Your trading system

The worst thing a trader can do is use a system based on the last year of market activity. The next year could be very different.
A trading strategy must be based on adaptability to take advantage of changing conditions.
Market changes are not a surprise.

A good trading system is based on

1. Learn before you jump ...
2. Cut losses, let winners run ...
3. Discipline is crucial ...
4. Focus on the process ...
5. Know your exit ...
6. Manage your money ...
...
8. Don't trade emotions ...
...
10. Remain humble ...
...

Oh I can't give you all tips :)

Prev. post about trading : Slow boil your losses.

Slow boil your losses.

If you throw a frog into a pot of boiling water it will jump right out. But if you drop it in a pot of warm water and slowly turn up the heat, the frog will stay put until it perishes.

The same thing occur to your losses.... Beware of that.

It is the slow boiling losses that cost money. Big clash are like boiling water.

Prev. post about trading : Trading and self-discipline.

Time Management - 1

Whether you're clever, stupid, the richest person in the world, or the poorest person in the world, you all have one thing in common.
You all have twenty four hours each day.

One way to find out if where all your time goes is to start an time log.
Do it for one week or more. Not less !! "self-discipline"
For instance, each time you change your activity make a note of the time you start and note the time that action ends.
So each time you change a task, you'll be noting the time.
Try not to miss out on any blocks of time.

If you are cleaning your castle you may want to break it down to something like:
8:00 Washed floors
9:45 Dusted curtains
10:00 Read Harvard Business Review
11:00 Talked on the skype phone
11:10 Made a cake
11:25 Clean the kitchen
12:00 Eat the cake


Okay, this week your job is to focus on your activities and record the time it takes you to complete each one. Don't worry about managing your time just yet, just be aware of how you are spending your time now.

Use a notebook for this. You are a beginner, learn with the basics.

Start Now ! ACT.

Quotes I like ...

Only dead fish follow the stream.
--- Anon

The true battlefield is within.
--- Gandhi


Discipline is just choosing between what you want now and what you want most.
--- Anon

Just because something is readily available, doesn't mean it's worth having.
--- Roy Sheppard

Never let your doubt blind your goals, for your future lies in your ability, not your failure.
--- Anon

Invest in yourself

Invest each day !!!
No, I'm not referring to your wealth.
Though financial investments are important, there's an even more important commodity you should be investing in: yourself.

When you invest money, you can draw on that account when necessary. Knowing the money is there provides a sense of confidence and security. But it is just as important to invest in yourself, so that the resources are there to draw on when necessary.

How can you invest in yourself ?

Continually improve skills Like :
- communication
- negotiation
- listening
- speaking
- speed reading
- time management

Create strong relationships with your family and friends
Exercise and eat nutritiously to maintain physical health
Take some holidays.

Start today with small steps.
ACT !!

Are you a doer ?

Four things come not back: the spoken word, the sped arrow, the past life and the neglected opportunity.


The world needs dreamers and the world needs doers. But above all, the world needs dreamers who do.
-- Sarah Ban Breathnach

Experience is the best teacher.

From small beginnings come great things.

Fools build houses, and wise men buy them.

Instant gratification

Today we live in a culture where many people want instant success—wealth, a beautiful body, warm relationships, and knowledge, This "I want it now" mentality is called "instant gratification" and is the number one reason people fail.

Be patience ....
Learn to understand yourself and others.

People who reject the value of instant gratification and develop the skill of self-discipline are life's real winners. These are people who are able to set goals and harness the motivational strength to see it through to their successful fruition— day by day, week by week, month by month, and, if necessary, year by year. They know that any worthwhile achievement takes time and sustained effort. They are willing to pay the price. They are self-starters, doers, and finishers.

Funny ratio

How good is you on the "Solved ration" ?
The ration is (TS-TF)/(TD-TF).
Where:
-"TF" is the time when you find a problem
-"TD" is the time you decide to solve the problem.
-"TS" is the time you solved the problem.

A lot of companies have a bad ratio. Why !

Found the problem is important but solving the problem is probably more important when you have decide to solve the problem.

ACT !

Trading and self-discipline.

The one thing I can think of that most affects both trading and investing has to be self-discipline.

Being disciplined is fully 50% of the job of trading or of investing. I don't care how good your trading system is, without the discipline needed to follow the system you don't have much of a chance for success in meeting your goals.

It doesn't matter how great a planner or organizer you are, without discipline your plans will most likely fail to bear fruit.

I agree 100% with the following statement by Marty Schwartz, the great S&P 500 daytrader:

"I've said it before, and I'm going to say it again, because it cannot be overemphasized - the most important change in my trading career occurred when I learned to DIVORCE MY EGO FROM THE TRADE. Trading is a psychological game. Most people think that they're playing against the market, but the market doesn't care. You're really playing against yourself. You have to stop trying to will things to happen in order to prove that you're right. Listen only to what the market is telling you now. Forget what you thought it was telling you five minutes ago. The sole objective of trading is not to prove you're right, but to hear the cash register ring."

Prev. post about trading : Tradig Tips

Brain wake up

Wake up !!
Your brain and eyes need some training.

Try these links :
- Rotsnake
- Rollers
- Color perception

Watch up 2 - Google - 2

Google is hard at work on a nation-wide high-capacity data network, buying up unused fiber lines and cheap backbone access to really flesh out their capacity.

Business 2.0 report about this.

The Snowball Started Rolling one more "pi*diameter"

Read also Watch up 2 - Google - 1

Traders - 1

Are you a good trader ?
Is your bottom-line performance good ?

The largest group of consistent losers is composed primarily of :
- doctors
- lawyers
- engineers
- CEO's
- entrepreneurs.

Why is it so ?

Trading can be mastered but your have to work hard on yourself.
Learn to understand your feelings. "Diary of a Trading Loser"

Creativity no copy !

To many products are look like "Yahoo Search", webmails...

You will need a lot of creativity if you want to take the lead. Copying is simple.

Prev about creativity : Creativity please

Creativity please

As a child, you may have yearned to play the banjo professionally, to act on Hyde park, to write a Pulitzer Prize-winning novel. Perhaps you mentioned your aspirations to someone and were met with laughter or the assurance that there was no money in it. You swallowed your creative dreams and satisfied yourself with listening to music on the radio, to reading books or watching movies. How often have our creative selves been swept to the sidelines, to being the observer? We internalize the belief that we don’t have what it takes to make it big, and of course we don’t because we have hardly tried.

Its time to go for it. There is no proof that you will get rich, famous, or even produce anything worthwhile. What you do know is that ignoring this urge to create isn’t making it go away. More and more people are heeding the call from within themselves to act upon their creative urges. We have tons of ideas for stories, for songs, for decorating or creating in our homes, gardens, workplaces. We sense that there is something behind this creative urge, that expressing ourselves creatively may be the missing piece to a fulfilled life.

Managers wake up !!
Start to read and stop focusing on others, "Do it your WAY!".

Maybe this one can help you ?
Uncommon Genius

Carlos Ghosn - 2

So right Carlos !

"It's interesting to see how human beings handle difference. People have always had problems about what is different from them. Different religion, different race, different color, different sex, different age, different training -- human beings have always had a challenge confronting what is different.

Now, we come to the basic acknowledgement that you feel more secure with somebody who is like you. You feel more comfortable, you feel more secure. You feel insecure with someone who is different from you. You feel more insecure with a woman, or someone who is younger than you, or older than you, or a foreigner.

But I recognize that even if someone is different, I'm going to learn a lot. We have a tendency to reject what is different. And at the same time, we need what is different. Because what is different is the only way we can grow by confronting ourselves.

Carlos Ghosn"
BusinessWeek

Carlos Ghosn - 1

Thinking Strategically

Game theory has traditionally been a tool of economists, but its use in management situations has been growing rapidly in recent years. This trend is sure to continue. Managerial decisions are not static and cannot be made in isolation. Instead, a manager must account for the reactions of both rival firms, subordinates, and superiors to his directives and proposals. Game theory is a tool to use to examine these interactions.

A good introduction is :
Thinking Strategically The Competitive Edge in Business, Politics and Everyday Life

Trading tips

"When I start trading, some successful investors cite these rules as ones that they remember their predecessors citing:

Trade with the Trend.
Cut Losers,
Manage Risk,
Go with the Winners,
"

Prev. post about trading :Trading Problem

One big problem

One big problem with the trading industry and futures trading in particular is that there are far more people making money selling systems and “ways to make money trading” than there are people actually making money by trading.

There are many “famous traders” who don’t make money as traders. They make money selling new trading systems, seminars, home study courses, etc.
Many, if not all, of these so called “experts” can’t trade and don’t trade the systems that they sell.

Prev post about tradingLearn to trade

Watch up 2 - Google

Google is not only a search engine.
Google is "google.com, gmail - Email -, google desktop, google map and earth, ....

If you want to invest money, you have to check the google stock.
Make your own choice ....

Watch up 1 - Skype

Skype is a way to make high-quality voice calls over the Internet for free. There are already lots of ways to do voice conversations over the Net — the ubiquitous AOL Instant Messenger even does that. The key for Skype, though, is the quality, which on a good broadband connection can sound like a CD of the incoming caller's voice.

Some industry watchers think Skype or something like it could eviscerate all the world's phone companies.

Pragmatic company?

Is your manager pragmatic ?

• Remember the Big Picture:
  • Why are we in business?
  
  
• Prototype to Learn:
  • Start with a small customer and test your ideas.
    • "The first time is always difficult"
  • Don't make too big changes the second time.

More pragmatic item for your company.

Carlos Ghosn - Next Guru ?

Carlos Ghosn is the CEO of Nissan and Renault.
To manage Renault and Nissan, which are based 10,000 kilometers (6,200 miles) apart and have a combined 300,000 employees, Ghosn intends to spend 40% of his time at Renault's Paris headquarters and 40% at Tokyo-based Nissan, with the remainder in the U.S. and elsewhere. He has given himself six months to re-acquaint himself with the inner workings of Renault before delivering his assessment of future moves.

Carlos Ghosn is like the old E.F. Hutton — when he speaks, people listen.

If you can read french books.
Read: "Citoyen du monde" de Carlos Ghosn et Philippe Riès.

TRADING IS A TEACHABLE SCIENCE, NOT AN INNATE TALENT

You can earn money investing money on stockmarkets.
It is difficult, but you can do it !
Start by reading books today.
I will list some books that can help you.

• Stock Market Wizards
• The New Market Wizards
• Reminiscences of a Stock Operator
• How to Trade in Stocks