Sunday, February 1, 2015

Do you really know what you want, what you have and what you lack ???

Confidence develops when you are certain when outcomes are according to your expectation. Fear develops when things don't turn out as you expected after applying the same methods that produced the expected results earlier. Fears create DOUBTS and leads to confidence LOST. This is a natural progression when one swings between CONFIDENCE - DOUBTS - FEAR especially when you are trading, speculating or investing (whatever name you want to call it) in financial markets.

Luckily market are easier to manage.One needs to understand confidence is not gained over night and it is a LONG LONG LONG road to success. Success leads to confidence. Failure lead to doubt.

The internal battle is and basic foundation to overcoming fear and sustaining profitable venture is to have a CONSISTENTLY RELIABLE and PROFITABLE technique or system that survives all market conditions (up, sideway and down) that helps you make decision consistently profitable.

It is the human weakness and desire to sell at the highest point and buy at the lowest level. This shift one focus to "perfecting" the technique to pick points. In the long run it is less stressful to be able to work with a system that can identify the LOW RISK HIGH REWARD opportunities.

It is impossible to commit all the funds at one go when the market peaks out or bottom outs. It is more likely we will be taking positions in stages assuming one has sufficient funds and buffer range.

One needs to understand if your objective is to pick market extreme points or make profits consistently. This will ultimately decide your "future".

CUT LOSS and STOP LOSS are only for people who do not know the RRR (Risk Reward Ratio) and limited funds (poor planning). If you have a system and a consistently profitable reliable system that can guide you through, why would you want to indiscriminately take positions and continuosly put Stop Loss and Cut Loss.

Yes, all the seminars and books will tell you to limit your losses to X% of capital .. blah blah blah. If you have a system that can tell you or locate the market bearing, you should be able to next deploy a plan or strategy to act accordingly. This systematic techqnique should and must work across all different markets and instruments not forgetting time frames.

I have been trading for more than 22 years starting from financial analysis, rumors, charting, system and developing system in forex, stocks, futures, commodities and agricultural options. Evolving into a more systematic strategic trader from the indiscriminate irresponsible haphazard trading.

Do you really know what you want, what you have and what you lack ???

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