Archive for the ‘Mental’ Category

Remember this…
“The energy of the mind is the essence of life.” —Aristotle

Today Special notes:

Today I would like to share with you how to increase your awareness of your trading psychology.

Psychology is intangible and difficult to measure, in fact you are your own psychologist if you are being told or train to apply the right skill.  Take for example, self talk – I shared this over the phone with one of the contacts and like to share with you too.

Many people, not just limited to traders, are unable to accept losses (lost). This may lead to more side effect and end up with the following situation :

1. Unable to let go of the past and move on with life (got stuck in the if I know earlier, I would….);
2. Self blame or blame others (start to use words like “the stupid stock”, etc)
3. Get angry easily (anxiety)
4. Fearful (not able to trade again, when it is right time to enter the trade)

Yes, I guessed by now you may be saying to yourself that you already knew all these because you have read it somewhere somehow.  Yet does any of the above happen repeatedly in your daily life?

Yesterday I spoke to a friend and he told me that he doesn’t  like to place stop loss when he trade, because most of time, chances are that he would be hit by stop loss.  Now he will have a big loss if the situation turns against him. Therefore it is very important to know whether you have fallen into such a “trap”.

Change your perspective

For example, if you don’t like to take losses by putting stop loss, how about changing “Stop Loss” to “Stop Exit”?  Would it be alright for you to exit for awhile and enter again in an appropriate time?

Compare the feeling you have with “Stop Loss” and “Stop Exit”, find out which will trigger you to take action.

Hope this small sharing will help you observe your own feeling when you are trading.

Let’s do a small test: how do you feel, if I tell you the following is STI chart and now STI is repeating what had happened during the period of September 1998 to January 2000?

Remember this…
“True wisdom lies in gathering the precious things out of each day as it goes by.” — E.S. Bouton

Today Special notes:

Today I would like to share with you the first short audio by the Creative Director of The Disciplined Trader, Tisha Hallett. Here’s how she answers the following question:

“I’m hesitating to pull the trigger when my trading plan signals me to. How can I be consistent in following my plan?”(click to listen)…..two more for next two days.

In case you want to know whether I have a time machine in 2005 check this out : http://sgstocktips.com/blog/learning-points/did-i-have-a-time-machine-in-2005/, remember to pause at 3rd slide, see if you can figure out the years.

Remember : The purpose of our report is to help you minimize risk maximize profit; protect your capital is the key to keep you alive.

Rome was not built in one day.

Likewise, when we adopt a trading system, we should allow time for it to grow.

Very often traders will chase after the next holy grail, adopt the latest technique, follow after the newest strategy in search for instant wealth.

Instead, we should put in the time to learn and to give the system sufficient time to work.

What is the stock market like to you?

Is it a game of strategy, of calculated risks or is it a game of chance?

Click to find out more.

Do you take personal responsibility for your trading results or do you push the blame for your losses to your broker’s tips, the newspapers and other things under the sun?

It is only through taking personal responsibility that we can learn from our mistakes and grow in wisdom as a trader.

Decide to take personal responsibility for your future today.

Do you know that there are 3 elements that will affect one’s trading success?

Also known as the 3Ms, these are:

1. Psychology or Mental

Your most formidable foe to your trading success is your emotions.

In normal circumstances, “Thought + Feeling = Action”. In trading, we must remove our “Feelings” from the equation.

2. Money Management

Many a trader and investor has lose a lot of money due to poor money management.

Do you know what lot size you should buy?

3. System or Method

These include:
Strategies e.g. Trend trading
Tools e.g. Computer, charting software such as Metastock
Market Data (SGX, KLSE etc)

Here’s a pictorial view of the 3Ms: