M6 - Man, Mind, Money, Markets, Method & Madness

My last thread Market & Afterhours got ‘demoted’ to ‘chitchat’ and will not even appear in search. Reason? Most likely an inappropriate post by a member for which the thread got punished. No issues, we accept good and bad as a part of life, learn and move on. So this will be a new thread to focus on only the things related to what we do as traders. It's M6

Man : A trader
Mind : Pyschology
Money : An idea representing value of exchange. So Bitcoin is also included.
Markets : Let’s talks stocks, futures, options, commodities, currencies, and any other (alternative) investment and trading vehicle.
Method : Strategies, tools and techniques of trading and making money
Madness : Tying in all the above, passion for trading.

I love trading as well exchanging ideas. So I start off here. Request members to post all things of value, and lets keep out stuff unrelated. Thanks.

Why trade?

Why trade? If you think about it actually, why not? From the time we are born, we are traders. In childhood, we trade our time for playing games (fun.) In youth, we trade time for learning, so that we can have a well paid job, earn money and live a good life. Basically we are all traders without exclusions. Strangely as it may seem, this includes the people who pursue spiritual path as well. Why so? Because they want to trade their time on earth for something they perceive to be of higher value. (enlightenment, and quick access to heaven) So now that we have established ourselves that we are all traders, let’s trade one of the most valuable commodity we have (time) for something else : Learning to be a better trader. Good luck to all.

after your first post thought of sharing some thing by means of asking question. the moment scrolled down astonished that u start sharing by asking question .:clapping::clapping::...

since the question " why trade" explained by you I guess the next important question is what is the single most factor having greater impact in trading ?

Is this the man who invented Bitcoin?

http://www.dailymail.co.uk/news/art...ency-leading-reporters-car-chase-highway.html



Excerpt :

The man Newsweek claims is the founder of Bitcoin led reporters on a car chase today after denying he had anything to do with the digital currency. Dorian Satoshi Nakamoto, 64, was described as 'the face behind Bitcoin' in a Newsweek cover story published today, but when reporters showed up at his home, a confused-looking Nakamoto dodged their questions before speeding off to the Associated Press offices in Los Angeles to tell his side of the story. Nakamoto spoke with reporters at the AP for two hours, telling them that he had never heard of Bitcoin until three weeks ago when his son called to say he had been contacted by a reporter.

Nakamoto acknowledged that many of the details in Newsweek's report are correct, including that he once worked for a defense contractor. But he strongly disputes the magazine's assertion that he is 'the face behind Bitcoin.' Since Bitcoin's birth in 2009, the currency's creator has remained a mystery. The person —or people— behind its founding have been known only as 'Satoshi Nakamoto,' which many observers believed to be a pseudonym.

But Newsweek's story alleged that Nakamoto was not a pseudonym but instead a real man. They tracked Nakamoto down to his modest home in Temple City, California, after a two-month investigation in which they unearthed shadowy dealings with US military technology contractors, his mysterious work for the FAA in the aftermath of 9/11 and claimed that he could be potentially sitting on a $657 million fortune from his invention that he mysteriously refuses to touch.

'I am no longer involved in that and I cannot discuss it,' he said to the magazine's reporter about his connection to the now troubled online currency. 'It's been turned over to other people,' he said without specifying who.'They are in charge of it now. I no longer have any connection.' In a later AP interview, Nakamoto said he was misunderstood in a key portion of the Newsweek story, where he tells the reporter on his doorstep, 'I am no longer involved in that and I cannot discuss it.' Asked by the AP if he had said that, Nakamoto said, 'No.' 'I'm saying I'm no longer in engineering. That's it,' he told the AP. 'And even if I was, when we get hired, you have to sign this document, contract saying you will not reveal anything we divulge during and after employment. So that's what I implied.' 'It sounded like I was involved before with Bitcoin and looked like I'm not involved now. That's not what I meant. I want to clarify that,' the AP reported him as saying.

The Bitcoin Foundation, an advocacy group promoting the adoption of the digital currency, said '...We have seen zero conclusive evidence that the identified person is the designer of Bitcoin.' 'Those closest to the Bitcoin project, the informal team of core developers, have always been unaware of Nakamoto's true identity, as Nakamoto communicated purely through electronic means,' it said in a post on its website. Describing his appearance as he answered the door, the Newsweek reporter said that anyone would have trouble believing this was the man whose creation could potentially revolutionize the financial system and could be a multi-millionaire.

Great question Stock72. I suppose you mean to ask what is the single most important factor having an impact on trading results.? I think it is Objectivity, which I would define as the ability to take a trade based on merits or a certain criteria, and then to be able to hold on, exit or even reverse the trade at moments notice - Dispassionately. I guess this is what marks a successful trader from the rest. This idea is ofcourse many of us would have read or been told many times, but would be in some untouched corner of our psyche : Trade what you see, not what you think.

Incidentally, I had the good fortune of meeting a successful portfolio manager yesterday. I asked him for his views on the market. His words struck me deeply. He said 'I am not a bull, nor I am a bear - I am a trader' Guess this is food for thought for me. Have to learn to cast aside our views on the market (which is subjective) and likely to make us trade with a bias.

Two charts of important commodities. Gold and Crude. I make notes on charts and save them as I think it is important to revisit the old lessons so that the they are engraved in our memory and not forgotten. It is rightly said : Those who fail to learn from the lessons of history are bound to repeat it. I hope not to. Sharing here....

Mindset of a successful Trader - Bennett A. McDowell

http://www.tradingmarkets.com/recent/this_is_the_mindset_of_a_successful_trader-641229.html

Excerpt :

Below is a list of qualities of the mindset of a successful trader :

1.Sense of calmness
2.Ability to focus on the present reality
3.Not caring which way the market breaks or moves
4.Always aligning trades in the direction of the market, flowing with the market
5.Not caring about the money
6.Always looking to improve
7.Profits now accumulating and flowing in as your skills improve
8.Keeping an open mind, keeping opinions to a minimum
9.Accepting the risk in trading
10.No Anger
11.Learning from every trade
12.Winning and losing trades accepted equally from an emotional standpoint
13.Enjoying the process
14.Trading your chosen approach or system and not being influenced by the market or others
15.Not feeling a need to conquer or control the “market”
16.Feeling confident and feeling in control of “yourself”
17.A sense of not forcing the markets or yourself
18.Trading with money you can afford to risk
19.No feeling of ever being victimized by the markets
20.Taking full responsibility for your trading

When you can read the list above and genuinely say that’s me, you have arrived!

Hi DSM,
Quality of ur thread is probably the best. It has many thing in life we search. U have creative motivational theme.
Regards

In Our Life,

We may see so much failures and we can learn more lessons from failures.

In Real life scenario, Failure comes in the real life and Success also comes in the real life by our continuous efforts.

But According to me, For Traders, Failure should be in the paper. And Success should be in trading account. Then only, He can survive in the trading game. Otherwise, It is hard to digest the pain from trading. Because Hard Earned money is used for trading. Such money cannot be recovered easily by just correcting our past mistakes. It will take more time.

As a trader, Backtest everything in the paper and accept the mistake in the paper and find the way to correct the mistake in the paper and work on continuously on the paper. When the paper gives the satisfactory result, You start real trading.

Because, In india, 99 percent of the traders are struggling to recover their old losses. So they are living in the market. I have been heard by one trader that, " If i recover my old losses from trading, i will not definetly come to the market and i will not introduce this market to my friends and enemies also. Because it destroyed my life and gave me more pain" These words may be suitable for most of the traders.

One percent of the traders are handling this game with proper mindset and proper trading strategies. So they win.

If all traders win and make the profit at a certain time, There will not be market in the world...

My conclusion is:

If you decide to trade in the market, Dont trade blindly. Take your own time to learn the market first and backtest well. Then, come to market.

"Market is nothing but Disciplined traders are taking money from undisciplined traders- By Tamil Trader"

Into the mind of Jim Rogers : Excerpts from an interview with the commodity Guru

http://www.investing.com/news/commodities-news/investor-jim-rogers-talks-commodities-(q-a)-271156

(Maverick investor Jim Rogers founded the Quantum Fund hedge fund in 1973 along with George Soros. Rogers made his fortune early and retired at 37. He later traveled on a motorbike around the world in 1990, and then visited six continents over three years in 2003, chronicling his adventures in books. In "Hot Commodities," Rogers argued that commodities, which include oil, metals, agricultural goods and other natural resources, would boom for at least a decade. He started his own commodities index fund in 1998, known as the Rogers International Commodity Index.)

* Ultimately everything is supply and demand. If tapering occurs, that certainly influences demand, if nothing else.

* Gold went up 12 years in a row, which is very strange and unusual for any market. When the correction came, it too was an anomaly.

* I still am not buying gold in any big way yet, because there are still too many mystics, too many people who think that gold is holy. I don’t see how the markets can make a bottom until a lot of those mystics get shaken out of the market. Once they throw in the towel, then gold will make a significant bottom, and I hope I’ll be buying a lot more at that time.

* Rio Tinto and BHP Billiton and others have cut back substantially on their capital spending programs because they think they should not be bringing a lot of new [mining] supply on stream yet. So until we have significant permanent new supply, I don’t see the bull market (in commodities) coming to an end.

* Agriculture is very exciting for many reasons. We’re running out of farmers worldwide. More people in America study public relations, not agriculture. The average age of farmers in America is 58. In Japan, it’s 66. So if you want to get rich, become a farmer, not a stock broker.

* Stock brokers will be driving taxis in the next few years. The farmers are going to be driving Lamborghinis. Sugar prices, for example, are down 75 percent from all-time highs. Learn about agriculture, don’t learn about finance.