A Strong Trading Mind

[Catch22]

Henry "Henny" Youngman -16 March 1906 – 24 February 1998) was a British-born American comedian and violinist famous for his mastery of "one-liners".

When many comedians told elaborate anecdotes, Youngman's routine consisted of telling simple one-liner jokes, occasionally with interludes of violin playing. These depicted simple, cartoon-like situations, eliminating lengthy build-ups and going straight to the punch line. He was known as "The King of the One Liners", a title conferred to him by columnist Walter Winchell. A stage performance by Youngman lasted only fifteen to twenty minutes but contained dozens of jokes in rapid-fire succession.

A few of his -one liners ,at times two---

"When I read about the evils of drinking, I gave up reading.

I told the doctor I broke my leg in two places. He told me to quit going to those places.

I once wanted to become an atheist, but I gave up - they have no holidays!.

Some people ask the secret of our long marriage. We take time to go to a restaurant two times a week. A little candlelight, dinner, soft music and dancing. She goes Tuesdays, I go Fridays.!

When God sneezed, I didn't know what to say.

If at first you don't succeed... so much for skydiving.

My grandmother is over eighty and still doesn't need glasses. Drinks right out of the bottle.!

How to drive a guy crazy: send him a telegram and on the top put 'page 2.'

The horse I bet on was so slow, the jockey kept a diary of the trip.!

I played a great horse yesterday! It took seven horses to beat him.!

My wife dresses to kill. She cooks the same way.!!

I played a lot of tough clubs in my time. Once a guy in a club wanted to bet me $10 that I was dead. I was afraid to bet.!

If you had your life to live over again, do it overseas.

If at first you don't succeed... so much for skydiving."

-Henry "Henny" Youngman -

 

[Catch22]

Directional persistence
A trending market shouldn’t really need to spend too much time trading in one place before it moves onto the next. If it does, it’s possible that it’s beginning to lose steam. It doesn’t have to be extending the move 100% of the time, but within a certain tempo of the trend, it should continue to put in higher highs for an uptrend or lower lows for a downtrend, without dawdling too much.
The IB (Initial Balance) is the first hour of the primary session. Generally there’s a lot of activity within the IB – especially in a product like the ES. If a trend day is likely to be in the process of forming, then you should see an extension of the IB and not just a big move in the first hour. It may well get to and beyond the 100% extension and it should pretty easily penetrate the 38.2% extension level.
What you’re really trying to see with all of these measures is a persistence of directional activity.
http://www.netpicks.com/spot-trend-days-early/

 

[amitrandive]

Please avoid controversial comments.

I want to keep this thread as positive as possible.

Please also try and avoid arguments and counter arguments.

Thanks in advance.

 

[Catch22]

Never stop learning in trading.

Drive to Learn
The danger is that once you start to see a degree of success, you stop making the effort to learn any more as it’s easy to feel that either you’ve already got things figured out or simply that the extra effort is unnecessary. But it’s precisely when you feel this way that you need to be learning more.

It’s all too familiar a story that a trader can see a good run of results only to follow that up with a losing streak that more than wipes out those initial gains. Recognizing the fact that there’s always the chance of your strategy stopping working or even that your trading execution performance could take a nose-dive, should be motivational enough to drive you to keep learning. However, most people are reactive to a drop in performance instead of proactive.

All There is to Know
I don’t think I know any trader who claims to know everything about all aspects of the markets and trading. However, there are plenty of folks who know very little about certain topics purely because they denounce them as useless folly. Now of course there are plenty of questionable ideas out there, but to dismiss ideas out of hand is not a particularly wise approach either.

Developments are always happening in the areas of auction theory, technical indicators, charting platforms, money management and trader psychology to name but a few. Human psychology in particular is something which experts are constantly developing new theories on and some of which are particularly useful to the trading industry. But even if none of these topics are ones that you feel you need to continue learning about, the current market conditions are always developing and it takes a high level of commitment from a trader to constantly adapt and evolve their views to interpret what a market is doing right now.

Changing Market Conditions
If you find success in one type of market condition, when conditions change it’s more than likely that at least initially you’ll struggle unless you have ways of adapting to the changes. In fact, it’s such a common issue that traders lose a lot of money by being slow to adapt when conditions dramatically change. Take for example when the stock market corrects lower. A steady push up for many months can be arrested by a sudden sharp sell-off which can be very costly if you’re not wise to this. To compound the issue, many traders then see the added volatility as a precursor to a bigger sell-off. If it was just a minor correction however, these traders also get caught selling on the surge back up.

Never Stop Learning in Trading
Of course there’s a balance to be struck. Abandoning one strategy for another before you master it simply papers over the cracks of poor trader performance. Changing from trading based on a theory that’s currently making money to the latest and greatest method carries risk too. But simply standing still in the belief that you know all you need to in order to maintain a profitable trading career is simply not wise. So make sure that you are humble and recognize the need for incremental learning. Be a perpetual student of the markets and yourself – never stop learning in trading.

http://www.netpicks.com/never-stop-learning-in-trading/

 

[Blackhole]

Never act hastily on your enemy's advice

There stood two big banyan trees, side by side, in a dense forest. In fact, they were at such a short distance from each other that they formed one huge banyan tree. Thousands of cranes lived in this tree. In a deep hole in its trunk, there also lived a big black snake.

The snake used to climb up the tree to its branches and eat the baby cranes from their nests, when their parents were away in search of food.

This had become a daily routine. And the unfortunate cranes were the soft targets. Every evening, on return to their nests, the hapless cranes would find their nestlings missing, and they were so helpless that they could not do anything to get rid of the big black snake.

One day, a crab saw some cranes standing by the side of the lake and weeping bitterly. He asked them the reason of their grief. The cranes said, "There's a big black snake living in the banyan tree. Everyday he eats up our babies. We don't know how to get rid of him."

The crab thought to himself that the cranes too were crabs' enemies. They ate crabs' babies. Why not give the cranes an idea which not only would kill the snake but finish the cranes also.

So, the crab said, "Don't weep. I've an idea which will help kill the snake."

"Yes, please help us," requested the cranes.

"There is a big mongoose living at a little distance from the banyan trees. You put a few fish all along the path running from the mongoose's hole to the banyan tree. The mongoose will eat the fish one by one and then reach the snake's hole. Now you can yourself imagine, what will happen thereafter."

The cranes became very happy to get such a brilliant idea. They acted according to the plan.

Thereafter, the mongoose ate up all the fish put all along the path leading up to his home and then reached the banyan tree. There he found the snake in the hole. A fierce fighting took place between them and the mongoose killed the snake.

But instead of going back to his hole after killing the serpent, the mongoose further climbed up the tree and started aeting the baby cranes, one by one. Soon the mongoose ate up all the baby cranes living in the banyan tree.

After eating a large number of baby cranes, the mongoose became very fat and lazy. One day, while he was sleeping on a branch of a tree, he slipped and fell on to the ground and died then and there.



source : panchatantra stories

 

[Catch22]

 

[Catch22]

By Nial fuller -

The market is a slow, cumbersome beast. Today’s lesson is designed to prove this to you and to reinforce the need to hold trades for longer than you might be accustomed to or want to. Let the market do its ‘thing’ and give it room and time to move to your profit target.

Average True Range (ATR)

Let’s begin by looking at some solid evidence that markets move in much smaller daily and weekly pip ranges than you might think.

The ATR or Average True Range is a tool on the trading platform that will show you a moving average of the ‘true range’ of a market for a given period of time. Simply put, a market experiencing a high level of volatility will have a higher ATR, and a low volatility market will have a lower ATR. This is important because it gives us some baseline expectation of how much a market is likely to move over the next day or week. We can use this information to help us determine how long a trade might take to go from point A to point B and also for stop loss placement. For example: you wouldn’t want your stop loss placed within the ATR of a market, because you might get knocked out just by the normal daily fluctuations of price. Ideally, you want your stop loss placed outside the ATR of a market and beyond any nearby support or resistance levels.

The typical value is a 14 period ATR, we will use a 10 period ATR for our examples. Keep in mind, ATR is basically a measure of volatility over X period of time, it does not show direction of price, only the volatility of its movement, or the range of its movement. Our purposes of using the ATR is to show you that most of the time markets are moving in smaller average pip ranges than you probably think, so that means you need to be more realistic in how long a trade might take to play out. That typically means holding the trade for longer than you want to or might be think you should have to.

A 10 period ATR on a daily chart will show you the Average True Range of the market over the last 10 days. Thus, it will give you some expectation of the pip range for the next trading day and even for the next trading week.

For a detailed article --- http://www.learntotradethemarket.co...ow-long-do-good-trades-take-to-play-out#close

 

[Catch22]

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[Catch22]

Image tells it all..

 

[Blackhole]

Panchatantra stories


A man is known by the company he keeps

Once a tribal king went to a jungle to hunt for birds. While hunting, he caught two parrots in his net. He was happy to catch the parrots as he could teach them to talk and then let his children play with the talking parrots.

But while the tribal king was returning home with his two parrots, one of the parrots escaped from the net and flew away. The tribal king chased the parrot, but the parrot disappeared in the sky.

The tribal king brought the other parrot home and taught it to speak like him. Soon the parrot learnt to talk like a tribal man.

The other parrot which had managed to escape, was caught by a sage. The sage liked the parrot and taught him to recite holy hymns.

The sage lived at one end of the jungle, while the tribal king lived at the other end.

One day, a king of a nearby kingdom came in the jungle riding on his horse back. When he approached the tribal king's house the tribal king's parrot shouted from inside the cage hanging outside the house, "Here comes someone. Catch this fellow and beat him thoroughly."

The king hearing the parrot speak in such a filthy manner, left that place and reached the other end of the jungle where the sage lived. The sage's parrot was also kept in a cage, which was hanging outside the sage's cottage.

As soon as the parrot saw the king approaching the cottage it said, "Welcome! Please come in and have a seat. What can I do for you? Have a glass of water. Eat some sweets."

After having welcomed him properly with all the etiquettes, the parrot called his master, "Guruji, here comes a guest on his horseback. Take him inside and offer him a seat. Serve him food."

The king was highly impressed with this intelligent talking parrot. He was quick to understand that good environment and training always yield a better result.

The tribal king's parrot spoke rudely, while the sage's parrot greeted him in a polite tone.