Kim Loong
Kim Loong Resources has a target price of RM1.80.
posted by nomadhunter at 7:25 PM
0 comments
June 29, 2006
The Calm Before The Storm
Jack didn't sleep soundly, tossing and turning all night. He dreads facing the trading day ahead. He is half asleep, and cannot stop worrying about his positions. "What will the markets do today? How will traders react to the rate hikes? I can't lose any more money." Before Jack even woke up, he was at a disadvantage. He was already frustrated before making his first trade. When trading the markets, it's easy to feel overwhelmed by it all, but on the other hand, it's essential to trade with the proper calm, logical mindset. You cannot be on edge and ready to act impulsively. Instead, you must calmly and rationally evaluate your options and make a firm decision. How can you calm down? One possible way is to briefly enter a meditative state of mind, and take a break before having to face the storm of chaotic market events.
When you are frustrated, your thoughts are racing. Frustration usually has an important, adaptive function: it sets your body in motion to lash out physically when in physical danger. It is part of the fight-or-flee response. It may be useful to react to physical danger impulsively, but it is not helpful when trying to calmly and rationally trade the markets. When you feel anger, anxiety, or frustration, it is necessary to calm down. When you are agitated, you are likely to react impulsively in response to even a minor setback. Not getting a proper fill or a sudden selling spree might set you off. You may do something that you will regret later.
Calming your mind down before the trading day can help. Some people prefer exercise to release pent up energy, but others may prefer a form of meditation. There are many ways to meditate, but here is a way that may work for you. Find a quiet place to lie down. Next, concentrate on your breathing. As you breathe, think soothing thoughts. "Calm down. It will be all right today. I'll just try my best and accept what I can do." Allow yourself to be human. You don't need to be perfect and if you remind yourself of this fact, you will calm down. Some people prefer quiet music while trying to calm down. Others prefer complete silence. But the main goal is to concentrate on calming down, and to do whatever works best for you. Soon, your thoughts will start to become peaceful. For a moment, you will relax and your thoughts will slow down.
Don't be disappointed if your feelings of relaxation are only temporary. When you are extremely worried about the markets, you may find that your thoughts can be easily shifted from soothing thoughts to worries about the markets. This is natural. The point of the meditative exercise is not to completely eliminate worries and frustrations, but to find temporary relief from the stresses and strains that may consume you at the start of the trading day. By taking a break, you will feel rested. The brief rest will help you build up the emotional and mental energy you need to tackle upcoming challenges with grace. The markets can be frustrating to trade.
The markets go their own way and may not live up to your expectations. It can be frustrating, but rather than let it get to you, it's vital to take time out before the trading day to calm down, meditate, and relax.
When you are frustrated, your thoughts are racing. Frustration usually has an important, adaptive function: it sets your body in motion to lash out physically when in physical danger. It is part of the fight-or-flee response. It may be useful to react to physical danger impulsively, but it is not helpful when trying to calmly and rationally trade the markets. When you feel anger, anxiety, or frustration, it is necessary to calm down. When you are agitated, you are likely to react impulsively in response to even a minor setback. Not getting a proper fill or a sudden selling spree might set you off. You may do something that you will regret later.
Calming your mind down before the trading day can help. Some people prefer exercise to release pent up energy, but others may prefer a form of meditation. There are many ways to meditate, but here is a way that may work for you. Find a quiet place to lie down. Next, concentrate on your breathing. As you breathe, think soothing thoughts. "Calm down. It will be all right today. I'll just try my best and accept what I can do." Allow yourself to be human. You don't need to be perfect and if you remind yourself of this fact, you will calm down. Some people prefer quiet music while trying to calm down. Others prefer complete silence. But the main goal is to concentrate on calming down, and to do whatever works best for you. Soon, your thoughts will start to become peaceful. For a moment, you will relax and your thoughts will slow down.
Don't be disappointed if your feelings of relaxation are only temporary. When you are extremely worried about the markets, you may find that your thoughts can be easily shifted from soothing thoughts to worries about the markets. This is natural. The point of the meditative exercise is not to completely eliminate worries and frustrations, but to find temporary relief from the stresses and strains that may consume you at the start of the trading day. By taking a break, you will feel rested. The brief rest will help you build up the emotional and mental energy you need to tackle upcoming challenges with grace. The markets can be frustrating to trade.
The markets go their own way and may not live up to your expectations. It can be frustrating, but rather than let it get to you, it's vital to take time out before the trading day to calm down, meditate, and relax.
posted by nomadhunter at 6:02 PM
0 comments
June 28, 2006
Maybulk
Malaysian Bulk Carriers looks like an attractive buy with a target of RM2.55.
posted by nomadhunter at 9:02 PM
0 comments
South Johor Economic Region
South Johor Economic Region - Emergence Of A Super-Cycle Performer
posted by nomadhunter at 12:55 AM
0 comments
Regional Exchanges
Regional Exchanges - Further Significant Downside by Morgan Stanley
posted by nomadhunter at 12:53 AM
0 comments
Landmarks
Landmarks is valued at RM1.68 by Deutsche Bank.
posted by nomadhunter at 12:48 AM
0 comments
June 27, 2006
June 26, 2006
Confidence in the Face of Uncertainty
It is easy to lose confidence during uncertain times. No one wants to lose money, and when we perceive the markets are generally following a bearish trend with occasional rallies, it's natural to feel a little anxious and afraid. How can we cope? Although it may not relieve all anxiety, tried and true methods can help. You can acknowledge your fears, manage your risk, and accept your limitations.
You can't control the markets. Fear is a natural emotion. The best way to handle fear is to just admit you are afraid and let it go. It's all right to feel afraid. Rather than feel uneasy about fear, it's better to admit it. Face your fears, and figure out a rational way to address the market uncertainty that is behind your fear.
Another important way to conquer fear and face uncertainty with confidence is to manage your risk. By risking relatively small amounts of capital on any single trade, you will feel better. It's also wise to use protective stops and have clearly defined exit strategies. Putting less money on the line with each trade is an effective way to decrease fear of losing money, and increase a sense of mastery and control while coping with uncertainty. Similarly, it's important to trade with money you can afford to lose. If you trade with money that you badly need to pay basic living expenses, you will have a valid reason for feeling uneasy. It can be difficult to fool yourself. So don't bother trying. If you can't afford to lose your stake, build up your account balance and stand aside until you can calmly put a bet down without concerning yourself with the adverse consequences of a possible loss. Besides, under current market conditions, you won't be standing on the sidelines alone.
Perhaps the most important key to feeling a sense of confidence in the face of uncertainty is to know your personality. People differ in terms of how they deal with fear and uneasiness. Some people are easily frightened while others can stay calm under the most stressful of circumstances. It's important to know where you stand on the fear-tolerance continuum, and accept your limitations. If your tolerance for fear and chaos is low, it's going to be harder to gain control compared to others. For some, it may be necessary to adjust one's trading strategy. If one has difficulty trading in a fast-paced chaotic environment, for example, it may be necessary to make only long-term investments, where quick decisions are less urgent. Or when trading in the shorter term, it may be useful to use the automatic settings on trading software to exit, or place specific orders with a broker over the phone. Regardless of the strategy one uses, it's vital to gauge one's tolerance for uncertainty and take appropriate steps to compensate.
We may be trading under uncertain times, but we don't need to cower under the strain. We can take precautions and face market uncertainty with confidence.
You can't control the markets. Fear is a natural emotion. The best way to handle fear is to just admit you are afraid and let it go. It's all right to feel afraid. Rather than feel uneasy about fear, it's better to admit it. Face your fears, and figure out a rational way to address the market uncertainty that is behind your fear.
Another important way to conquer fear and face uncertainty with confidence is to manage your risk. By risking relatively small amounts of capital on any single trade, you will feel better. It's also wise to use protective stops and have clearly defined exit strategies. Putting less money on the line with each trade is an effective way to decrease fear of losing money, and increase a sense of mastery and control while coping with uncertainty. Similarly, it's important to trade with money you can afford to lose. If you trade with money that you badly need to pay basic living expenses, you will have a valid reason for feeling uneasy. It can be difficult to fool yourself. So don't bother trying. If you can't afford to lose your stake, build up your account balance and stand aside until you can calmly put a bet down without concerning yourself with the adverse consequences of a possible loss. Besides, under current market conditions, you won't be standing on the sidelines alone.
Perhaps the most important key to feeling a sense of confidence in the face of uncertainty is to know your personality. People differ in terms of how they deal with fear and uneasiness. Some people are easily frightened while others can stay calm under the most stressful of circumstances. It's important to know where you stand on the fear-tolerance continuum, and accept your limitations. If your tolerance for fear and chaos is low, it's going to be harder to gain control compared to others. For some, it may be necessary to adjust one's trading strategy. If one has difficulty trading in a fast-paced chaotic environment, for example, it may be necessary to make only long-term investments, where quick decisions are less urgent. Or when trading in the shorter term, it may be useful to use the automatic settings on trading software to exit, or place specific orders with a broker over the phone. Regardless of the strategy one uses, it's vital to gauge one's tolerance for uncertainty and take appropriate steps to compensate.
We may be trading under uncertain times, but we don't need to cower under the strain. We can take precautions and face market uncertainty with confidence.
posted by nomadhunter at 7:56 PM
0 comments
June 24, 2006
Cleaning Your Psychological House
Have you ever made trading errors because you couldn't concentrate? Perhaps out of the blue you suddenly lost confidence. The economic times we live in can shake anyone's confidence. Sometimes we have big rallies, like on Tuesday-Wednesday, but other times the market has been bearish. The times are uncertain. Is the economy going to change? How will people adjust to interest rate changes? How will the masses perceive the inevitable changes to come? There is an aura of uncertainty in the air, and unless you are psychologically grounded, the instability and uncertainty of the times can catch you off guard.
When you have put on a trade, it's essential to stay focused on monitoring it. You must be able to accurately perceive the signals that indicate the market is going against you, and you must act expediently to protect yourself. That can be difficult to do during uncertain times. One reason some people get thrown off track is because they are not firmly grounded psychologically. They are prone to feel self-doubt, wavering confidence, or a lack of commitment. And when they feel this way, they have great difficulty effortlessly executing a trading plan and managing a trade. Although it's essentially impossible to drive out all psychological conflicts from your psyche, it's useful to try to resolve as many psychological conflicts as possible, so that they don't intrude into your consciousness, and interfere with your ability to focus on the trade.
When you have a psychological conflict, it's in your best interest to resolve it as soon as possible; otherwise it just lies there in the back of your mind, taking up precious, limited psychological energy. By identifying psychological issues before the trading day, you can decrease the possibility of these issues catching you off guard during moments of stress. How can you cope with conflicts, uncertainty and self-doubt? It's hard to just push these conflicts completely out of your consciousness and pretend they don't exist. Ironically, the more you try to deny the existence of these conflicts, the more psychological energy you will waste. Rather than trying to ignore conflicts, it's better to acknowledge and face them head on. Most of the time, the mere acknowledgement of your conflicts will produce a quick resolution.
What are some common conflicts? Every trader at one time or another questions his or her talents as a trader. Did you make a win due to luck or talent? Perhaps the win was due to a combination of both. Wavering confidence can reflect a variety of issues. For some, it is a lack of experience with the markets. Time helps build confidence. For others, a lack of confidence reflects long standing issues. A person may have always questioned his or her ability to perform well. Under times of stress and uncertainty, these issues creep up.
When the markets change as they have been during the past year, it's natural to question one's abilities. You may think, "Perhaps I was a good trader at one time, but the market conditions have changed and I may not be able to live up to my expectations of trading profitably." This perspective may be true or it may be false, but regardless of the validity, allowing such a belief to remain in the back of one's mind takes up psychological energy. It's better to acknowledge the possibility, and if it is false, remind yourself that it is absurd, or if it is true, take the necessary steps (such as learning new trading methods) to prove it wrong.
Few of us are ever completely free of conflict and doubt. Trading the markets is stressful and uncertain. The natural human response is to wonder if you can perform at your peak. Conflict and self-doubt are always there, lurking below your awareness. And when you are in a vulnerable mood, such as during times of market uncertainty, these beliefs can move from the back of your mind to the forefront in an instant. It's not useful to ignore these potentially distracting psychological issues. It's better to acknowledge them up front. Once you do, you are more likely to be able to say to yourself, "that may be true, but it is of no consequence right now." Then, you better spend some time during your "off hours" dealing with it. Conflicts in the back of your mind can have a powerful impact on your ability to focus on your trading. Make sure that you face your conflicts, spend time examining them, and try to resolve them. If you can do so effectively, you'll be able to handle market uncertainty with grace.
When you have put on a trade, it's essential to stay focused on monitoring it. You must be able to accurately perceive the signals that indicate the market is going against you, and you must act expediently to protect yourself. That can be difficult to do during uncertain times. One reason some people get thrown off track is because they are not firmly grounded psychologically. They are prone to feel self-doubt, wavering confidence, or a lack of commitment. And when they feel this way, they have great difficulty effortlessly executing a trading plan and managing a trade. Although it's essentially impossible to drive out all psychological conflicts from your psyche, it's useful to try to resolve as many psychological conflicts as possible, so that they don't intrude into your consciousness, and interfere with your ability to focus on the trade.
When you have a psychological conflict, it's in your best interest to resolve it as soon as possible; otherwise it just lies there in the back of your mind, taking up precious, limited psychological energy. By identifying psychological issues before the trading day, you can decrease the possibility of these issues catching you off guard during moments of stress. How can you cope with conflicts, uncertainty and self-doubt? It's hard to just push these conflicts completely out of your consciousness and pretend they don't exist. Ironically, the more you try to deny the existence of these conflicts, the more psychological energy you will waste. Rather than trying to ignore conflicts, it's better to acknowledge and face them head on. Most of the time, the mere acknowledgement of your conflicts will produce a quick resolution.
What are some common conflicts? Every trader at one time or another questions his or her talents as a trader. Did you make a win due to luck or talent? Perhaps the win was due to a combination of both. Wavering confidence can reflect a variety of issues. For some, it is a lack of experience with the markets. Time helps build confidence. For others, a lack of confidence reflects long standing issues. A person may have always questioned his or her ability to perform well. Under times of stress and uncertainty, these issues creep up.
When the markets change as they have been during the past year, it's natural to question one's abilities. You may think, "Perhaps I was a good trader at one time, but the market conditions have changed and I may not be able to live up to my expectations of trading profitably." This perspective may be true or it may be false, but regardless of the validity, allowing such a belief to remain in the back of one's mind takes up psychological energy. It's better to acknowledge the possibility, and if it is false, remind yourself that it is absurd, or if it is true, take the necessary steps (such as learning new trading methods) to prove it wrong.
Few of us are ever completely free of conflict and doubt. Trading the markets is stressful and uncertain. The natural human response is to wonder if you can perform at your peak. Conflict and self-doubt are always there, lurking below your awareness. And when you are in a vulnerable mood, such as during times of market uncertainty, these beliefs can move from the back of your mind to the forefront in an instant. It's not useful to ignore these potentially distracting psychological issues. It's better to acknowledge them up front. Once you do, you are more likely to be able to say to yourself, "that may be true, but it is of no consequence right now." Then, you better spend some time during your "off hours" dealing with it. Conflicts in the back of your mind can have a powerful impact on your ability to focus on your trading. Make sure that you face your conflicts, spend time examining them, and try to resolve them. If you can do so effectively, you'll be able to handle market uncertainty with grace.
posted by nomadhunter at 7:26 PM
0 comments
June 22, 2006
Global Monetary Tightening Cycle
Economics Report by OSK Research
posted by nomadhunter at 8:00 PM
0 comments
Have Confidence
Have confidence that if you have done a little thing well, you can do a bigger thing well too.
David Storey
David Storey
posted by nomadhunter at 5:55 PM
0 comments
June 21, 2006
A Daily Routine
When most traders look back at their trading errors, and wonder why they happened, they often find that they knew how to put themselves in an optimal mindset, but they did not do so. Instead, they tried to trade under conditions that were not conducive to winning. If you want to trade at your peak, though, it's useful to follow a daily routine so as to enter the proper state of mind.
Trading in a peak performance mindset requires you to be rested, energized and ready to tackle the endless challenges the markets put in front of you. Although it is common these days to try to get away with only a minimal amount of sleep, it is not a good idea. But trading is stressful, and combating stress requires psychological stamina and physical energy. When you are well rested, you have increased energy levels needed to cope with stress. You'll find that if you get to bed early, and wake up early, you'll have the energy you need to tackle unexpected setbacks with grace.
Many traders like to get up early and do a quick workout before they start trading. It gets their mind and body moving, and releases pent up energy. Exercise allows you to have the calm energy you need to focus on and concentrate fully on the market action.
Once your physical needs are met, you can start dealing with your psychological needs. Some traders prefer to get their mind moving by scanning a few charts before they start to trade. Merely looking at charts can start your creative juices flowing. Other traders prefer to look through their trading plans. Before the markets open, it's useful to prepare your mind to focus on trading.
Some traders have a routine to get their emotions and mood under control. A good way to cultivate a confident attitude, for example, is to read through a set of affirmations such as "I am worthy. I have the ability to trade skillfully." Other traders may look through a list of past winning trades to remind them of their past accomplishments.
Starting the trading day also requires a routine. Some traders make a few small, practice trades at the open as a warm-up to bigger trades, while others stay away completely. It's important to find what you prefer and to stick with it. If you find that you can't trade the open successfully, then wait until an optimal time of day when you are most comfortable trading. The key is to increase your odds of success by trading under the conditions that enhance your performance.
It is essential to do whatever you can to enter a peak performance mindset that will help you trade like a winner. Whether it's frequent exercise, trading only on certain days of the week, or standing aside until encountering optimal trading conditions, it's useful to stick to the daily routine that helps you trade at your best.
Trading in a peak performance mindset requires you to be rested, energized and ready to tackle the endless challenges the markets put in front of you. Although it is common these days to try to get away with only a minimal amount of sleep, it is not a good idea. But trading is stressful, and combating stress requires psychological stamina and physical energy. When you are well rested, you have increased energy levels needed to cope with stress. You'll find that if you get to bed early, and wake up early, you'll have the energy you need to tackle unexpected setbacks with grace.
Many traders like to get up early and do a quick workout before they start trading. It gets their mind and body moving, and releases pent up energy. Exercise allows you to have the calm energy you need to focus on and concentrate fully on the market action.
Once your physical needs are met, you can start dealing with your psychological needs. Some traders prefer to get their mind moving by scanning a few charts before they start to trade. Merely looking at charts can start your creative juices flowing. Other traders prefer to look through their trading plans. Before the markets open, it's useful to prepare your mind to focus on trading.
Some traders have a routine to get their emotions and mood under control. A good way to cultivate a confident attitude, for example, is to read through a set of affirmations such as "I am worthy. I have the ability to trade skillfully." Other traders may look through a list of past winning trades to remind them of their past accomplishments.
Starting the trading day also requires a routine. Some traders make a few small, practice trades at the open as a warm-up to bigger trades, while others stay away completely. It's important to find what you prefer and to stick with it. If you find that you can't trade the open successfully, then wait until an optimal time of day when you are most comfortable trading. The key is to increase your odds of success by trading under the conditions that enhance your performance.
It is essential to do whatever you can to enter a peak performance mindset that will help you trade like a winner. Whether it's frequent exercise, trading only on certain days of the week, or standing aside until encountering optimal trading conditions, it's useful to stick to the daily routine that helps you trade at your best.
posted by nomadhunter at 8:50 PM
0 comments
June 20, 2006
3rd Quarter 2006 Strategy
3rd Quarter Strategy by Kenanga Research.
posted by nomadhunter at 8:35 PM
0 comments
June 19, 2006
The Proper Mindset : Getting Back On Track After A Bad Day
Have you ever had a bad day and wanted to stand aside until the feeling passed? Sometimes it is a good idea. It may be necessary to take a break, relax, contemplate, and refocus on the task at hand. The winning trader trades freely and effortlessly and it is vital to trade with such a mindset. Traders are similar to star athletes who perform at their best, or musicians who are virtuosos. What these people have in common is that they can focus their attention on the task at hand; inadequacies, conflicts, or current life stressors do not easily distract them. The more you can remove stress and anxiety in your life, the more easily you can trade effortlessly with a focused, concerted manner. Some of the conditions you need to address are unconscious and involve a certain amount of reflection, but other conditions are just a matter of the right attitude. A winning approach to trading is often just a matter of approaching trading by following some basic guidelines.
A key guideline is to think in probabilities. Don’t focus on the outcome of a single trade. Think optimistically about the bigger picture. You may lose on a single trade, but if you are trading with sound trading strategies, you will come out ahead across a series of trades. It's this long-term perspective you need to focus on, not the short-term transitory outcomes. Remember that your overall success is the bottom line. You must strategically execute trade after trade in a calm and logical manner to make the law of averages work in your favor.
It's also vital to control your risk. Successful traders risk only a small percentage of their trading capital on a single trade, for example. Limiting the risk on a single trade further relieves some of the pressure; you are less likely to feel that every trade must pay off big. Trading a detailed trading plan is also important. When you know what you are going to do and when you are going to do it, you'll feel more in control. If you leave parts of your trading plan unspecified, you'll feel a sense of uneasiness. And in all likelihood, you'll not be able to follow your plan easily. Your discipline will falter. It's essential that you plan out when to enter and when to exit. Once you have a clear idea of when you'll decide to enter a trade and what signals indicate you should exit, you will be able to focus more easily on monitoring the trade and taking decisive action.
There's also a psychological aspect to trading like a winner, and sometimes it's important to just remember some common human tendencies to think "irrationally." For example, there's a human need to avoid loss and this need is often manifested in the need to be right. But don’t be afraid to admit you are wrong. And don't think that you must capitalize on every opportunity to make a profit. These expectations are so high that they can be cause fear and anxiety. When you hold such high expectations for your performance, you place too much pressure on yourself, and it interferes with your train of thought. By trading under the right mental conditions, you stay calm and trade more profitably.
A key guideline is to think in probabilities. Don’t focus on the outcome of a single trade. Think optimistically about the bigger picture. You may lose on a single trade, but if you are trading with sound trading strategies, you will come out ahead across a series of trades. It's this long-term perspective you need to focus on, not the short-term transitory outcomes. Remember that your overall success is the bottom line. You must strategically execute trade after trade in a calm and logical manner to make the law of averages work in your favor.
It's also vital to control your risk. Successful traders risk only a small percentage of their trading capital on a single trade, for example. Limiting the risk on a single trade further relieves some of the pressure; you are less likely to feel that every trade must pay off big. Trading a detailed trading plan is also important. When you know what you are going to do and when you are going to do it, you'll feel more in control. If you leave parts of your trading plan unspecified, you'll feel a sense of uneasiness. And in all likelihood, you'll not be able to follow your plan easily. Your discipline will falter. It's essential that you plan out when to enter and when to exit. Once you have a clear idea of when you'll decide to enter a trade and what signals indicate you should exit, you will be able to focus more easily on monitoring the trade and taking decisive action.
There's also a psychological aspect to trading like a winner, and sometimes it's important to just remember some common human tendencies to think "irrationally." For example, there's a human need to avoid loss and this need is often manifested in the need to be right. But don’t be afraid to admit you are wrong. And don't think that you must capitalize on every opportunity to make a profit. These expectations are so high that they can be cause fear and anxiety. When you hold such high expectations for your performance, you place too much pressure on yourself, and it interferes with your train of thought. By trading under the right mental conditions, you stay calm and trade more profitably.
posted by nomadhunter at 6:35 PM
0 comments
June 18, 2006
June 17, 2006
The Need To Take Risks
There are many ways to trade, and traders can have as many different kinds of personality traits as there are ways to trade profitably. But if you want to trade chaotic, fast paced markets in the short term, some personality traits are more ideal than others. For example, it is not ideal to be fearful and easily knocked off balance by even the slightest ripple in market conditions. It is useful to be thick-skinned, and not easily distressed by even the most unexpected or dramatic trading losses. You can't be afraid to take a risk. That said, a person who is willing to take risks may also be at a disadvantage. The person who enjoys risk can take too many chances that can lead to significant setbacks or even a major disaster.
Consider what happened to Pittsburg Steelers quarterback Ben Roethlisberger recently. He ended up in the hospital after a horrible motorcycle accident in which his unprotected head shattered a car windshield. Many sports commentators criticized Mr. Roethlisberger for not wearing a helmet. Others wondered why he would risk riding a motorcycle in the first place. In his daily commentary on KCBS radio in San Francisco, John Madden suggests that unnecessary risk-taking should be expected among young athletes. He observes that football players routinely take risks every time they walk onto the playing field. It is necessary to have a little bit of psychological denial to take such risks nonchalantly. They must believe that even though they put themselves in harm's way, no harm will come to them. If they weren't willing to take such risks, they would not be able to perform at their peak.
It's the same situation with most traders. A trader who is afraid to take risks is a trader who will miss market moves or make trading mistakes. The trader who is willing to take risks, in contrast, may have nerves of steel, but such feelings of omnipotence can be their downfall at other times. There are times when fear can be adaptive. Fear can protect us from harm. It's necessary to not feel so invincible that you feel you can do anything. You can't. It's vital to control risk. It necessary to risk a small percentage of capital on a single trade. It's useful to stand aside until a high probability setup is identified. It's essential to trade with a well developed trading plan and to stick with it. But traders who are fearless tend to have trouble in these areas.
Traders who are comfortable with risk are prone to take unnecessary risks or may lack discipline at times. The trait that makes them potentially great traders can also be their downfall if they are not careful. Their demise is not assured, however. All they have to do is be aware of their tendency to take unnecessary risks and make sure they are constantly trying to fight this tendency. If you are a risk taker, limit your risk, and always consider the worst case scenario and whether or not you can survive it. Taking risks is necessary to trade profitably, but at the same time, managing risk is the only way to survive and stay profitable.
Consider what happened to Pittsburg Steelers quarterback Ben Roethlisberger recently. He ended up in the hospital after a horrible motorcycle accident in which his unprotected head shattered a car windshield. Many sports commentators criticized Mr. Roethlisberger for not wearing a helmet. Others wondered why he would risk riding a motorcycle in the first place. In his daily commentary on KCBS radio in San Francisco, John Madden suggests that unnecessary risk-taking should be expected among young athletes. He observes that football players routinely take risks every time they walk onto the playing field. It is necessary to have a little bit of psychological denial to take such risks nonchalantly. They must believe that even though they put themselves in harm's way, no harm will come to them. If they weren't willing to take such risks, they would not be able to perform at their peak.
It's the same situation with most traders. A trader who is afraid to take risks is a trader who will miss market moves or make trading mistakes. The trader who is willing to take risks, in contrast, may have nerves of steel, but such feelings of omnipotence can be their downfall at other times. There are times when fear can be adaptive. Fear can protect us from harm. It's necessary to not feel so invincible that you feel you can do anything. You can't. It's vital to control risk. It necessary to risk a small percentage of capital on a single trade. It's useful to stand aside until a high probability setup is identified. It's essential to trade with a well developed trading plan and to stick with it. But traders who are fearless tend to have trouble in these areas.
Traders who are comfortable with risk are prone to take unnecessary risks or may lack discipline at times. The trait that makes them potentially great traders can also be their downfall if they are not careful. Their demise is not assured, however. All they have to do is be aware of their tendency to take unnecessary risks and make sure they are constantly trying to fight this tendency. If you are a risk taker, limit your risk, and always consider the worst case scenario and whether or not you can survive it. Taking risks is necessary to trade profitably, but at the same time, managing risk is the only way to survive and stay profitable.
posted by nomadhunter at 12:53 AM
0 comments
June 15, 2006
It's Not Personal
Have you ever lost big on a few trades and thought, "I need to win it all back right now"? When this happens, your emotions start to take hold. You may even start thinking about seeking "revenge on the markets," but such overly emotional responses have no place in trading. It is useful to cultivate a more objective, unemotional approach when trading the markets.
Emotions and money often go hand in hand, and our feelings toward money often bleed into our trading lives. For example, have you ever compared how it feels to spend cash to pay all expenses rather than credit cards? When you pay expenses with credit cards, it's easy to forget you are spending real money. The money can start to lose some of its meaning. It sort seems like spending play money. Doling out the actual cash with each purchase, in contrast, makes you see exactly how much money is being spent. You feel differently about it. Spending actual money raises your awareness. The money is less abstract and tangible. It's easier to spend. Although treating money so cavalierly can lead to problems with spending in everyday life, such an attitude toward money can be useful when trading. It allows you to look at the money as objectively and abstractly as possible, just as percentage points or ticks. It eases some of the pressure and helps you get up quickly after a setback knocks you down.
There are a few simple things you can do to maintain an objective view toward trading capital. Many say that when money is committed to a trade and the risk and potential loss is experienced, "objectivity goes out the window." Thus, anything you can do to minimize the feeling of risk and potential loss will help you look at the markets more objectively. First, it's helpful to trade with money you can afford to lose. Trading is a profession where you should go in expecting to lose. If you can't afford to lose the money you trade, it will be difficult to maintain objectivity. Deep down, you will know that you just can't afford to lose in a worst-case scenario. Feelings of uncertainty and fear will gnaw at you. Second, it is also crucial to manage your risk. By carefully managing risk on any single trade, you call tell yourself, "I've got little to worry about. I can afford to take the loss." At first you may have to consciously remind yourself of this fact (again, make sure it is a fact), but over time it will automatically be in the back of your mind. You will be calmer, and can more easily cultivate an objective mindset. Finally, view profits and loses in an abstract framework. Rather than focusing on concrete dollar amounts, try to focus on percentages, or just abstract, theoretical numbers. Don't think of the dollar amounts in terms of what can be purchased. Equating dollar amounts in terms of tangible terms, such as car payments or sought-after luxury items, will weaken your objective mindset. You'll be more prone to experience elation from big wins and disappointment from losses. So don't let emotions get the better of you. Cultivate an objective mindset. You'll trade more calmly, creatively, and profitably.
Emotions and money often go hand in hand, and our feelings toward money often bleed into our trading lives. For example, have you ever compared how it feels to spend cash to pay all expenses rather than credit cards? When you pay expenses with credit cards, it's easy to forget you are spending real money. The money can start to lose some of its meaning. It sort seems like spending play money. Doling out the actual cash with each purchase, in contrast, makes you see exactly how much money is being spent. You feel differently about it. Spending actual money raises your awareness. The money is less abstract and tangible. It's easier to spend. Although treating money so cavalierly can lead to problems with spending in everyday life, such an attitude toward money can be useful when trading. It allows you to look at the money as objectively and abstractly as possible, just as percentage points or ticks. It eases some of the pressure and helps you get up quickly after a setback knocks you down.
There are a few simple things you can do to maintain an objective view toward trading capital. Many say that when money is committed to a trade and the risk and potential loss is experienced, "objectivity goes out the window." Thus, anything you can do to minimize the feeling of risk and potential loss will help you look at the markets more objectively. First, it's helpful to trade with money you can afford to lose. Trading is a profession where you should go in expecting to lose. If you can't afford to lose the money you trade, it will be difficult to maintain objectivity. Deep down, you will know that you just can't afford to lose in a worst-case scenario. Feelings of uncertainty and fear will gnaw at you. Second, it is also crucial to manage your risk. By carefully managing risk on any single trade, you call tell yourself, "I've got little to worry about. I can afford to take the loss." At first you may have to consciously remind yourself of this fact (again, make sure it is a fact), but over time it will automatically be in the back of your mind. You will be calmer, and can more easily cultivate an objective mindset. Finally, view profits and loses in an abstract framework. Rather than focusing on concrete dollar amounts, try to focus on percentages, or just abstract, theoretical numbers. Don't think of the dollar amounts in terms of what can be purchased. Equating dollar amounts in terms of tangible terms, such as car payments or sought-after luxury items, will weaken your objective mindset. You'll be more prone to experience elation from big wins and disappointment from losses. So don't let emotions get the better of you. Cultivate an objective mindset. You'll trade more calmly, creatively, and profitably.
posted by nomadhunter at 10:39 PM
1 comments
June 14, 2006
The Rush Of The Pit
The pits at the exchange are exciting. Traders frantically move about the floor, buying and selling. It's exciting to watch. You can feel the energy and it can psych you up just by watching. Well, that depends. Some people may find it noisy and anxiety provoking rather than energizing. The frantic motions of the traders may put them on edge. The environment in which you trade does make a difference. Everyone has his or her own personality and preferences. Some may seek out hustle and bustle while others may prefer quiet serenity. It's important to decide which environment you prefer and create an environment conducive to your style.
There isn't just one right way to trade. Some people prefer constant action while others prefer a quiet, meditative approach to trading. Some traders prefer to do extensive backtesting in a serene atmosphere. They love to just quietly sit by themselves and study charts. When it comes to placing the trades, they may actually call a broker rather than place the trade themselves. Indeed, some professional traders who prefer a concrete, data-driven approach to trading actually dislike placing trades. They prefer to call a broker to place the trade. To them, the enjoyment of trading is in developing a sound strategy, rather than taking the action to place the trade. Again, there's no one right way to trade. What is right for you may not be right for someone else. It's just a matter of knowing what you prefer and matching your trading style to your preference.
There's no right or wrong way to trade. Some traders prefer safety. They prefer to trade only during a solid bull market where everyone is enthusiastic and the indexes go nowhere but up. But the markets don't always go up, and there are times when you have to think creatively and go your own way. To trade like a winner, you must think outside the box, guessing what the crowd will do next, and anticipating how the movement of the masses can benefit you. The astute trader knows when to follow the crowd and when to go against it. The crowd is usually right, until the market trend turns. Some analysts are saying that we are in a turning point right now. It may be that an overvalued market is correcting or it may be that the economy is going to head south. Whatever it is, many are planning for a crash, maybe not a big crash but a little one at least.
The environment you decide to trade in is critical to your success. Some prefer a quiet environment where they can think clearly. Others need action and excitement. Which do you prefer? Whatever environment you find helps you trade with an optimal mental edge is the one that you should cultivate.
There isn't just one right way to trade. Some people prefer constant action while others prefer a quiet, meditative approach to trading. Some traders prefer to do extensive backtesting in a serene atmosphere. They love to just quietly sit by themselves and study charts. When it comes to placing the trades, they may actually call a broker rather than place the trade themselves. Indeed, some professional traders who prefer a concrete, data-driven approach to trading actually dislike placing trades. They prefer to call a broker to place the trade. To them, the enjoyment of trading is in developing a sound strategy, rather than taking the action to place the trade. Again, there's no one right way to trade. What is right for you may not be right for someone else. It's just a matter of knowing what you prefer and matching your trading style to your preference.
There's no right or wrong way to trade. Some traders prefer safety. They prefer to trade only during a solid bull market where everyone is enthusiastic and the indexes go nowhere but up. But the markets don't always go up, and there are times when you have to think creatively and go your own way. To trade like a winner, you must think outside the box, guessing what the crowd will do next, and anticipating how the movement of the masses can benefit you. The astute trader knows when to follow the crowd and when to go against it. The crowd is usually right, until the market trend turns. Some analysts are saying that we are in a turning point right now. It may be that an overvalued market is correcting or it may be that the economy is going to head south. Whatever it is, many are planning for a crash, maybe not a big crash but a little one at least.
The environment you decide to trade in is critical to your success. Some prefer a quiet environment where they can think clearly. Others need action and excitement. Which do you prefer? Whatever environment you find helps you trade with an optimal mental edge is the one that you should cultivate.
posted by nomadhunter at 7:14 PM
0 comments
Expect A Rebound Soon
The risk reward favours a BUY at current levels, for a technical rebound very soon. There will be important data release on inflation in the US tonight which might surprise the market to the upside. Regardless, for the adventurous, now is the time to long. But do not over leverage yourselves.
posted by nomadhunter at 12:32 AM
1 comments
June 13, 2006
Tracking The Fall Of Dow Jones
Huge fall in the Dow precipitate world-wide tumble in equity markets.
posted by nomadhunter at 7:50 PM
0 comments
Are You Preparing For A Crash?
The market seems to be going down. Is it time to think about gloom and doom? Perhaps. At least some market analysts seem to think that the masses have lost confidence in the economy, and these perceptions contribute to the bleak outlook many traders hold of the future. High interest rates have made many think of running. Many are ready to duck and cover. If the economy is ready for a downturn, it may be time to start thinking like a contrarian.
Is it time to stand aside until things improve? If you prefer to follow the masses, it may be time to stand aside. But if you are a rugged individualist who does not mind going your own way rather than following the masses, it may be time for you to step up to the plate and hit a few homeruns.
There's no right or wrong way to trade. Some traders prefer safety. They prefer to trade only during a solid bull market where everyone is enthusiastic and the indexes go nowhere but up. But the markets don't always go up, and there are times when you have to think creatively and go your own way. To trade like a winner, you must think outside the box, guessing what the crowd will do next, and anticipating how the movement of the masses can benefit you. The astute trader knows when to follow the crowd and when to go against it. The crowd is usually right, until the market trend turns. Some analysts are saying that we are in a turning point right now. It may be that an overvalued market is correcting or it may be that the economy is going to head south. Whatever it is, many are planning for a crash, maybe not a big crash but a little one at least.
The challenge is deciding if we are in a turning point, and if we are, developing a trading plan to capitalize on it. How do you do that? A contrarian thinks creatively. For example, during the Great Depression, radio became a big hit. People didn't have money to go out on the town, so they stayed home and enjoyed "free" entertainment on the radio. If you are a creative trader, you must anticipate which stocks will go up as a result of an economic downturn. Obviously, in 2006 radio isn't going to be the hot, new industry that suddenly makes the big profits that bolster stock prices. But there will be some new industry that is going to be the next big thing. If you think outside the box, you can identify sectors that will move upward in the future.
This all sounds great in theory, but in practice, it is difficult to anticipate which stocks will move upward in the future. How can one predict the future without a crystal ball? It is almost impossible. All you can do is to make an educated guess, but at the same time, be ready to admit that you may be wrong. Whatever you decide, however, you must temporarily have full confidence in your method, put money on the line, and act decisively. Sometimes thinking independently is lonesome and scary, but in order to be on the winning side, you have no other choice but to go your own way. So think optimistically. Do not run away like most people. Give it your best shot and think of ways to make a profit while the masses are fearfully and hopelessly getting ready for a crash.
Is it time to stand aside until things improve? If you prefer to follow the masses, it may be time to stand aside. But if you are a rugged individualist who does not mind going your own way rather than following the masses, it may be time for you to step up to the plate and hit a few homeruns.
There's no right or wrong way to trade. Some traders prefer safety. They prefer to trade only during a solid bull market where everyone is enthusiastic and the indexes go nowhere but up. But the markets don't always go up, and there are times when you have to think creatively and go your own way. To trade like a winner, you must think outside the box, guessing what the crowd will do next, and anticipating how the movement of the masses can benefit you. The astute trader knows when to follow the crowd and when to go against it. The crowd is usually right, until the market trend turns. Some analysts are saying that we are in a turning point right now. It may be that an overvalued market is correcting or it may be that the economy is going to head south. Whatever it is, many are planning for a crash, maybe not a big crash but a little one at least.
The challenge is deciding if we are in a turning point, and if we are, developing a trading plan to capitalize on it. How do you do that? A contrarian thinks creatively. For example, during the Great Depression, radio became a big hit. People didn't have money to go out on the town, so they stayed home and enjoyed "free" entertainment on the radio. If you are a creative trader, you must anticipate which stocks will go up as a result of an economic downturn. Obviously, in 2006 radio isn't going to be the hot, new industry that suddenly makes the big profits that bolster stock prices. But there will be some new industry that is going to be the next big thing. If you think outside the box, you can identify sectors that will move upward in the future.
This all sounds great in theory, but in practice, it is difficult to anticipate which stocks will move upward in the future. How can one predict the future without a crystal ball? It is almost impossible. All you can do is to make an educated guess, but at the same time, be ready to admit that you may be wrong. Whatever you decide, however, you must temporarily have full confidence in your method, put money on the line, and act decisively. Sometimes thinking independently is lonesome and scary, but in order to be on the winning side, you have no other choice but to go your own way. So think optimistically. Do not run away like most people. Give it your best shot and think of ways to make a profit while the masses are fearfully and hopelessly getting ready for a crash.
posted by nomadhunter at 7:12 PM
0 comments
June 12, 2006
June 11, 2006
1st Quarter 2006 Results Review
1st Quarter Results Review by Merrill Lynch.
posted by nomadhunter at 11:40 PM
1 comments
June 9, 2006
A New Perspective
Trading is a tough business where setbacks and losses are commonplace. If you aren’t careful, you can feel beaten, knocked down, and afraid to get back up. The winning trader, however, must recover from setbacks and trade with a new perspective every trading day.
The winning trader knows how to take losses in stride. As fictional character Jesse Livermore notes in Reminiscences of a Stock Operator, “Losing money is the least of my troubles. A loss never bothers me after I take it. I forget it over night.” Sure, it is important to learn from your mistakes, and to the extent that you can do that objectively and unemotionally, you don't need to worry much about past losing trades influencing your current trading decisions in negative ways. But there are many traders who hold on to losing trades as emotional baggage. They place special significance on losing trades and view them as evidence of their personal inadequacy. They wrongly draw the conclusion that they may never be able to trade profitably. Why does this happen? Some traders allow their net worth to define their self-worth. They allow their profits and achievements to define who they are. When this happens, their ego is on the line with their money, and they have difficulty looking at the markets objectively. When they lose trading capital, part of their self-esteem is lost too.
Traders who put their self-esteem on the line with their money are especially prone to let their emotions take over. When everything starts moving against them, they may start to fear that they can't make profitable trades that day, and may feel as if they just want to walk away. Past emotional baggage can intensify these feelings to the point that they start making stupid mistakes and dig themselves even deeper into a financial hole.
If you are prone to feelings of inadequacy as a trader, don't let past losing trades overpower you at the wrong moment. There is a lot you can do to put aside these past memories and start the trading day anew. First, acknowledge your past losing trades. The biggest mistake of novice traders is trying to deny their limitations or deny that they have losses. Don't pretend that a losing trade didn't happen or that it has no meaning, when it actually does to you. You don't have to over-analyze things in minute detail and mull over the subtle emotional meaning, but you do have to acknowledge that you feel beaten. Dr. Ari Kiev observes that this mere act of acknowledging a losing trade can do wonders. Once you look at your feelings, many times, they quickly dissipate.
Just because you acknowledge losing trades doesn’t mean that you need to believe they have power over you. Your past need not dictate the future. Believing that the past and future are linked is a common misconception. You can determine your future regardless of your past. Remind yourself that you can take decisive steps to overcome a potential losing trade. For example, you can limit your risk so that you will know deep down that it is virtually impossible to have a losing trade in the future that can have any real financial significance. You can also make a list of past winning trades that you can pull out and review while in the midst of a current loser to remind yourself that you can overcome your current circumstances by calming down, thinking positively, and taking decisive action. You can tell yourself encouraging thoughts, such as "It's no big deal. I can endure. I can get through this if I just calm down." There’s no reason to get bogged down by a losing trade. Think positively. The past is the past, and the future is not yet written. When you treat each trade as a brand new trade, and each day as a brand new day, you’ll see abundant ways of becoming a winning trader.
The winning trader knows how to take losses in stride. As fictional character Jesse Livermore notes in Reminiscences of a Stock Operator, “Losing money is the least of my troubles. A loss never bothers me after I take it. I forget it over night.” Sure, it is important to learn from your mistakes, and to the extent that you can do that objectively and unemotionally, you don't need to worry much about past losing trades influencing your current trading decisions in negative ways. But there are many traders who hold on to losing trades as emotional baggage. They place special significance on losing trades and view them as evidence of their personal inadequacy. They wrongly draw the conclusion that they may never be able to trade profitably. Why does this happen? Some traders allow their net worth to define their self-worth. They allow their profits and achievements to define who they are. When this happens, their ego is on the line with their money, and they have difficulty looking at the markets objectively. When they lose trading capital, part of their self-esteem is lost too.
Traders who put their self-esteem on the line with their money are especially prone to let their emotions take over. When everything starts moving against them, they may start to fear that they can't make profitable trades that day, and may feel as if they just want to walk away. Past emotional baggage can intensify these feelings to the point that they start making stupid mistakes and dig themselves even deeper into a financial hole.
If you are prone to feelings of inadequacy as a trader, don't let past losing trades overpower you at the wrong moment. There is a lot you can do to put aside these past memories and start the trading day anew. First, acknowledge your past losing trades. The biggest mistake of novice traders is trying to deny their limitations or deny that they have losses. Don't pretend that a losing trade didn't happen or that it has no meaning, when it actually does to you. You don't have to over-analyze things in minute detail and mull over the subtle emotional meaning, but you do have to acknowledge that you feel beaten. Dr. Ari Kiev observes that this mere act of acknowledging a losing trade can do wonders. Once you look at your feelings, many times, they quickly dissipate.
Just because you acknowledge losing trades doesn’t mean that you need to believe they have power over you. Your past need not dictate the future. Believing that the past and future are linked is a common misconception. You can determine your future regardless of your past. Remind yourself that you can take decisive steps to overcome a potential losing trade. For example, you can limit your risk so that you will know deep down that it is virtually impossible to have a losing trade in the future that can have any real financial significance. You can also make a list of past winning trades that you can pull out and review while in the midst of a current loser to remind yourself that you can overcome your current circumstances by calming down, thinking positively, and taking decisive action. You can tell yourself encouraging thoughts, such as "It's no big deal. I can endure. I can get through this if I just calm down." There’s no reason to get bogged down by a losing trade. Think positively. The past is the past, and the future is not yet written. When you treat each trade as a brand new trade, and each day as a brand new day, you’ll see abundant ways of becoming a winning trader.
posted by nomadhunter at 2:12 AM
0 comments
June 8, 2006
June 7, 2006
Independent Minded And Carefree
Novice traders are often puzzled by their inability to put on winning trades. Everything seems plausible in the planning stages of a trade, but when it comes time to execute the trading plan, they choke. Why? Many times it is because of performance anxiety. When their money is on the line, they worry about how well they will do, and they can't get the idea of losing out of their mind. What's the solution? If you can think like an independent-minded trader, you will trade freely, creatively, and profitably.
Going against the crowd isn’t easy. We have a natural human, adaptive tendency to follow the crowd. Following the crowd usually keeps us safe, like fish that swim in schools for protection. The old adage, there’s safety in numbers, is true most of the time. As adaptive as conformity is, however, it prevents us from looking inward for guidance. We have a habit of looking outward and thinking of what we "should" do rather than what we want to do.
It’s amazing how conformist humans can be. Have you ever been at a party and done something you would never think of doing just because everyone else was doing it? It's hard to break away from the crowd. It is difficult to look completely inward for direction. But, ideally, we should be able to look inward and not care what anyone thinks. For example, imagine going to the financial district during lunch hour, taking off all your clothes, and walking around nonchalantly (believe or not, you can actually see this happen in San Francisco occasionally). It would be difficult to do, but if one were completely independent minded, he or she would have no trouble doing so. He or she wouldn't care what anyone thought. If only we could always be so secure that we naturally traded like rugged individualists.
Rugged individualists are not driven by money, fame, or recognition. They are resilient and persistent. At their core, their self-esteem is genuine and unwavering. As Dr. Nathaniel Branden observes, “When we appreciate the true nature of self-esteem, we see that it is not competitive or comparative. It is not about making myself higher by making you lower. It has nothing to do with you. It is the joy of my own being.”
Winning traders are extreme individualists. They see trading as an art form. They aren't concerned with the status and prestige that riches may bring. They love what they do and enjoy the benefits of working for themselves and being accountable to no one. They go their own way and know deep down that they are meant to be traders. It’s not just a job; it’s a calling. The more you can think like an individualist, the more you’ll be trade freely and creatively. The profits will soon follow.
Going against the crowd isn’t easy. We have a natural human, adaptive tendency to follow the crowd. Following the crowd usually keeps us safe, like fish that swim in schools for protection. The old adage, there’s safety in numbers, is true most of the time. As adaptive as conformity is, however, it prevents us from looking inward for guidance. We have a habit of looking outward and thinking of what we "should" do rather than what we want to do.
It’s amazing how conformist humans can be. Have you ever been at a party and done something you would never think of doing just because everyone else was doing it? It's hard to break away from the crowd. It is difficult to look completely inward for direction. But, ideally, we should be able to look inward and not care what anyone thinks. For example, imagine going to the financial district during lunch hour, taking off all your clothes, and walking around nonchalantly (believe or not, you can actually see this happen in San Francisco occasionally). It would be difficult to do, but if one were completely independent minded, he or she would have no trouble doing so. He or she wouldn't care what anyone thought. If only we could always be so secure that we naturally traded like rugged individualists.
Rugged individualists are not driven by money, fame, or recognition. They are resilient and persistent. At their core, their self-esteem is genuine and unwavering. As Dr. Nathaniel Branden observes, “When we appreciate the true nature of self-esteem, we see that it is not competitive or comparative. It is not about making myself higher by making you lower. It has nothing to do with you. It is the joy of my own being.”
Winning traders are extreme individualists. They see trading as an art form. They aren't concerned with the status and prestige that riches may bring. They love what they do and enjoy the benefits of working for themselves and being accountable to no one. They go their own way and know deep down that they are meant to be traders. It’s not just a job; it’s a calling. The more you can think like an individualist, the more you’ll be trade freely and creatively. The profits will soon follow.
posted by nomadhunter at 6:56 PM
0 comments
June 6, 2006
Rising to the Occasion
Trading is a challenging profession. Many seek out success, but few make it. The markets don't always cooperate with your plans. You can trade all day, and work hard at it, but you can still end up losing money. Thinking of the big picture helps ease the pressure. You can calmly think, "What's there to worry about? It's just one trade among many. It's just one day. There are many more days to trade." Thinking of the bigger picture is a great thinking strategy that you can use to calm down. It's also useful to realize that you can't control everything. All you can do is persist in the face of uncertainty and hope for the best. You may not win all the time, but you deserve to win, and you should trade as if you are a winner.
In the end, all you can do is work hard. The final outcome of your trading efforts may not be in your control. All you can do is gallantly try to overcome obstacles and trade as if you deserved to win. That isn't to say that you should give up and assume you couldn't win. Indeed, trading to win is far from that. You must work so diligently that regardless of the outcome, you will feel at peace knowing that you did your best.
Ever heard the phrase, "Winning is the only thing"? Winning is important, but ironically, it can't be "the only thing." A more apt saying for success is, "It's not whether you win or lose, but how you play the game." If you trade with resolution and discipline, you'll be more likely to achieve success. You must respect trading and the markets. You can't impose your will onto the markets. The markets will do whatever they want. You must be ready to accept what the markets have to offer you. It's vital to enjoy the process of trading. It's intellectually challenging. You can use your creative abilities to identify trading opportunities, and feel a sense of accomplishment by solving difficult problems. Sometimes you'll win, but many times you will lose. But each trading opportunity has a little something to teach you about yourself, the markets, and trading. It may be just a little thing, like how you can accept taking a loss after a fluke ruined a perfectly good trade. Or maybe you will merely learn something about your current limitations. There's always something to learn. Whatever you do, though, don't get caught up focusing entirely on winning. You can't completely control whether you win or lose and when you think about winning, you just get distracted.
Enjoy the process of trading. Fight hard; try to overcome every obstacle. But do it because you love it, not because you need to win. If you can step away from the idea that winning is all that matters, you'll be able to control your emotions. When you encounter a setback, you won't experience self-doubt or inadequacy. Instead, you will actively and creatively think about what you can do next. What is the next step you can take to bring you closer to your goals? It's hard to do. In modern society we are driven to win, but ironically, the people who actually win in the long run aren't consumed with winning. They are consumed with the process of trading, honing their skills, and gaining a sense of peace knowing that they have worked to the best of their abilities. They feel satisfied just knowing that they have put in a noble effort.
In the end, all you can do is work hard. The final outcome of your trading efforts may not be in your control. All you can do is gallantly try to overcome obstacles and trade as if you deserved to win. That isn't to say that you should give up and assume you couldn't win. Indeed, trading to win is far from that. You must work so diligently that regardless of the outcome, you will feel at peace knowing that you did your best.
Ever heard the phrase, "Winning is the only thing"? Winning is important, but ironically, it can't be "the only thing." A more apt saying for success is, "It's not whether you win or lose, but how you play the game." If you trade with resolution and discipline, you'll be more likely to achieve success. You must respect trading and the markets. You can't impose your will onto the markets. The markets will do whatever they want. You must be ready to accept what the markets have to offer you. It's vital to enjoy the process of trading. It's intellectually challenging. You can use your creative abilities to identify trading opportunities, and feel a sense of accomplishment by solving difficult problems. Sometimes you'll win, but many times you will lose. But each trading opportunity has a little something to teach you about yourself, the markets, and trading. It may be just a little thing, like how you can accept taking a loss after a fluke ruined a perfectly good trade. Or maybe you will merely learn something about your current limitations. There's always something to learn. Whatever you do, though, don't get caught up focusing entirely on winning. You can't completely control whether you win or lose and when you think about winning, you just get distracted.
Enjoy the process of trading. Fight hard; try to overcome every obstacle. But do it because you love it, not because you need to win. If you can step away from the idea that winning is all that matters, you'll be able to control your emotions. When you encounter a setback, you won't experience self-doubt or inadequacy. Instead, you will actively and creatively think about what you can do next. What is the next step you can take to bring you closer to your goals? It's hard to do. In modern society we are driven to win, but ironically, the people who actually win in the long run aren't consumed with winning. They are consumed with the process of trading, honing their skills, and gaining a sense of peace knowing that they have worked to the best of their abilities. They feel satisfied just knowing that they have put in a noble effort.
posted by nomadhunter at 6:51 PM
0 comments
June 5, 2006
IJM Plantations
IJM Plantations has a target price of RM1.82.
posted by nomadhunter at 8:42 PM
0 comments
RHB Capital
RHB Capital now has increased M&A possibilities.
posted by nomadhunter at 7:41 PM
0 comments
Do You Have A Trading Plan?
Here is a Trading Plan Template prepared by Tim Wilcox. Trading Plans are very important if you treat trading seriously and not as a mere hobby.
posted by nomadhunter at 1:10 AM
0 comments
June 4, 2006
June 3, 2006
Don't Forget To Take A Break
Reality is subjective. There are different states of reality in the same way that there are different states of mind, or different states of emotion. After a series of setbacks, for example, the world can look bleak. Yet after a series of big wins, in contrast, you can feel euphoric, even omnipotent. So which is the true reality? This is a hard question to answer. Perhaps it is best to consider that there are multiple realities, and that some are more conducive to optimal trading than others.
One reality is that you must make profits. If you don't make enough winning trades, you will blow out your account. As true as this fact of trading is, however, forcing yourself to make trade after winning trade can actually make you choke under the pressure. While trading the markets, it is best to put this reality out of your mind. The more you can stay focused on your ongoing experience, rather than dwelling on your performance, the better. The more you just don't care, the better you will trade. Psychologists call this phenomenon the paradox of control: You have to give up control to actually gain control. If you feel that you can lose money and survive, you'll actually make more money. It sounds strange, but it's true. That said, it is hard to forget about your financial needs, aspirations, and expectations. If you are serious about the trading profession, you are probably the type of person who has high aspirations. You seek out success and you are ready to do whatever it takes to make your mark. But again, it can be difficult at times to forget about your expectations. It can be difficult to avoid putting pressure on yourself.
If you want to trade in a peak performance mindset, however, it is vital to get away from it all, psychologically, that is. You need to let your mind relax. You need to let your thoughts slow down. You must occasionally get away from the competitive world of trading. Everyone has his or her approach. Some use meditation. Others work out at the gym until they let off pent up energy and are fully relaxed. And many people get a massage to relieve physical tension. The key is to shake your mind out of one reality and put it into another. Here's one method that can really give your mind the shock it needs. You can immerse your body in warm water (hot but not scalding and preferably at a professionally operated spa) for two minutes and then jump into a pool of cold water. When you immerse your body in a pool of hot water, all you can think about is coping with the heat. It's a little painful and so you must maintain concentration to avoid jumping out. It's a great way to focus. Your mind can't actually think of anything else but concentrating on how you will cope with the intense heat surrounding your body. You soon enter a meditative state. You aren't thinking at all about how well you are doing in the markets! Next, you immerse your body in a pool of cold water. The rapid change in body temperature allows your mind to slow down. You feel relaxed, and somewhat in a daze. By repeating the process a few times, you will be able to fully relax. You will be in a new reality. From a psychological standpoint, getting into this new reality can have rejuvenating effects. You will put things in perspective. You will see that trading activities, and the high standards you try to attain, are only one aspect of your life. This realization can provide solace during a stressful trading day. You'll remember that there are other realities in the midst of chaos. But more importantly, you will feel relaxed and ready to tackle the stresses and strains of the markets with renewed vigor.
Trading is inherently stressful. As much as we try to avoid it, our ego is often on the line with our money. It's essential to psychologically get away from it all. Whether it is meditation, exercise or a vacation on a tropical island, it's vital to shake up your reality, rest, and rejuvenate.
One reality is that you must make profits. If you don't make enough winning trades, you will blow out your account. As true as this fact of trading is, however, forcing yourself to make trade after winning trade can actually make you choke under the pressure. While trading the markets, it is best to put this reality out of your mind. The more you can stay focused on your ongoing experience, rather than dwelling on your performance, the better. The more you just don't care, the better you will trade. Psychologists call this phenomenon the paradox of control: You have to give up control to actually gain control. If you feel that you can lose money and survive, you'll actually make more money. It sounds strange, but it's true. That said, it is hard to forget about your financial needs, aspirations, and expectations. If you are serious about the trading profession, you are probably the type of person who has high aspirations. You seek out success and you are ready to do whatever it takes to make your mark. But again, it can be difficult at times to forget about your expectations. It can be difficult to avoid putting pressure on yourself.
If you want to trade in a peak performance mindset, however, it is vital to get away from it all, psychologically, that is. You need to let your mind relax. You need to let your thoughts slow down. You must occasionally get away from the competitive world of trading. Everyone has his or her approach. Some use meditation. Others work out at the gym until they let off pent up energy and are fully relaxed. And many people get a massage to relieve physical tension. The key is to shake your mind out of one reality and put it into another. Here's one method that can really give your mind the shock it needs. You can immerse your body in warm water (hot but not scalding and preferably at a professionally operated spa) for two minutes and then jump into a pool of cold water. When you immerse your body in a pool of hot water, all you can think about is coping with the heat. It's a little painful and so you must maintain concentration to avoid jumping out. It's a great way to focus. Your mind can't actually think of anything else but concentrating on how you will cope with the intense heat surrounding your body. You soon enter a meditative state. You aren't thinking at all about how well you are doing in the markets! Next, you immerse your body in a pool of cold water. The rapid change in body temperature allows your mind to slow down. You feel relaxed, and somewhat in a daze. By repeating the process a few times, you will be able to fully relax. You will be in a new reality. From a psychological standpoint, getting into this new reality can have rejuvenating effects. You will put things in perspective. You will see that trading activities, and the high standards you try to attain, are only one aspect of your life. This realization can provide solace during a stressful trading day. You'll remember that there are other realities in the midst of chaos. But more importantly, you will feel relaxed and ready to tackle the stresses and strains of the markets with renewed vigor.
Trading is inherently stressful. As much as we try to avoid it, our ego is often on the line with our money. It's essential to psychologically get away from it all. Whether it is meditation, exercise or a vacation on a tropical island, it's vital to shake up your reality, rest, and rejuvenate.
posted by nomadhunter at 7:09 AM
0 comments
June 1, 2006
Free And Easy Trading
Throughout the day you make everyday decisions that mean little to you. You drive your kids to school and along the way, you make a host of decisions about which route to take, where to turn, or when to stop off for gas. Each decision is made with little thought. Later in the day, you may decide to stop off at the grocery store. You decide what to buy for dinner and how much you will spend. Do you obsess over these everyday decisions? You probably don't. Why should you? What's the big deal? The implications of the decisions are almost nil. But tell that to someone with obsessive-compulsive disorder. They have a different perspective regarding the significance of such decisions. Even minor insignificant everyday decisions are a big deal to individuals with such an ailment. Aren't you glad that you don't have obsessive compulsive disorder? If you are a novice trader that has trouble making trading decisions, though, a seasoned trader may think you have a kind of obsessive compulsive disorder. Whereas you sell early or abandon your trading plan because you are impatient or frustrated, seasoned traders have no problem making what they see as everyday decisions. To them, it's no big deal; it's just a decision that must be made. Wouldn't it be nice to trade with such a free and easy trading style?
Traders can often take the decisions they make during the trading day too seriously. It's natural. When your money is on the line, you can't help but worry about losing it, and you want to protect it, even if it means obsessing over minor details or reacting with extreme emotions. Some people even personify the markets by viewing a trading decision with the same emotional intensity as they do with their interpersonal relationships. In "Trading In the Zone," for example, Mark Douglas points out that traders often equate losses in the markets with their parents punishing them for breaking rules. When the markets are viewed in this way, losses take on a great personal significance. But it doesn't help to make such a big deal of things.
It's much better to take a more detached, objective approach. How can you do it? First, don't think about, or obsess about, the outcome of a single trade. Think of the bigger picture. You may lose on a single trade, but across a series of trades you will come out ahead, if you have a trading strategy that has a high probability of success. Successful traders plan on executing many trades, rather than just a few key significant ones. As they trade, they know that not all trades need to be winners in order to increase the equity in their accounts. It's your success overall that counts. Keeping this fact in mind takes some of the pressure off. Second, it is vital to use proper risk management. Successful traders risk only a small percentage of their trading capital on a single trade. Limiting the risk on a single trade further relieves some of the pressure to feel that every trade needs to be a winner, and thus, some of the personal significance is reduced.
There's no need to imbue a trade with great personal significance. By limiting the amount capital you risk on a trade, the actual consequences of the trade are limited, so what's there to worry about? You might as well trade free and easy.
Traders can often take the decisions they make during the trading day too seriously. It's natural. When your money is on the line, you can't help but worry about losing it, and you want to protect it, even if it means obsessing over minor details or reacting with extreme emotions. Some people even personify the markets by viewing a trading decision with the same emotional intensity as they do with their interpersonal relationships. In "Trading In the Zone," for example, Mark Douglas points out that traders often equate losses in the markets with their parents punishing them for breaking rules. When the markets are viewed in this way, losses take on a great personal significance. But it doesn't help to make such a big deal of things.
It's much better to take a more detached, objective approach. How can you do it? First, don't think about, or obsess about, the outcome of a single trade. Think of the bigger picture. You may lose on a single trade, but across a series of trades you will come out ahead, if you have a trading strategy that has a high probability of success. Successful traders plan on executing many trades, rather than just a few key significant ones. As they trade, they know that not all trades need to be winners in order to increase the equity in their accounts. It's your success overall that counts. Keeping this fact in mind takes some of the pressure off. Second, it is vital to use proper risk management. Successful traders risk only a small percentage of their trading capital on a single trade. Limiting the risk on a single trade further relieves some of the pressure to feel that every trade needs to be a winner, and thus, some of the personal significance is reduced.
There's no need to imbue a trade with great personal significance. By limiting the amount capital you risk on a trade, the actual consequences of the trade are limited, so what's there to worry about? You might as well trade free and easy.
posted by nomadhunter at 6:28 PM
0 comments
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