This Forex strategy is by James Chen
Wednesday, December 21, 2011
Saturday, April 2, 2011
Mental Strategies of Winning traders
Mark Douglas - Mind Over Market 1/7
I found this video on youtube by Mark Douglas (expert in trading psychology), and I thought it's very very good !! I recommend everybody to watch it (I watched it @ least 4x already). A quote from the video: "If consistent result is your objective, then you need to start thinking like a professional trader. Trading is not about being right or wrong, and when you begin to learn to accept the risk of losing then everything abt your trading will change. A professional, when he sees a pattern, he'll just take the trade. Except to think about your risk and how to take profit, there's ABSOLUTELY NOTHING else to think about, because there's no way you can know what the outcome is going to be."
video 1: http://www.youtube.com/watch?v=ypCjoH1EsQ4
video 2: http://www.youtube.com/watch?v=NHJtLuaHxHQ
video 3: http://www.youtube.com/watch?v=ZmIZekqgST4
video 4: http://www.youtube.com/watch?v=dkmbfMzRjFw
video 5: http://www.youtube.com/watch?v=Vx6wL0zHjoE
video 6: http://www.youtube.com/watch?v=hQ9XM55pclw enjoy!
I found this video on youtube by Mark Douglas (expert in trading psychology), and I thought it's very very good !! I recommend everybody to watch it (I watched it @ least 4x already). A quote from the video: "If consistent result is your objective, then you need to start thinking like a professional trader. Trading is not about being right or wrong, and when you begin to learn to accept the risk of losing then everything abt your trading will change. A professional, when he sees a pattern, he'll just take the trade. Except to think about your risk and how to take profit, there's ABSOLUTELY NOTHING else to think about, because there's no way you can know what the outcome is going to be."
video 1: http://www.youtube.com/watch?v=ypCjoH1EsQ4
video 2: http://www.youtube.com/watch?v=NHJtLuaHxHQ
video 3: http://www.youtube.com/watch?v=ZmIZekqgST4
video 4: http://www.youtube.com/watch?v=dkmbfMzRjFw
video 5: http://www.youtube.com/watch?v=Vx6wL0zHjoE
video 6: http://www.youtube.com/watch?v=hQ9XM55pclw enjoy!
Thursday, March 31, 2011
A Holistic 3D Framework to Investing
It's important to find a trading approach that works for you. Here are three ways to get started. After years of analysing different businesses across various industries worldwide, I am still learning something new every single day. For the novice investor looking to begin his or her journey, it can be difficult to know where to begin. I suggest a three-dimensional framework.
Investor, know thyself
To know thyself means to look within. What are your strengths, weaknesses, personal biases? While patience is an important trait, few have the stomach to ride through years of underperformance. If you can't sit still for even one minute, you will stand a better chance at adopting a shorter-term trading approach. If you are mathematically inclined, you should explore quantitative investment models. If you are into gadgets, you should focus on technology stocks. There are many ways to make money in the financial world. Find your niche - you will have a far better chance of success than attempting to pick up some expert sure-fire success method that goes against your own nature.
Know your investment vehicle(s)
There are so many types of investments and each has its own characteristics. There's real estate, equities (stocks) and their various derivatives (ETFs, options and warrants). Between the two, equities have the advantage of being more liquid (usually) and will also allow bite-sized investments while real estate allows you cheaper financing and can be a natural inflation hedge. Both are riskier than bonds, but they promise higher long-term returns.
It's also important to understand how to value your investments. In general, all investments are valued based on cashflow, whether by using the dividend discount method, analysing the free cashflow stream or simply comparing the price-earnings ratio against similiar companies. So before you jump into any investment, study these methods and make sure you understand the potential upside and downside risks.
Get your timing right
Finally, no investment methodology can be complete without teaching you when to buy or sell. Technical charting is a method favoured by many --purists insist that you don't need to learn anything else. We can also use the longer term fundamental approach, which involves understanding business cycles. Do look at both approaches and see which suits you better. Once you have mastered all three dimensions outlined above, you will have mastered the science of investing. Next comes experience, which you will gain with time as you employ what you have learnt and slowly understand which rules work best for you -and when!
The writer, Jason Wee is a veteran stock analyst trainer and an avid investor
Investor, know thyself
To know thyself means to look within. What are your strengths, weaknesses, personal biases? While patience is an important trait, few have the stomach to ride through years of underperformance. If you can't sit still for even one minute, you will stand a better chance at adopting a shorter-term trading approach. If you are mathematically inclined, you should explore quantitative investment models. If you are into gadgets, you should focus on technology stocks. There are many ways to make money in the financial world. Find your niche - you will have a far better chance of success than attempting to pick up some expert sure-fire success method that goes against your own nature.
Know your investment vehicle(s)
There are so many types of investments and each has its own characteristics. There's real estate, equities (stocks) and their various derivatives (ETFs, options and warrants). Between the two, equities have the advantage of being more liquid (usually) and will also allow bite-sized investments while real estate allows you cheaper financing and can be a natural inflation hedge. Both are riskier than bonds, but they promise higher long-term returns.
It's also important to understand how to value your investments. In general, all investments are valued based on cashflow, whether by using the dividend discount method, analysing the free cashflow stream or simply comparing the price-earnings ratio against similiar companies. So before you jump into any investment, study these methods and make sure you understand the potential upside and downside risks.
Get your timing right
Finally, no investment methodology can be complete without teaching you when to buy or sell. Technical charting is a method favoured by many --purists insist that you don't need to learn anything else. We can also use the longer term fundamental approach, which involves understanding business cycles. Do look at both approaches and see which suits you better. Once you have mastered all three dimensions outlined above, you will have mastered the science of investing. Next comes experience, which you will gain with time as you employ what you have learnt and slowly understand which rules work best for you -and when!
The writer, Jason Wee is a veteran stock analyst trainer and an avid investor
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