Wisdom Dump

Trading is easy. Only buy stocks that are going up. If they don't go up. then don't buy them in the first place—Will Rogers

"look you guys, do not get intellectual in these markets, JUST TRADE THEM...........If you guys were not bond traders you would be driving a truck" - William Simon

“… really believe that, what is, is all that is important – at least with regarding making decisions. If you can put aside what should be, what could be, what ought to be, what would have, could have, should have occurred, and just pay attention to what is actually happening, the act of paying attention transforms what is. The greatest action, the wisest, the best action that you can take in almost any situation is to stay with what is, instead of jumping to conclusions or trying to come up with conclusions.”

- John Henry

http://en.wikipedia.org/wiki/John_W._Henry

Don't confuse activity with accomplishment. I think one mistake novice traders make is that they begin trading before they have any real idea what they are doing. They are active, but they are not accomplishing anything. I hardly spend any time trading. Over 99 percent of my time is spent on the computer, doing research.

------------Steve Lescarbeau

If you decide to. trade for a living, you have to treat it just like any other business endeavor and go into it with a plan. If you want to start a business, and all you do is walk into a bank, smile pleasantly, and ask for a $200,000 loan, do you think you'll get it? Are they going to say, "You have a really nice smile; here's the money." I don't think so. You need to have a solid business plan. The trouble is that most people start trading without any definitive plan.



It should contain specific answers to all of the following questions:
1)What markets are you going to trade? You need to select a market that fits your personality because a market is reflection of the people who trade it.
2)What is your trading capitalization? On the one hand, you should honestly be able to say, "If I lose all this money, won't change my lifestyle." On the other hand, you need a large enough account so that making at least as much as you do from your current job is a feasible goal. Otherwise, you will think that you are a failure because you will work harder as a trader than you do at the job you are in now.
3)How will orders be entered? Will you scale into positions or put them on all at once? How will you exit losing trades? How will you exit winning trades?What type of drawdown will cause you to stop trading and reevaluate your approach? What type of drawdown will cause you to shut down trading?
4)What are your profit goals, measured on as short a time frame as is feasible for your trading approach?
5)What procedure will you use for analyzing your trades?
6)What will you do if personal problems arise that could adversely impact your trading?
7)How will you set up your working environment so that it is conducive to trading and maximizes your chances for success?
8)How will you reward yourself for successful trading? Will you take a special vacation, buy yourself a new car, etcetera?
9)How will you continue to improve yourself as a trader? What books will you read? What new research projects will you do?



People underestimate the time it takes to succeed as a trader. Some people come here and think they can sit with me for a week and become great traders. How many people when they went to college would've thought to walk up to the professor and say, "I know the course is for a semester, but I think a week should be enough for me to get it." Gaining proficiency is the same in trading as in any other profession—it requires experience, and experience takes time. A man few years ago asked me, "How long will it take me to become a professional trader so 1 can quit my job and support my family?"
"Three to five years," I said.
"What! I'm going to do it in six months," he answered.
"Well, you're probably a lot smarter than I am," I said. "I didn't make any money in my first five years."
It's seven years later, and he's still not profitable as a trader. You can't expect to become a doctor or an attorney overnight, and trading is no different. It is a vocation that takes time, study, and experience. Wisdom is a product of knowledge and experience. If you have more knowledge, you can get away with less experience and vice versa. If you can get both, the learning curve is very steep. ---- Mark Cook

"It is the very foundation of strategy to be able to adapt to any situation and continue fighting without losing heart. You gain this ability by practicing day in and day out with intensity." --Miyamoto Musashi

In a certain sense, reading charts is like reading music, in which you endeavor to interpret correctly the composer's ideas and the expression of his art. Just so a chart of the averages, or of a single stock, reflects the ideas, hopes, ambitions and purposes of the mass mind operating in the market, or of a manipulator handling a single stock.

The study of charts is not as some people claim, the mere identification of certain labeled patterns made by the actions of stocks. That sort of thing borders on the mechanical and does little to aid in the development of one's judgment. But when a student undertakes to read from his charts the purposes and objective of those who are responsible for a stock's action in the market, he is beginning to see, in a true light, the meaning of scientific stock speculation. -- Richard D. Wyckoff

As traders, we cannot afford the luxury of wishing and hoping because it puts us in a passive relationship with the markets. When we wish and hope, we are shifting responsibility on to the markets for making something happen instead of confronting the conditions and doing something about it ourselves. If we find ourselves wishing and hoping, it is an excellent indication that we don't know what is going on and as a result need to get out of the markets until we do. -- Mark Douglas

What a great wisdom! Mr.Creditvolet! Your wisdom of sharing wisdom is great.Thanks alot

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ppvsin

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