Right mindset – Part 2
Because loss trades simply must occur, it must be accepted that it is impossible to achieve a trading record that only comprises profit trades—that is, a perfect trading record. Once this is accepted, it must follow that perfection or certainty for every trade is unattainable and that traders are therefore dealing within a probabilistic environment. […]
Right mindset
Thinking from the markets perspective means forming connected ideas about what and when to buy and sell from the view of the facts and events in the market. The facts and events are movements of price in tradable instruments. If your perspective causes either positive or negative emotional feelings in you about the price movements, […]
Processes and outcomes
Once you have accepted achieving consistency as your major skills goal, what other skills goal can you set? Perhaps you could set a goal to become the ‘perfect trader’. What would this mean – no losing trades? Is this possible? I can assure you, it is not. Randomness will take care of this. A perfect […]
Achieving consistency and objectivity
In last week’s post I discussed the concepts of consistency and objectivity in relation to the market and our trading and active investing activities. Over the next few week’s I will be taking a look at how we can achieve these skills that are essential to our long term success in the markets. While it […]
Consistency and objectivity
I believe from my own trading experiences, from reading material by many trading authors and from reading Mark Douglas’ books and discussing the subject with him in the past that our primary trading goal must be to achieve consistency and objectivity in our trading and investing activities. Why? To explain, let’s start by defining these […]
The ultimate challenge
The last few months have been extremely tough going for medium term active share investors. This has been exacerbated this past week with a rapid increase in volatility and the markets once again moving into a high risk phase. Events such as these are not un-common in the markets and as traders and active investors […]
Current market conditions
Over the past few months Australian traders and investors have witnessed a divergence between the All Ords and the Dow Jones Index. Whilst this ‘de-coupling’ has been going on for some time with the USA indices rising by more than the ALL-ORDS, only recently has it had a negative impact on Australian sharemarket investors. The […]
Human decision making
To function and exist in society, we as human beings operate under a social paradigm or level of social conditioning that allows this to occur relatively smoothly for the vast majority. As traders and active investors in the markets however, these same paradigms can often be detrimental to our success and profitability. The decisions we […]
Tiger Woods and the GFC
I read an interesting article in the New York Times recently on the rise and fall of Tiger Woods and comparing this with the rise and fall of certain sections of the financial industry in relation to the Global Financial Crisis. Much is often made of the similarities between the psychological aspects of sport and […]
Has anything changed?
Please let me start this Blog topic by declaring that by no means am I a qualified economist. But I feel compelled to add my two cents worth on a recent email doing the rounds that originated from Ross Greenwood. The numbers and statistics quoted in the email below are staggering and you have to […]