Next trade is more important

I was having a walk after buying food from supermarket with my fiancee. I told her about my recent trades, I was pretty happy with my performance. She smiled and told me ‘ It is good, but next trade is more important’. This gives me some thoughts. Exactly, next trade is always more important. And the very next trade has totally nothing to do with our recent trades which we turned a profit or loss. However, human natures make us think it may. We will end up with over confident, or timid when making the next trade. Forget about your past trades. Keep the focus on the price action, and next trade is always more important. You have to give the best performance for the next trade, it might not be perfect, but it will be your best shot!

Video: Who moved my cheese?

Update [12 Jan 2010]: Apparently, the video has violated some copyrights issues and has been removed. Anyway, check out the book, it is definitely well worth the time.


[Original post]

I read the book years back. A simple story but reveals profound truths about change. It applies to life and, of course, trading.

“It is time to move on!”

Check it out. and enjoy!

Tharp Trader Test

I recall I posted this test sometime ago, I thought it might be useful for new readers of this blog. Dr. Van Tharp designed a short online test to introduce trader to some of the issues that might affect his/her trading. Anyway, no harm give it a shot.

Tharp Trader Test

Here is my result:

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Worth noting

Joe Ross posted a link on twitter with title ‘A simple Idea to improve your trading’. I thought it is a good reminder to all my readers here.  And I certainly agree with the quote below, and being disciplined in trading methodology execution was and is the key of my consistency.

I feel certain that my discipline in executing each and every trade according to my trading methodology is the secret to my success. If you want to improve your trading, what you need to do is very simple. Before you enter any trade, imagine that you will have to explain this trade to a panel of your peers, by explaining to them the reason for your entry, your money, trade, and risk management guidelines, and why you exited the trade. Imagine having to explain why you chose this particular market and this particular time frame, along with how you set objectives for the trade, and how you determined where your initial protection would be. If you can truly do this, I strongly believe that you can be successful.

A blog post and something about stocktwits

I read a recent blog post on TraderFeed. This caught my attention, echoing my mind.

Traders need to develop ways of seeing markets that are unique to them, that make sense for them, that fit their risk tolerance and lifestyle, and that best make use of their skills and talents. Simply giving traders ideas could actually stunt their development, much like doing a child’s homework for them.

An important challenge in trading is that there is typically more valuable information streaming from markets than a single individual can reasonably process on their own….

full post here.

That is the main reason why I hardly, or never use service like Stocktwits. OK, I am not against Stocktwits. It is a brilliant idea from some entrepreneurs. But, is it really useful for trader’s development? Well, Caveat emptor. Personally, I do not find it to be useful for my own development. To me, it is just a stream of random tweets, good or bad of so called ‘trading ideas’, valuables and junks, marketing of premium services, repeated links etc.  But, this is just me. I believe, some users are finding it to be helpful to them. By all means, go for it. I’ll leave it to you to decide, and please, do not try to argue in the comment why I am wrong. I don’t care.

Instead of wasting time following somebody, I guess, it will be better off for trader to be away from social networking, and develop his own view, own way of seeing markets.  With that skills, then the streams of tweets might give you some good ideas.

Video for the weekend: The Pursuit of Happyness

This is one of  my favourite movies.  This is the scene where Chris (Will Smith)takes his son, to play basketball and tells him to never give up on his dreams.