Wisdom Dump

A young basketball player is fascinated with The Shot. He doesn’t think about the footwork he needs to get to the shot. He’s not aware of position on the court or even body position in the constant tactical encounters at each end of the court. These fundamentals can make for easy buckets or, alternatively, the continual need to pull a great shot out of nowhere time after time. (As a trader, which mode would you prefer?)
Neither is the young player aware of the substitution pattern, game pace, or matchups except as he faces them momentarily on the court or while sitting on the bench. The game plan is completely subordinate to hitting the shot and not getting beaten to the hoop.
It is the same in trading. - John Sweeney

“You have to love to lose money and hate to make money to be successful…It’s against human nature what I teach and practice. You have to overcome your humanness.”----------------------Everett Klipp

The problems to which traders have set their faces have developed because their aspirations are infinitely expansible; the solutions lie in the hope that their knowledge and behavior are infinitely perfectible. In between the recognition of the problems and the acquisition of the quantitative and qualitative skills needed for their solutions lies a series of searches athat must,many times, include the experience of failure.Indeed, no successful traders I have known can follow their paths backward very far without running into failure.Its is not the act of failure, however, that differentiates the ultimately successful or unsuccessful traders.Rather, it is that the successful traders get up, spend a few days healing, reaffirm what they know, and go about the business of adding to their store of wisdom. In such a growth process the quality of persistence looms large and is virtually irreplaceable.
In the high-risk areas of the world of finance, the cold facts of probabilities cannot be changed by wishful thinking or by bemoaning the cruel realities of life.Some people win frequently and accumulate large sums.Others are destined to lose frequently and at least as a group, lose the large sums that are won by the smaller group of winners.The chance of success may be helped by thinking straight, negotiating low execution costs, dealing with a broker who observes high standards of performance, and setting reasonable goals. Regardless of their intellectual capacity and the strength of their personal discipline, however, most players in the futures game are destined to lose to the few.Those who cannot accept this truism are well advised to turn their attention elsewhere.
The person involved responsibly, both intellectually and behaviorally, with the experience of trading may, to paraphrase Theodre Roosevelt, know at his best the triumph of high achievement, but if he fails, he will have failed while daring greatly, and so his place will never be with those timid souls who know neither victory nor defeat. Perhaps, then, in the final analysis, it may be as rewarding to travel as it is to arrive. -------------- Richard Teweles

Hello CV

One more great post from you.

Keep them comming...

Regards
Sanjay

Thanks Sanjay

CV

That's the problem with amateurs, they only have half a plan, the easy half. They know how much of a profit they're willing to take, but they don't have the foggiest idea how much they're willing to lose. They're like deer in the headlights, they just freeze and wait to get run over. Their plan for a position that goes south is, "Please God, let me out of this and I'll never do it again" but that's bullshit, because if by chance the position turns around, they'll soon forget about God. They'll go back to thinking that they're geniuses, and they'll always do it again, which means that they're sure to get caught, and get caught bad. What most people fail to understand is that while you're losing your money, you're also losing your objectivity. It's like being at the craps table in Vegas, and the fat bleached blonde in the sequined dress is rolling the dice, and you're losing, and you're determined that you're not going to let her beat you. What you've forgotten is that she doesn't care about you, she's just rolling the dice. Whenever you have jealousy as an emotion, or greed, or envy, it distorts your judgment. The market's like the bleached blonde in Vegas, it doesn't care about you. That's why you have to put aside your ego and get out. If you have trouble doing that, as most people do, be like Odysseus: tie yourself to the mast with an automatic stop and take your emotions out of play --------------------------------------------------------------------------------- Marty Schwartz

The typical trader will do most anything to avoid creating definition and rules because he does not want to take responsibility for the results of his trading. If he knows exactly what he is going to do and under what conditions, then he would have something by which to measure his performance, thus making himself accountable to himself. This is exactly what most traders don't want to do, preferring instead to keep their relationship with the market somewhat mysterious.

This creates a real psychological paradox for traders, because the only way to learn how to trade effectively is to make oneself accountable by creating structure: but, with accountability comes responsibility.

------------------------------------------------------- Mark Douglas

The crowd neither wants nor seeks knowledge, and the leaders of the crowd, in their own interests, try to strengthen its fear and dislike of everything new and unknown. The slavery in which mankind lives is based upon this fear-----------------------------------G. I. Gurdjieff

Excellent! Really, Really liked it Thanks CV for the post.

Regards,
Kalyan

Glad you likesd it Kalyan

Rgds
CV