A Strong Trading Mind

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10 Time Management Tips That Work

http://www.entrepreneur.com/article/219553


Practice the following techniques to become the master of your own time:

1. Carry a schedule and record all your thoughts, conversations and activities for a week. This will help you understand how much you can get done during the course of a day and where your precious moments are going. You'll see how much time is actually spent producing results and how much time is wasted on unproductive thoughts, conversations and actions.
2. Any activity or conversation that's important to your success should have a time assigned to it. To-do lists get longer and longer to the point where they're unworkable. Appointment books work. Schedule appointments with yourself and create time blocks for high-priority thoughts, conversations, and actions. Schedule when they will begin and end. Have the discipline to keep these appointments.
3. Plan to spend at least 50 percent of your time engaged in the thoughts, activities and conversations that produce most of your results.
4. Schedule time for interruptions. Plan time to be pulled away from what you're doing. Take, for instance, the concept of having "office hours." Isn't "office hours" another way of saying "planned interruptions?"
5. Take the first 30 minutes of every day to plan your day. Don't start your day until you complete your time plan. The most important time of your day is the time you schedule to schedule time.
6. Take five minutes before every call and task to decide what result you want to attain. This will help you know what success looks like before you start. And it will also slow time down. Take five minutes after each call and activity to determine whether your desired result was achieved. If not, what was missing? How do you put what's missing in your next call or activity?
7. Put up a "Do not disturb" sign when you absolutely have to get work done.
8. Practice not answering the phone just because it's ringing and e-mails just because they show up. Disconnect instant messaging. Don't instantly give people your attention unless it's absolutely crucial in your business to offer an immediate human response. Instead, schedule a time to answer email and return phone calls.
9. Block out other distractions like Facebook and other forms of social media unless you use these tools to generate business.
10. Remember that it's impossible to get everything done. Also remember that odds are good that 20 percent of your thoughts, conversations and activities produce 80 percent of your results.

 

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Relating 80/20 Rule and 3M (Mind, Money, Method) in Your Trading

http://howtobuystocks.blogspot.in/2013/12/relating-8020-rule-and-3m-mind-money.html

Pareto's Law can be summarized as follow: 80% of the outputs result fro 20% of the inputs. To put it in different ways, Tim Ferris gives more examples in his book:

80% of the consequences flow from 20% of the causes.
80% of the results come from 20% of the effort and time.
80% of the company profits come from 20% of the products and customers.
80% of all stock market gains are realized by 20% of the investors and 20% of an individual portfolio.

One important thing to note is that the ratio is often skewed even more severely such as 90/10, 95/5, 99/1 are also common, bu the minimum ratio to seek is 80/20.

How this Law is related to trading?

Trading in general consists of the 3M - Mind, Money, Method. Mind is basically how you manage your emotions and understand the psychology of trading. Money is the position sizing system so that you can manage the risk and survive in the trading business. Method is the strategy to buy and sell stocks.

For most traders out there, there is one thing that matters the most: the trading system. Trading system research and developing new strategies for trading are their main focus, but mostly this is about looking for that holy grail of trading systems. Their argument is that while I do like to apply money management and discipline/psychology, about 80% of what I do is test new trading systems and look for new methods. That leaves 20% for money management and trading psychology & discipline.

The truth is, to make profits in trading, one does not need to have the most accurate system in the world. What is needed is really a good system executed with discipline and using proper money management methods. I strongly believe that trading psychology + money management are the 20% which is responsible for 80% of trading success.

So, to relate the 80/20 rule, I would like to summarize this way..

Instead of researching and keep updating/changing your Method (I am not saying it is not important), spend more time in understanding the trading psychology and position sizing.
As 80% of your profits are coming from your top 20% trades, focus on the market movement and make sure you do not miss the boat when the market is uptrending.

 

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The Five Lessons A Millionaire Taught Me About Life and Wealth
Excerpts from the book by Richard Paul Evans


Lesson 1: Decide to Be Wealthy

For the most part, whether to be wealthy or not is your choice.
Most people never decide to be wealthy...and never become wealthy.
Choice is the beginning of all journeys.

Lesson 2: Take Responsibility for Your Money
-
Know how much you have
-Where it is coming from
-Where it is going
-What it is doing in the meantime

Lesson 3: Keep a Portion of Everything You Earn

Pay yourself first!Save a minimum of 10% or your ongoing salary and 90-100% of your side earnings.Take advantage of the power of compound interest.Don’t dip into the nest egg as it grows.

Lesson 4: Win in the Margins

Two ways to win in the margins:
1 – Earn extra income
2 – Keep more of what you make
Look for ways to make extra income and you will find there are opportunities all around
you.

Four key mindsets that characterize the wealth builder:
1. The millionaire mentality carefully consider each expenditure
a. Is it really necessary, or is it possible to get the same effect without using money or using less of it
b. Is this expenditure contributing to my wealth or taking from it?
c. Is this an impulse purchase or a planned purchase?
2. The millionaire mentality believes that freedom and power are better than momentary pleasure.
Understand the danger of debt. Delay gratification. Never borrow money.
3. The millionaire mentality does not equate spending with happiness.
Equating spending with happiness is the first step toward self-destruction.
4. The millionaire mentality protects his nest egg.
Successful nest eggers do not invest what they cannot afford to lose.

Lesson 5: Give Back

Ultimately, the most enjoyable use of money is helping others.Giving will warm and expand your life.
Hoarding money will make you cold.We get back when we give.

 

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