You can be free. You can live and work anywhere in the world. You can be independent from routine and not answer to anybody. This is the life of a successful trader. Many aspire to this but few succeed. An amateur looks at a quote screen and sees millions of dollars sparkle in front of his face. He reaches for the money - and loses. He reaches again - and loses more. Traders lose because the game is hard, or out of ignorance, or lack of discipline or because of both. - ALEXANDER ELDER
Every winner needs to master three essential components of trading; a sound individual psychology, a logical trading system and good money management. These essentials are like three legs of a stool - remove one and the stool will fall, together with the person who sits on it. Losers try to build a stool with only one leg, or two at the most. They usually focus exclusively on trading systems. Your trades must be based on clearly defined rules. You have to analyze your feelings as you trade, to make sure that your decisions are intellectually sound. You have to structure your money management so that no string of losses can kick you out of the game. - ALEXANDER ELDER
My ability to do what is uncomfortable enhances the profitability as I have a willingness to buy a stock on extreme strength following a significantly bullish news item. In such situations, most investors will wait for a reaction that never comes, or at the very least will place a price limit on that buy order. I also realize that if the news is sufficiently significant, the only way to buy the stock is to buy the stock. Any more cautious approach is likely to result in missing the move. In a similar fashion, one should also be ready to immediately liquidate a holding, even on a sharp one-day decline, if a negative news item has changed the outlook for the stock. The rule is : Do what is right, not what is comfortable. - RICHARD DRIEHAUS
MY THEORY AND PRACTICAL APPLICATION HAVE PROVED TO MY SATISFACTION THAT NOTHING NEW EVER OCCURS IN THE BUSINESS OF SPECULATING OR INVESTING IN SECURITIES OR COMMODITIES. THERE ARE TIMES WHEN ONE SHOULD SPECULATE, AND JUST AS SURELY THERE ARE TIMES WHEN ONE SHOULD NOT SPECULATE. THERE IS A VERY TRUE ADAGE : “ YOU CAN BEAT A HORCE RACE, BUT YOU CAN’T BEAT THE RACES.” SO IT IS WITH MARKET OPERATIONS. THERE ARE TIMES WHEN MONEY CAN BE MADE INVESTING AND SPECULATING IN STOCKS, BUT MONEY CANNOT CONSISTENTLY BE MADE TRADING EVERY DAY OR EVERY WEEK DURING THE YEAR. - JESSE LIVERMORE
Markets offer unlimited opportunities for self-sabotage, as well as for self-fulfillment. Acting out your internal conflicts in the marketplace is an expensive proposition. Traders who are not at peace with themselves often try to fulfill their contradictory wishes in their market. If you do not know where you are going, you will wind up somewhere you never wanted to be. You can succeed in trading only if you can handle it as a serious intellectual pursuit. Emotional trading is lethal. To help ensure success, practice defensive money management. A good trader watches his or her capital as successfully as a professional scuba-diver watches his or her air supply. - ALEXANDER ELDER
Most often, traders have four fears. There’s the fear of being wrong, the fear of losing money, the fear of missing out and the fear of leaving money on the table. I found that basically, those four fears accounted for probably 90% to 95% of the trading errors that we make. Let’s put it this way: If you can recognize opportunity, what’s going to prevent you from executing your trades properly? Your fear. Your fears immobilize you. Your fears distort your perception of market information in ways that don’t allow you to utilize what you know. - MARK DOUGLAS
We know that the random element in the market represents at least 40 to 60 percent activity. Therefore, it’s not logical to look at every tick or to think that every tick or every chart formation has meaning. They don’t. There are too many traders trying to look at the markets from too stringent an analytical viewpoint. Most of what happens in the markets is meaningless. Why try to interpret every little movement, every little reversal, every little tick? In trying to do too much, they’re actually paying too much attention to the market. You have to keep a distance from the market. Only then will you have the psychological resources to let your profits ride. You won’t be looking at every tick and interpreting it in a fearful way. - JAKE BERNSTEIN
Every winner needs to master three essential components of trading; a sound individual psychology, a logical trading system and good money management. These essentials are like three legs of a stool - remove one and the stool will fall, together with the person who sits on it. Losers try to build a stool with only one leg, or two at the most. They usually focus exclusively on trading systems. Your trades must be based on clearly defined rules. You have to analyze your feelings as you trade, to make sure that your decisions are intellectually sound. You have to structure your money management so that no string of losses can kick you out of the game. - ALEXANDER ELDER
My ability to do what is uncomfortable enhances the profitability as I have a willingness to buy a stock on extreme strength following a significantly bullish news item. In such situations, most investors will wait for a reaction that never comes, or at the very least will place a price limit on that buy order. I also realize that if the news is sufficiently significant, the only way to buy the stock is to buy the stock. Any more cautious approach is likely to result in missing the move. In a similar fashion, one should also be ready to immediately liquidate a holding, even on a sharp one-day decline, if a negative news item has changed the outlook for the stock. The rule is : Do what is right, not what is comfortable. - RICHARD DRIEHAUS
MY THEORY AND PRACTICAL APPLICATION HAVE PROVED TO MY SATISFACTION THAT NOTHING NEW EVER OCCURS IN THE BUSINESS OF SPECULATING OR INVESTING IN SECURITIES OR COMMODITIES. THERE ARE TIMES WHEN ONE SHOULD SPECULATE, AND JUST AS SURELY THERE ARE TIMES WHEN ONE SHOULD NOT SPECULATE. THERE IS A VERY TRUE ADAGE : “ YOU CAN BEAT A HORCE RACE, BUT YOU CAN’T BEAT THE RACES.” SO IT IS WITH MARKET OPERATIONS. THERE ARE TIMES WHEN MONEY CAN BE MADE INVESTING AND SPECULATING IN STOCKS, BUT MONEY CANNOT CONSISTENTLY BE MADE TRADING EVERY DAY OR EVERY WEEK DURING THE YEAR. - JESSE LIVERMORE
Markets offer unlimited opportunities for self-sabotage, as well as for self-fulfillment. Acting out your internal conflicts in the marketplace is an expensive proposition. Traders who are not at peace with themselves often try to fulfill their contradictory wishes in their market. If you do not know where you are going, you will wind up somewhere you never wanted to be. You can succeed in trading only if you can handle it as a serious intellectual pursuit. Emotional trading is lethal. To help ensure success, practice defensive money management. A good trader watches his or her capital as successfully as a professional scuba-diver watches his or her air supply. - ALEXANDER ELDER
Most often, traders have four fears. There’s the fear of being wrong, the fear of losing money, the fear of missing out and the fear of leaving money on the table. I found that basically, those four fears accounted for probably 90% to 95% of the trading errors that we make. Let’s put it this way: If you can recognize opportunity, what’s going to prevent you from executing your trades properly? Your fear. Your fears immobilize you. Your fears distort your perception of market information in ways that don’t allow you to utilize what you know. - MARK DOUGLAS
We know that the random element in the market represents at least 40 to 60 percent activity. Therefore, it’s not logical to look at every tick or to think that every tick or every chart formation has meaning. They don’t. There are too many traders trying to look at the markets from too stringent an analytical viewpoint. Most of what happens in the markets is meaningless. Why try to interpret every little movement, every little reversal, every little tick? In trying to do too much, they’re actually paying too much attention to the market. You have to keep a distance from the market. Only then will you have the psychological resources to let your profits ride. You won’t be looking at every tick and interpreting it in a fearful way. - JAKE BERNSTEIN
Postingan
Tidak ada komentar:
Posting Komentar