Thursday, December 13, 2012

Stanley Kroll on trading

Analyse your markets and lay out your strategy and tactical moves in advance, and in privacy. Don't ask anyone's advice, and that includes' brokerage advisories, tips and even well-intentioned market gossip. And, don't offer your advice to anyone else. You shouldn't care if Shearson is buying ABC or if Salomon is selling XYZ. You should stick to your objective analysis and market projection based on whichever method or technique has proven viable for you; and you should revise that strategy only on the basis of pragmatic and objective technical evidence. Such evidence could be a signal from your chart analysis, your computer system or from the margin department, which reminds you that your position has moved adversely and that your
account has become undermargined.

In short, if you make money in your trading, stand up and accept the accolades and the financial rewards. But if you lose money, you alone should accept the responsibility. You must have confidence to trade in the marker, because the most serious 'loss' of all is the 'loss' of
confidence in your ability to trade independently and successfully. If you don't have that confidence, you probably shouldn't be making any trades, except to close out adverse positions to limit your loss exposure. The list of speculators' laments goes on, but they all seem generally
related to carelessness or poor trade timing, misjudgement of the market trend, ignorance of the basic tenets of sound strategy, or lack of self-confidence and discipline. Serious introspection suggests this thesis: a sound strategy, viable tactics and good money management, and
consistent risk control are even more important to overall success than a good technical or charting method.

Traders on BMD however are persistent non opinionated schizophrenics with no confidence, always asking others' opinions and offering their opinion as to market direction.(due to EGO) 

0 Comments:

Post a Comment

<< Home


"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

fcpo.blogspot.com

THE END OF AN ERA

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
Good advice
The 'good bets' business by Larry Hite
Don't lose your shirt
Ed Sykota's secret trend trading system