Random Gyaan

mindgames

Well-Known Member
#51
Source: http://www.eminiplayer.com/2009/06/learning-to-become-successful-trader.html

I'm glad you liked the post Chuck. I felt I had to write it because I know how bad I wanted to succeed at trading when I first started out and how I searched for every inkling of advice I could get. So when I have the chance to offer timely advice I always have to take that opportunity.

And since we're on the subject, I'll share a couple more things with you. Every day I psych myself up before the trading day and during it so that I can have that killer mentality needed to have peak performance in trading. One thing I read every day is something that I wrote to remind myself what trading is all about and where my focus should be. I wrote it because whenever I faced adversity and had ups and downs it always demotivated me and knocked the wind out of my sails temporarily. But I realized that to perform at a world class level I couldn't let that happen. So I wrote the following, and I read it every day at least once or twice:

"It’s not meant to be easy to do all of this; in fact it’s meant to be very hard. If it were easy anyone could do it. Almost everyone knows what it takes; few can actually do it consistently. That's the challenge. When adversity strikes even when you're doing the right things, it’s not unfortunate because greatness is not just about doing the right things, but about doing them even when they cause pain and discomfort- weathering the tough times is the inherent prerequisite for being great. Adversity is built into the game and therefore it’s not an unfortunate set-back that is keeping you from your potential; rather your potential is cut very short without being able to deal well with adversity. So expect great results long-term, but adversity and ups and downs short-term. It’s got to always be about doing the long-term beneficial, not the short-term pleasurable. And we don’t deviate from that, no matter the pressure. And we relish the opportunity to be mentally tough when adversity strikes when so many would wilt and when it feels so unnatural to be optimistic and confident. That is the real goal and priority. Now keep conditioning- constantly reprocess and replace any thoughts that aren’t in line with all of this. It will take a great commitment to unlearn old thinking patterns and instill a new way of thinking to the point of habit. And you can do it."

Reading this reminds me that I'm not a victim of circumstances. That adversity isn't some external factor sabotaging my results. It's part of the game. In fact, it's what the game is all about! You have to learn to relish the opportunity to remain poised when losses hit or when you make mistakes. Take pride in it and make it your main focus. Love trading's inherent difficulties because the ability to handle them is what will truly set you apart. And always remember: this is a game of hits, losses, and misses. Those that can take them best ARE the best.

I wish you all the best in your trading.

Ziad
 

mindgames

Well-Known Member
#52
Dark Knight Rises

Blind Prisoner: You do not fear death. You think this makes you strong. It makes you weak.
Bruce Wayne: Why?
Blind Prisoner: How can you move faster than possible, fight longer than possible without the most powerful impulse of the spirit: the fear of death.
Bruce Wayne: I do fear death. I fear dying in here, while my city burns, and there's no one there to save it.
Blind Prisoner: Then make the climb.
Bruce Wayne: How?
Blind Prisoner: As the child did. Without the rope. Then fear will find you again.
 

mindgames

Well-Known Member
#53
Charles Schaap

Discipline is by far the hardest part of trading. Poor discipline will ruin the best trading plans and the most brilliant assessments of technical analysis. No matter how much you know, no matter how hard you work, you will always be at the mercy of your self-discipline.

Poor discipline is:
1/ knowing what to do, and not doing it;
2/ knowing what not to do, and doing it; or
3/ not knowing what to do, and doing anything.
Our egos like to pick tops and bottoms because doing it demonstrates our technical analysis skills. But skill in technical analysis is not the same as skill in trading. Trading is finding a low risk entry with a high probability of success and booking profits regularly.

When traders invest in their ego, there is more riding on the trade than money, and it becomes harder to take a loss. One of the greatest skills a trader can possess is the ability to admit they are wrong and to do it without harsh self-criticism.
 

mindgames

Well-Known Member
#58
The Ne Sell and Sell Short, Alexander Elder

Throw a frog into a pot of hot water and it will jump, but if you heat the frog slowly, you can cook it alive. Traders with no clear selling plans, holding a slowly sinking stock, can suffer a great deal of damage.

Stress is the enemy of good decision making. It is hard to be objective when our skin is on the line. This is why I urge you to write down a plan before you enter a trade. Your plan must list reasons for entering a trade and define three numbers: your entry price, a protective stop, and a profit target.
 
#59
Cockroach Theory
A beautiful speech by Sundar Pichai - an IIT-MIT Alumnus :
The cockroach theory for self development

At a restaurant, a cockroach suddenly flew from somewhere and sat on a lady.

She started screaming out of fear.

With a panic stricken face and trembling voice, she started jumping, with both her hands desperately trying to get rid of the cockroach.

Her reaction was contagious, as everyone in her group also got panicky.

The lady finally managed to push the cockroach away but ...it landed on another lady in the group.

Now, it was the turn of the other lady in the group to continue the drama.

The waiter rushed forward to their rescue.

In the relay of throwing, the cockroach next fell upon the waiter.

The waiter stood firm, composed himself and observed the behavior of the cockroach on his shirt.

When he was confident enough, he grabbed it with his fingers and threw it out of the restaurant.

Sipping my coffee and watching the amusement, the antenna of my mind picked up a few thoughts and started wondering, was the cockroach responsible for their histrionic behavior?

If so, then why was the waiter not disturbed?

He handled it near to perfection, without any chaos.

It is not the cockroach, but the inability of those people to handle the disturbance caused by the cockroach, that disturbed the ladies.

I realized that, it is not the shouting of my father or my boss or my wife that disturbs me, but it's my inability to handle the disturbances caused by their shouting that disturbs me.

It's not the traffic jams on the road that disturbs me, but my inability to handle the disturbance caused by the traffic jam that disturbs me.

More than the problem, it's my reaction to the problem that creates chaos in my life.

Lessons learnt from the story:

I understood, I should not react in life.
I should always respond.

The women reacted, whereas the waiter responded.

Reactions are always instinctive whereas responses are always well thought of.

A beautiful way to understand............LIFE.

Person who is HAPPY is not because Everything is RIGHT in his Life..

He is HAPPY because his Attitude towards Everything in his Life is Right..!!
 

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