by Gav
OK, most of you may have listened to this song by Ed Seykota from other blogs’ links. But, I am going to post it here again, as back up. 😆 Man, it is an interesting song. Enjoy. Trading should be fun, like this, no? 🙂
Here is the lyrics ( From The Trading Tribe)
[Read more…] about The Whipsaw Song by Ed Seykotaby Gav 5 Comments
Hat tip to John for the link. I took the test twice (as I did not read the questions carefully in the 1st run), and it ended with the same result. So, I believe I am a detailed trader now. LOL. Seriously, I can’t agree more with the result of my trading strength and challenge. It actually reflects in my working life as well. I am pretty good and confident in execution, but, I can be very wrong by working and researching something in the wrong direction. What the …..
Anyway, give it a try.
I have a group of friends who recently lost some money in stocks markets. (Ok, let’s blame the market, if it makes you feel better.) To my surprise, they are rushing into currency trading now, and heck, live accounts. I can see the fire on their head. “I am going to make a killing in Forex market”.
They are my friends. So, I don’t wanna be the one to discourage them. (You know, I am such a kind man. :o: ) If, by chance, they read my blog, I hope this post shows them some light.
My question to them, or you , if you are in the similar situation. What makes you think that you lost money in stocks market but you are able to earn from currency trading?
Which is the root cause of the loss? The market? or the trader?
Think. Keep the answer to yourself, not me. Simply because….I don’t care.
While shopping for some fresh fish and vegetables in Victoria market this morning, some random thought came into my head.
Why do you fear when holding a position overnight? Because you are not confident or not sure about your setup and strategy. Next, because you are not risking the amount that you are comfortable with. The stop of the trade is too wide for you, and your position size is too big for your small stomach. And, you are simply not prepared to accept any loss from trading.
In fact, it is so simple. Risk the amount that you are comfortable with. And watching the position to develop. Why fear?
Maybe I had been staying in Singapore for too long, I tend to work or live by rules. Here is something for you to think about.
When crossing a road with moderate traffic, would you rather press the ‘cross’ button of traffic light and wait for the green light before crossing? or you will take your own steps as long as you feel it is safe without even looking at the traffic light?
I often see people ran across the road just to save his 0.1 minute, and people like me, dumb enough to just wait for the green signal before crossing.
Try to link this to your trading. What would you do? why?
Food for thought , from Gavin.
Something for you to think about.
You own a cafe, you manage to get some nice coffee beans at pretty low price, and selling a cup of coffee with normal market price. But, your cafe is located at some odd location. And you only have a couple of office workers patronize during working days, and absolutely quiet during weekend.
So your profit margin is high, but sales figure is low. Is this a good business to continue running? What would you do now?
Think about this in term of your trading. How does it relate to your trading? uhm….
Food for thought from Gav.
