Advfnbooks.com - Financial and Trading Instruction for Private Investor

[analyst75]

Larry Robbins: Trading with a Great Sense of Responsibility 

 

WHAT YOU NEED TO KNOW ABOUT MASTER TRADERS – PART 20

 

“It sounds attractive to try and make a quick buck, but like anything else, real money is made by slowly compounding your returns.” - Andrew Beattie  

 

Name: Larry Robbins

Age: 47

Nationality: American

Occupation: Portfolio and hedge fund manager

 

A COMMITTED, ILLUSTRIOUS INVESTOR

Robbins was born into a Jewish family, in Arlington Heights, Illinois. He was a hockey star while in college.

 

One source says he graduated with honors from the Jerome Fisher Program in Management and Technology at the University of Pennsylvania in 1992, where he received a B.S. in Economics with concentrations in accounting, finance, marketing and a B.S in Engineering, with a major in systems engineering. He became a Certified Public Accountant in 1991. 

 

Following his graduation, Larry worked at Gleacher & Company, spending three years there. He worked at Omega Advisors (for Leon Cooperman), spending six years.

 

He left Omega Advisors, establishing his own firm, Glenview Capital Management, in 2000. This firm has been so successful, averaging 15% returns of net of fees per annum. As of July 2014, Glenview Capital Management had about $9.2 billion of capital under management.

 

Larry was worth US$ 2.3 billion in December 215. He became involved in various charitable activities, and he’s an active supporter of education reform both in New York City and across the U.S. He’s also the Senior Chair of the Wall Street Division of the UJA-Federation.

 

He’d four sons by his former wife, Amy Robbins. He lives in Alpine, New Jersey, with his current wife, Sarahmay Wesemael. He’s won awards.

 

What You Need to Know:

1.      It’s no surprise that Larry doesn’t use stops in his trades. There are many traders who don’t use stops and are hugely successful. However, using stops is safer. What does he also do differently? He holds stocks for years, being an investor; and perhaps, that’s one of the reasons why he survives the market in the long run without using stops.

 

2.      Larry said: If you really want to be a good investor, you cannot just be involved, you have to be committed. It’s not about what you did before but about… persistence and continuity of work effort.

 

3.      When you’re affected by a bad trading outcome, you’ll need to take it as a lesson. Most traders who lose may be young and inexperienced. They don’t realize how risky it is to walk into the waters without proper knowledge. But those who’ll end up making money in the markets don’t give up… They take what happen to them as a great education.

 

4.      Larry believes trading isn’t just a job, it’s a passion, though it was almost by accident that he went into the hedge fund and investment business.

 

5.      As a trader, think like an owner, not like a trader.

 

6.      A trader who’s been engaging the markets for 12 years is obviously one that has had some success. That success is what allows traders to be responsible and philanthropic.

 

Conclusion: Gainful speculation is not that hard on paper – know where to buy and where to sell when price looks to be going in your favor. Really, you got to know what it means to buy at a demand zone and sell at a supply zone. You got to know the meaning of doing this. Traders interpret demand and supply zones differently. When they look at the chart, they come with various decisions. You simply need to find ways to survive the markets while doing your own market analysis.

 

This article is ended with a quote from Larry:

 

“I don’t think that I have met someone who is very good in the investment business who isn’t hard-working, bright, talented, and focused.” 

 

 

Source: www.tallinex.com

 

Super Trading Strategies: http://www.advfnbooks.com/books/supertradingstrategies/index.html     

[analyst75]

WHAT YOU NEED TO KNOW ABOUT MASTER TRADERS – PART 22

 

“It never ceases to amaze me the impact that controlling your losses has on your performance.” – Chris Tate  

 

Name: Crispin Odey

Date of birth: January 31, 1959

Nationality: British

Website: Odey.com

 

A QUALIFIED LAWYER BECOMES A TRADER

Crispin was born in east Yorkshire and educated at Harrow School. His dad had been a head boy at that school.

 

Crispin went to Oxford and got a degree in history and economics, after which he qualified as a lawyer. But instead of practicing law, he joined Framlington fund managers. He also worked at Baring, managing the Baring European Growth Trust.

 

He founded Odey Asset Management in 1991, a London-based hedge fund. He’s now a partner at the firm, which has about $9.3 billion under management, and Odey personally running $4 billion of assets. George Soros was one of the original seed investors of the firm, investing $150 million in it.

 

Crisping has been successful overall, but there were times he was wrong, like the year 1994, when he suffered a considerable amount of loss on his funds. Nevertheless, he thrived, like the year 2001, for he foresaw that the value of insurers would rise after the September 11 attacks on New York.

 

He once worked closely with Hugh Hendry, thus the quip, “Odey in the 1990s was a one-man band; Odey in the 2000s was a two-man band.” In 2008, he made lots of money from bear markets of the year, growing by 54.8% and paying himself 28 million GBP.  He’d shorted some banks, getting called a “Big Business Shot.”

 

Whenever he lost some money, he lost some investors and his net worth declined. Whenever he made some money, he gained some investors and his net worth increased.

 

Trading is a lifelong career.

 

As of 2015, Crispin was worth £1.1 billion GBP, jointly with wife. He’s married to Nichola Pease. He lives in Chelsea, London and has a house in English Bicknor.

 

What You Need to Know:

1.      Crispin’s multi-billion hedge fund has world leading investors and has an exceptional performance record across their conventional and hedge fund portfolios. You've got to look at assumptions behind markets long before you look at markets.

 

2.      To be a successful long term investor you must think like an owner - know when to take risk and when to preserve capital, according to Crispin. You need to preserve your capital and generate superior returns eventually.

 

3.      Losses are great teachers. A loss may wipe you out. Another loss would teach you how to survive and another loss would bring you profits and enjoyment.

 

4.      Your qualifications don’t matter much when it comes to being a great trader. When it comes to speculation, History degree is far more useful than a CFA [Chartered Financial Analyst].

 

5.      When you got great talent and skills and flexibility, you’ve control over your life. You may be under a boss, but eventually you may need to stand out on your own. Crispin broke away from Barings to found his own business at time when some felt that the private client side was playing second fiddle to the institutional business. Anyone with creativity had to operate outside the system.

 

6.      Good traders have a knack for finding setups that would do well in spite of the vagaries of the markets.  These markets are very hard to read, but some instruments would give you clear signals and you have to trade with confidence. 

 

7.      “Investment styles need to adapt as opportunities change. Living in investment denial must be avoided - if an investment is not working, we won't wait until it does,” says Crispin.   

 

8.      Good traders and investors are pretty good at making money; plus don't take too much out, either.

 

9.      Other business also have their risks. Many people suffer in other areas of human endeavors. Crispin’s dad made money as an entrepreneur and then lost it because he broke his own rules. You’ll need to take your time to make money, thinking like the opulent. Don’t look for quick riches.

 

10.  Genius traders fall and rise up again. A good trader may suffer a temporary loss, loss of revenues and loss of investors. Nonetheless, they would eventually grow, grow revenues and gain new investors. 

 

11.  You don’t know when a downtrend or an uptrend would end. Those who chase the market lose money, and those who get chased by the market make money. You need to stay ahead of the market.

 

This article is ended with a quote from Crispin:

 

“What we do is work very hard not to lose money. We don't live with hope in the portfolio; we live with fear. Our view of the market now is: Take care of the downside, and let the upside take care of itself.”

 

 

 

Source: www.tallinex.com  

 

Super Trading Strategies: http://www.advfnbooks.com/books/supertradingstrategies/index.html     

 

 

[radex78]

Good story and inspiring many trader, as I am read if he also ever facing with big loss in trading, in my view this is included big loss and no doubt because already as big trader, different with my loss in trading, still less than one hundred dollar because never investing more than one hundred dollar so far, but about success I think I am also have opportunity here we need confidence

[analyst75]

Speculation would first seem to be one of the easiest things on earth because you might think of making money by hitting bid and ask buttons for trading instruments of your choice. Hitting bid and ask buttons can be learned by everybody, but it remains a mystery that doing this does not bring easy money. It is no longer a secret that majority of traders lose. Pros know that. Newbies know that. Those who do not trade know that. Millions of trading styles and approaches have been used under heaven, but majority of them seem not to be working. Why?

 

The answer: You alone can determine whether you will become successful or not. Some want to succeed as traders but they get entangled in what can be called self-sabotage. They do exactly what look satisfactory in the short-term, but which cannot help them in the long run. What is then the way out?

 

You simply need to learn the insights, approaches and thoughts of super traders. And when you adapt and apply them to your trading styles, you would also find it easier to deal with the vagaries of the market triumphantly. That is when good strategies you use can work for you. Good strategies cannot work for you if you approach the market with illogical trading psychology.

 

 

Insights into the Mindset of Super Traders: http://www.advfnbooks.com/books/insights/index.html

 

“Insights into the Mindset of Super Traders” reveals the life stories of selected 20 master traders, how they think, how they view the markets, and how they make their fortunes.

 

Some of them are:

 

Lan Turner, who turns simple trading ideas into millions.

Dirk Vandycke, who has made thousands of percentage returns simply by accepting the truth about trading.

Michelle Williams, a female trader who once won a trading championship

Martin Zweig, who was one of the most successful traders of the last century

John Arnold, who became so rich that he retired himself at the age of 38, while many older people were still sweating over pensions

Bruce Kovner, who is one of the least known billionaire traders

Michael Platt, who is an accomplished trading risk manager

Martin Schwartz, who lost money for 9 year before becoming a permanently successful trader

Louise Bacon, and old veteran trader who tells us his intriguing story

Sir John Templeton, who is truthfully the greatest global stock picker of 20th century

 

Look at giants being pursued by cockroaches! May the spell of ignorance on you be broken. There are many future master/pro/expert traders reading this book who are being discouraged by those who are ignorant of the realities in the market. They are being discouraged by temporary setbacks. The providence has ordained you to attain international acclaim through successful speculation, and end up blessing lives, lifting people out of penury and bringing smiles to the face of the dejected. Here you are, oblivious of your trading potential, caught in a rat race.

 

 

 

Insights into the Mindset of Super Traders: http://www.advfnbooks.com/books/insights/index.html

 

www.tallinex.com wants you to become a successful trader

 

[analyst75]

The problem of trading in uncertain times crept up on the Mentor Program Alumni forum and I have been thinking about my answer. The original answer I gave is shown below –

 

I think one of the things you need to be able to do is to define what uncertainty is. If you opt for volatility as a proxy for uncertainty then you see something quite interesting. The VIX which is known as the fear index and should reflect uncertainty is actually at sitting somewhere near its long term average, indicating that the players who make up this index don’t actually see any uncertainty and are not asking for an increase in the risk premium they demand. The same is true if you look at the historic volatility in the Dow which is also sitting at a 9 year low. From my perspective is the issue is not uncertainty in markets but uncertainty in decision making that is brought about by listening to external sources. If you switched off the news and all the associated commentary and simply looked at markets what would they tell you?

 

What has caused me to think further about this overnight is the notion of what actually is the uncertainty that is being referred to. Is it a true physical uncertainty or a psychological perception brought on by exposure to the narratives of others? I had a look at Wikipedia for a more formal definition of uncertainty and it gave the following –

 

Uncertainty is a situation which involves imperfect and/or unknown information. However, “uncertainty is an unintelligible expression without a straightforward description”.[1] It arises in subtly different ways in a number of fields, including insurance, philosophy, physics, statistics, economics, finance, psychology, sociology, engineering, metrology, and information science. It applies to predictions of future events, to physical measurements that are already made, or to the unknown. Uncertainty arises in partially observable and/or stochastic environments, as well as due to ignorance and/or indolence.

 

You will notice that the definition holds at its core the uncertainty inherent in predicting future events. In fact the science of probability is based around trying to deal with the fact that the universe is an uncertain place. However, uncertainty is the default setting in trading – the outcome of all trades is unknown until they are closed. It is this uncertainty that gives us the potential to be profitable, investments that have known or certain outcomes have no risk premium attached as such they offer little in the way of return (think bank deposit). This definition is therefore of little use in unpacking the notion of a change in traders uncertainty quotient. Granted we can respond to changes in volatility and we have tools to measure this but this is a reasonably common occurrence in trading and there are strategies that can be put in place to deal with this. In fact very basic position sizing and volatility based stops self-correct to deal with this sort of problem.

 

So I am drawn back to the idea that what actually changes is the tone and intensity of the narratives that people surround themselves with. This ever increasing crescendo of noise is bound to take an effect on peoples psyche particularity at present when the world appears to be spinning out of control. However, notice I used the expression appears, I used this term because appearances and reality are not the same thing. What brings some equilibrium back to the noise of others is as always context, the markets tell a completely different story. Whilst the breathless gibbering that is the media may consider the present to be the most troubled time in history and need to shout about it at every opportunity neither that markets nor history itself would agree.

 

This is the most salient point for traders with regards to what is considered uncertainty. Uncertainty is the environment within which we operate as a broad observation but beyond that it is actually the markets themselves that define what actually uncertainty is and they can do this by readily accessible metrics. When volatility and in turn risk premiums increase then we can say that uncertainty has increased. However, even here people try inject their own primitive narrative into events as the VIX which is a widely known measure of volatility is referred to as the fear index when it is nothing of the sort. However, this is the natural human desire for drama, we all have a friend or relative who is addicted to drama and those in the news media, particularly the financial arena and prime diva’s. So if you find yourself believing that uncertainty has increased but markets don’t agree then you will need to do something about what leaks into your brain.

 

 Author: Chris Tate

 

Article reproduced with kind permission of: http://tradinggame.com.au

 

 

Traders’ Mindset: http://www.advfnbooks.com/books/insights/index.html

 

 

www.tallinex.com wants you to become a successful trader

 

 

[analyst75]

INTRODUCTION: Hello Traders. The article below is useful for all areas of human endeavors (including trading). Please read it to discover a great secret today. Read between the lines and see how the facts revealed here aptly apply to trading.

 

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There are, broadly speaking, two ways to see the world and these have a great influence on how successful you become.

 

The first is what psychologists call the “external locus of control,” and the second is the “internal locus of control.”

 

You see… as the world around you changes, you can either attribute success and failure to things you have control over, or to forces outside your influence.

 

And which orientation you choose has a huge bearing on your long-term success.

 

This concept dates back to the 1960s with Julian Rotter’s investigation into how people’s behaviours and attitudes affected the outcomes of their lives.

 

Locus of control describes what individuals perceive about the underlying main causes of events in his/her life.

 

 

Put more simply:

 

Are you the pilot of your life or you just a passenger?

 

Do you believe that your destiny is controlled by you or by external forces (such as fate, the government, your boss, the system or others)?

 

Here’s how Charles Duhigg—the author of the book Smarter Faster Better describes locus of control:

 

“Locus of control has been a major topic of study within psychology since the 1950s. Researchers have found that people with an internal locus of control tend to praise or blame themselves for success or failure, rather than assigning responsibility to things outside their influence. A student with a strong internal locus of control, for instance, will attribute good grades to hard work, rather than natural smarts. A salesman with an internal locus of control will blame a lost sale on his own lack of hustle, rather than bad fortune.

 

“‘Internal locus of control has been linked with academic success, higher self motivation and social maturity, lower incidences of stress and depression, and longer life span,’ a team of psychologists wrote in the journal Problems and Perspectives in Management in 2012. People with an internal locus of control tend to earn more money, have more friends, stay married longer, and report greater professional success and satisfaction”

 

 

 

What is an external locus of control?

 

Well, we all know those people.

 

In fact, sometimes we are those people.

 

Nothing is ever their fault. There is always an excuse. The world is out to get them, life is unfair.

 

Duhigg describes it as follows:

 

“…Having an external locus of control—believing that your life is primarily influenced by events outside your control—’is correlated with higher levels of stress, [often]because an individual perceives the situation as beyond his or her coping abilities,’ the team of psychologists wrote” (24).

 

 

The benefits of an Internal Locus of Control

 

In general, people with an internal locus of control:

 

Engage in activities that will improve their situation.

Emphasize striving for achievement.

Work hard to develop their knowledge, skills and abilities.

Are inquisitive, and try to figure out why things turned out the way they did.

Take note of information that they can use to create positive outcomes in the future.

Have a more participative management style.

 

 

The bottom line:

 

We aren’t born with an unalterable locus of control, so it is critical to keep an eye on in ourselves so we can improve the way we look at the world.

 

Sure, bad things happen to us.

 

But rather than dwelling on them, it’s better to find a useful belief about them and move on.

 

It’s important to remove the idea that your life is dictated by forces outside of your control.

 

Of course, to one degree or another, it is. But there is plenty that we can control. You can create your own luck through study, hard work and perseverance.

 

It’s often said that you become a blend of the five people you hang out with the most.

 

This is important to keep in mind. Associate with positive people who believe they are in control of their own lives. Their beliefs and energy will rub off on you. And then yours will rub off on them.

 

It becomes a very powerful and positive feedback loop!

 

 

 

Author: Michael Yardney (a guest blogger at http://tradinggame.com.au) 

 

Author’s profile: Michael Yardney is a director of Metropole Property Strategists, which creates wealth for its clients through independent, unbiased property advice and advocacy. He is a best-selling author, one of Australia’s leading experts in wealth creation through property and writes the Property Update blog.

 

Articles reproduced with kind permission of The Trading Game Pty Ltd

 

 

 

 

PS: 4 useful trading quotes are also added below:

 

 

“There is a wise saying which came into being primarily since the advent of mechanical trading systems, and it goes something like this: "Your system will stop working when someone else builds his system based on your system." Can you see the truth in that? It is because of that reality that it is best to scout around for what may be working recently, and why it is a waste of time to backtest a system or method to see if it has worked for the last 10 years. You can't trade history you are forced to trade the present in an attempt to take advantage of the future.” – Joe Ross

 

 

“I’m not worried about being stingy, trying to get every last pip out of a trade; I want out of my position if the trade is going the wrong way! Do you want to be stingy or do you want to be OUT??” - Rick Wright

 

 

“A winner has the ability to find positive values from the most negative circumstances. This is the first reason why only emotionally healthy people can assume risks, they are able to rise above the superficial negative circumstances, discover trading opportunities and take decisive trading actions based on the current market conditions.” – Andy Jordan

 

 

“You have no control over whether you will win or lose – but you have enormous influence over the beliefs that drive the performance of your trading process.  This is the new “Winning Nature” that bridges the gap between controlling outcome (which is impossible) and controlling your process (which you can do repeatedly).  This leads to the calm, patient mind need for successful trading.”  - Rande Howell

 

 

www.tallinex.com wants you to become a successful trader.

 

 

 

Traders’ Mindset: http://www.advfnbooks.com/books/insights/index.html

 

[Sininfinity]

When it comes to money everyone wants it for himself. How they can ride another's shoulder to bring himself up. This is how most human nature is. Everyone wants to take advantage of another. So for a trader if he is successful then he does not have to get involved in all these. He can avoid them.

[analyst75]

“One of the things that amazes me most about trading is that the longer I do it the more I admit that I don’t know. For a very long time I have been convinced that I have no idea where the price of instrument is going. I certainly know a lot about market dynamics, the history of markets (which is something everyone should study) and about my own reactions to events. But I have sold all idea about where the market is going. Granted I can create a narrative in my own head to justify my own positions but at the end of the day I simply make a bet on the direction of an instrument and I am consciously aware of my own behavioural short comings.” – Chris Tate (an expert veteran of the markets, more than 30 years of experience)

 

Anyone can learn to be a trader – but making a success of it involves more than just pushing Bid and Ask buttons. You need good strategies that will allow you to deal with the vagaries of the market.

 

It’s no secret that the majority of traders lose. But some succeed and become rich, even super-rich. These are the super traders.

 

Insights into the Mindset of Super Traders reveals the life stories of 20 selected master traders: how they think, how they view the markets, and how they make their fortunes. The book gives an overview of their careers and explains what lessons can be drawn from their success.

 

 

 “THREE QUESTIONS TRADERS WOULD LIKE TO ASK RIGHT NOW.”

 

Why is trading so difficult?

Answer: What makes trading appear very difficult is the fact that the market can never be predicted. When we predict, we’re sometimes wrong or right. However, having an impression that the market can be predicted is the single most important reason why most traders end getting frustrated. No matter the analytical method you use (Monte Carlo, Neural Networks, Horology, robots, Gann, news, Ichimoku, etc), you can’t predict the future. Your frustration will continue as long as you think you can predict the market. Once you admit you can’t do this, your frustration ends, because you’ve aligned yourself with the reality in the market.

 

What benefit can I get from trading?

Answer: Freedom. Freedom is everything. You master your financial destiny, growing richer and richer gradually. Very soon, you’ll realize that trading is the best vehicle for financial freedom; plus the greatest game on earth. Sadly, many people don’t believe this fact.

 

How can I experience permanent success in the markets?

Answer: You will attain permanent success once you devise a way to make money in the market without being able to predict the market – without knowing what the market will do next. This kind of strategy isn’t hard to devise. You’ll then see each new trade as a potential loser until you’re proven otherwise. This mindset will enable you to activate stops and use a small position size. You’ll know trading is simply a game of probability and with a good RRR, the odds will eventually come in your favour. This is what’s called positive expectancy. With this simple approach, you’ll no longer see trading as difficult. More importantly, you will attain permanent success without the ability to know the future, which begins from your mind.

 

 

This piece is ended with 2 quotes:

 

“Talking about trader psychology may stir intellectual debate, but the real work of trader psychology is about re-working the beliefs are you projecting onto the markets about your capacity to manage uncertainty (with your trading account as the arbiter).  Simply being knowledgeable is never enough.  It is the hard, but satisfying, work of examining the beliefs that drive your performances in trading that matter.”  - Rande Howell

 

“The complete trader is able to combine all or parts of the above approaches with his own style. Trading mastery combines observation, scientific knowledge, good judgment, intuition, and creative instincts with decisive action.” – Joe Ross

 

 

Tap the secret here (almost free of charge):

http://www.advfnbooks.com/books/insights/index.html

 

www.tallinex.com wants you to become a successful trader.

[Sininfinity]

 

Simply being knowledgeable is never enough.  It is the hard, but satisfying, work of examining the beliefs that drive your performances in trading that matter.

 

Totally agree with this. One can gain knowledge but what to do with that knowledge is necessary. We are in this market for profit and if we are not able to do that then knowledge is of no good to us.

[analyst75]

The question above is common whenever I come across people who used to be traders. They started trading because they thought it was easy and because they thought they’d strike it rich. Nevertheless, they discovered that trading isn’t easy and after they dashed their heads into the rock many times, they gave up.

Whenever one of them comes across me, they ask: “Are you still trading?”

It’s simple. If they can’t do trading successfully, they feel no one else can do it, or very few people can do it. They gave up and they expected me to give up. Surprisingly, I have not given up. In fact, I got what works for me and I like it. It’s a personal strategy: Manual + discretionary.

 

The World Of Trading Is Full Of Hypocrisy

I’m sick of those who talk about their profits alone, but who hide their losses. When NZD pairs moved maniacally on October 19, I saw how many people posted the profits they made. But none of them would ever post loses they made. Very few traders would post their losses. The world of trading is full of hypocrisy.

When someone makes 300 USD or let’s say, 300 pips, they post it on forums, WhatsApps group, Facebook, etc. When the person makes a loss, they remain silent about it. That’s why some rookies would come and think trading is easy – just because everyone is talking about profits.

FACT: Trading isn’t easy, though the marketer would want you to believe otherwise. Success is, nonetheless possible.

Liberate Yourself With Trading Realities

You will never find a perfect trading system or signals service.

You can’t avoid losses. But you’ll be OK as long as your average losses are smaller than your average profits.

I recently showed one of my trainees my trading results. I placed a trade, I lost it (-1%).

I placed another trade, I lost it (-1%).

I placed another trade and I lost it (-1%).

I placed another trader and I lost it (-1%).

4 losses in a row (-4%).

I placed the 5^th trade and I won it (+6.9%). I let my profit run.

You see, I made sure that I limited my losses and I let my profits run.

I didn’t throw away my strategy because of a transient losing streak, since I know it’s a statistical edge.

There are many bogus high probability strategies (manual, automated or semi-automated) that can win 99% of trades in a row. But one big loss would wipe away everything.

Think about the rest. It’s up to you.

I’d end this article with the quotes below. Please read what these highly experienced master traders have to say:

“It is the fear which tends to be the biggest challenge….It is fear which stops us from taking a solid setup in the markets because we have been on a losing streak, only to see it work out well and the opportunity missed. It is fear which causes us to not follow the trading plan and make irrational changes because that other trade failed to work. It is fear which causes us to get out of a trade far too early with only a small profit because we are scared to hold on in case it became another loser, and it is fear which makes us search over and over again for the perfect strategy which does not exist, simply because we think there is always something out there we are missing out on or don’t know about. Fear, my friends, is the biggest hurdle any retail trader has to face and will hold you back more than anything else.” – Sam Evans (Source: Tradingacademy.com)

“But you know what I learned? I learned that people don't want to change. People don't want to be told that they have to change. People resent being corrected. Do you know anyone like that? It's understandable, right? It's not easy to be corrected. Yet experience shows that life as a trader is a life of correction. So whereas you may know people that don't want to be corrected, the fact is, if you are going to trade successfully you are going to have to learn how to receive correction. It's really the hardest part, what I'm giving you right now. It's the hardest part. Everyone wants to think that they are lovable just the way they are, and maybe they are lovable just the way they are but that's not going to necessarily help the real deep things that hide in your soul that will destroy true success. We can't like ourselves too much. Do you understand what I am saying? You know what to do, now do it! That’s a correction, by the way.” - Joe Ross (Source: Tradingeducators.com)

“In trading we talk about the need for a variety of emotional strengths. We talk about the need to be calm, confident, and disciplined but we very rarely talk about the need for courage and the majority of traders fail because they do not have the courage to succeed. It is often bloody hard to hang onto positions that have very large open profits. Your brain plays all sorts of tricks on you and you begin to rationalise the foolish action you are about the take. I am quite certain that Ronald Wayne who sold his original share in Apple for $800 (now worth about $75B) rationalises that decision. Rationalisation is a wonderful human skill – it insulates us from the harsh knowledge of our own failings and traders are experts both making foolish decisions and hiding from them.” – Chris Tate (Source: Tradinggame.com.au)

Traders’ Mindset: http://www.advfnbooks.com/books/insights/index.html

Source: www.tallinex.com

[TitoC]

The fear of the markets turning around into a losing streak makes many traders take profits prematurely. This practice results in traders taking small gains and having false hope that the market will eventually turn in their favour when an open position goes wrong. It is therefore best practice to calculate: key essentials before entering a given position; the essentials required for every trade are risk amount per trade; pips at risk (stop loss); and the lot size safe to maintain your trading account. You know about forex contests is good choice for the practice.

https://alpari.com/en/contest/

[analyst75]

A TRUE LIFE STORY OF A VETERAN TRADER

 

We were in a midst of a popular monthly traders’ forum when an elderly man on a wheelchair was helped into the hall.

 

The moderator asked us to stand up for the man, whom he called “a soldier on the battlefield of the financial markets.”

 

As the forum was about to be concluded, someone suggested that we allow the professional on a wheelchair to give a short speech.

 

A mic was given to him.  He held the mic and said:

 

“My fellow traders. Thank you for standing up for me, and thank you for giving me a privilege to talk in this forum.

 

I started trading 12 years ago. And I am still trading. I will trade for as long as I breathe. I am one of the most popular Forex traders in this country.

 

Sadly, the one who coached me for Forex trading stopped trading in 2008, because of subprime crises and market crashes. He lacked risk control skills.

 

I pressed on, to become a regular columnist in a popular newspaper, writing about Forex trading on daily basis. I also provided trading signals for people, as well as trading my personal accounts.

 

I have 2 powerful manual strategies that I use. I developed the strategies based on my many years of experience. Trainees who apply my strategies have been sharing wonderful testimonies since.

 

A few years ago, I fell ill. Diagnosis revealed that I had cancer of the bone marrow. I required surgery in a foreign hospital. I gathered all the funds I could gather, and well-wishers and friends also contributed what they could.

 

I was transported to a foreign country (I was already paralyzed).

 

Luckily, the surgery was successful. I can say, partially successful, for the paralysis was partially corrected. I can now speak and use my hands. I can also stand up, but I cannot walk.

 

While I was on a hospital bed and my legs were tied. I was trading profitably on mobile devices. I was even providing trading signals and mentorship to people online.

 

Then, a client couldn’t believe I was providing services to clients on a hospital bed until we connected on Skype, doing video calls. I was seen trading on a bed, while I was strapped to the bed.

 

Several months ago, I came back to my country, and I have continued trading, training and providing signals since then.

 

[He burst into tears].

 

Traders. Let me tell you this. Online trading remains the best tool for financial freedom. Please do anything possible to become a winning trader.

 

Look at my condition now. I am advanced in age. I can only stand up, but I cannot walk. I need crutches and a wheelchair to move about.

 

Imagine. If I was someone who did 9.00 A.M – 5.00 P.M. work, what would be my lot now? My employers would have laid me off. If I was fortunate enough to get anything from them, it could have been exhausted by now.

 

I would have become a beggar by now. Or what makes me special when compared to other handicapped persons who have now become beggars? Clearly, online trading makes the difference!

 

Imagine. If I go to Mr. Henry to beg for $30, I would finish spending it. If I go to Mr. Johnson to beg for $20, I would finish spending it.

 

If Mr. Johnson was kind enough to give me $20 three times. He would eventually stop giving me more money because he got his own responsibilities. He might not pick my calls again; or he would instruct his folks to tell me he is not at home, when I visit him next (to beg for money).

 

This is a lesson you must learn. Please learn from my story. I trade on a wheelchair, and I make money from signals provision, coaching and trading. I can sustain myself, my wife, my 3 kids and my aged mother.”

 

He dropped the mic.

 

And the forum ended.

 

I conclude this articles with the 3 quotes below:

 

“You must be disciplined in following the plan of your trade religiously. Once you have closed your position, you should record everything about the trade. Write down where you wanted to enter the trade, what you expected out of the trade, and what you actually did get out of the trade. Make sure to include notes that will help you learn from the trade, reasoning what actually took place once you entered the trade. Explain why the trade was a winner or a loser. If you keep detailed records, you can learn from past trades and increase your chances of recognizing your strengths and weaknesses. Build on your strengths and stay away from trades you have demonstrated weakness in.” – Andy Jordan (Source: Tradingeducators.com)

 

“Humans are an error based machine, we make mistakes and perfection is never really on our radar despite our best efforts. The realisation that mistakes are at the core of good trading is hard for many to accept as they are locked into the belief that you cannot make money if you get trades wrong. Fortunately there is no nexus between making money and being right. Many, many years ago i discovered that the fewer fucks I gave the more I made. To revert to a past life choice of mine – you could never be a fighter if your expectation was that you would never be hit.” – Chris Tate

 

“Avoid illiquid markets. Be sure to check volume. How much is it on average and is it steady day after day. And perhaps the greatest lesson of all should you happen to leap before you look--never, ever trade on hope or stay in a trade based on hope. If you are wrong, get out. If you don't have the discipline to do that, you shouldn't be trading.” – Joe Ross

 

Traders’ realities: http://www.advfnbooks.com/books/unlockpotential/index.html

 

Source: www.tallinex.com

 

[Sininfinity]

Very touching story. The trader expressed his emotions to the forum. But if we look at it, then we will see the forex work is done by sitting on chair. Or wheelchair which are similar. One thing he said was very useful and that is forex can give us something and make our conditions better. I am also trying to make my conditions better but have to cross lots of obstacles.

[BitcoinExchangeGuide]

Quite a good informative write-up!

[analyst75]

Do you want to be a successful trader? Then you need to unlock your potential and develop the right habits and routines.

 

Experience shows that people want to keep doing what they are doing, while expecting different results. In trading, that means they carry on trading in a certain way even when it brings poor results. Making a career out of trading means you have to identify what doesn’t work for you, and stop doing it. But that’s not easy – nobody likes being told they are wrong.

 

Your mind is the biggest obstacle that you need to overcome. It prevents you from following trading plans and deceives you into disobeying winning rules because of a transitory setback, thus missing great opportunities to make decent profits. You can only unlock your trading potential through the realities of trading.

 

Unlock Your Potential with the Realities of Trading (almost free of charge): http://www.advfnbooks.com/books/unlockpotential/index.html   

 

www.tallinex.com wants you to become profitable  

[amri.rudi]

When you say about how to unlock your trading potential through the realities of trading is that mean you offer some free trading account and money?

[Sininfinity]

When you say about how to unlock your trading potential through the realities of trading is that mean you offer some free trading account and money?

 

I doubt free money will unlock anything other than looking for more. It is like a curse that possesses people not to invest their own money and look for free money limiting the potential to have a good future with forex trading.

[alina.marabar]

A free demo account is the solution to anyone who want to starting in forex trading.

[Sininfinity]

Some people made a fortune during last brexit. I saw a post on Facebook that a person promoting his post that he made a decent amount and will reward others to spread the word. He did it so his broker would not prevent him from withdrawing his profit.

[Namu]

yes if we still gaining loss in trading real , we can use demo first to analyze what is wrong with our strategies , evaluate trading activity with demo account and start build a good strategies again in demo and , after we confidence about it we can try again with real account for gaining a profit 

[Sininfinity]

A free demo account is the solution to anyone who want to starting in forex trading.

 

Not just a demo account but also a forex school. It would not be wise to overlook the education part. It is necessary that people have a standing ground when starting and forex school gives them that.

[Gee Dee]

Every trader has the most decisive trading intention to handle their trading movements to generate trading profit. However, if a forex trader needs to make earnings with the usage of specific trading strategy, then he must utilize it constantly. Successful forex trading depends on patience, perseverance, hard work and a trader’s abilities to take the benefits of specific trading strategy. Again, devoid of adequate trading perceptive no one can ensure achievement.

[bearhugs]

A practice Forex account (demo) is good for one thing-to practice and learn how to execute trades.  The actual mechanics of executing trades.  A practice account in no way compares to actual live trading.

[uncle gober]

Demo accounts do have many advantages if they are utilized properly by traders, which is why traders must be able to be better and be more maximal in conducting training and learning in real accounts.

[gds221]

I work with a broker Amarkets, and I believe that it is worth trading at a time when there is a mood and the results showed the best indicators.