Teach A Man To Fish And.........
- Thread starter Saint
- Start date
- Status
Something that most of us already know,but for the beginner who hasn't traded these patterns,have a look at .. http://daytradingcoach.com/daytrading-technicalanalysis-course.htm#1
As said before,one must develop the ability to identify certain patterns.Call them by the names given,.......or not bother about the academics.Important thing being:Certain patterns have a predictability around them.We as speculators capitalise on that predictability and make profits.These very predictable patterns when they go in reverse gear become another great money making opportunity as we go in reverse gear ourselves.
One sees a Bull Trap and capitalises on the trade.Stops in place.Position sizing done.Trail stop till out.............what one should NOT be doing is:A bull trap is supposed to be the opening at the previous day's lows or below,but Nifty opened up Rs1 above the previous day's low,so it's not called a Bull Trap,etc etc.Don't forget,while you are busy theorisng,rationalising,logicalising
..........somebody else,probably the simpleton,is busy shorting the markets to glory and laughing all the way to the bank.
Let the intellectual,brilliant market analysts analyse..........we are traders,and we are here to put in one perfect trade after another,to make consistent profits.
And candlesticks and chart patterns can be great weapons in our arsenal.
Happy Trading!
Saint
As said before,one must develop the ability to identify certain patterns.Call them by the names given,.......or not bother about the academics.Important thing being:Certain patterns have a predictability around them.We as speculators capitalise on that predictability and make profits.These very predictable patterns when they go in reverse gear become another great money making opportunity as we go in reverse gear ourselves.
One sees a Bull Trap and capitalises on the trade.Stops in place.Position sizing done.Trail stop till out.............what one should NOT be doing is:A bull trap is supposed to be the opening at the previous day's lows or below,but Nifty opened up Rs1 above the previous day's low,so it's not called a Bull Trap,etc etc.Don't forget,while you are busy theorisng,rationalising,logicalising
..........somebody else,probably the simpleton,is busy shorting the markets to glory and laughing all the way to the bank.
Let the intellectual,brilliant market analysts analyse..........we are traders,and we are here to put in one perfect trade after another,to make consistent profits.
And candlesticks and chart patterns can be great weapons in our arsenal.
Happy Trading!
Saint
The Bump and Run Formation
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:bump_and_run_reversa
This happens so very often......wise to know about it.Once again,learn to identify it.......again,not to theorise but to identify.Can come in handy as a point to exit all longs.
Saint
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:bump_and_run_reversa
This happens so very often......wise to know about it.Once again,learn to identify it.......again,not to theorise but to identify.Can come in handy as a point to exit all longs.
Saint
Behavioral Patterns That Sabotage Traders Performance Anxiety
By Brett N. Steenbarger, Ph.D.
Consider the following psychological scenarios:
1.A student needs to pass an anatomy course final exam in order to successfully complete his first year in medical school. Because his first several exams were on the borderline between passing and failing, the course grade entirely rides on the final. As the time approaches for the big test, the student finds himself increasingly worried about the testparticularly when he misses questions from his practice exams. The worry interferes with his sleep, which in turn makes him even more concerned that fatigue will prevent him from doing well. By the time he takes the exam, he is tired and nervous and misses many questions, often by second-guessing right answers.
2.A young woman has never been particularly uncomfortable in public speaking situations, but now is asked to give the most important presentation of her career. The result of this presentation could spell the difference between landing a major client for her firm vs. losing the client to a competitor. During the talk, she notices that the audience members from the firm she is wooing dont seem especially attentive. This suddenly raises her anxiety, and she desperately tries to spice up the presentation. When she loses her place in the talk, she becomes flustered, and finishes the presentation on a hesitant note.
3.A basketball player has been the teams leading scorer, but starts out a game missing his first five shots. The opposing team is double-teaming him, and he is having difficulty breaking free for open looks at the basket. Determined to take matters into his own hands, he decides to penetrate the opposing defense and draw fouls. Instead, he picks up two quick charging calls. Now fearful of being taken out of the game for his fouls, he searches for his shot by moving a little further out on the perimeter. When these shots dont fall, he stops looking for his shot and throws two errant passes.
4.A trader has several winning trades in a row and, feeling confident, increases his size to take advantage of his hot streak. The position initially goes in his favor, but quickly reverses when large orders push the market lower. Forced to puke his position, he realizes he has lost all of the profit from his previous, winning trades. He is driven to regain the money and reenters the market, only to get slammed by a second wave of selling. He now feels like he has entered a cold streak and begins trading hesitantly, with reduced size. By the time the market closes, he is down on the day and the week. He feels like a jerk for becoming overconfident after his gains.
No doubt you can detect a pattern in each of these situations. The individual is in a performance situation where he/she experiences pressure to succeed. The situation has taken on a distinct importance in the persons eyes, and now he/she is focused on the results of the performancenot just the performing itself. This dual focusworrying or focusing on the outcome of performance while trying to stay immersed in the performanceis the common element behind all performance anxiety. Such anxiety is the single most common trading problem I have encountered in my interviews with traders.
How can traders reduce their level of performance anxiety? Here are a few strategies that I have found to be effective:
1. Focus on process goals when thinking about trading, rather than profits/losses Traders like to set goals for themselves, yet often as not, monetary goals end up creating unnecessary pressures. More effective goals are ones that focus on the process of trading, such as limiting losses to two ticks if youre a scalper or holding trades until a trailing stop is hit. A nice mindset is, If I just trade the right way, the profits will come. This takes much of the pressure off the performance.
2. Tackle risk incrementally. Risk places a psychological magnifying glass on situations and greatly increases the opportunities for performance pressure. A foul shot in the first minutes of a basketball game is the same foul shot in the final seconds of a tied contest, but there is a huge psychological difference. Traders who try to radically increase their size quickly find that the trade that worked out with 1 contract may not work with 10, because of pressures to (too) quickly limit losses or take profits. A gradual ramping up of size is far more effective than an impulsive leap for which one is emotionally unprepared.
3. Step away from the screen. The self-talk during periods of performance anxiety actually interferes with the accurate processing of market data, because the part of the brain responsible for perceiving and acting upon market patterns is not being activated. It is far better to step away from the screen and refocus on what the market is giving you than to act blindly on ones fears and compound an already-difficult situation.
4. Use mental rehearsals to make threatening situations familiar. This is perhaps the single most effective technique I have found for reducing and eliminating performance fears. By using guided imagery to repeatedly face threatening situations and mentally rehearse how one would like to respond, one can eliminate much of the stress when those situations actually occur. The goal is to so often face the performance fears in your mind that the coping response becomes automatic, like a habit pattern.
5. Anchor mental rehearsals to distinctive mind states. This is one of the best strategies covered in my book. By learning to place oneself in a state of unusual calm and focus, and then by repeatedly rehearsing coping strategies for threatening situations, a trader can create a link between the mental state and the coping response. When there is a stressful performance situation, all the trader needs to do is invoke the rehearsed mental state and the coping behaviors that have been overlearned will come to the fore. For instance, if you continually mentally rehearse a strategy for holding onto winning trades while sustaining a calm focus, recreating the calm focus during the next winning trade will make it easier to summon the self-talk and behavior associated with holding the position.
6. Perform a mental checklist before trading. Eliminating perfectionistic expectations at the start of the trading day can go a long way toward reducing performance pressures. Any time the word should enters ones thinking about trading, its time to step back. Shoulds include internal demands to make a certain amount of money, to trade with a particular frequency, to make back money that has been lost, to not leave money on the table, etc. Because performance anxiety is often fueled by excessive self-demands, setting and affirming reasonable trading goals through the trading day can go a long way toward reducing performance pressures.
7. Get a life. When something becomes all-important, the pressures that accompany performance increase exponentially. Traders who trade for a living and who have little else going on in their lives are especially vulnerable to performance anxiety. If trading is your whole world and trading isnt working, its going to feel like your world is collapsing. By placing ones self-esteem eggs in many baskets, traders can ensure that the inevitable drawdowns and cold periods will not disrupt their self-confidence.
I cannot emphasize strongly enough: Most traders who are convinced that they have deeply-rooted psychological problems or addictive trading patterns are actually caught in a vicious cycle of perfectionistic self-demands, increasing performance pressure, mounting anxiety, disrupted performance, and renewed self-demands to compensate for the failure. After a while, traders caught in such a cycle begin to doubt whether they will ever succeed. By addressing their problems at the sourcethe expectations that generate performance pressuretraders can often turn themselves around in a surprisingly short period of time.
By Brett N. Steenbarger, Ph.D.
Consider the following psychological scenarios:
1.A student needs to pass an anatomy course final exam in order to successfully complete his first year in medical school. Because his first several exams were on the borderline between passing and failing, the course grade entirely rides on the final. As the time approaches for the big test, the student finds himself increasingly worried about the testparticularly when he misses questions from his practice exams. The worry interferes with his sleep, which in turn makes him even more concerned that fatigue will prevent him from doing well. By the time he takes the exam, he is tired and nervous and misses many questions, often by second-guessing right answers.
2.A young woman has never been particularly uncomfortable in public speaking situations, but now is asked to give the most important presentation of her career. The result of this presentation could spell the difference between landing a major client for her firm vs. losing the client to a competitor. During the talk, she notices that the audience members from the firm she is wooing dont seem especially attentive. This suddenly raises her anxiety, and she desperately tries to spice up the presentation. When she loses her place in the talk, she becomes flustered, and finishes the presentation on a hesitant note.
3.A basketball player has been the teams leading scorer, but starts out a game missing his first five shots. The opposing team is double-teaming him, and he is having difficulty breaking free for open looks at the basket. Determined to take matters into his own hands, he decides to penetrate the opposing defense and draw fouls. Instead, he picks up two quick charging calls. Now fearful of being taken out of the game for his fouls, he searches for his shot by moving a little further out on the perimeter. When these shots dont fall, he stops looking for his shot and throws two errant passes.
4.A trader has several winning trades in a row and, feeling confident, increases his size to take advantage of his hot streak. The position initially goes in his favor, but quickly reverses when large orders push the market lower. Forced to puke his position, he realizes he has lost all of the profit from his previous, winning trades. He is driven to regain the money and reenters the market, only to get slammed by a second wave of selling. He now feels like he has entered a cold streak and begins trading hesitantly, with reduced size. By the time the market closes, he is down on the day and the week. He feels like a jerk for becoming overconfident after his gains.
No doubt you can detect a pattern in each of these situations. The individual is in a performance situation where he/she experiences pressure to succeed. The situation has taken on a distinct importance in the persons eyes, and now he/she is focused on the results of the performancenot just the performing itself. This dual focusworrying or focusing on the outcome of performance while trying to stay immersed in the performanceis the common element behind all performance anxiety. Such anxiety is the single most common trading problem I have encountered in my interviews with traders.
How can traders reduce their level of performance anxiety? Here are a few strategies that I have found to be effective:
1. Focus on process goals when thinking about trading, rather than profits/losses Traders like to set goals for themselves, yet often as not, monetary goals end up creating unnecessary pressures. More effective goals are ones that focus on the process of trading, such as limiting losses to two ticks if youre a scalper or holding trades until a trailing stop is hit. A nice mindset is, If I just trade the right way, the profits will come. This takes much of the pressure off the performance.
2. Tackle risk incrementally. Risk places a psychological magnifying glass on situations and greatly increases the opportunities for performance pressure. A foul shot in the first minutes of a basketball game is the same foul shot in the final seconds of a tied contest, but there is a huge psychological difference. Traders who try to radically increase their size quickly find that the trade that worked out with 1 contract may not work with 10, because of pressures to (too) quickly limit losses or take profits. A gradual ramping up of size is far more effective than an impulsive leap for which one is emotionally unprepared.
3. Step away from the screen. The self-talk during periods of performance anxiety actually interferes with the accurate processing of market data, because the part of the brain responsible for perceiving and acting upon market patterns is not being activated. It is far better to step away from the screen and refocus on what the market is giving you than to act blindly on ones fears and compound an already-difficult situation.
4. Use mental rehearsals to make threatening situations familiar. This is perhaps the single most effective technique I have found for reducing and eliminating performance fears. By using guided imagery to repeatedly face threatening situations and mentally rehearse how one would like to respond, one can eliminate much of the stress when those situations actually occur. The goal is to so often face the performance fears in your mind that the coping response becomes automatic, like a habit pattern.
5. Anchor mental rehearsals to distinctive mind states. This is one of the best strategies covered in my book. By learning to place oneself in a state of unusual calm and focus, and then by repeatedly rehearsing coping strategies for threatening situations, a trader can create a link between the mental state and the coping response. When there is a stressful performance situation, all the trader needs to do is invoke the rehearsed mental state and the coping behaviors that have been overlearned will come to the fore. For instance, if you continually mentally rehearse a strategy for holding onto winning trades while sustaining a calm focus, recreating the calm focus during the next winning trade will make it easier to summon the self-talk and behavior associated with holding the position.
6. Perform a mental checklist before trading. Eliminating perfectionistic expectations at the start of the trading day can go a long way toward reducing performance pressures. Any time the word should enters ones thinking about trading, its time to step back. Shoulds include internal demands to make a certain amount of money, to trade with a particular frequency, to make back money that has been lost, to not leave money on the table, etc. Because performance anxiety is often fueled by excessive self-demands, setting and affirming reasonable trading goals through the trading day can go a long way toward reducing performance pressures.
7. Get a life. When something becomes all-important, the pressures that accompany performance increase exponentially. Traders who trade for a living and who have little else going on in their lives are especially vulnerable to performance anxiety. If trading is your whole world and trading isnt working, its going to feel like your world is collapsing. By placing ones self-esteem eggs in many baskets, traders can ensure that the inevitable drawdowns and cold periods will not disrupt their self-confidence.
I cannot emphasize strongly enough: Most traders who are convinced that they have deeply-rooted psychological problems or addictive trading patterns are actually caught in a vicious cycle of perfectionistic self-demands, increasing performance pressure, mounting anxiety, disrupted performance, and renewed self-demands to compensate for the failure. After a while, traders caught in such a cycle begin to doubt whether they will ever succeed. By addressing their problems at the sourcethe expectations that generate performance pressuretraders can often turn themselves around in a surprisingly short period of time.
U
After many weeks another good link to store in hard disk.
My god ! unknowingly we are doing these :=
Point No 3 ( Frankly this has improved my balance sheet)
Point No 5 ( This is the part ,when after many yrs ,trading is an enjoyable
rewarding activities )
Point No 7 ( Trying these )
Reinforced by 'Saint' ,this is one of the best post ,plz take off all your Gaurds & let us truly 'introspect' ,for our own development.
Thks.
My god ! unknowingly we are doing these :=
Point No 3 ( Frankly this has improved my balance sheet)
Point No 5 ( This is the part ,when after many yrs ,trading is an enjoyable
rewarding activities )
Point No 7 ( Trying these )
Reinforced by 'Saint' ,this is one of the best post ,plz take off all your Gaurds & let us truly 'introspect' ,for our own development.
Thks.
Hi! Abi,
Here is the link ...
http://www.traderji.com/technical-analysis/7997-teach-man-fish-compilation.html
Cheers...
Here is the link ...
http://www.traderji.com/technical-analysis/7997-teach-man-fish-compilation.html
Cheers...
Hi Saint
Much needed tonic for Traderji.com.your posts are worth reading again and again and needs to be assimilated slowly.
Reason for not posting actively are two fold.
As of now there is no need for that. Ship seems to be sailing smoothly.Will Wait for the election year.
Secondly, rather busy in other responsibilities. But I do keep replying or attending to as may be required.
As you know I am a silly stupid little investor who has faith in country's rise. though not necessarily in the individual companies. After all these crashes, my portfolio is still in pink of health. Crazy buy and hold types. real fools.But your time frames may explain it all.
That is why to find my anchor point I read your posts and wait for it eagerly.
Pankaj
Much needed tonic for Traderji.com.your posts are worth reading again and again and needs to be assimilated slowly.
Reason for not posting actively are two fold.
As of now there is no need for that. Ship seems to be sailing smoothly.Will Wait for the election year.
Secondly, rather busy in other responsibilities. But I do keep replying or attending to as may be required.
As you know I am a silly stupid little investor who has faith in country's rise. though not necessarily in the individual companies. After all these crashes, my portfolio is still in pink of health. Crazy buy and hold types. real fools.But your time frames may explain it all.
That is why to find my anchor point I read your posts and wait for it eagerly.
Pankaj
G
Hi Saint and other Senior Members,
Now that I have some insights of the chart patterns, I am a little confused over which stocks should I see daily, or on what basis the stocks can be selected for seeing the chart.
There are hundreds of stocks and if I start seeing charts of each of them, it would take a very long time and may skip some important ones. So, what could be the conditions for stock screening so that we may see only the relevant stocks.
SKG
Now that I have some insights of the chart patterns, I am a little confused over which stocks should I see daily, or on what basis the stocks can be selected for seeing the chart.
There are hundreds of stocks and if I start seeing charts of each of them, it would take a very long time and may skip some important ones. So, what could be the conditions for stock screening so that we may see only the relevant stocks.
SKG
- Status
| Thread starter | Similar threads | Forum | Replies | Date |
|---|---|---|---|---|
| A | Teach a Man to Fish – "Rise of Machines" version | Advanced Trading Strategies | 101 | |
| G | charts in Teach A Man To Fish And | Technical Analysis | 1 | |
|
Teach a man to fish compilation(pdf) | Technical Analysis | 24 | |
| N | Teach A Man To Fish | Technical Analysis | 7 | |
| D | Help for teach a man to fish | Technical Analysis | 5 |
Similar threads
-
Teach a Man to Fish – "Rise of Machines" version
- Started by ag_fx
- Replies: 101
-
-
-
-