Habit 2

One other good habit to have is :
Be responsible for your own trading destiny. Analyze your trading behavior. Understand your own motivations. Traders come into trading with a view to making money. After awhile they find the trading process to be fascinating, entertaining and intellectually challenging. Pretty soon the motivation to make money becomes subordinated to the desire to have fun and meet the challenge. The more you trade to have fun and massage your ego, the more likely you are to lose. The kinds of trading behaviors that are the most entertaining are also the least effective. The more you can emphasize making money over having a good time, the more likely it is you will be successful.

Be wary of depending on others for your success. Most of the people you are likely to trust are probably not effective traders. For instance: brokers, gurus, advisors, system vendors, friends. There are exceptions, but not many. Depend on others only for clerical help or to support your own decision-making process.

Don't blame others for your failures. This is an easy trap to fall into. No matter what happens, you put yourself into the situation. Therefore, you are responsible for the ultimate result. Until you accept responsibility for everything, you will not be able to change your incorrect behaviors.

Qmed på G ?

Jag tror att QMED kan vara på G. ;)
Framtiden får visa
Price : 106.5 SEK

Market wizards

The Market Wizards books are written by Jack D. Schwager. He interviews a wide range of traders with excellent track records of profitability.

Read them and understand the process.
- Market Wizards: Interviews with Top Traders

- The New Market Wizards: Conversations with America's Top Traders

- Stock Market Wizards: Interviews with America's Top Stock Traders

Supervise 26-Mars-2007

I will supervise: ( My shortlist )

- Academedia.
- Active biotech.
- Alfa laval.
- Bringwell
- Effnet holding
- Electrolux
- El industri montage
- Geveko
- H&M
- Intellecta
- JM
- Kaupthing
- Kungsleden
- Latour investment
- Peab
- Precise Bio
- Ratos B
- SSAB B
- Stora Enso
- Volvo
- Worldwide brand

Expensive place

If you don't know who you are, the stock market is an expensive place to find out.
- Adam Smith

Sweco B :: 283.5 SEK

Sweco B
- resistance 286
- support around 277 SEK (Stop loss level)

I will buy if close over 286 SEK (more than 3 days) with stop loss

Worldwide Brand :: 443

Worldwide Brand
- resistance: Euh can you find one ? ;)
- support around 380 SEK (Stop loss level)

- Run the trend ?

Habit 1

One good habit to have is:
1. Understand the true realities of the markets.
2. Understand how money is made and what is possible.

The markets are what is called chaotic systems. Chaos theory is the mathematics of analyzing such non-linear, dynamic systems. According to Edgar Peters, author of Chaos and Order in The Capital Markets, mathematicians have conclusively shown the to be non-linear, dynamic systems. Among other things chaotic systems can produce results that look random, but are not. A chaotic market is not efficient, and long-term forecasting is impossible. Market price movement is highly random with a trend component.

Unsuccessful and frustrated traders want to believe there is an order to the markets.
Sad traders
1. think prices move in systematic ways that are highly disguised.
2. want to believe they can somehow acquire the "secret" to the price system that will give them an advantage.
3. think successful trading will result from highly effective methods of predicting future price direction.
4. have been falling for crackpot methods and systems since the markets started trading.

The truth is that the markets are not predictable except in the most general way.
Successful trading :
1. does not require effective prediction mechanisms.
2. involves following trends in whatever time frame you choose.
The trend is your edge. If you follow trends with proper money management methods and good market selection, you will make money in the long run. Good market selection refers to selecting good trending markets generally rather than selecting a particular situation likely to result in an immediate trend.

There are two related problems for traders.
1. following a good method with enough consistency to have a statistical edge.
2. following the method long enough for the edge to manifest itself.

Is daytrading nice ?

Here's what trading legend Larry Williams said about day trading: "If you're day trading, you're going to end up frying your brain. When you go home, you're not going to be a nice person to be around. I'm already not too a nice a guy to be around. So when I do a lot of that type of trading, who would want to be around me?

"All the day traders I talk with are losing money. The oscillators, the supposed support and resistance levels, all that other technical analysis stuff out there doesn't work very well in day trading. Plus I found I make more money by holding overnight and trading out of positions in the next day or two. If I've really got a strong signal, it should last for more than a few hours."

Gary Smith is the only person with a documented long-term success record in day trading. He made money consistently for over ten years. However, he trades relatively infrequently, maybe once or twice a week. "Successful day trading is not an everyday affair and not a multiple trade affair," he cautions. "Inexperienced day traders simply refuse to accept this." Gary's book, published by Reality Based Trading, is called Live the Dream by Profitably Day Trading Stock Futures.


If you want to be a successful trader, your best chance is with a long-term. If you must day trade, don't do it very often. The more you trade, the more likely it is you will lose.