Thursday, September 30, 2010

Leave emotion out of trading

20100930 1851 Cable 4 hour chart uptrend continues.... And just think back to a couple of weeks ago when dailyfx expert were calling for sell on rallies at 1.5650-1.5700...

Follow the cable story...

I have seen a lot in my years of trading. A trader may be experienced, but yet still make all the rookie errors:

make rude gestures with his fingers at the trading screen when prices turn against his position
Swearing at the imaginary manipulator who took his/her money, basically the original entry and setup was clouded by emotion and wrong anyway, but these traders think they are alays 'right'. Basically the trader is saying "my analysis and view is always right, but 'they' cause me to be wrong', basically not liesening to the market.

One would live life better and have no high blood pressure by not making these rookie mistakes.

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"There is the plain fool who does the wrong thing at all times anywhere, but there is the Wall Street fool who thinks he must trade all the time."J Livermore Manchester City FCl Crude Palm Oil

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From Dragons and Bulls by Stanley Kroll
Introduction and Foreword
The Importance of an Investment Strategy
5 The Art of War, by Sun Tau (circa 506 BC) and The Art of Trading Success (circa AD 1994)
That's the way you want to bet
Long-term v Short term trading
Technicals v Fundamentals
Perception v Reality
Part 1: Winners and Losers
Part 2: Winners and Losers
Sun Tzu: The Art of War
Those who tell don't know, those who know don't tell
Why there is no such thing as a "bad market"
The Secret to Trading Success
The Experts, do they know better?
Risk control and money management
Larry Hite: The Billion Dollar fund Manager
Systems Trading:Kroll's Suggested Method
Buy the Strength Sell the Weakness
Good advice
The 'good bets' business by Larry Hite
Don't lose your shirt
Ed Sykota's secret trend trading system