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Trading What Do You Believe?

Discussion in 'Shares' started by Tropo, 23rd Apr, 2012.

  1. Tropo

    Tropo Well-Known Member

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    Quote:

    Step 1. How to deal with losses.

    Losing traders believe.

    - Losses are a reflection of their self worth.
    For example if I originally had $10,000 in my trading account and that amount has degraded to $5,000 then as a losing trader I believe that my worth as a person has been halved.
    - Losses are permanent and will continue for as long as they trade.
    - I must not lose any money ever.

    Winning traders believe.

    - Losses are part of the business of being a trade.
    A loss has no personal characteristics. If I am going to be in a business that revolves around the trading of money then sooner or later I will make a loss. All professionals have a bad day.
    - Losses are only a temporary state of affairs I know in the long- term I will be profitable.
    - I have accepted that I will lose money sooner or later. I understand what the worst case scenario is. As a consequence I am free from the anxiety that unexpected market moves may bring.

    Step 2. Money is not that important.

    Losing traders believe.

    - Money is the sole goal of trading.

    Winning traders believe.

    - Money is not that important.
    - To a winning trader money is not that important, it is more important to trade according to your rules and to make quality trades than it is to focus on the money.
    - Focussing on the money alone causes anxiety and a heightened level of stress leading to an increase risk of the trade failing.
    - Profitable traders focus on trading well.
    If they trade well then the money is a side effect of those actions.
    - This creates a paradox in that a successful trader believes that if they follow their rules and make a loss then this has been a successful trade because they saw a trading signal and took it.
    The fact that a loss was made is irrelevant, they followed their rules.

    Step 3. The market has limitless possibilities.

    Losing traders believe

    - The market is rigged.
    - Only insiders make money.
    - The market is random (particularly popular among fund managers)

    Winning traders believe.

    - The market offers unlimited possibilities for enrichment.
    - The market exists purely for their benefit

    Step 4. Understanding your motivations for trading.

    Losing traders believe.

    - Trading is a past time like golf or tennis.
    - Trading is a slog like work.
    - Trading is easy, anybody can do it.

    Winning traders believe.

    - Trading is a fun business.
    - Only a few who are dedicated will make it

    Step 5. Taking responsibility.

    Losing traders believe.

    - My broker cost me money.
    - The market took something from me.
    - I have to get back at the market.

    Winning traders believe.

    - They are responsible for everything that happens to them in the market, all consequences are the result of their actions.
    - They are to blame for every loss and every profit.
    - Profitable traders understand intuitively that they determine how much they win or take from the market and how much they lose or give to the market.

    Step 6. Being in control.

    Losing traders believe.

    - The market is malevolent.
    - The market has a personality.
    - The market can be described with emotive terms such as I got killed, It was a bloodbath, There was blood in the streets.

    Winning traders believe.

    - The market has no characteristic other than those that are a reflection of their own personality.
    - Profitable traders know that if they see the market as irrational or ill disciplined then that is merely a reflection of their own irrationality and lack of discipline.
    The market is a blank canvas onto which you project you personality.
    - Traders know that by talking about the market in emotive terms they are shifting control of their trading from the neo cortex where rational creative decision are made to the brain stem and limbic system where many responses are hard wired into us.
    - Profitable traders avoid at all costs engaging pre-programmed responses such as the fight or flight mechanism.

    Step 7. Going a little bit further.

    Losing traders believe.

    - Trading is easy.
    - Losing traders are lazy.

    Winning traders believe.

    - Trading is not easy, it is no easier than waking up one morning and deciding to be a neurosurgeon.
    - Successful traders have all had long apprenticeships where they were unsuccessful.
    Often these periods lasted for a decade until they were consistently profitable.
    - Profitable traders are willing to pay the price.

    Step 8. Controlling the voice of doubt.

    Losing traders believe.

    - The voice of doubt inside them is true and correct in all circumstances.
    - The voice tells them that they are a loser/they cannot trade/they will fail/they fail at everything forever.

    Winning traders believe.

    - The voice inside them is an imposter.
    - The voice inside them can be changed to be more positive.
    - The language with which profitable traders speak to themselves is different.
    - They can trade with confidence in the face of adverse results.

    Step 9. Method is everything.

    Losing traders believe.

    - Reading the newspapers/broker research/investment magazine is sufficient.

    Winning traders believe.

    - Their method provides them with a mechanism to engage the market.
    - Method development takes time and is often a laborious process.
    - No method/no profit.

    Chris T.
     
  2. wdongli

    wdongli Well-Known Member

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    It is great to get some lists of words and then we make profit for long term but it never works. If you want to win out in long term, you have to invert the assertion or sounded logic words. Life logic could be deviated into insanity by ignoring the context and condition.

    Each loss if too much would incurs huge impact on men especially old men! A lot of traders doesn't act in the stock market as a human but god.

    Loss is not easy to take for everyone. It like grief, trauma, alienation, could change people psychologically and pathologically. You have to work with great protection. You should not blindly believe the time itself would make you to be the winners. It never happens. Losers usually are the losers again and again.
     
    Last edited by a moderator: 24th Apr, 2012
  3. wdongli

    wdongli Well-Known Member

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    Money is the medias for resource, right? Resource is not important or so important, which sounds very impressive, but what your rules for?

    For more money, right? Your rules should be for more money. Money is extremely important and you have to get the rules to make more money!

    Money is so important that rules have to be chosen carefully for the money!
     
    Last edited by a moderator: 24th Apr, 2012
  4. wdongli

    wdongli Well-Known Member

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    Market could incur unlimited possibilities to enrich the society at your grave cost which out of your affordability. Why did workers launched war to the cruelty of the fundamental capitalism? They were exploited horrifically when human kind was in the stage it had to do so!

    Market is still very cruel and it can take all of your chips on the table away! Most of traders believe something which at one time and a special place is right, and follow the belief to hand in their money to speed up the running of money for this society!

    ***
    Someone blame and curse the Wall Street but fail to realize it is their wrong belief makes them to be the losers. If you want to stay in the stock market, you have to know this cruelty to individual traders and investors.

    The society needs your losses to revive while attracts you to bet or gamble with your false belief! Don't use your belief as the blindfold to your hell! Yes unless you believe the market is ocean and you have to adapt you wisely, you would have no tomorrow in the stock market!

    We all can believe this or that. We only could win out if we believe the unbiased truth or logic or wisdom as the fundamental of our mental framework. There are too many vain promises in life and market!

    Before you believe anything, you should check what could make you to believe the biases.
     
    Last edited by a moderator: 24th Apr, 2012
  5. Tropo

    Tropo Well-Known Member

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    Insanity...
     

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  6. wdongli

    wdongli Well-Known Member

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    If you just have the losing experiences in the last decade of the stock market, it sounds reasonable to say that no updating of your mental framework, you are planed to be doomed in the stock market.
     
  7. wdongli

    wdongli Well-Known Member

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    Know your attitude to the responsibilities:
    1. Would you like to be responsible?
    2. Are you responsible?
    3. Why if we put responsibility into the scope of our world views?
    4. What're your world views?

    The way to be responsible in the stock market:
    1. How could you be responsible?
    2. Is it important that no losses and no harm and fail safe from your action?
    3. Could you understand there are words strategically and tactically?
    4. Do you know no losses are a premise strategically for your portfolio?

    Chances and risks:
    1. You need chances for profit; you needs avoid the risks to lose; do you know when you take the chances you also take the risks inherent from the chances?
    2. Do you believe you need to take the unlimited profit chances and little losing risks which is impossible?
    3. Are you patient for your winning chances with affordable and calculated risks before your buying?

    Loss and profit and your attitude:
    1. Have you won out in last decade? If you are a loser in last decade you were risk takers but not chance makers.
    2. Could you be brave enough to admit your failure? It needs much greater courage than to ignore anyone in this forum or world.
    3. How could you be responsible since you hide your losses and then you will make more? Do you know it?

    ***
    It is easy to say we need to be responsible in life and stock market. It is extremely hard to be so in the stock market.

    Our minds don't fit to the wild field to grip on the profit safely!

    Most of responsible traders gamble the irresponsible money for their dream!
     
    Last edited by a moderator: 25th Apr, 2012
  8. wdongli

    wdongli Well-Known Member

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    Profitable traders come from working as traders but never are limited by the trading. They can be investors.

    Profit is all we come to the market. Profit must be locked for the raining days. Great trend can last a few years sometimes. Profitable traders must have wise mind with a great mental framework.

    If you can be profitable it is not a issue you are traders or investors. Don't let the trading be your catchers!
     
  9. wdongli

    wdongli Well-Known Member

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    Going a little bit? Yes it is right! Your future needs a step and another step to your destination. You have to know you are not tycoon in the stock market but a baby who have immature brain to deal with the wild field.

    Yes, every generation has its days and you could be lucky to be in these days and get some fortune, but if you are not so lucky, you have to make a desire to stand up and learn everything to move for your destination!

    Don't forget the stock market is that of human being. You have to give the time and effort to get the gift for survival and revival! To me it is the call to update my mental framework to behave for profit.

    Trading or investing? I believe if my mental framework OK, I could choose for the way to get the profit.

    ***
    We are human and we are not perfect. We have made and will make a lot of human errors.

    You have to at some point be honest about what's happened in the real world as opposed to what you would like to have happen.

    No way to blame ourselves but if we do nothing to update our mental framework we deserve the defeat!
     
    Last edited by a moderator: 27th Apr, 2012
  10. wdongli

    wdongli Well-Known Member

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    I could not see the benefit from controlling "the voice of doubt." No good enough brain or mind, it simply is you could not control anything. While you try to control you could not control, game is over and you are losers!
     
  11. wdongli

    wdongli Well-Known Member

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    Useless words, method is everything, to lose everything!

    You could not use a thing to cover everything. Logically it is wrong. You have to get your mind for differences, analyze the possible scenarios for cost and outcome, choose the right methods based on the changed environment, and wait with enough margin of safety for your turn. How long should you wait? Enough is enough, which is very hard to get.

    Market don't allow any dogmas to fly over his face. You could not let any method become your boss!
     
    Last edited by a moderator: 27th Apr, 2012
  12. Tropo

    Tropo Well-Known Member

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    First sign of madness, talking to your own head.
     
  13. wdongli

    wdongli Well-Known Member

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    It is better to be mad than to follow anyone else with blindfold to the hell. At least you still try to be self-reliant if you question independently.

    If I die I would rather die due to my own mistakes or natural forces that I could not sustain! I will not die in anyone's words or assertion without pondering! Independence and freedom actually are chased by human being even some individuals like the YouTube from others for their own thought. If questioning and pondering are mad I hope I would be always mad in the stock market.

    For truth and logic for life, I could question humbly the God!
     
    Last edited by a moderator: 27th Apr, 2012
  14. Tropo

    Tropo Well-Known Member

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    You have now left Madness and Insanity Junction.
    Next stop, Hadesville.
     
  15. wdongli

    wdongli Well-Known Member

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    If you like to judge, you would be judged. Are you a judge and are you qualified to be? I don't think so.

    Few can in the stock market since you could not know anyone else enough!

    Madness and insanity usually happen if you don't know to question. Tropo, you like to copy and paste, like to play the YouTube, like to blame and curse others, and thought yourself as genius or clever man, right? It is not mad but definitely less wise if you use madness as weapon to provoke personally!

    I never read any questions from you but assertions after assertions such as who is mad or stupid. Do you think if you don't question properly you would tend to be stupid?

    Don't use some words too big to hold!
     
  16. Tropo

    Tropo Well-Known Member

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    When you get to the end of your rope...
    Tie a knot and hang on.
     
  17. wdongli

    wdongli Well-Known Member

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    Haha, you twisted the words again emotionally since your self-esteem seemed be challenged by the stupid people.

    Who would do as your instruction? If no one would follow your instruction, what for? If you could not sort out what for, whom you are?

    By the way your instruction to commit suicide is too complicated and dull. Quick hand tends to get quick way to stop their life if they are overwhelmed by bad sentiment.

    You seem very emotional now so that don't hold any rope in hands. I am enjoying to learn English from you! Haha!
     
  18. Tropo

    Tropo Well-Known Member

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    You should never be left alone with your own mind for too long...
     
  19. wdongli

    wdongli Well-Known Member

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    I am here to give my own views, learn from others by reading and pondering, and share the views plus the feeling for involvement.

    I would not let myself alone. I would write much and try to be intelligent as possible as I could. Human mind needs the lengthy thought for updating, which could be helped through lengthy writing, and then simple but effective buying chances for sure profit could be pop up.

    I said before that I want to change my behavior in the stock market. It is a way to get this goal to question myself and others' views. You have to read, listen, ponder, question, and write so that your mental framework could be be updated bit by bit.

    ***
    Chris said traders needed a decade to be mature in the stock market, which was not true without enough self-challenge and correction.

    The losers tend to be losers if he was losers in the first three years in the stock market. They have too many biases and have not the capabilities to know what made them to be losers and how to change themselves to be winners.

    If you are losers or did not win enough profit, you have to find a way to fix. You have to question. You have to talk about based on what you think. You have to think or ponder for everything so that you can put the wisdom and logic into each your bone and blood.

    Understand why you don't want to write in your own words but when you could not write with your words, you would waste your time for nothing and your mind could not be changes.

    ***
    Change needs the time and effort. It is the way for mental framework.

    You know little but you want the money, you become confused, you make mistakes, you feel you could not go the same way as before, you trials and errors but no effort to change your behaviors, where most of trader follow their own biases and fell into the hell.

    Some would not give up. They do realize that they have to change their behavior and then it could not be done in days or even years. They start to think deeply, question on the things very strategically and logically, change the way to use the words, aim at the only enemy, themselves...

    Once you get so long, you would not be lonely anymore. You can write and question logically. You would become mature without putting the blindfold on your eyes. It would upset a lot of traders who have been losers too long or too short.

    ***
    Once your mind could be updated, English is a tool to get the chances and harness the risks affordable. Just wondered why George Soros could write so many books, which are too long and hard to fully understood by most of traders.

    I am not making a joke. I have written a book about Australia Residential Property Investment(in Chinese) 15 years ago. I do hope I could write a book about my practice in stock market if I could form my own mental framework for a sure profit. Money is very important but if you could get enough money, something else would be much more important.

    50s is not the end of life but it could be the new start of second life and much more colorful. It is totally after yourself. I don't want to judge on you since I believe I am not qualified but I do know myself: enjoy to read, ponder, write, and like to find my way out in the stock market!

    ***
    Whom are you? If you know it and don't forget you are not very good, you would get the motivation to go forward. I have my goals. I work on English Listening 14 hours every day for about 1.5 months. I did feel my mind updating is speeding up. I just started to discuss some broad social and market issues with my daughter in English.

    One issue is most of traders are technicians or laymen in all of things in the stock market. I always respect the contribution of technicians in the workshop but they need help from deep minds for some advanced challenge. In the stock market no technicians could get help if they don't look after. So they win for a while and lose all in one time.

    I never want to be just a technician in the stock market, which could upset someone but it isn't my business at all. If you could not win out with fortune, you are nothing in the stock market but if you can, your words even insane but could be cheered by the technicians.
     
    Last edited by a moderator: 27th Apr, 2012
  20. Tropo

    Tropo Well-Known Member

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    Second sign of madness, answering yourself.