A Strong Trading Mind

What do you want in this thread ?

  • Trading Articles

    Votes: 81 45.5%
  • Trading Quotes

    Votes: 54 30.3%
  • Trading Psychology Articles

    Votes: 124 69.7%
  • Insipirational Short Stories

    Votes: 56 31.5%
  • Inspirational Quotes

    Votes: 33 18.5%
  • Affirmations

    Votes: 18 10.1%
  • Stress Buster Exercises

    Votes: 38 21.3%
  • Family Articles

    Votes: 15 8.4%
  • Relationship Articles

    Votes: 20 11.2%
  • Behavoiral articles

    Votes: 47 26.4%

  • Total voters
    178

amitrandive

Well-Known Member
Persistance
http://time.com/money/3903563/millionaire-secrets/?xid=tcoshare

Self-made millionaires are persistent. They never quit on their dream. They would rather go down with the ship than quit. Twenty-seven percent of the self-made millionaires in my study failed at least once in business. And then they picked themselves up and went on to try again. They persisted. Persistence requires doing certain things every day that move you forward in achieving your goals or life dream. Persistence makes you unstoppable. No obstacle, mistake or momentary failure can stop you from moving forward if you keep at it. These millionaires learned to pivot and change course, growing in the process. Persistence allowed them to learn what didn’t work and continuously experiment until they found what did work. Persistence is the single greatest contributor to manifesting good luck. Those who persist eventually get lucky. Some unintended consequence emerges, something unexpected and unanticipated happens to those who persist. Sometimes, those closest to you will urge you on and encourage you. But more often, those closest to you — those directly impacted by the obstacles, mistakes and failures that are part of the success journey — will try to stop you from persisting. It takes superhuman effort to continue to pursue success when there are so many forces fighting you. That’s what makes successful people so special — and also so rare. If you want to be successful in life, you must persist in the face of unrelenting adversity. Successful people are successful because they never quit on their dream.

There are many other Rich Habits, but I think these are some of the most powerful.

Habits, I learned from my research, dictate your circumstances in life. They unconsciously program us for success, failure or mediocrity in life. They can determine our social status – rich, poor or middle-class. Habits, I also learned, can be changed. The key to habit change is awareness and tracking. You need to become aware of the habits you currently have and would like to change and then you must track your new habits until they take hold. It takes an average of 66 days to replace an old habit with a new one. When you eliminate old bad habits and adopt new good habits, your life will begin to change for the better. It takes time, but it’s worth the effort.
 

jagankris

Well-Known Member
Dear Amit,

The struggle to decide upon a trading system is one of the toughest battle every one faces inevitably in his trading career.

Being a master of psychology I request you to write up an article to get rid of the psychological struggle one faces in deciding upon the same.

This is bcoz of non availability of a successful trading mentor I guess.

Every one wants to have the best available trading system.

But free systems are not profitable and profitable mechanical trading systems are difficult to program and no body will sell it.

After spending Lot of time/effort/energy/money and costly mistakes/fees paid to markets one comes to a conclusion of a probable trading system.
Again the system should suit the personality of the person.

Again since this may not be backtestable - has to be done manually as it will be discretionary.
Or even if one manages to get/design a mech trading system he should be able to follow it.

The final decision to come to conclusion accepting the trading system I guess is purely psychological.

Just few questions which comes to my mind
------------------------------------------

At what stage one drops this search ?
What are the psychological reasons behinds this search ?
What stage a trader is able to accept the system he envisage psychologically ?
And when does he realize that the system he envisage is psychologically fits his personality ?
And at what stage he accepts/trusts the system fully and start following it with discipline ?
Should one stop learning new new technical concepts ?
etc etc

Thanks in advance.
 
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Rish

Well-Known Member
Dear Amit,

The struggle to decide upon a trading system is one of the toughest battle every one faces inevitably in his trading career.

Being a master of psychology I request you to write up an article to get rid of the psychological struggle one faces in deciding upon the same.

This is bcoz of non availability of a successful trading mentor I guess.

Every one wants to have the best available trading system.

But free systems are not profitable and profitable mechanical trading systems are difficult to program and no body will sell it.

After spending Lot of time/effort/energy/money and costly mistakes/fees paid to markets one comes to a conclusion of a probable trading system.
Again the system should suit the personality of the person.

Again since this may not be backtestable - has to be done manually as it will be discretionary.

The final decision to come to conclusion to a trading system I guess is purely psychological.

Just few questions which comes to my mind
At what stage one drops this search ?
What are the psychological reasons behinds this search ?
What stage a trader is able to accept the system he envisage psychologically ?
And when does he realize that the system he envisage is psychologically fits his personality ?
And at what stage he accepts/trusts the system fully and start following it with discipline ?

Thanks in advance.
Though it is addressed to Amit....just my view

1. Mentors are available...but, they may not celebrity like so called Technical Analyst...we have to search..we will get them.

2. All systems will work...first, should fix the system...instead of back testing...visually you have to see the movement atleast 1 or 2 year...then you will understand, how the system behaves..

3. Problem is...everybody will jump on one system to other very frequently....finally they will go into depression...lose money heavily..

4. Moreover, this is psychological game, chart reading is an art...when everybody will buy...chart will say sell...you have to believe...never ever use our sixth sense...market is behaving above sixth sense..

Take Care...
 

amitrandive

Well-Known Member
Dear Amit,

The struggle to decide upon a trading system is one of the toughest battle every one faces inevitably in his trading career.

Being a master of psychology I request you to write up an article to get rid of the psychological struggle one faces in deciding upon the same.

This is bcoz of non availability of a successful trading mentor I guess.

Every one wants to have the best available trading system.

But free systems are not profitable and profitable mechanical trading systems are difficult to program and no body will sell it.

After spending Lot of time/effort/energy/money and costly mistakes/fees paid to markets one comes to a conclusion of a probable trading system.
Again the system should suit the personality of the person.

Again since this may not be backtestable - has to be done manually as it will be discretionary.
Or even if one manages to get/design a mech trading system he should be able to follow it.

The final decision to come to conclusion accepting the trading system I guess is purely psychological.

Just few questions which comes to my mind
------------------------------------------

At what stage one drops this search ?
What are the psychological reasons behinds this search ?
What stage a trader is able to accept the system he envisage psychologically ?
And when does he realize that the system he envisage is psychologically fits his personality ?
And at what stage he accepts/trusts the system fully and start following it with discipline ?
Should one stop learning new new technical concepts ?
etc etc

Thanks in advance.
jagankris

Thanks for your kind words.

I am a simple trader like you.I too make losses and mistakes.
I actually started this thread to motivate my self and other fellow traders.

Like Rish has said that if one searches , one can get a good mentor in trading.Such a person should be actively trading/traded earlier.
An analyst cannot be a good mentor as he does not have any risk in predicting.

Regarding system search ,any simple system works effectively only if one uses proper discipline and money management.

The search for the perfect system never ends
.This search can only be stopped by you yourself.We all have to understand that any system works only 50 % of the time(believe me anything better than this is either a myth or fabrication).

Some hints for improving trading decisions,

Firstly you have to understand the strengths and weakness of your own as a trader.
Then you have to understand the strengths and weaknesses of your trading system.

The problem with us traders is that we try to optimize our trading system for all types of markets , ie both trending and sideways.

This never works.You should have different systems for different types of markets.

Even a simple system of two moving average crossover works , the secret is not to trade every crossover.Only trade the crossovers which occur at important support and resistances.

Another simplest system is use previous day high and low on charts.
On trending days buy once the price crosses the previous day high and sell when it crosses the previous day's low.
On sideways days ,short at the previous day's high and buy at the previous day low.

Million dollar question is how to identify whether day is trending or not.The only answer to this is study the price action.Lot of such articles and images I have posted in my thread "Learning to catch High probability breakouts".

Check this post by Dan ,trying to motivate another trader who has taken a hit by overtrading.

http://www.traderji.com/options/98626-selling-straddle-strangle.html#post1077974

Hope this helps.:D
 
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amitrandive

Well-Known Member
Maturity...
Source:Useful info,Facebook

Maturity is when you stop trying to change people, and instead focus on changing yourself.

Maturity is when you accept people for who they are.

Maturity is when you understand that everyone is right in their own perspective.

Maturity is when you learn to "let go".

Maturity is when you are able to drop "expectations" from a relationship and give for the sake of giving.

Maturity is when you understand that whatever you do, you do for your own peace.

Maturity is when you stop proving to the world how intelligent you are.

Maturity is when you focus on positives in people.

Maturity is when you do not seek approval from others.

Maturity is when you stop comparing yourself with others.

Maturity is when you are at peace with yourself.

Maturity is when you can differentiate between "need" and "want, and you can you can let go of your wants.

Maturity is when you stop attaching "happiness" to material things
 

Dax Devil

Well-Known Member
Hi, Amit. I just got this from http://mmb.moneycontrol.com. Hope you'd like it. Replace word investor with trader if you will, the truth in the following paragraphs remains unchanged.

The year was 1902. And this young man working in the position of a clerk at the Swiss patent office had one of the most redundant jobs. However, it was the best job available to anyone with his kind of unimpressive university record. He served in the Bern office for seven years, from June, 1902 to July, 1909. Every morning he faced his bundle of patent applications. Back then a patent application had to be accompanied by a working model or a prototype if you will. And the man had to contend with not just the prototypes but also an extremely strict boss. One who gave strict instructions, if possible in a single sentence, in order to explain why the patent application should be granted or denied. Day after day the man in early 20`s had to distill the productivity of objects of the greatest variety that man has power to invent. And put them on paper with hardly any help from his superiors.

Any guesses who the man was and what made him one of the greatest genius mankind has seen till date? Well, it was none other than Albert Einstein. Six years after quitting the Swiss patent office, he gave the world the formula E=mc2, as well as the Theory of Relativity.

The reason I am narrating this is to explain the kind of difference information, noise and signals can make to your lives. Einstein himself explained later that the patent office prepared him for the big discoveries. He learnt to sift the essential and important from the non essential. And he learnt to keep away the clutter.

Unfortunately, as an investor in financial markets today, you are dumped with information clutter. Right from your broker to newspapers to television anchors want you to capitalize on every little bit of information. Even something as mundane as a Monetary Policy review has been turned into breaking news-of-sorts. And every 0.25% change in rates is endorsed as an unprecedented opportunity to make money. In the process, your broker and the financial media make tons of money, whether or not you as an investor make any.
So the very first lesson, an investor who wishes to make well informed investing decisions, needs to take, is sifting information. Neither does the Monetary Policy instantly impact your equated monthly installments (EMIs), as propagated. Nor does it impact the fundamentals of stocks you wish to buy. It is nothing more than a liquidity management tool for the central bank. And it should be nothing more than a signal of the macroeconomic fundamentals for you.

As a serious long term investor, you would be better off paying heed to the concerns that the central bank is citing in making policy decisions. Other than that there is no reason to base any investing decision on marginal rate change noise. Treating the RBI`s decision as a signal of times to come as against real information will make you a better investor.

Source: Equity Master
 

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