudentTrader.comhttp://www.blogger.com/profile/14769289782711294628noreply@blogger.com1tag:blogger.com,1999:blog-6803279973962784574.post-9561362738328339732016-07-14T13:14:00.000-04:002019-09-14T08:36:31.745-04:00A Traders Character <blockquote class="tr_bq">
<span style="background-color: white; color: #333333; font-family: "helvetica neue" , "helvetica" , "arial" , sans-serif; font-size: 14px; line-height: 20px;">The foundation stones for a balanced success are <br />honesty, </span><span style="background-color: white; color: #333333; font-family: "helvetica neue" , "helvetica" , "arial" , sans-serif; font-size: 14px; line-height: 20px;">character, integrity, faith, love and loyalty. </span><span style="background-color: white; color: #333333; font-family: "helvetica neue" , "helvetica" , "arial" , sans-serif; font-size: 14px; line-height: 20px;"><br /><b><i>Zig Ziglar</i></b></span></blockquote>
<span style="background-color: white; font-family: "verdana";">What does it take to be a successful trader? Experience? A good </span><i style="background-color: white; font-family: Verdana;">"feel"</i><span style="background-color: white; font-family: "verdana";"> for the market? Mastery of technical and fundamental analysis? While these elements are important, reaching the highest level of </span><i style="background-color: white; font-family: Verdana;">"facts and figures"</i><span style="background-color: white; font-family: "verdana";"> expertise is </span><i style="background-color: white; font-family: Verdana;">not in itself sufficient</i><span style="background-color: white; font-family: "verdana";">. To achieve real success as a trader, no matter how you define it, you must have all the ingredients of a trader's psychology: good character, a certain personality type, and a particular way of thinking.</span><br />
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<span style="background-color: white; font-family: "verdana";">Analytical tools and the mental ability to apply them intelligently are absolutely essential to be a success in trading, but genuine success as a whole, takes more than a good brain. It takes Character!</span><br />
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<span style="background-color: white; font-family: "verdana";">Webster's dictionary defines character as </span><i style="background-color: white; font-family: Verdana;">"the complex of mental and ethical traits marking a person."</i><span style="background-color: white; font-family: "verdana";"> Do you put your own interests and those of your family first? Or are you more concerned with the well being of others? Do you choose honesty over lying, integrity rather than hypocrisy, productiveness over idleness? Can you consistently weigh, based on an internal sense of right and </span><br />
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<span style="background-color: white; font-family: "verdana";">wrong, justice versus mercy, rationality versus emotional whim, pride versus humility? The process of making those choices and decisions may seem intuitive and hard to explain, but in all cases it begins with your own personal sense of morality and ethics - in other words, your character.</span><br />
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<span style="background-color: white; font-family: "verdana";">Your character is set by what you value, what you strive for. Your overall ethical structure - your values and your beliefs - determines character: </span><u style="background-color: white; font-family: Verdana;">it determines what you do</u><span style="background-color: white; font-family: "verdana";">.</span><br />
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<span style="background-color: white; font-family: "verdana";">For example, suppose two people both value money. That is, both want to make a lot of money. One has a healthy view toward money, seeing it as a means to many desirable ends. The other however holds the subconscious belief that </span><i style="background-color: white; font-family: Verdana;">"money is the root of all evil."</i><span style="background-color: white; font-family: "verdana";"></span><br />
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<span style="background-color: white; font-family: "verdana";">If both make a lot of money, the first would be more likely to enjoy it, spending it for a nice home or dream vacation. The other person however, may find it impossible to truly enjoy his money. He may feel a vague uneasiness when spending it, or may be guilt-ridden when booking that dream vacation. If that second person made his money trading the markets, in all probability, his guilt will force his subconscious to lose most if not all of it.</span><br />
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<span style="background-color: white; font-family: "verdana";">Are your character traits suitable for trading? Definitely worth thinking about!</span>PrudentTrader.comhttp://www.blogger.com/profile/14769289782711294628noreply@blogger.com0tag:blogger.com,1999:blog-6803279973962784574.post-29049695482911057982016-07-07T08:06:00.000-04:002016-07-07T08:06:35.813-04:00A System Everyone Can Use<blockquote class="tr_bq">
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<span style="font-family: "georgia" , "times new roman" , serif; text-align: -webkit-center;">Your brain is much better</span><br />
<span style="font-family: "georgia" , "times new roman" , serif;"><span style="text-align: -webkit-center;">than you think, just use it!</span><i style="text-align: -webkit-center;"><br /><b>Leonardo Da Vinci</b></i></span></blockquote>
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<span style="font-family: "georgia" , "times new roman" , serif;"><span style="background-color: white;">Whether you think you can, or think you can't, you're absolutely right. The novel and the movie </span><i style="font-family: Verdana;">"The Da Vinci code"</i><span style="background-color: white;"> has brought this fascinating individual to the forefront in recent years. I believe that we can learn a great deal from Leonardo Da Vinci as well as others who have gone before us. </span></span><br />
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<span style="background-color: white; font-family: georgia, "times new roman", serif;">Just like the young learn to survive by following and imitating their parents, a key component to being successful is to imitate successful people. Humans, unlike any other species, can choose whom they would like to imitate. Leonardo Da Vinci felt that throughout our lives, and all of its stages, we should learn to consciously choose role models and to replace the ones we outgrow.</span><br />
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<span style="background-color: white;"><span style="font-family: "georgia" , "times new roman" , serif;">By doing this you will begin a positive adventure toward your worthy goal. For example, if you want to become a better trader, study the great traders, Jesse Livermore, Paul Tudor Jones, and Victor Sperandeo, to name a few. Read what they have written and what is written about them. Study their habits and imitate them. If you want to become a leader, study Abraham Lincoln (he never quit) or Winston Churchill. </span></span><br />
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<span style="font-family: "georgia" , "times new roman" , serif;"><span style="background-color: white;">Michael Gelb who wrote the book </span><i style="font-family: Verdana;">"How To Think Like Leonardo Da Vinci"</i><span style="background-color: white;"> writes, </span><i style="font-family: Verdana;">"It would take an encyclopedia to begin to do justice to the full scope of Leonardo's accomplishments."</i><span style="background-color: white;"> Da Vinci had visions. What set him apart is that he acted on his ideas. What's most fascinating is the fact that Da Vinci had a </span><i style="font-family: Verdana;"><u>"system"</u></i><span style="background-color: white;"> he invented and followed religiously every time he began a new idea. It's a very simple system you can use to help you achieve your goals. </span></span><br />
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<span style="font-family: "georgia" , "times new roman" , serif;"><span style="background-color: white;">Da Vinci called it the </span><i style="font-family: Verdana;">"Smart System"</i><span style="background-color: white;">, S M A R T, being an acronym for: </span></span></div>
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<span style="font-family: "georgia" , "times new roman" , serif;"><b>M</b> - Measurable: figure out how you're going to measure your goals. </span>
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<span style="font-family: "georgia" , "times new roman" , serif;"><b>A</b> - Accountability: Commit to being personally responsible for achieving your goals. If part of a team, be sure that accountability is clear. </span>
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<span style="font-family: "georgia" , "times new roman" , serif;"><b>R</b> - Realistic/Relevant: Set goals that are ambitious but achievable. Make certain your goals are relevant to your purpose. </span>
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<span style="font-family: "georgia" , "times new roman" , serif;"><b>T</b> - Timeline: Set a clear time line for the achievement of your goals.</span>
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<span style="font-family: "georgia" , "times new roman" , serif;"><span style="background-color: white; font-family: "georgia" , "times new roman" , serif;">Great plan, wonderful system, easy word, </span><b style="font-family: Verdana;">"</b><span style="font-family: "verdana";"><span style="font-family: "georgia" , "times new roman" , serif;"><i><u>SMART</u></i></span></span><b style="font-family: Verdana;">"</b><span style="background-color: white; font-family: "georgia" , "times new roman" , serif;">. </span></span><br />
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<span style="background-color: white; font-family: "georgia" , "times new roman" , serif;">By the way, I'm sure you know that Da Vinci created the timeless paintings, </span><i style="font-family: Verdana;">"Mona Lisa"</i><span style="background-color: white; font-family: "georgia" , "times new roman" , serif;"> and </span><i style="font-family: Verdana;">"The Last Supper"</i><span style="background-color: white; font-family: "georgia" , "times new roman" , serif;">. But did you know that he also created the parachute, bicycle, helicopter, folding chair, alarm clock, and the first comprehensive drawings of the human anatomy! </span><i style="font-family: Verdana;">Not a bad role model himself!</i><span style="font-family: "georgia" , "times new roman" , serif;"> </span></div>
PrudentTrader.comhttp://www.blogger.com/profile/14769289782711294628noreply@blogger.com1tag:blogger.com,1999:blog-6803279973962784574.post-52375118555367996072016-06-09T09:48:00.001-04:002016-06-09T09:48:55.298-04:00Your Trading/Investing Inner Enemy<blockquote class="tr_bq">
<span style="font-family: "georgia" , "times new roman" , serif;"><span style="background-color: white; color: #333333; font-size: 14px; line-height: 20px;">It is better to conquer yourself than to win a thousand battles. Then the victory is yours. It cannot be taken from you, not by angels or by demons, heaven or hell.<br /><b><i> Buddha</i></b></span></span></blockquote>
<span style="background-color: white;"><span style="font-family: "georgia" , "times new roman" , serif;">I've seen traders sit quietly, motionless, appearing in control, while their minds are in such a twisted rage that they are incapable of closing a bad position. I have seen people curled up in their seats holding their stomach in physical pain from stress. I've been before the screen, myself, palms sweating, blood pounding, face flushed, and adrenaline pouring through my veins, as if I were in physical danger. All I was doing was watching numbers on a computer screen. Ever wonder what the inner enemy is, that makes this business such a battle? What are the forces that can bring out irrationality, even violence, while watching something as logical as numbers?</span></span><br />
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<span style="font-family: "georgia" , "times new roman" , serif;"><span style="background-color: white;">Learning to conquer the inner enemy </span><i style="background-color: white;">may be</i><span style="background-color: white;"> the single most important element in succeeding as a trader or speculator. While some fail and some succeed, the difference is not intelligence, it is not knowledge. </span><u style="background-color: white;"><i>It is the will to execute knowledge</i></u><span style="background-color: white;"><i>!</i> Acquiring the requisite</span></span><br />
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<span style="font-family: "georgia" , "times new roman" , serif;"><span style="background-color: white;"> knowledge to trade is relatively easy, execution not necessarily so. Take for example the subject of weight loss. You can walk into any bookstore and find a countless number of books, by experts, on the subject of weight loss. Yet only 12% of those who start a weight loss program actually lose weight and only 2% maintain the weight loss for more than one year. That is a 2% success rate, which is even worse than the 5% success rate for people trading futures.</span></span><br />
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<span style="background-color: white;"><span style="font-family: "georgia" , "times new roman" , serif;">Whether it is losing weight or trading, the most difficult part isn't knowing what to do or how, the most difficult part is making the decision to do it, and sticking to it. When following through is difficult, it is because our minds are still in a state of conflict regarding which course to take. What is the source of this conflict? Why is it that even when we know what we should do, it often seems impossible to do it?</span></span><br />
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<span style="font-family: "georgia" , "times new roman" , serif;"><i style="background-color: white;">"My head tells me to stop, but my heart tells me to go for it,"</i><span style="background-color: white;"> this common statement </span></span><br />
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<span style="font-family: "georgia" , "times new roman" , serif;"><span style="background-color: white;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjqFi-dfZ_COBH3lFddP4l-RN_FsgHro2nuwJP4vmZ6TC_J49jOsEDDu3Cj2hZ3ulADwrQvix7OzmnNOBWYHaDuyvggZ0MjbVQE_0GBt8M4LFFjOwkuk2OGvti_1_57b8Kg7vITgs6ixzzt/s1600/Screen+Shot+2016-06-08+at+7.05.21+PM.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="152" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjqFi-dfZ_COBH3lFddP4l-RN_FsgHro2nuwJP4vmZ6TC_J49jOsEDDu3Cj2hZ3ulADwrQvix7OzmnNOBWYHaDuyvggZ0MjbVQE_0GBt8M4LFFjOwkuk2OGvti_1_57b8Kg7vITgs6ixzzt/s200/Screen+Shot+2016-06-08+at+7.05.21+PM.png" width="200" /></a></span></span></div>
<span style="font-family: "georgia" , "times new roman" , serif;"><span style="background-color: white;">implies a dualism in the nature of human beings; the rational side on one hand and the emotional side on the other. Most people believe these two aspects of human nature are separate, unrelated, and often in opposition to each other. The acceptance of this dichotomy between emotion and reason, the belief that they are necessarily unrelated and often conflicting, is at the root of most human conflict.</span></span><br />
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<span style="background-color: white;"><span style="font-family: "georgia" , "times new roman" , serif;">How can it be possible to lead an integrated, fulfilled life without suffering constant inner turmoil and frustration? If you accept the premise that emotions and reason are mutually incompatible, it is not possible. As long as you believe the soul is destined to permanently duel with itself, it will. This is the enemy that can make trading such a war. The way to end it, is to challenge the premise that emotions and reason are separate and unrelated aspects of human nature, which means focusing on the nature and purpose of emotions in human life, with particular emphasis on the role of anger and fear.</span></span>PrudentTrader.comhttp://www.blogger.com/profile/14769289782711294628noreply@blogger.com1