M6 - Man, Mind, Money, Markets, Method & Madness

[toocool]

All this OI looks BS now, problem with OI is that it can change within minutes, for eg nobody may have noticed, but on Monday in morning, 12l calls of 6700-6800ce were written, but by afternoon that had unwound to about 2l, so all bears had run Away by afternoon, so it's very misleading reading OI without context as the above article does

there is nothing in the universe that is not dynamic , nothings stagnant everything is changing even at billionth second , even the dead

people have a tendency to think stuff/things as fixed , like a rule of law ,and thats what causes people to get shocks , in life , and in markets , because people are not able to see/understand subtle changes ,or hidden but fast changes

 

[amitrandive]

All this OI looks BS now, problem with OI is that it can change within minutes, for eg nobody may have noticed, but on Monday in morning, 12l calls of 6700-6800ce were written, but by afternoon that had unwound to about 2l, so all bears had run Away by afternoon, so it's very misleading reading OI without context as the above article does

Option.Trader

You are absolutely right.OI analysis seems outdated now.With the fast paced markets,this data is subjected to drastic changes in minutes.

 

[amitrandive]

The Principles of Successful Trading

http://www.daily-inspirational.com/the-principles-of-successful-trading/

• 
  Don’t Try to Predict the Future
  
• No one knows where the market is going
  
• No one knows when the market will move
  
• Know that Market Experts aren’t Magicians
  
• Successful Traders have learned trading discipline
  
• Successful Traders profit from sound cash management & risk control
  
• Be In Harmony with the Market
  
• Don’t fight the Market
  
• Let the market tell you what to do and when
  
• The market gives and the market takes away
  
• Have a Healthy Time Horizon
  
• Trade for profits over time
  
• Give your trading strategy enough time to work
  
• Understand the Psychological Keys of Trading
  
• Accept losses as a cost of doing business
  
• Use historical statistics
  
• Let the market and STRATEGY determine the profits
  
• Don’t Trade for the Money
  
• Successful people don’t work for the money
  
• Love trading for its own sake
  
• Concentrate on Execution
  
• Always Be In the Market

To be a successful trader, you have to do the opposite of what this 95% is doing. It isn’t easy, because it goes against your human nature

 

[XRAY27]

Trading we are buying and selling price/s which are the derivative of persons in

the market which paul tudor jones explained in a simple words.

Every trader should work hard then only he can get profit


Trading is very competitive and

you have to be able to handle

getting your butt kicked.

--Paul Tudor Jones

 

[XRAY27]

Article which inspire me in trading

Too often traders simply follow the crowd. Instead you should develop your own unique trading style.

A trading style is not a strategy. It is a set of parameters or rules that you adhere to strictly, ignoring rare anomalies that occur in your trading from time to time that go against your rules.

Your trading style should also ignore gimmicks, fads, and ‘hot new strategies’ that are constantly being promoted to crowd traders.

If you establish a set of parameters for your trading, write those rules down, and follow them while ignoring the crowd mentality of most small retail traders, you will begin to establish strong emotional control in your trading decisions.

The trick is writing the parameters down and then sticking to those rules. Emotions want traders to ignore rules.

Don’t trade for the money. Trade because you can’t imagine doing anything else.

Trade because it is the most enjoyable and rewarding profession you can do.

You can have a passion for studying charts without letting passion rule your decisions.

Highly successful people, in any career, do not do their job because of the money, they do it because they love what they are doing and can’t imagine doing anything else.

The money is secondary to doing the job that gives them purpose and self-esteem. Money is not the ultimate motivator, purpose and self-esteem are.

SOURCE:INTERNET

 

[Snake.Head]

 

[Option.Trader]

All this OI looks BS now, problem with OI is that it can change within minutes, for eg nobody may have noticed, but on Monday in morning, 12l calls of 6700-6800ce were written, but by afternoon that had unwound to about 2l, so all bears had run Away by afternoon, so it's very misleading reading OI without context as the above article does

What a move, glad I didn't fall into OI TRAP, entered 6800ce @35.85 came out at 85, it's very easy to hoodwink people with data, retail are always ready to be slaughtered

 

[amitrandive]

How to Keep Calm while Trading

http://eminimind.com/misconceptions-about-professional-futures-traders/

Here’s an exercise to help build a calm and level head when entering “battle” as some traders call it. This technique is also one which many pro athletes will use (to some degree) and it’s one I often use when gearing up for a race. It’s a visualization technique and it goes like this:

You will need to read through the exercise first, and then try it with your eyes closed.

Now, close your eyes… you’re sitting at your computer, hand on the mouse, it’s morning. The markets are open and you’re getting ready to make your first trade. You identify your levels and the criteria for entry. You don’t hesitate, once things line up you pull the trigger. You’ve accepted that this trade will be a loser, even before your order is filled.

You’re now in the trade and things are beginning to move, first against you by a few ticks, remain calm, you’re stop and targets are in place, there’s nothing for you to do, but sit patiently and wait. Calmly you glance over at the time, noting when you placed the trade, then back to the charts. Minimize your DOM, you won’t need it for a while. Now picture you’re state of mind, calm breathing, you’re simply an observer watching the markets, waiting for either a signal to tighten your stop, or your profit target to be hit. A few minutes pass and the trade starts to move a few ticks in your favor. You once again remain calm and don’t mess with your stop or target.

A few more minutes go by and you’re up a few points approaching your target. According to your criteria it’s now time to tighten your stop so you move it from the initial point to a closer level which reduces your risk. Not too tight mind you, there’s still some wiggle room. Finally, price continues inching in your favor and ding! Your profit target gets hit. Now it’s time to record the trade and move on to the next one.

You observe yourself, patient, calm, and focused. Now come back to reality and on your next trade, take a deep breath and keep a clean head.

Visualization is a proven way to improve performance when you’re away from the screen, off the court, or preparing for a race. Know exactly what you’re going to do and when you’re going to do it.

 

[amitrandive]

Overcoming the emotional barriers to day trading success

http://www.traderslog.com/overcoming-the-emotional-barriers-to-day-trading-success/

With fast paced day trading, your strategy and profits can easily be eroded should you let your emotions muddy your decisions. Despite fear and greed ultimately being the core reactions, they do have their important affiliates:

• Hesitation: Traders need to have a trading plan and most importantly stick to their rules no matter what. As an online day trader, there isn’t always time to second-guess decisions especially while reacting to market news.

Backtesting can help build confidence in a plan while the use of automated trading tools can help overcome the tendency to hesitate before clicking on the mouse button.

• Anger: The markets won’t necessarily do what you want them to do, often at the expense of your money. Losing large amounts of money can result in the inexperienced trader losing their temper. A dangerous precedent set, always reacting to losses with anger can stop you making rational choices.

If you feel your anger rising you should step away from the dealing platform. The way to consistently outperform the market is to be as methodical as possible in your approach and clear about your risk management.

• Anxiety: This is often brought on by the anticipation of trades going wrong. Anxious people avoid whatever it is that makes them upset. This can result in the trader not making an obvious trade or perhaps holding a losing position for too long instead of cutting their losses. Also known as: not sticking to the plan.

A way to combat this is to use stop and limit orders so that you don’t have to sit on the edge of your seat watching every tick of the market.

• Boredom: It can be dull waiting for a trading opportunity to present itself. And it is during this time that traders start making bad decisions and start chasing the market. It is very important to understand that you do not always have to be in the market.

If you’re really bored, take a break, or use this time to research your chosen instrument further.

Unfortunately there is no ‘magic secret’ to trading the financial markets. Having a well thoughtout trading plan– including proper risk management techniques– can significantly improve your trading performance. Discipline is ultimately the name of the game.

It simply comes down to putting in the time and planning.

 

[amitrandive]

Trading/Investing Phases