Winston
28-09-08, 05:50 PM
What's Up with this Financial "Storm"?
Why do I ask you to stay out of this market?
This is a snap shot of the day candles on Monday 21st Sept 2008. I actually cancelled my set-ups as you can see from the 3 pinkish squares.
I sent out a mail to my grads to cancel, and I cancelled an hour after that.
http://media.share.ovi.com/m1/large/0388/f93200ed111e41c6b17fc89f29063f3b.jpg
Printscreen belongs to Oanda.com
I always like to take out from Warren Buffet with his famous line. It goes something like this.
"To make money in the stock markets, first learn to manage your emotions."(paraphrased)
So, how do we manage our emotions?
Firstly, get clear.
Secondly, free yourself.... no FLEE... from the mindset of scarcity.
Why do people take bad trades over and over again?
Because they are scared that they will lose out the profit.
Inherently, it also says that there is an inherent believe, there may not be profit next week or next month.
Is that true?... does the market really stop?
What does it mean to get clear?
See through the fog of confusion, and take high probability trade setp-ups.
How?
1) Avoid volatility.
2) Avoid high leverage.
3) Always respect the markets. Take what it gives you, not what you want.
Why did I cancel my set-ups on 21st Sept 08?
In our Core Trading (wealth building) style of trading, we AVOID volatility to keep to low returns on negative years, and high returns on trending years (compare that to the S&P500 index, which has negative years.)
Hence, even if the set-ups were triggered in, I would be in a state of distress because a typical core position lasts 2 weeks to 4 weeks. In this volatile market, the 2 week - 4 week time frame is full of inherent speculation and uncertainty.
So, stay out.
Yes, I may have made money on this, or may have lost. It doesn't matter. But I know that if I took the trade, it clearly means I have no discipline and focus, to wait for high probability set-ups.
Long Term Consistency is the reflection of skill. Short term profit is called luck.
Cheers,
Winston
Why do I ask you to stay out of this market?
This is a snap shot of the day candles on Monday 21st Sept 2008. I actually cancelled my set-ups as you can see from the 3 pinkish squares.
I sent out a mail to my grads to cancel, and I cancelled an hour after that.
http://media.share.ovi.com/m1/large/0388/f93200ed111e41c6b17fc89f29063f3b.jpg
Printscreen belongs to Oanda.com
I always like to take out from Warren Buffet with his famous line. It goes something like this.
"To make money in the stock markets, first learn to manage your emotions."(paraphrased)
So, how do we manage our emotions?
Firstly, get clear.
Secondly, free yourself.... no FLEE... from the mindset of scarcity.
Why do people take bad trades over and over again?
Because they are scared that they will lose out the profit.
Inherently, it also says that there is an inherent believe, there may not be profit next week or next month.
Is that true?... does the market really stop?
What does it mean to get clear?
See through the fog of confusion, and take high probability trade setp-ups.
How?
1) Avoid volatility.
2) Avoid high leverage.
3) Always respect the markets. Take what it gives you, not what you want.
Why did I cancel my set-ups on 21st Sept 08?
In our Core Trading (wealth building) style of trading, we AVOID volatility to keep to low returns on negative years, and high returns on trending years (compare that to the S&P500 index, which has negative years.)
Hence, even if the set-ups were triggered in, I would be in a state of distress because a typical core position lasts 2 weeks to 4 weeks. In this volatile market, the 2 week - 4 week time frame is full of inherent speculation and uncertainty.
So, stay out.
Yes, I may have made money on this, or may have lost. It doesn't matter. But I know that if I took the trade, it clearly means I have no discipline and focus, to wait for high probability set-ups.
Long Term Consistency is the reflection of skill. Short term profit is called luck.
Cheers,
Winston