Friday Market Tamer (Leaked)

An Accurate Friday Strategy for Forex and Binary Options

Revolutionize Your Trading Career
The purpose of this strategy is to show you how to trade most important fundamental figures that come out on Fridays. The strategy focuses on CAD and USD pairs only. It would only take you a maximum of 15 minutes per week. It comes with about 75% accuracy. The strategy is very simple and easy to familiarize oneself with.

This strategy makes you to:
Understand the strategy and use it in real market conditions
Apply the strategy with good results on Binary Options
Apply the strategy also on Forex markets, if you trade Forex
Spend far less time in the markets, while improving your results

According to babypips.com, Fridays are among worst times to trade, because liquidity dies down during the latter part of the U.S. session. Well, this statement is correct, but there is one wonderful strategy that can take advantage of the unpredictable nature of the markets on Fridays. This is what the strategy here is all about, and it could be one of the most wonderful things you will come across in the world of trading.

Fridays are always quiet in the currency markets, unless some fundamental figures are released. Even employment figures from USA and Canada tend to have transitory effects in some cases. This is why some people believe it is difficult to trade on Fridays. However, the markets have symmetry; whatever can bring losses to traders can also bring profits.

Please get more information here: Friday Market Tamer: https://learn.tradimo.com/friday-market-tamer


Details of the Strategy

Strategy name: Friday Market Tamer

Strategy type:

Financial markets: Forex and binary options

Suitability: Good for part-time traders

Time horizon:

Indicators:

Buy setup:

Sell Setup:

Recommend risk per trade:

Stop loss:

Take profit:

Risk-to-reward ratio:

Trailing stop:

Breakeven stop:

Trade duration:

Hit rate:

Filter:

Maximum number of trades every Friday:

This piece is ended with the quote below:

“The answer to why a market moves is always an imbalance in supply and demand. So, why was there an imbalance in supply and demand? Most of the time we will never know! It could be a news event was a catalyst, but often the price reaction to news is tough to figure out. Trying to figure out the specific “why” may cause you to miss trades, so I personally don’t bother.” – Rick Wright


Please get more information here: Friday Market Tamer: https://learn.tradimo.com/friday-market-tamer


www.tallinex.com wants you to make money from the markets.

Bill Gross: A Wise Financial Manager

WHAT YOU NEED TO KNOW ABOUT MASTER TRADERS – PART 19

“However, master traders tend to act differently than most humans. They look inward for direction. They are not afraid of taking risks, even if it means hurting themselves in the end. Throughout history, famous traders, investors and business leaders have had tremendous ups and downs in their lives. Unlike most people, they have learned to overcome human nature.” – Joe Ross (Source: Tradingeducators.com)

Name: William “Bill” Gross
Date of birth: April 13, 1944
Nationality: American
Occupation: Financial manager, author and philanthropist

AMERICA’S MOST PROMINENT BOND INVESTOR
Bill was born in Middletown, Ohio, to a homemaker and a sales executive for AK Steel Holding. He also has Canadian blood in his veins.

He later moved with his parents to San Francisco in 1954, graduated from Duke University in 1966 (a degree in psychology), and then served in the Navy. He got his MBA from the UCLA Anderson School of Management in 1971, and began to play blackjack professionally in Las Vegas – an experience that made him learn how to spread risk and calculate odds to his trading positions. From 1971 to 1976, he worked as a CFA for Pacific Mutual Life.

He co-founded Pacific Investment Management (PIMCO), which grew to as huge as $270.0 billion Total Return Fund (PTTRX). Bill traded one of the biggest mutual funds in the world, thus earning the title of “the nation's most prominent bond investor.” In September 26, 2014, he left PIMCO to join Janus.

In the 1990s, Bill wrote two best-selling books on investing. They’re: “Everything You've Heard About Investing Is Wrong!” (1997); and “Bill Gross on Investing “(1998).

In September 2008, he made a profit of $1.7 billion. He and his wife are generous philanthropist, having donate many, many millions of dollars to higher education, humanity (Doctors Without Borders/Médecins Sans Frontières), charities, scientific and medical research,

As of March 2013, Bill was worth $2.3 billion. He’s a Presbyterian, who’s been married twice and blessed with 3 children. He resides in Laguna Beach, California, United States.

This great trader is also a prominent stamp collector. One source reveals that, as of November 2005, he became the third person (after Robert Zoellner in the 1990s and Benjamin K. Miller pre-1925), to form a complete collection of 19th century United States postage stamps.

What You Need to Know:
1. Yes, you can be a spiritual and be a profitable trader. In fact, spirituality helps a lot in trading, especially in the area of trading psychology. Dr. Van K. Tharp is a fine example of someone who’s found ways to apply spiritual principles to life and trading transformation, through a program called “Oneness.” Bill was reported as one of a number of prominent investors who have taken to transcendental meditation.

2. Bills said he was obsessed with delivering value to investors and winning the game from a personal standpoint. We need to desire success extremely seriously – till it appears like an obsession.

3. Why are you a trader? Why are you a fund manager? As a trader/fund manager, you don’t get paid to regret or feel sorry for yourself. You’re paid to bring yourself or your investor money. Though traders are human beings, they’re tough when it comes to trading.

4. Gross said: “The real boss in the family is my wife. She didn't want me hanging around the house all day and said, 'You don't want to retire; you'll regret it.' So I listened to her. What does this tell us? Well, good traders don’t retire as long as they’re alive. It’s one of those very few jobs in which there’s no age of retirement.

5. What drives price movements? It’s humans. Human nature, herd mentality, coupled with institutions that lose their heads and sense of mission. This is the weakness that drives price movements.

6. It’s unwise when your risk is higher than your potential rewards. This is when money runs out of time; when lenders desert credit markets for other alternatives such as cash or real assets.

Conclusion: Wise Traders don’t fool themselves into thinking that they can prognosticate the markets just as scientists do in other scientific fields. Prices have nothing to do with natural laws, since there are many hidden things that can affect price movements. We can’t do more than analyze only the information at our disposal and informed assumptions.

This piece is ended with a quote from Bill:

“In questioning initially whether I am a great investor, I open the door to question whether other similarly esteemed public icons like Bill Miller are as well. It seems, perhaps, that the longer and longer you keep at it in this business the more and more time you have to expose your Achilles heel - wherever and whatever that might be.”

Source: www.tallinex.com

POSITION SIZING AS A SOURCE OF ALPHA

In trading we have a concept known as alpha – that is the measure of skill we bring to the investment process as measured by comparison to a given benchmark. Traditionally we think of generating alpha via our instrument selection or timing. The aim of being a trend follower or momentum trader is to buy instruments that are moving in the right direction. The naive trader or investor sees this as some form of prediction when in actual fact it is simply a bet.

The philosophy behind this is that the ones you get right pay for the ones you get wrong and once or twice a year you get a trade that does extremely well. The trick is not to go broke waiting for the one that does extremely well. And it is this not going broke that is the key to the entire equation.

If you look at fund managers or hedge funds who have gone broke you notice that what has sent them broke has been what I would called a conviction bet. They are absolutely and completely convinced of their opinion, as such they effectively bet the farm on a given trade or series of trades. This is much more common than you would think and has been responsible for some spectacular collapses, the most notably was Long Term Capital Management in 1998.

More recently we have seen Bill Ackman of Pershing Square drop what is conservatively estimated at in excess of $500 million on a bet that Herbalife was a pyramid scheme. The notion of conviction bets reveals more about the psychology of the traders placing the bets than it does about their methodology since their methodology is simply to bet big and hang on.

This recent paper by Novus looks at the notion of position sizing/money management as a source of deriving alpha, that is profitability is derived by sizing bets correctly and as you might assume not going broke. Novus make an interesting point –

Many elite managers owe most of their winnings to their ability to consistently generate value through sizing decisions. In other words, they consistently make accurate sizing decisions. To that end, position sizing alpha is a good measure to evaluate the sizing decisions made by a manager and assess their skill at optimizing a portfolio – at least with regards to relative performance of their own positions.

This underlines survivability as the key issue in being profitable – it might seem obvious but to the funds management industry it isn’t. You can read the entire report here but there is a point they make that I want to concentrate on

We found that more than half of the managers in our universe benefit from position sizing in absolute return terms. Since January 2010 through the end of last year, 57.5% of our HFU managers outperformed equally-weighted versions of themselves, and 41% underperformed. The remainder saw no difference in annualized return due to sizing.

My view of this is that it is not the winning positions that they sized correctly but rather the losing ones which were sized correctly which influenced their performance. This meant that no single trade had a disproportionately negative impact upon the portfolio. None of them experienced a situation where they had the bulk of their fund in a single instrument that tanked taking them with it. As an historical example of what can happen when you have a concentration of bets consider the fate of the somewhat aptly named Tokyo based Eifuku Hedge Fund. This fund in the space of nine days lost effectively all of its capital due to its bets in three trade groups.

If there were a take home lesson in this it would be to pay defence and wait for the winners to reveal themselves. However, this presents a problem since it requires the trader to admit when they were wrong and to admit that mistake and act accordingly. The means that the traditional mechanisms we put in place to defend our ego have to disappear in order for us to be successful.


Author: Chris Tate

Article reproduced with kind permission of http://tradinggame.com.au/

www.tallinex.com wants you to become a successful trader.

Weekly Trading Forecasts on Major Pairs (October 24 - 28, 2016)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish
EURUSD dropped by over 100 pips last week. Price has dropped by more than 300 pips since October 10, resulting in a Bearish Confirmation Pattern in the market. The outlook on EURUSD (and other EUR pairs) is bearish for this week. Therefore, slow and steady downward movement is expected on EURUSD and the support lines at 1.0850 and 1.0800 could be tested this week. Rallies would proffer opportunities to sell short at better prices.

USDCHF
Dominant bias: Bullish
Bulls laid a decisive siege at the support level at 0.9900 (formerly a resistance level) from October 12 to 20. It was already forecast that bulls would not find it easy to break the level at 0.9900 to the upside. On October 20, bears gave way to the persistent bullish pressure, partly due to existing stamina in USD. Price was able to close above the support level at 0.9900 after testing the resistance level at 0.9950, and retracing. This week, further bullish movement is possible in the market, because USD is strong and because CHF would be weak this week. Some currencies would rally versus CHF and this would help USDCHF to go more northward, though a significant bullish movement is not likely.

GBPUSD
Dominant bias: Bearish
GBPUSD made a shallow rally attempt from Monday to Wednesday and then consolidated till the end of the week. As it was hinted in the last forecast, this week would witness more volatility on GBP pairs when compared to last week. This means the present consolidation on GBPUSD would end as momentum rises, though the outlook on GBP pairs is bullish for this week. In case GBPUSD rallies, we would not anticipate a serious threat to the extant dominant bias in the market.

USDJPY
Dominant bias: Bullish
USDJPY went sideways throughout last week – a situation that could be termed a sideways movement in the context of an uptrend. The outlook on JPY pairs is bullish for this week, and USDJPY might be able to rise towards the supply levels at 104.50, 105.00 and 105.50. This is a situation that could lead to a strong Bullish Confirmation Pattern in the 4-hour chart. The supply levels at 103.00 and 102.50 would serve to restrict large pullbacks this week.

EURJPY
Dominant bias: Bearish
There is a bearish signal on this trading instrument, as price dived by 170 pips last week. One great factor that has contributed to this bearish signal is the weakness in EUR itself, and the only factor that could effect any rally on this instrument is the fact that Yen could become weak (thereby causing JPY pairs to rally this week). In case EUR becomes weaker than Yen, price would fall further. A factor that causes Yen to become weaker than EUR would bring some rally in the market.

This forecast is concluded with the quote below:

"When you understand the rules of the game, you can play the game like a master..." – James Altucher

Source: www.tallinex.com

Larry Robbins: Trading with a Great Sense of Responsibility

WHAT YOU NEED TO KNOW ABOUT MASTER TRADERS – PART 20

“It sounds attractive to try and make a quick buck, but like anything else, real money is made by slowly compounding your returns.” - Andrew Beattie

Name: Larry Robbins
Age: 47
Nationality: American
Occupation: Portfolio and hedge fund manager

A COMMITTED, ILLUSTRIOUS INVESTOR
Robbins was born into a Jewish family, in Arlington Heights, Illinois. He was a hockey star while in college.

One source says he graduated with honors from the Jerome Fisher Program in Management and Technology at the University of Pennsylvania in 1992, where he received a B.S. in Economics with concentrations in accounting, finance, marketing and a B.S in Engineering, with a major in systems engineering. He became a Certified Public Accountant in 1991.

Following his graduation, Larry worked at Gleacher & Company, spending three years there. He worked at Omega Advisors (for Leon Cooperman), spending six years.

He left Omega Advisors, establishing his own firm, Glenview Capital Management, in 2000. This firm has been so successful, averaging 15% returns of net of fees per annum. As of July 2014, Glenview Capital Management had about $9.2 billion of capital under management.

Larry was worth US$ 2.3 billion in December 215. He became involved in various charitable activities, and he’s an active supporter of education reform both in New York City and across the U.S. He’s also the Senior Chair of the Wall Street Division of the UJA-Federation.

He’d four sons by his former wife, Amy Robbins. He lives in Alpine, New Jersey, with his current wife, Sarahmay Wesemael. He’s won awards.

What You Need to Know:
1. It’s no surprise that Larry doesn’t use stops in his trades. There are many traders who don’t use stops and are hugely successful. However, using stops is safer. What does he also do differently? He holds stocks for years, being an investor; and perhaps, that’s one of the reasons why he survives the market in the long run without using stops.

2. Larry said: If you really want to be a good investor, you cannot just be involved, you have to be committed. It’s not about what you did before but about… persistence and continuity of work effort.

3. When you’re affected by a bad trading outcome, you’ll need to take it as a lesson. Most traders who lose may be young and inexperienced. They don’t realize how risky it is to walk into the waters without proper knowledge. But those who’ll end up making money in the markets don’t give up… They take what happen to them as a great education.

4. Larry believes trading isn’t just a job, it’s a passion, though it was almost by accident that he went into the hedge fund and investment business.

5. As a trader, think like an owner, not like a trader.

6. A trader who’s been engaging the markets for 12 years is obviously one that has had some success. That success is what allows traders to be responsible and philanthropic.

Conclusion: Gainful speculation is not that hard on paper – know where to buy and where to sell when price looks to be going in your favor. Really, you got to know what it means to buy at a demand zone and sell at a supply zone. You got to know the meaning of doing this. Traders interpret demand and supply zones differently. When they look at the chart, they come with various decisions. You simply need to find ways to survive the markets while doing your own market analysis.

This article is ended with a quote from Larry:

“I don’t think that I have met someone who is very good in the investment business who isn’t hard-working, bright, talented, and focused.”


Source: www.tallinex.com

Super Trading Strategies: http://www.advfnbooks.com/books/supertradingstrategies/index.html

A Trader’s Attitude Makes a Difference!

“Acceptance is a good state for trading because at this level you can accept losses and profits — both of which are a regular part of trading. In fact, acceptance of small losses is critical to successful trading.” – Dr. Van K. Tharp

WHAT’S YOUR ATTITUDE TO TRADING CHALLENGES?
Michael: “I put so much effort and time into my trading, and still didn’t get it right! I’ll never succeed at trading. No matter how hard I try, it’s never good enough. Why do I even try?”

Akin: “I can see that I’m making some progress in trading, but I made some embarrassing mistakes. I’ve learned some valuable lessons that will make me do better next time.”

Questions: 6 months from now, which one would be a more competent trader Michael or Akin? If you want to have a good trader as a friend, which of those two men would you be more likely to keep? When you face frustration in trading, how do you react?

Sade is fed up with trading and she refuses to take steps that can make her improve. She reasons, “Why should I waste my time on a career that gives me nothing in return?”

Michelle makes concerted effort to be a good trader and to help other traders, whether she makes profits or not. She takes to heart the Golden Rules of trading, for she believes they work. For Michelle, trying to be a better trader brings rewards with the time.

Questions: Which of these 2 women did you think would be successful as a trader? Which one would have better results in future? Are you like Sade or Michelle?

WHAT CAN YOU DO?
Avoid Pessimism: Pessimism will sap you of the strength you need to improve your trading and help deal with the challenges. Your outlook and attitude aren’t set in stone. You can be made “new” in your thinking (and ongoing process).

Focus on the Positive Aspects of Trading: If you see everything about trading negatively, you will feel “afflicted” and every day will appear “bad” or gloomy. But if you focus on positive things in trading, you will have a “cheerful heart” and even feel joyful. The choice is yours. Occupy your mind with encouraging subjects on trading.

Do Things to Help Other Traders: Look for opportunities to be self-sacrificing when it comes to helping other traders who need assistance. I haven’t totally put aside my long-term goals. But I’m focusing on the smaller goals I can reach now. When discouraging thoughts creep into my mind, I reflect on the many reasons I’ve to be a happy trader.

If you’re dealing with negative trading circumstances, please ask yourself: Is the situation really hopeless? Have I reached a dead-end or is this merely a road-block. Learn to keep negative thoughts out by concentrating on something constructive in your career.

Conclusion: Care for your attitude toward trading in the same way you would cultivate a garden. Root out the poisonous weeds of pessimism and negativity. Sow seeds of realistic optimism, and fertilize your life with actions that produce positive emotions. You will reap emotional crop that will make your trading career much more rewarding. And it will confirm that a trader’s attitude makes a difference!

This piece is ended with the quote below:

“The only Forex trading tricks recommended are simply patience, self discipline and applying strategies that will allow you not to take big risks.” – Painofhell (Source: Einvestorsforum.com)

Source: www.tallinex.com

Bill Dunn: 40 Years of Trading and Still Making New Highs

WHAT YOU NEED TO KNOW ABOUT MASTER TRADERS – PART 21

“Trading shares many similarities with another past-time I enjoy: strategy games. I love playing chess, and I think trading and chess require a similar set of characteristics to do well — they require that you act thoughtfully, never impulsively.” - Ron Kapar

Name: Bill Dunn
Nationality: American
Occupation: Trader and portfolios manager
Website: Dunncapital.com

NO HESITATION FOR HOME RUN
Bill spent his childhood in Kansas City and Southern California. He served 3 years with the U.S. Marine Corps. He got his Bachelor’s Degree in Engineering Physics from the University of Kansas in 1960. Then he obtained a Doctorate in Theoretical Physics from Northwestern University.

In the following 2 years, he was a researcher in faculty positions at University of California and Pomona College. He also worked in logistics and operational systems in other areas.

In 1974, Bill founded DUNN Capital Management, a Commodity Trading Advisor (CTA) with a long, rich history of experience and performance. Dunncapital.com states that, with 19 partners contributing a combined $137,000, Dr. Bill officially launched his finance career, trading client money in his 100% systematic managed futures strategy. When a trading opportunity presented itself, it was all or nothing, never hesitating to swing for the home run. He traded only 11 markets at that time, being in an uncharted territory at the time and breaking new ground in an undeveloped alternative asset class.

The firm has a track record that spans over 30 years and has produced a compounded annual rate of return of 14.2% per annum, after all fees and expenses. Their staff are highly experienced and well-educated.

Bill Dunn is now the Chairman Emeritus of DUNN. In January 2010, a business succession plan was put into place that gave Martin H. Bergin partial ownership of the firm. In August 2015, Mr. Bergin became the sole owner of DUNN. This means is Mr. Bergin currently the President and Owner of DUNN.


What You Need to Know:
1. Bill Dunn is a trend follower. He trades what he sees. The benefit of doing this is clear in his track record.

2. Sometimes, he made great profits. Sometimes, he suffered some drawdowns. Such is trading. No matter the level of volatility in his portfolios, he never deviated from his main methodology.

3. For Bill, the markets are his real world. He started just like any one of you. He came across a newsletter while still young, and he was hooked. The rest is a story…

4. He’s a long-term trader, sometimes holding positions for more than a year. He’s computerized his strategy. At least, his background in scientific research and mathematical analysis both in academia as well as in the defense contracting industry has been applied to trading; and successfully. He himself said: I felt there were very definite economic trends that were established from knowledge and the ability to know what events meant. I was looking for a way to participate in [those] major trends when they occurred, even though they were unexpected.”

5. We don’t change our profitable methodologies because of drawdowns. Minor changes might be made to make a good methodology perform better, but that should not interfere with a good trading idea.

6. Bill acknowledges that money management is the true survival key; plus trading without a predefined exit strategy is a recipe for disaster.

Conclusion: Speculation has to do with the unpredictability of the future. Whatever people do have to do with some of forecast which is inherent in the uncertainties of human acts and actions.

This article is ended with a quote from Bill:

“We have not made any changes because of a drawdown. While we have made minor changes since the program started trading in 1974, over the course of the years the basic concepts have never changed. The majority of the trading parameters and the buy and sell signals largely have remained the same.”

Source: www.tallinex.com

Winning Strategy for Short-term Trends (Leaked)

Trading For Sure Profits
Rule-based discretionary traders are among the best traders on this planet. The trading strategy explained here is a rule-based discretionary system. Similarly, the fact that the majority of traders fail does not mean that trading is a dead end activity. Traders who are successful prove otherwise. Occasional losses leading to transient drawdowns are inevitable but not insurmountable challenges in trading.

The secret to success lies in developing a deep love for trading and a willingness to apply trading principles that work. Trading principles that work are non-market specific. For a strategy to survive all market conditions, it must have three ingredients incorporated into it: aborting losers and capitalizing on winners, very low risk, and rock-solid discipline.

These are the secrets of trading masters – trading success has nothing to do with your ability to predict the markets accurately. If you give yourself a sensible reward-to-risk ratio, you will survive the markets in the long run. For instance, it does not make sense to risk $20 in an effort to gain $2. These secrets are what make the difference between financial freedom and financial disaster – the difference between solvency and bankruptcy.

The Pedigree of a Good Strategy
It is very disturbing that so many traders find it difficult to survive on the markets. Many top market speculators are perplexed by a new generation of traders who do not seem to have a clue about the skills necessary to preserve their trading portfolios.

The issue is: even if you are disciplined, it would be difficult for you to survive with a worse expectancy system, i.e. a system whose risk is greater than the reward. And checking complex data ad infinitum is not so sensible for simple markets either. Good trading strategies are the ones that survive all market conditions.

This kind of strategy must be effective in sustaining minimal drawdowns when the market conditions are not favorable – while making a decent profit during favorable market conditions. Whether a strategy is trend-following or countertrend or scalping, it will survive all market conditions provided that those simple but effective principles are incorporated into it. The markets eventually reward those who show an earnest quest for trading mastery.

Winning Strategy for Short-term Trends: https://learn.tradimo.com/a-sure-fire-forex-strategy

Breakdown of the Strategy
Timeframe:
Trading style:
Indicators parameters:
Buy rule:
Sell Rule:
Position sizing:
Stop loss:
Take profit:
Trailing stop:
Risk per trade:
Potential reward per trade:
Max. weekly drawdown:
Safety rule:
Filter rule:
Instruments names:
Average orders per week:
Orders type:
Signals generation periods:

Winning Strategy for Short-term Trends: https://learn.tradimo.com/a-sure-fire-forex-strategy

www.tallinex.com wants you to be a successful trader

Crispin Odey: He Trades What He Sees

WHAT YOU NEED TO KNOW ABOUT MASTER TRADERS – PART 22

“It never ceases to amaze me the impact that controlling your losses has on your performance.” – Chris Tate

Name: Crispin Odey
Date of birth: January 31, 1959
Nationality: British
Website: Odey.com

A QUALIFIED LAWYER BECOMES A TRADER
Crispin was born in east Yorkshire and educated at Harrow School. His dad had been a head boy at that school.

Crispin went to Oxford and got a degree in history and economics, after which he qualified as a lawyer. But instead of practicing law, he joined Framlington fund managers. He also worked at Baring, managing the Baring European Growth Trust.

He founded Odey Asset Management in 1991, a London-based hedge fund. He’s now a partner at the firm, which has about $9.3 billion under management, and Odey personally running $4 billion of assets. George Soros was one of the original seed investors of the firm, investing $150 million in it.

Crisping has been successful overall, but there were times he was wrong, like the year 1994, when he suffered a considerable amount of loss on his funds. Nevertheless, he thrived, like the year 2001, for he foresaw that the value of insurers would rise after the September 11 attacks on New York.

He once worked closely with Hugh Hendry, thus the quip, “Odey in the 1990s was a one-man band; Odey in the 2000s was a two-man band.” In 2008, he made lots of money from bear markets of the year, growing by 54.8% and paying himself 28 million GBP. He’d shorted some banks, getting called a “Big Business Shot.”

Whenever he lost some money, he lost some investors and his net worth declined. Whenever he made some money, he gained some investors and his net worth increased.

Trading is a lifelong career.

As of 2015, Crispin was worth £1.1 billion GBP, jointly with wife. He’s married to Nichola Pease. He lives in Chelsea, London and has a house in English Bicknor.

What You Need to Know:
1. Crispin’s multi-billion hedge fund has world leading investors and has an exceptional performance record across their conventional and hedge fund portfolios. You've got to look at assumptions behind markets long before you look at markets.

2. To be a successful long term investor you must think like an owner - know when to take risk and when to preserve capital, according to Crispin. You need to preserve your capital and generate superior returns eventually.

3. Losses are great teachers. A loss may wipe you out. Another loss would teach you how to survive and another loss would bring you profits and enjoyment.

4. Your qualifications don’t matter much when it comes to being a great trader. When it comes to speculation, History degree is far more useful than a CFA [Chartered Financial Analyst].

5. When you got great talent and skills and flexibility, you’ve control over your life. You may be under a boss, but eventually you may need to stand out on your own. Crispin broke away from Barings to found his own business at time when some felt that the private client side was playing second fiddle to the institutional business. Anyone with creativity had to operate outside the system.

6. Good traders have a knack for finding setups that would do well in spite of the vagaries of the markets. These markets are very hard to read, but some instruments would give you clear signals and you have to trade with confidence.

7. “Investment styles need to adapt as opportunities change. Living in investment denial must be avoided - if an investment is not working, we won't wait until it does,” says Crispin.

8. Good traders and investors are pretty good at making money; plus don't take too much out, either.

9. Other business also have their risks. Many people suffer in other areas of human endeavors. Crispin’s dad made money as an entrepreneur and then lost it because he broke his own rules. You’ll need to take your time to make money, thinking like the opulent. Don’t look for quick riches.

10. Genius traders fall and rise up again. A good trader may suffer a temporary loss, loss of revenues and loss of investors. Nonetheless, they would eventually grow, grow revenues and gain new investors.

11. You don’t know when a downtrend or an uptrend would end. Those who chase the market lose money, and those who get chased by the market make money. You need to stay ahead of the market.

This article is ended with a quote from Crispin:

“What we do is work very hard not to lose money. We don't live with hope in the portfolio; we live with fear. Our view of the market now is: Take care of the downside, and let the upside take care of itself.”



Source: www.tallinex.com

Super Trading Strategies: http://www.advfnbooks.com/books/supertradingstrategies/index.html

The best traders in the world – what they have in common

“It’s Monday morning. You are warm and toasty in your bed, hearing the world around you wake up. You allow yourself a little sleep in, and then pull open the curtains. Your swimming pool is shimmering in the sun light, and your outdoor lounge beckons. After a satisfying breakfast, the markets open, and you casually look to see how your trades are doing. Then you settle back on the lounge and plan out your day. On your terms. Answering to no-one but yourself. Safe and confident in the knowledge that your trades are working for you... This could be your future.” – Louise Bedford (Source: Tradinggame.com.au)

In April 2016, I wrote about 3 best traders I’ve even seen. These brilliant trades aren’t stars in the world of trading, but they beat the so-called stars. Their outperformance is huge!

I promised to give you an update on the result and identities of these mad geniuses. They’re really exceptional in that they even participated in another private contests, which consisted of 100 profitable traders, and they came out on top again. This happened in spite of the fact that the market conditions during the first contest was completely different than the market conditions during the second contest. So they have strategies that can survive all market conditions. I’m very happy for them.

For a reminder, these are the details of their recent performances:

The contestant who came first turned 2,500 USD into 1,433,480 USD (57,239.20%).
The contestant who came second turned 2,500 USD into 741,365 USD (29,554.60%).
The contestant who came third turned 2,500 USD into 713,076 USD (28,423.04%).

The top three traders are Andris D, a Latvian; Bogdan D, an American; and LD N, also an American. This is no surprise, Americans are among the most effective traders on this planet.

WHAT THE BEST TRADERS HAVE IN COMMON
These traders were interviewed, as well as other profitable traders. I read the interviews myself and would like to give you tips on what they’ve in common.

They were gainfully employed before they became traders
They even kept their day jobs after becoming traders. One is a soccer player. One is an electrical engineer, while one is a former submariner and currently a wealth manager in a trading firm. Being gainfully employed before one becomes a trader will help one’s psychology, contrary to the impatient and risky tendency of a jobless trader.

It’s good to become a trader while you’re earning a steady source of income, not when you’re jobless and destitute. Those who’ve sources of income find it easier to speculate with monies they can afford to lose. They can also make rational trading decisions because their existence isn’t dependent on a single trading capital. This goes in a sharp contrast to someone who must make profits in the markets or go hungry.

When you talk about trading in the hearing of those who’ve good jobs, they’ll reply that they aren’t interested. However, when they lose their jobs, they come to trading as the last resort. This is the worst time to become traders. It’s far better to become traders when you’re comfortable, and when you become consistently profitable, you can then go solo as a trader, if you think that’s viable.

They’ve years of trading experience before reaching profitability
One has 6 years of experience. One has 5 years of experience; while another has 10 years of experience. This means they’d been playing the markets for long, before they got to the stage in which they can pull out profits consistently.

Let me tell you a fact. It’ll take you years to master the markets personally. Anyone who tells you otherwise is fooling you. Even if you buy a good trading system, you’ll need some experience to use it successfully. The way an experienced trader applies a trading system is different from the way a rookie uses a trading system.

Don’t think you’ll come to trading and start making consistent profits right away. It’ll take you some years to do that.

They go into trading to make money
This is why we become traders: We want to make money. The major reason these geniuses become traders is to make money, and they craved profits badly enough. They wanted better living standards. They wanted financial freedom. They were aware that trading brings wonderful opportunities.

But you don’t make money because you want money. You make money because you’re persistent, perseverant, diligent, and patient. You need to crave success badly enough.

They use manual and automated strategies
Manual strategies are good. Automated strategies are good. There is a genius who made huge money based on manual trading only. There is a genius who made huge gains based on automated strategies only. As long as you control your risk, stick to your rules and approach trading rationally, you would be victorious.

They’ve vowed never to quit trading
Whether the going is good or bad, these exceptional traders look forward to trading forever (until they drop dead). Unlike undisciplined traders who threaten to quit when they face drawdowns and promise to continue when they see positivity, these profitable traders have decided to continue trading, come rain or shine.

Would you keep on being a trader, moving forward in your journey to success? Or would you stop being a trader because of the current roadblocks? Would you give what it takes to ensure that you reach consistent profitability?

May you be given the wisdom to make decisions that would make it possible for you to be a testimony to others in future?

Conclusion: Maximiliano Lepez’s college professor once told him he was foolish for thinking he could beat the markets. That statement was enough to discourage many people from trading, or who would not take a word of a college professor seriously? But Maximiliano didn’t allow himself to be discouraged. He went to the battlefield of the financial markets and became a proficient trader, using algorithmic strategies. He’s the last laugh.

This article is ended by the quote below:

“It’s a matter of finding an approach that works for the individual. A person has to know whether they are comfortable with fundamental or technical, long term or short term, certain types of markets, wider risk or less risk… You can go through a whole checklist of things and find it’s different for each individual.” - Jack Schwager

Source: www.tallinex.com

Super Trading Strategies – Almost Free

Super Trading Strategies - Tapping the Hidden Treasure in the Markets

“So much to know, so much to earn
So much wisdom to seek and learn
If we raise our hands, we’ll touch the sky
Our beds are low, our dreams are high…” - Niyi Osundare

I was born into a poor family of many children, and my parents struggled desperately to survive economically. I am a first-hand witness of extreme poverty, suffering, job loss and a high unemployment rate happening in the environment where I used to live. If you are reading this and you think you are currently suffering, you probably did not suffer as much as I did.

Throughout my teenage years, I engaged in hard and exhausting manual labour to support myself and help my parents. This is one reason why I was fortunate enough to get an education.

In spite of this, I was able to perform well at school because I developed an intense love for reading when I was eight years old. I liked to read anything I could lay my hands on. This has helped me gain lots of knowledge in many fields such as electronics, computers, history, literature, etc.

When I was a young adult, the future looked bleak indeed! In spite of my knowledge, I was thinking of taking a loan to get a used car for commercial driving. However, I decided to teach at private schools for a time, for paltry pay, which managed to keep me alive.

In 2007, my uncle called me and advised me to learn Forex trading, because it was very popular in my country at that time. I found someone to train me, but sadly, it was a poor training, and I suffered in the market for the next few years.

No matter what I did I was losing money, until I got to a point where I began to think of doing something else with my life. I went to a friend’s house and I saw an old copy of TRADERS’ magazine on his table. I begged him to lend me the magazine.

I went home to read it and I was enthralled by what Dr. Van. K. Tharp, who was interviewed in the magazine, said about successful traders. There I was! So there are successful traders! What are their secrets? What do they do differently and how might I benefit from their thoughts, trading styles and principles?

The rest is a testimony…

Get Super Trading Strategies, almost free here: http://www.advfnbooks.com/books/supertradingstrategies/index.html

These quotes end this piece:

“The fact is, if you are trading in a professional way, you are out of the market much of time.” – Andy Jordan


“Psychologists show that most people generally are overconfident about their abilities and about the precision of their knowledge. Security selection can be a difficult task, and it is precisely in such difficult tasks that people exhibit the greatest overconfidence.” - James D. Di Virgilio


Super Trading Strategies: http://www.advfnbooks.com/books/supertradingstrategies/index.html

Here: https://www.amazon.com/dp/B01IR2DAYA

And here: https://www.amazon.co.uk/dp/B01IR2DAYA


www.tallinex.com wants you to make money from the markets.

In Trading, What Can Be Measured Can Be Managed

I was having a catch up with my good mate and uber cool pad holder Jarrod yesterday – we both share a fascination with human performance. We are both interested in what we can get out of the machine we wander around in all day. As part of this quest he had recently been to see a dietitian who works with several AFL clubs and during the conversation they mentioned that as part of their regime they didn’t count calories. We both thought this was odd for the simple reason that without data you are operating in a vacuum, without knowledge about your calorie intake and in particular your intake of various macro nutrients you are simply guessing. And guessing simply doesn’t count when it come to assessing change.

The point here is obvious, if you are not in some way tracking the performance of your trading then you have no means by which to judge your performance. Without having a series of metrics that tell you how you are doing then you are also operating in a state of ignorance and in many cases delusion. I understand that some people dont want to track their system since this would defeat the entertainment component of trading. Knowing how badly you are doing would take the fun out of it. The same is true for people who struggle with their weight – they dont want to know how badly they are doing. Ignorance is bliss.

Performance tracking does not have to be complex – it only needs to tell you a simple story, how many trades did you get wrong, how many did you get right, what is your average profit/loss per trade and do you have more money at the end of the year than at the beginning. All this can be achieved in a spreadsheet with a little bit of playing around.

Author: Chris Tate

I’d like to end this article with some quotes:


“Be careful! It doesn't matter how good you are, if you don't use proper risk management you will fail.” - Jarratt Davis

“Having a diversified system does help but it does still make you wary of taking the next trade. But it always seems to be the next trade that you don’t take that turns things around.” – Chris Tate

Article reproduced with kind permission of http://tradinggame.com.au

www.tallinex.com wants you to make money from the markets

Do you need a website for your business or a website of anykind contact me via 08037205687 on phone call or whatsapp

Where Is The Money?

One of the frustrating things about being a trend follower is that it takes time to overcome the inertia of a new system, particularly if that system is based upon slightly longer time periods such as weekly data. Part of the frustration that traders encounter is based upon the simple mechanics of how systems work. A system that is correctly designed takes its losses quickly and allows its profitable trades to simply roll along.

This results in the system instantly going into drawdown and it is this drawdown that causes traders to develop friction with their system. This friction often leads to tinkering as they attempt to force the system to give them something it cannot give. This is exacerbated in times of a flat market – you cannot force returns from a market. The All Ords of late has not really been a stand out performer as can be seen from the chart below the market has been slowly grinding its way up in a broad channel.

With this in mind I thought I would look at the yearly returns for the various stocks within the All Ords – so I found some data on their percentage returns and stuck it into a frequency histogram to see what the performance of individual stocks looked like.

Please visit this link for the charts and images that come with this article: http://tradinggame.com.au/where-is-the-money/?utm_source=Blog+Subscribers&utm_campaign=2e70d91994-RSS_EMAIL_CAMPAIGN&utm_medium=email&utm_term=0_eb90516269-2e70d91994-43344013

I have a arranged the data into a serious of blocks and did a count of the number that fell into that category. I also calculated the average performance of the group which for this period stood at 17.09%. However, if I drop out the 200% and above outliers this average value falls to 13.04%. As you might have guessed the majority of values cluster around the mean with a long right handed tail. This sort of distribution is common with stocks since we have unlimited upside but limited downside – a stock cannot decline more than 100%.

Our psychology dictates that we are instantly drawn to the right hand side of the chart and the extreme outliers that occurred over the past year. And as traders these are the sort of trades that we hope ours might evolve into. However, in doing so we ignore that left hand side of the chart. The majority of stocks (60%) have below average performance.

You may assume as a trend follower that this is not an issue since you would avoid these large losses and poor performance by the use of stops but that ignores the reality of the actual trading process. As a mechanical trader you will not incur these losses but you will burn time wading through these non performing stocks before you hit the ones that do perform. You waste time, a little bit of money and a lot of patience dealing with this mediocre performance.

My anecdotal experience has been that trading returns are made up of a lot of modest returns and a tiny handful of trades that do very well but to get to the ones that do very well you have to crank through a reasonable number of trades and you have to keep going.

This is where the notion of emotional resilience comes into its own in trading and the ability not to tinker with the system hoping that it will generate these sorts of trades. Systems don’t actually generate these sorts of trades – the market does so you cannot actually build a system with the preconceived notion that it will find you trades that generate a 500% return. What the system does do is generate a population of trades, most of which will be duds and hopefully a few large winners. But in the beginning all trades look the same.

Author: Chris Tate

Article reproduced with kind permission of Tradingggame.com.au

More helpful quotes from professional traders are added below:

“As always the battle is not with the market but with yourself.” – Chris Tate

“Get any group of traders together and you will notice that the novices tend to talk about indicators and charting patterns, whilst the professionals discuss trading psychology and money management. In the beginning, you’ll underestimate the importance of these two key areas.” – Louise Bedford

“Most people have an “interest” in becoming consistently profitable traders. However, few possess the essential ingredient of “total commitment.” Total commitment is what is demanded for a high level of success from any endeavor. A trader with commitment will take the money away from 100 traders who have only an "interest.” – Joe Ross

“In fact I would say trading without a stop is like walking a tight rope without a net. You should always place a stop, not because you expect the market to go against you, but to protect against the unexpected. The worst losses I've seen have resulted from a trader not having a stop order in place and the ensuing deer-in-the-headlights paralysis that sets in once losses start to mount.” – Andy Jordan


www.tallinex.com wants you to become a successful trader

A Trading Question I Often Ponder

Can you be too stupid to trade and the answer is obviously yes. If you are defeated by how your toaster works then trading is not for you, nor is anything else probably. However, my observation over the decades has been that despite what the industry would have you believe trading is not that hard. The cognitive skills one needs are quite limited, in fact the smarter you are the harder trading seems to be as there is a constant desire to tinker or set off on a quest for the Holy Grail. LB often says that you need to be smart enough to write a trading plan and dumb enough to follow it religiously and this seems about right.

What does inevitably defeat people is their own psychology and inability to either adapt or let go of their most deeply held beliefs about trading and themselves. As an example I was in the background when LB had a conversation with a trader recently and this particular individual was so wedded to things they had heard on internet chat forums that they simply couldn’t let them go despite them being wrong. A major point of contention was their belief that you had to get the majority of your trades right or you just couldn’t make money. This is clearly incorrect and can be shown to be show quite quickly. The table below looks at the percentage of winning trades needed to be profitable based upon the average R multiple of each trade.

Please visit this link to see the graphs that come with the article: http://tradinggame.com.au/a-question-i-often-ponder/?utm_source=Blog+Subscribers&utm_campaign=7415e3b213-RSS_EMAIL_CAMPAIGN&utm_medium=email&utm_term=0_eb90516269-7415e3b213-43344013

As you might expect the larger your average R the larger the effective buffer you have to insulate you from being incorrect and since being incorrect is the default state for traders this is a handy thing to know. This is of course a simulation and the real world is a little bit dirtier than this so I went back and looked one of my short term systems for the past four years. Surprisingly, for a short term system it trades quite infrequently. The results presented below are from the S&P/ASX200 which is one of the instruments in the portfolio I trade with this approach.

If you were simply judging this system on the number of trades it got right then you would consider it to be a bit of a disappointment but each year it has been profitable. This profitability is based upon catching one or two big moves during the year and simply hanging on. This is what saved the system in 2015 when it made no money for the bulk of the year. This highlights the dichotomy that appears in trading – there are traders who trade for entertainment and part of this is having your ego massaged by thinking you are correct. And then there are those of us who trade simply for money. If I am to be charitable it is quite natural for people to think that you need to get the majority of trades correct in order to win since we are geared to accept reward as being commensurate with being right.

All of the above is predicated on two things – they are average returns over time and it is this notion of the deep time needed in trading that causes people difficulty. You have to allow the system time to build momentum and for you to get used to its ebbs and flows. As I seem to repeat endlessly trading is not a lottery you don’t suddenly wake up one day and make $20 million. You grind away over time.

Author: Chris Tate

Article reproduced with kind permission of Tradinggame.com.au

Below are some useful quotes from trading experts:

‘”Insisting on perfect safety is for people who don’t have the balls to live in the real world.’ (Mary Shafer -NASA Dryden Flight Research Center, Edwards, CA SR-71 Flying Qualities Lead Engineer)… I stumbled across this quote and thought it was the most perfect description of what is required for trading. If you don’t have the nerve to accept that trading is an imperfect, dirty and chaotic endeavor then it is not for you.” – Chris Tate

“There are plenty of traders who make their money when a market is not going anywhere. Option sellers who straddle and strangle love markets that are going nowhere at all...” – Andy Jordan

“Risk is the most relevant aspect of trading! Risk is the only thing you can control. You cannot control your profits.” – Topsteptrader

“Self-mastery makes trading mastery and wealth mastery easy.” – Van Tharp

www.tallinex.om wants you to make money from the market.

Insights into the Mindset of Super Traders

Speculation would first seem to be one of the easiest things on earth because you might think of making money by hitting bid and ask buttons for trading instruments of your choice. Hitting bid and ask buttons can be learned by everybody, but it remains a mystery that doing this does not bring easy money. It is no longer a secret that majority of traders lose. Pros know that. Newbies know that. Those who do not trade know that. Millions of trading styles and approaches have been used under heaven, but majority of them seem not to be working. Why?

The answer: You alone can determine whether you will become successful or not. Some want to succeed as traders but they get entangled in what can be called self-sabotage. They do exactly what look satisfactory in the short-term, but which cannot help them in the long run. What is then the way out?

You simply need to learn the insights, approaches and thoughts of super traders. And when you adapt and apply them to your trading styles, you would also find it easier to deal with the vagaries of the market triumphantly. That is when good strategies you use can work for you. Good strategies cannot work for you if you approach the market with illogical trading psychology.


Insights into the Mindset of Super Traders: http://www.advfnbooks.com/books/insights/index.html

“Insights into the Mindset of Super Traders” reveals the life stories of selected 20 master traders, how they think, how they view the markets, and how they make their fortunes.

Some of them are:

Lan Turner, who turns simple trading ideas into millions.
Dirk Vandycke, who has made thousands of percentage returns simply by accepting the truth about trading.
Michelle Williams, a female trader who once won a trading championship
Martin Zweig, who was one of the most successful traders of the last century
John Arnold, who became so rich that he retired himself at the age of 38, while many older people were still sweating over pensions
Bruce Kovner, who is one of the least known billionaire traders
Michael Platt, who is an accomplished trading risk manager
Martin Schwartz, who lost money for 9 year before becoming a permanently successful trader
Louise Bacon, and old veteran trader who tells us his intriguing story
Sir John Templeton, who is truthfully the greatest global stock picker of 20th century

Look at giants being pursued by cockroaches! May the spell of ignorance on you be broken. There are many future master/pro/expert traders reading this book who are being discouraged by those who are ignorant of the realities in the market. They are being discouraged by temporary setbacks. The providence has ordained you to attain international acclaim through successful speculation, and end up blessing lives, lifting people out of penury and bringing smiles to the face of the dejected. Here you are, oblivious of your trading potential, caught in a rat race.



Insights into the Mindset of Super Traders: http://www.advfnbooks.com/books/insights/index.html

www.tallinex.com wants you to become a successful trader

Focus on the trading process not the money

It may seem a contradiction to say that you don’t want to pay attention to the profit of a trade. In fact, many of you might be saying that this guy must be smoking rope to say that profit is unimportant. Well, to clarify, that is not what is being said. Of course, profit is one of the main reasons why you are involved in trading in the financial markets.

However, when we discuss how you will garner your mental and emotional resources in order to become consistently successful, profit (in any one trade) is not where you want your focus to be. Profits come as a result of “probabilities” over a series of trades. In fact, profit can be a major distraction and the cause of erratic behaviors that beget unwanted results. Let’s face it, results, consistent positive results, are what you want.Tweet: Let’s face it, results, consistent positive results, are what you want. Anything else is unacceptable. So, your main trading trajectory must encompass this reality. Consistently successful trading requires a laser focus on what-matters-most; alignment of body, mind and emotions; and an ability to be truly disciplined, for starters.

Honing your trading process and the focus of your trades.

The Distraction of Trading Profits
Let’s look at how focusing on profit can position you to attract the very undesirable results that you want to avoid. Profit is transient which means that it is not only variable but it is random to the point of being capricious. No matter how good your methodology, you cannot predict what price action will do. The only thing that is certain about the markets is that they are unpredictable. Due to this level of randomness, profit is an extremely inefficient data point to measure against results.

In fact, one of the worst things that can happen to you as a trader is to be profitable early in the game before you intimately know your strategy. This type of profit is almost invariably luck. Luck is totally unsustainable; and in your attempt to replicate these results you will reinforce bad rule violating behavior that is very hard to halt, creating many more losses as you attempt to extricate yourself from that abyss. Furthermore, when you focus on profit alone, your attention is fragmented and your mental state is susceptible to distorting data due to a confirmation bias (the tendency to only perceive information that confirms your limiting beliefs about the current market and consequently denying information that is contrary but critically important).

Free Trading WorkshopActually, you want to approach the trading process with your eyes wide open and embracing the fact that any trade can lose, and some will. No matter how strong your strategy, you must accept the randomness of the markets and therefore be very serious about protecting your capital; in other words, using and relying on your stops. In this way, you will begin to manage your fear…a very important skill.

One of the facts about consistently successful traders is that many of them have blown up accounts; and they came back. When this happened, they realized that the world didn’t come to an end and developed a deeper appreciation for the importance of their stops. They created consistency in planning their trades, trading their plan, following all of their rules, and thereby developed the capacity for emotional strength and endurance in the trade.

Trading is a process oriented endeavor for those who are serious about becoming and remaining a consistently successful trader. In any one trade, it is not about the outcome. You must remain dispassionate about that and reserve all of your focus to be honed on what you are doing and how you are doing it. This is what we teach in Mastering the Mental Game online and on-location courses. Ask your Online Trading Academy representative for more information. Also, get my book: From Pain to Profit: Secrets of the Peak Performance Trader.

Joyous Trading

Author: Dr. Woody Johnson

Article reproduced with kind permission of the author.

Source: http://www.tradingacademy.com/lessons/article/focus-trading-process-not-money/


The article is ended with more helpful quotes:

“One of the biggest mistakes that newbie traders make is to give up on a trading strategy after a run of losing trades. The thinking behind doing this is understandable but very wrong. The thought is “If a strategy is losing trades, why keep doing it?” The point is that every trading strategy has losing trades!” – Jasper Lawler


“Always keep in mind that trading is mainly a mind-game playing probabilities. Try to find a strategy that you understand and that fits to your personality and possibilities and then try to build the trade management together with the risk management around it. This will lead to much better results then searching for the best entry technique of all times.” – Andy Jordan


“Trading is not for anyone who has an unquenchable thirst for certainty. Uncertainty in trading is co-equal with insecurity.” – Joe Ross


“However, the truth is probably like most things somewhere in the middle and eventually with a level playing field (which there will probably never be) it comes down to the individual. In part this is why I like trading, it is a reflection of who you truly are, not what your circumstances have made. The market has no idea where you are from, what your social status is, your colour, your religion or your sex. It merely knows whether you have the attributes of a good trader or you don’t.” – Chris Tate



www.tallinex.com wants you to make money from the markets

The Real Trading Success. It’s Not What You Think

When I first went to university the initial week was filled with the usual getting to know the lay of the land such as how the library works (in a surprisingly mysterious way I might add), where various labs where and what the protocol for various subjects was. One of the most striking events was an orientation lecture we had in one subject. The lecturer who went onto to be one of my favourites because he knew his stuff, was blunt in his delivery and told students the truth. The last one of these characteristics would now not be tolerated because apparently telling students that they failed because they didn’t get off their arses would now be considered bullying or some form of oppression or would require the student to curl up in a foetal position in one of their safe spaces.

He opined that the easiest way to survive first year was to turn up and do the work – if you did that then the chances were pretty good that you would get through. Do a bit more than that and you would do well. This must have been a friggen revelation to a large proportion of my year because over half failed the year. Much to their surprise simply hanging around the university cafe and the pub across the road did not magically allow the collective wisdom of those at the university to seep into their brains as if by a process of osmosis.

The reason for me reminiscing about events locked in my dim dark past is simple – this pattern of laziness repeats itself year after year, decade after decade in people and people still wonder why their lives are like they are. Let me give you an example that is close to home. During our Mentor Program we generate a lot of content, each step of the course is mapped out to the day in such a way as to take someone from being a complete novice in the market to a competent trader at the end of six months. In effect, we make a pact with those doing the course, we will tell you everything we know with nothing held back and you commit to putting the time in to absorb what you are being told. To my way of thinking it is a fair deal besides you have paid for it so that should be sufficient motivation to put some effort in.

Intriguingly some – many believe that simply looking at the notes occasionally and not putting in any effort at all will somehow translate into success. We are now several weeks into the course and there are attendees who have logged in twice. Yet I can imagine that they are completely surprised at their inability to master the most basic of trading concepts. Or that they have not instantly be transmuted into billionaires via some alchemic process.

Central to all of this is the notion of how success in any arena is achieved. It should not be surprising that to achieve anything in any field you choose requires a certain amount of commitment and toil – this is simply the nature of the universe. Think of success as a natural system, it requires the addition of energy to keep it viable. If the system is not constantly restocked with effort, then eventually it will collapse. Yet, this lesson is lost on so many people who assume that either simply paying for something (think gym membership that is never used) or paying lip service and offering the usual platitudes will assist in mastering a task or achieving a goal.

Harking back to my early days in first year there was one thing that was almost universal in those that failed. It was always someone else’s fault and that seems to be something that is universe among those that do not put in the effort.


Author: Chris Tate

Article reproduced with kind permission of http://tradinggame.com.au

Other quotes from professional traders are below:

“The internet has been a boon for those seeking information. Within seconds you can find information on just about any subject that you want to know more about. Unfortunately, there is also a lot of misinformation mixed in with the results. This is very true in the trading world.”- Tradingeducators.com

“The internet is an amazing thing – there are thousands of trading strategies described in forums, social media and YouTube videos etc. But how do you know if they work? The answer is much simpler than it seems. Test the strategy properly!” - Jasper Lawler

“Listen don’t tell because the market cannot hear you… Trading is a profession where the ability to delay gratification is paramount to your success. Delaying gratification means that you can hold onto winning positions for longer.” – Chris Tate

“This is the most salient point for traders with regards to what is considered uncertainty. Uncertainty is the environment within which we operate as a broad observation but beyond that it is actually the markets themselves that define what is actually uncertainty and they can do this by readily accessible metrics.” – Chris Tate


www.tallinex.com wants you to become a successful trader

TRADING IN UNCERTAIN TIMES


The problem of trading in uncertain times crept up on the Mentor Program Alumni forum and I have been thinking about my answer. The original answer I gave is shown below –

I think one of the things you need to be able to do is to define what uncertainty is. If you opt for volatility as a proxy for uncertainty then you see something quite interesting. The VIX which is known as the fear index and should reflect uncertainty is actually at sitting somewhere near its long term average, indicating that the players who make up this index don’t actually see any uncertainty and are not asking for an increase in the risk premium they demand. The same is true if you look at the historic volatility in the Dow which is also sitting at a 9 year low.
From my perspective is the issue is not uncertainty in markets but uncertainty in decision making that is brought about by listening to external sources. If you switched off the news and all the associated commentary and simply looked at markets what would they tell you?

What has caused me to think further about this overnight is the notion of what actually is the uncertainty that is being referred to. Is it a true physical uncertainty or a psychological perception brought on by exposure to the narratives of others? I had a look at Wikipedia for a more formal definition of uncertainty and it gave the following –

Uncertainty is a situation which involves imperfect and/or unknown information. However, “uncertainty is an unintelligible expression without a straightforward description”.[1] It arises in subtly different ways in a number of fields, including insurance, philosophy, physics, statistics, economics, finance, psychology, sociology, engineering, metrology, and information science. It applies to predictions of future events, to physical measurements that are already made, or to the unknown. Uncertainty arises in partially observable and/or stochastic environments, as well as due to ignorance and/or indolence.

You will notice that the definition holds at its core the uncertainty inherent in predicting future events. In fact the science of probability is based around trying to deal with the fact that the universe is an uncertain place. However, uncertainty is the default setting in trading – the outcome of all trades is unknown until they are closed. It is this uncertainty that gives us the potential to be profitable, investments that have known or certain outcomes have no risk premium attached as such they offer little in the way of return (think bank deposit). This definition is therefore of little use in unpacking the notion of a change in traders uncertainty quotient. Granted we can respond to changes in volatility and we have tools to measure this but this is a reasonably common occurrence in trading and there are strategies that can be put in place to deal with this. In fact very basic position sizing and volatility based stops self-correct to deal with this sort of problem.

So I am drawn back to the idea that what actually changes is the tone and intensity of the narratives that people surround themselves with. This ever increasing crescendo of noise is bound to take an effect on peoples psyche particularity at present when the world appears to be spinning out of control. However, notice I used the expression appears, I used this term because appearances and reality are not the same thing. What brings some equilibrium back to the noise of others is as always context, the markets tell a completely different story. Whilst the breathless gibbering that is the media may consider the present to be the most troubled time in history and need to shout about it at every opportunity neither that markets nor history itself would agree.

This is the most salient point for traders with regards to what is considered uncertainty. Uncertainty is the environment within which we operate as a broad observation but beyond that it is actually the markets themselves that define what actually uncertainty is and they can do this by readily accessible metrics. When volatility and in turn risk premiums increase then we can say that uncertainty has increased. However, even here people try inject their own primitive narrative into events as the VIX which is a widely known measure of volatility is referred to as the fear index when it is nothing of the sort. However, this is the natural human desire for drama, we all have a friend or relative who is addicted to drama and those in the news media, particularly the financial arena and prime diva’s. So if you find yourself believing that uncertainty has increased but markets don’t agree then you will need to do something about what leaks into your brain.

Author: Chris Tate

Article reproduced with kind permission of: http://tradinggame.com.au


Traders’ Mindset: http://www.advfnbooks.com/books/insights/index.html


www.tallinex.com wants you to become a successful trader

so interesting an article.
but I want to ask for one thing....
since you believe that forex is very rewarding
and you are doing well in it....
post your
traders login investors password (which is read only).
broker name. ..
for us to see your performance and believe your claims.
theory is not practical.
prove it here.
thank you

HOW YOU SEE THE WORLD HAS A SIGNIFICANT EFFECT ON YOUR SUCCESS

INTRODUCTION: Hello Traders. The article below is useful for all areas of human endeavors (including trading). Please read it to discover a great secret today. Read between the lines and see how the facts revealed here aptly apply to trading.

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There are, broadly speaking, two ways to see the world and these have a great influence on how successful you become.

The first is what psychologists call the “external locus of control,” and the second is the “internal locus of control.”

You see… as the world around you changes, you can either attribute success and failure to things you have control over, or to forces outside your influence.

And which orientation you choose has a huge bearing on your long-term success.

This concept dates back to the 1960s with Julian Rotter’s investigation into how people’s behaviours and attitudes affected the outcomes of their lives.

Locus of control describes what individuals perceive about the underlying main causes of events in his/her life.


Put more simply:

Are you the pilot of your life or you just a passenger?

Do you believe that your destiny is controlled by you or by external forces (such as fate, the government, your boss, the system or others)?

Here’s how Charles Duhigg—the author of the book Smarter Faster Better describes locus of control:

“Locus of control has been a major topic of study within psychology since the 1950s. Researchers have found that people with an internal locus of control tend to praise or blame themselves for success or failure, rather than assigning responsibility to things outside their influence. A student with a strong internal locus of control, for instance, will attribute good grades to hard work, rather than natural smarts. A salesman with an internal locus of control will blame a lost sale on his own lack of hustle, rather than bad fortune.

“‘Internal locus of control has been linked with academic success, higher self motivation and social maturity, lower incidences of stress and depression, and longer life span,’ a team of psychologists wrote in the journal Problems and Perspectives in Management in 2012. People with an internal locus of control tend to earn more money, have more friends, stay married longer, and report greater professional success and satisfaction”



What is an external locus of control?

Well, we all know those people.

In fact, sometimes we are those people.

Nothing is ever their fault. There is always an excuse. The world is out to get them, life is unfair.

Duhigg describes it as follows:

“…Having an external locus of control—believing that your life is primarily influenced by events outside your control—’is correlated with higher levels of stress, [often]because an individual perceives the situation as beyond his or her coping abilities,’ the team of psychologists wrote” (24).


The benefits of an Internal Locus of Control

In general, people with an internal locus of control:

Engage in activities that will improve their situation.
Emphasize striving for achievement.
Work hard to develop their knowledge, skills and abilities.
Are inquisitive, and try to figure out why things turned out the way they did.
Take note of information that they can use to create positive outcomes in the future.
Have a more participative management style.


The bottom line:

We aren’t born with an unalterable locus of control, so it is critical to keep an eye on in ourselves so we can improve the way we look at the world.

Sure, bad things happen to us.

But rather than dwelling on them, it’s better to find a useful belief about them and move on.

It’s important to remove the idea that your life is dictated by forces outside of your control.

Of course, to one degree or another, it is. But there is plenty that we can control. You can create your own luck through study, hard work and perseverance.

It’s often said that you become a blend of the five people you hang out with the most.

This is important to keep in mind. Associate with positive people who believe they are in control of their own lives. Their beliefs and energy will rub off on you. And then yours will rub off on them.

It becomes a very powerful and positive feedback loop!



Author: Michael Yardney (a guest blogger at http://tradinggame.com.au)

Author’s profile: Michael Yardney is a director of Metropole Property Strategists, which creates wealth for its clients through independent, unbiased property advice and advocacy. He is a best-selling author, one of Australia’s leading experts in wealth creation through property and writes the Property Update blog.

Articles reproduced with kind permission of The Trading Game Pty Ltd




PS: 4 useful trading quotes are also added below:


“There is a wise saying which came into being primarily since the advent of mechanical trading systems, and it goes something like this: "Your system will stop working when someone else builds his system based on your system." Can you see the truth in that? It is because of that reality that it is best to scout around for what may be working recently, and why it is a waste of time to backtest a system or method to see if it has worked for the last 10 years. You can't trade history you are forced to trade the present in an attempt to take advantage of the future.” – Joe Ross


“I’m not worried about being stingy, trying to get every last pip out of a trade; I want out of my position if the trade is going the wrong way! Do you want to be stingy or do you want to be OUT??” - Rick Wright


“A winner has the ability to find positive values from the most negative circumstances. This is the first reason why only emotionally healthy people can assume risks, they are able to rise above the superficial negative circumstances, discover trading opportunities and take decisive trading actions based on the current market conditions.” – Andy Jordan


“You have no control over whether you will win or lose – but you have enormous influence over the beliefs that drive the performance of your trading process. This is the new “Winning Nature” that bridges the gap between controlling outcome (which is impossible) and controlling your process (which you can do repeatedly). This leads to the calm, patient mind need for successful trading.” - Rande Howell


www.tallinex.com wants you to become a successful trader.



Traders’ Mindset: http://www.advfnbooks.com/books/insights/index.html

Insights into the Mindset of Super Traders – Now Almost Free of Charge


“One of the things that amazes me most about trading is that the longer I do it the more I admit that I don’t know. For a very long time I have been convinced that I have no idea where the price of instrument is going. I certainly know a lot about market dynamics, the history of markets (which is something everyone should study) and about my own reactions to events. But I have sold all idea about where the market is going. Granted I can create a narrative in my own head to justify my own positions but at the end of the day I simply make a bet on the direction of an instrument and I am consciously aware of my own behavioural short comings.” – Chris Tate (an expert veteran of the markets, more than 30 years of experience)

Anyone can learn to be a trader – but making a success of it involves more than just pushing Bid and Ask buttons. You need good strategies that will allow you to deal with the vagaries of the market.

It’s no secret that the majority of traders lose. But some succeed and become rich, even super-rich. These are the super traders.

Insights into the Mindset of Super Traders reveals the life stories of 20 selected master traders: how they think, how they view the markets, and how they make their fortunes. The book gives an overview of their careers and explains what lessons can be drawn from their success.


“THREE QUESTIONS TRADERS WOULD LIKE TO ASK RIGHT NOW.”

Why is trading so difficult?
Answer: What makes trading appear very difficult is the fact that the market can never be predicted. When we predict, we’re sometimes wrong or right. However, having an impression that the market can be predicted is the single most important reason why most traders end getting frustrated. No matter the analytical method you use (Monte Carlo, Neural Networks, Horology, robots, Gann, news, Ichimoku, etc), you can’t predict the future. Your frustration will continue as long as you think you can predict the market. Once you admit you can’t do this, your frustration ends, because you’ve aligned yourself with the reality in the market.

What benefit can I get from trading?
Answer: Freedom. Freedom is everything. You master your financial destiny, growing richer and richer gradually. Very soon, you’ll realize that trading is the best vehicle for financial freedom; plus the greatest game on earth. Sadly, many people don’t believe this fact.

How can I experience permanent success in the markets?
Answer: You will attain permanent success once you devise a way to make money in the market without being able to predict the market – without knowing what the market will do next. This kind of strategy isn’t hard to devise. You’ll then see each new trade as a potential loser until you’re proven otherwise. This mindset will enable you to activate stops and use a small position size. You’ll know trading is simply a game of probability and with a good RRR, the odds will eventually come in your favour. This is what’s called positive expectancy. With this simple approach, you’ll no longer see trading as difficult. More importantly, you will attain permanent success without the ability to know the future, which begins from your mind.


This piece is ended with 2 quotes:

“Talking about trader psychology may stir intellectual debate, but the real work of trader psychology is about re-working the beliefs are you projecting onto the markets about your capacity to manage uncertainty (with your trading account as the arbiter). Simply being knowledgeable is never enough. It is the hard, but satisfying, work of examining the beliefs that drive your performances in trading that matter.” - Rande Howell

“The complete trader is able to combine all or parts of the above approaches with his own style. Trading mastery combines observation, scientific knowledge, good judgment, intuition, and creative instincts with decisive action.” – Joe Ross


Tap the secret here (almost free of charge):
http://www.advfnbooks.com/books/insights/index.html

www.tallinex.com wants you to become a successful trader.

Do you see trading as fun and games?

“One thing very good traders have is insight into themselves.” - Chris Tate


FUN AND GAMES
Recently Louise Bedford and I have been doing the Short Term Trading Magic seminars in a few places and it has been sometime since I did any form of presentation on a semi regular basis. As such it has been interesting to observe people as they work through various trading issues.

One of the things I have noted is that people take trading far too seriously and this is reflected in a form of desperation. Desperation is the antithesis of the state of mind you need to be in to trade effectively.

There is no deny that this is a phase everyone enters at some stage in their career but to be successful you need to move beyond this and begin to treat trading as the game that it is. Once I started treating trading as a game then it became so much easier on the soul and my results reflected this. I even have a t-shirt that says that the fewer bleeps I give the more I make.

This is not to say that I am reckless but rather that I am in no way wedded to the outcome of any trade. At its core my life will not change if a trade or even a cluster of trades are winners or losers – they are simply not that important. When compared to real life, trading is nowhere near as important as people think it is.

It is often commented that children are better are learning new things than adults who seem set in their ways. I am not so certain that this is a reflection of any great cognitive superiority or plasticity that the young may have but rather a reflection of their willingness to be both wrong and to play. Young children have no ego therefore the mistakes that their play generate have no impact upon their sense of self-worth. As adults we lose this resilience because we believe that it is somehow catastrophic to our self-image if we do make mistakes.

But in trading your mistakes are your own – no one else can see them so you are insulated from the judgment of others. This isolation gives you the freedom to be wrong but the only thing you have to cope with is your own judgment.

Markets are a wonderful universes for exploration and for play. The presence of micro contracts in various instruments and online trading mean that you experiment very cheaply.

The price of admission to the fun park is much lower than it used to be and the number of rides has gone through the roof. It is a shame that more traders don’t view trading as little more than a theme park where you can play to your heart’s content and during the process of playing you learn much more than you would if you were consumed by seriousness and desperation.


Author: Chris Tate

Article reproduced with kind permission of: http://tradinggame.com.au/


More trading quotes are below:

“To my way of thinking trading is an internal endeavour – there is no external enemy who you can deceive or overpower since markets only exist in the most ephemeral way inside your head. Markets may appear to be physical constructs but they are largely an illusion, trading occurs inside your head where your own perceptions and distortions of reality influence your decision making.” – Chris Tate

“The one thing you shouldn't feel pressured about is trading. If you do feel that way, you probably need to take a step back and reassess. Pressured trade(r)s don't make good trade(r)s.” – Joe Ross


www.tallinex.com wants you to be a successful trader

Unrealistic/irrational expectations from traders

“If there were a cornerstone to trading it would be the ability not only to be resilient when in drawdown but also to accept that we get things wrong. Sometimes there is a flaw in our methodology that we have not seen and that we simply have been lucky up until this point. This does raise the question of when do you know you have entered this spiral of self destruction and to my way of thinking the answer is not that hard. If you have been losing money for the better part of a decade then it is fairly obvious that there is something seriously wrong in your methodology.” – Chris Tate

Can you make 1,000% returns per year from trading?

I DONT THINK SO.

Every so I often I am party to an email from someone who should know better. This particular email was around the topic of returns that could be expected from a novice trader. This email asserted that they were looking at the order of 1,000% pa, which in anyone’s language is a tall order.

I can understand how people get these figures in their heads, the internet is awash with people claiming that you can give up your day job and intraday trade FX with $5,000 and live like royalty with no risk. Intriguingly I have once again started receiving spam emails from people claiming that options writing is a no risk cash flow generating strategy.

As such it is easy to see how peoples psyche becomes infected with this sort of nonsense and how with little real world experience they are sucked in.

However I was curious as to what the numbers would look like if you were making 1000% pa so I fired up Excel and let it rip with a starting balance of 1,000.

Please check here to see the figure: http://tradinggame.com.au/i-dont-think-so/?utm_source=Blog+Subscribers&utm_campaign=782ff57c63-RSS_EMAIL_CAMPAIGN&utm_medium=email&utm_term=0_eb90516269-782ff57c63-43344013

I don’t even know how to say that last number. Suffice to say that somewhere around the first months of year 7 you are the richest person in the world and by the end of year 10 I think you have all the money.

Author: Chris Tate

Article reproduced with kind permission of: Tradinggame.com.au

Another great quote ends this article:

“You should spend a great deal of time and thought on your exit strategies, for one very good reason: you don't make money when you enter the market, you make money when you exit the market. Far too many people focus only on market entry, or what to buy, rather than on when to sell. If you approach trading with an exit strategy, it will benefit you right away.

Your system should reflect your beliefs (i.e., who you are as a trader and as a person). Many people are just looking for “any system that works,” but if your trading system doesn’t match your beliefs about the markets, you will eventually find a way to sabotage your trading.” – Van Tharp Institute


www.tallinex.com wants you to become a successful trader

Why do people ask me if I’ve stopped trading?

The question above is common whenever I come across people who used to be traders. They started trading because they thought it was easy and because they thought they’d strike it rich. Nevertheless, they discovered that trading isn’t easy and after they dashed their heads into the rock many times, they gave up.

Whenever one of them comes across me, they ask: “Are you still trading?”

It’s simple. If they can’t do trading successfully, they feel no one else can do it, or very few people can do it. They gave up and they expected me to give us. Surprisingly, I have not given up. In fact, I got what works for me and I like it. It’s a personal strategy: Manual + discretionary.

The World Of Trading Is Full Of Hypocrisy
I’m sick of those who talk about their profits alone, but who hide their losses. When NZD pairs moved maniacally on October 19, I saw how many people posted the profits they made. But none of them would ever post loses they made. Very few traders would post their losses. The world of trading is full of hypocrisy.

When someone makes 300 USD or let’s say, 300 pips, they post it on forums, WhatsApps group, Facebook, etc. When the person makes a loss, they remain silent about it. That’s why some rookies would come and think trading is easy – just because everyone is talking about profits.

FACT: Trading isn’t easy, though the marketer would want you to believe otherwise. Success is, nonetheless possible.

Liberate Yourself With Trading Realities
You will never find a perfect trading system or signals service.

You can’t avoid losses. But you’ll be OK as long as your average losses are smaller than your average profits.

I recently showed one of my trainees my trading results. I placed a trade, I lost it (-1%).

I placed another trade, I lost it (-1%).

I placed another trade and I lost it (-1%).

I placed another trader and I lost it (-1%).

4 losses in a row (-4%).

I placed the 5th trade and I won it (+6.9%). I let my profit run.

You see, I made sure that I limited my losses and I let my profits run.

I didn’t throw away my strategy because of a transient losing streak, since I know it’s a statistical edge.

There are many bogus high probability strategies (manual, automated or semi-automated) that can win 99% of trades in a row. But one big loss would wipe away everything.

Think about the rest. It’s up to you.

I’d end this article with the quotes below. Please read what these highly experienced master traders have to say:

“It is the fear which tends to be the biggest challenge….It is fear which stops us from taking a solid setup in the markets because we have been on a losing streak, only to see it work out well and the opportunity missed. It is fear which causes us to not follow the trading plan and make irrational changes because that other trade failed to work. It is fear which causes us to get out of a trade far too early with only a small profit because we are scared to hold on in case it became another loser, and it is fear which makes us search over and over again for the perfect strategy which does not exist, simply because we think there is always something out there we are missing out on or don’t know about. Fear, my friends, is the biggest hurdle any retail trader has to face and will hold you back more than anything else.” – Sam Evans (Source: Tradingacademy.com)

“But you know what I learned? I learned that people don't want to change. People don't want to be told that they have to change. People resent being corrected. Do you know anyone like that? It's understandable, right? It's not easy to be corrected. Yet experience shows that life as a trader is a life of correction. So whereas you may know people that don't want to be corrected, the fact is, if you are going to trade successfully you are going to have to learn how to receive correction. It's really the hardest part, what I'm giving you right now. It's the hardest part. Everyone wants to think that they are lovable just the way they are, and maybe they are lovable just the way they are but that's not going to necessarily help the real deep things that hide in your soul that will destroy true success. We can't like ourselves too much. Do you understand what I am saying? You know what to do, now do it! That’s a correction, by the way.” - Joe Ross (Source: Tradingeducators.com)

“In trading we talk about the need for a variety of emotional strengths. We talk about the need to be calm, confident, and disciplined but we very rarely talk about the need for courage and the majority of traders fail because they do not have the courage to succeed. It is often bloody hard to hang onto positions that have very large open profits. Your brain plays all sorts of tricks on you and you begin to rationalise the foolish action you are about the take. I am quite certain that Ronald Wayne who sold his original share in Apple for $800 (now worth about $75B) rationalises that decision. Rationalisation is a wonderful human skill – it insulates us from the harsh knowledge of our own failings and traders are experts both making foolish decisions and hiding from them.” – Chris Tate (Source: Tradinggame.com.au)



Traders’ Mindset: http://www.advfnbooks.com/books/insights/index.html



Source: www.tallinex.com

There’s nothing special about your strategy

THE WAYS WE CON OURSELVES

I support a particular hospital charity that each year or so runs a home lottery and every year I enter. To date I have won a digital camera, an iPod, an Apple TV, a tonne of chocolate, wine (brilliant for a non-drinker but good for presents) and a host of other goodies. In fact I have never had a time when I have entered and not won something. Whilst my expectancy is not quite positive it’s not bad. If I were a news agency that sold lottery tickets and I had this many winning entries bought via my store people would be clambering over me thinking there was something special about my store.

One of the things we ignore in life is that we are subject to the same harsh statistics as everyone else – we have what I call the myth of individual specialness. Our basic narcissism leads us to believe that the laws that apply to the universe don’t really apply to us, as a result we spend a lot of time fooling ourselves into think there is something special or magical about what we do.

My capacity to win this particular lottery has nothing to do with me other than the fact that I enter, I am simply subject to the laws of large numbers as is everyone else. If you get enough people doing the same thing over a long period time then the probable drifts into the realm of the inevitable. It is no wonder some people win the lottery twice.

But because we are such poor natural statisticians this seems like magic to us and we ascribe some special quality to ourselves and this is apparently a well-known phenomenon in both lottery winners and those who have inherited wealth. They believe that something divine about themselves means that they were meant to win – they cannot accept that it was blind luck. My wife has a friend who received a very large inheritance from her parents, she has now divorced herself from all her friends of many decades because she believes that there is something superior about herself other than being the lucky product of the sperm sprint derby that we all undergo. Sometimes you land in the right spot and sometimes you don’t.

The central issue here is that even in trading we are subject to the ruthlessness of statistics and this ruthlessness is often at odds with our own emotional endurance. For example if you have a system with a positive expectancy this means that on average and over time your system will make money. But note there are two presumptive phrases involved in this definition – on average and over time.

You need to have the resilience to ride out the times when the system is not making money. When traders first encounter the notion of expectancy they assume that is means that every trade they take will make $X and are surprised when this does not happen. All trading systems will experience runs of losses, this is the natural order of things and you can experiment with this for yourself by looking at a coin toss simulator. If you click here you can see how streaks of either heads or tails form – this is a good example of what can happen in trading systems.

Despite trading being a basic exercise in statistics at its core it is an exercise in resilience because we have to find ways of dealing with brutality of statistics and even when we know our system is sound it is still hard to take a continual series of losses. Inevitably we come back to the notion of courage as a central tenet in the success of any trader.


Author: Chris Tate

Article reproduced with kind permission of: http://tradinggame.com.au

This article is concluded with the 3 quotes below:

“Every time you have a hunch that the market will reverse, jot it down on paper. After 30 attempts, look back at how accurate your prediction is. You may be surprised by your results.” – Rayner Teo

“Defeats in trading are not really defeats, anyway — they are more like trial balloons we keep sending up, knowing in advance that a certain number of them are going to get shot down. Therefore, trading is really a process of two steps forward and one step back. The one step back part will always seem like a defeat, will always feel like a defeat, but is not a defeat – simply part of the process.” – Andy Jordan

“A large population of traders consider themselves to be much more effective than they really are.”- Chris Tate


www.tallinex.com wants you to make profits from the markets.

.

The thought of a strange trader

RANDOM THOUGHTS FROM LIFE ON THE ROAD
Louise Bedford and I have just wrapped up about a month of travelling to different states and presenting, which is something we haven’t done for probably 15 years. It was an interesting adventure and good to get out from behind the screen and talk to people. When I go anywhere I try and be a keen observer of people. It is amazing what you can learn simply by listening and watching and the one thing I learnt this time rather surprised me.

Success in any endevour has a few trials that it places in your way and if you conquer this trial then there will inevitably be another one. Life is in many ways a little bit like the 12 labours of Hercules – there is always something else. As you would expect trading also has these hurdles, some are huge but most are trivial and the thing that interested me most in my current journeys was that people fell at the first hurdle. The first hurdle for many people is actually getting off their own arses.

Let me explain by reference to my own evolution as a trader.

Step 1 – Decide I want a different life.

Step 2 – Get off my arse and decide what form this will take.

Step 3 – Learn about equities trading by once again getting off my arse and going down the the ASX.

Step 4 – Repeat Step 3 repeatedly whilst I devour everything their education department has to offer.

Step 5 – Open an account with a broker – how did I do this?…….I rang them up and asked (this also involved getting off my arse).

Step 6 – Make a trade – how did I do this?…… I rang them up and asked.

Step 7 – Get trade wrong (my trade, my mistake, my fault).

Step 8 – Repeat Steps 6 and 7 repeatedly.

Step 9 – Learn technical analysis – how did I do this?…..I found a book and read it.

Step 10 – Place another trade – make a slightly smaller mistake….repeat ad infinitum.

Step 11 – Begin using computerised technical analysis. How did I learn this?…..I bought a PC and a charting package and spent countless evenings and days playing with it.

Step 12 – Start trading derivatives and make lots of mistakes.

Whilst this is a little flippant there are two central themes, I made a vast number of mistakes and everything I did came about from my own sense of discovery and getting off my own arse. When travelling and in subsequent emails I have been surprised at the number of people who cannot begin to trade because no one will sit down beside them and show them how to place an order or how to find information on their brokers website. When I suggest that they look at the copious and detailed instructions brokers offer all of which is in glorious multimedia they are somewhat taken aback that someone should suggest this, as if the magic do everything for you fairy should sit down beside them and do it for them.

As my father used to say in his more eloquent moments…do you want me to come and wipe your arse for your as well?

One of the hallmarks of people who are successful is that they have a sense of internal direction, this internal rhythm keeps them moving forward and it is powered by their own sense of achievement. My failures are my own but so too are my successes because I seek out new things and learn new things without constantly being prodded forwarded. My hypothesis about this sort of thing is that some people have been in the employee mindset for so long that they can no longer take action for themselves and to suggest that they should overloads their brain. This I can excuse because it is a powerful form of social conditioning and it is hard to break. Lazy bastards I have no time for.

Author: Chris Tate
Article reproduced with kind permission of https://www.tradinggame.com.au



TODAY, I TRADE

WHERE ARE YOU… my brilliant trader within?

I move through the trading world with confidence.

I will walk my path with audacity.

Today I trade.

I am in awe of the future that I have ensured for my family.

I am judged, and misunderstood. Yet, I stand strong.

I am battered by my losses, but I rise above.

The world is missing what I am designed to give.

Today I trade.

I am one with the markets, and my light illuminates my most precious goals.

I am black. I am white. I am old. I am young.

I trade with precision.

I fight procrastination and lack of clarity.

I harness my anger and transform.

My power is limitless and I’ve caught a glimpse of my potential.

I emerge from my stifling cocoon of work and labour.

Today I unite with my fellow traders, my supporters, my Mentors.

Today I trade.

Today is the day I trade. – Louise Bedford


“…Successful traders realize that they are not in this business to trade, but rather to make money. And to do that you need patience. A patient trader with a second rate system will generally out perform an impatient trader with a better system…” - Jeff Wecker

“Trading is a god awful grind at times as it requires you to do the same bloody thing day after day and to sit with the pain of losing. And the pain of sitting with losing is amplified by the fact that you know the mistakes (if they are mistakes) are your own. If you have taken a trade that wasn’t there, acted on a tip or simply failed to engage a stop then these are your mistakes, they do not belong to someone else and you have to cope with the emotional cost of that. It is here that there is a schism between those who go on to be successful and those who just drop their bundle. Those who move through this have the energy to change and in doing so they naturally accept the pain that this invokes. There is no outsourcing your success to others but that is the good thing about success at any endeavour – it always belongs to the individual.” – Chris Tate

www.tallinex.com wants you to be a successful trader

Tricks to winning the markets this year

“Trading is one of the oldest concepts on the planet and that’s an advantage to your new business. You don’t have to reinvent the wheel. What you have to do now is create a written set of instructions to your brain. Instructions that will turn your concepts into cash. Think of your business plan as Cliff Notes on “How to make money by trading!” because that’s what it will be once it is completed. Since only the best traders have the discipline to make such a plan, you’ll have one of the “edges” you need to compete alongside the top market makers and traders.” – Dr. Van Tharp (Source: Vantharp.com)

Based on many years of trading and research in the markets, I’d like to share some tricks with you. I hope the tricks would help you become triumphant as a trader.

NEITHER A PERMABULL NOR A PERMABEAR BE
In Forex markets, it’s far better to be a trader rather than be an investor. It’s more preferable to make money when there is a strong uptrend or a strong downtrend. When an investor is experiencing drawdowns, a trader who’s good at timing entries would be raking in profits.

When a permabear is being pummeled in a market that suddenly becomes bullish, going protractedly northward, a trader that has a good system, who is good at timing entries would be raking in profits.

A trader goes long in a bull market and goes short in a bear market, truncating their negativity when caught in a wrong direction. On the other hand, an investor makes money only in a bull market.

In the modern markets, it makes more sense to be a trader, not a permabull nor a permabear.

Go short in bear markets and go long in a bull markets. Don’t buy and hold because a bear market can hold out longer than your portfolio may carry it. You can receive margin calls in the process. Strong pullbacks on Bitcoin is a good example.


FIND THE MARKET THAT’S MOST SUITABLE FOR YOUR STRATEGY
For example, a strategy that follows the trend would work well in a market that trends very well like, USDCNH, Bitcoin, Gold, Silver and other currencies that trend very well. It doesn’t mean that these trading instruments don’t experience consolidations, but it means they tend to trend more than other instruments like USDJPY and EURCHF. When you use a trend-following strategy on an instrument that tends to trend well, your results will improve.

There are also better results when a trend follower trades on an instrument which tends to move fast.

When you scalp, you would do well on trading instrument that moves slowly or tends to consolidate, just like EURCHF and EURGBP.

When you’re scalping in a highly trending market, your results can be worsened.

FIND THE RIGHT ENVIRONMENT FOR YOUR SYSTEMS
Locate the right environment for your trading system. Some trading systems perform well on Tuesdays to Thursdays only. Some perform well on Mondays and Fridays only. Some systems perform well from October to April only, while some systems perform well on May to September only. Some perform well during Asia sessions.

Please find the best months or weeks or days or times for your strategies. Find the best market conditions for your strategies and try to avoid periods and conditions that may not be favorable to you.

Conclusion:

Please don’t forget to use stops and risk very small per trade. Those who think they’re smart enough to avoid stop and low lot sizes, will eventually learn bitter lessons, no matter how good their strategies are.

I end this article with 3 quotes from great traders:

“Staying on the right side of the market is not always easy. But when it is, keep riding the easy move up while having a plan in place to protect your capital when the inevitable big pullback comes.” - D.R. Barton, Jr

“The markets don’t always cooperate with you. The winning trader is the person who questions a trading plan before executing it. He or she tries to anticipate what could go wrong, and thinks of ways to work around these potential setbacks. Being a healthy skeptic can be difficult at times, but the cautious optimist usually ends up making the most profits in the end.” – Joe Ross

“A losing trader can do little to transform himself into a winning trader. A losing trader is not going to want to transform himself. That’s the kind of thing winning traders do.” - Ed Seykota


Source: www.tallinex.com

Formal education versus trading skills

WHY ONLY SORBONNE-EDUCATED, LITERATURE PH.D.S SHOULD CUT YOUR HAIR

You get a haircut every few weeks. Everyone does. Men, women, children. Even balding men need a trim occasionally (as I’m finding out, sadly).

But what if I told you that you’ve been doing this all wrong?

What if I told you that your barber, or hairdresser, is terribly under-qualified. That you have been risking your hair — which is just a few centimeters from your brain, after all — to an under-educated, under-trained amateur.

What if I insisted you were making a huge mistake in your barber choice. Instead of your current choice, you should choose another kind of haircutter. A better one. This one should be qualified. He (or she) should be properly educated. He should hold a Ph.D.

In Comparative Literature.

From the Sorbonne.

If I told you that, what would you say?

You’d say I was crazy.

Because having a Comparative Literature degree from a French university has absolutely nothing to do with how you perform at cutting hair. Of course.

But wait a second. Such “crazy” advice is given to us every day. Very smart people, with net worths of millions of dollars… even billions of dollars… regularly follow similar advice.

I’m speaking about the hedge-fund industry. This is an industry that manages almost a trillion dollars of civilization’s wealth. The role of the hedge fund is to produce “alpha” — a fancy way to say that it is asked to produce “market-beating returns.” If you are a wealthy person who, over her lifetime has earned ten million dollars, you prefer not to leave all your cash sitting in a bank, earning negative interest rates, after inflation. You want your wealth to earn a return. And so you give a portion of it to a hedge fund.

Thus the “hedge fund industry” plays an important role in the financial world.

You would think, wouldn’t you, that the people who run hedge funds would want to hire the most talented traders and analysts to work at their firm. You would think that hedge-fund customers would insist upon such a thing. You would think that hedge-fund hiring departments would scour the world, looking for smart people who have creative and interesting ideas about how to manage money — how to create those market-beating returns while controlling risk.

Except… none of this is true.

In fact, the world of hedge funds is bizarrely insular. If you do not live in New York, if you do not live in London, if you did not win the birth lottery by being born in an English-speaking country, if you did not go to Harvard, if you did not get a job at Goldman… well, then, good luck getting a job at a hedge fund. I suppose you can apply, but… don’t let the door hit you on the way out.

Which is strange, when you think about it, because all those qualities: where you live, what language you speak, what name is on your diploma, whether you held a job at Goldman Sachs — all of those things are entirely unrelated to how you will perform as a trader or investor.

In other words, the hedge-fund industry operates as if it thinks all hair-cutters must hold Literature Ph.D.’s from the Sorbonne.

Everyone in the industry knows this is absurd — that the performance of any new hire is orthogonal to where a person went to school, or even if he did; or to where a person held her last job.

I’ll take this a step further. Really smart hedge-fund operators ought to know that hiring one more me-too Harvard ex-Goldman prop trader will generate, at best, me-too performance. Every Goldman clone will have similar “ideas,” will look in the same places for financial opportunities, will pile into the same lame trades, will follow the same stampeding herd.

Here’s an idea. What if we hired hair-cutters who were actually good at… cutting hair?

My company, Collective2, has a mission. It’s a simple one. We are going to destroy the entire hedge-fund industry. We are going to tear it down, burn it to ash, plow salt into its earth.

We think that anyone can generate alpha.

No, not that everyone can… simply that anyone might:

1. That guy in India, who didn’t win the lottery by being born near Manhattan, but who can code algos to predict market movements.

2. That doctor in Boston, who has a full time job helping humans live longer, and who has utterly no desire to work at a hedge fund, thank you very much; …but who notices that one particular pharma company’s sales reps seem to be applying high-pressure sales tactics, and who therefore decides to short its stock.

3. That Chicago-School economist, whose ten years of research have shown him that cartels inevitably collapse, and who therefore shorts oil futures, knowing that OPEC’s latest “production quota” announcement is just a bunch of hot air.

Here’s the thing about trading performance. It’s the one job in the world where it’s obvious who’s good at it, and who’s not. You simply look at the person’s track record. Nothing else matters. Not where a person lives. Not which company he worked at five years ago. The performance matters. That’s it. Period. Full stop.

Please read more here: https://trade.collective2.com/french-barbers


Source: Collective2.com. Reproduced with permission.

This article is also concluded with 3 more quotes:

“… Don't personify the markets. Anger is an interpersonal emotion. We are usually angry with someone because we believe that he or she has purposely tried to harm us. The markets may consist of people making trades, but it doesn't make sense to make up imaginary relationships with the markets. There is nothing that is personal going on. You are merely making it personal, and taking setbacks personally, as if someone were out to wrong you. The people participating in the markets may engage in actions that thwart your goals, but their actions are not directed toward you personally. It is best to look at the markets as an abstract impersonal entity. Pretend you are playing a videogame. The more impersonal you can make trading, the better you will feel, and the more profits you'll realize.” – Joe Ross (Source: Tradingeducators.com)

“There is a fundamental disconnect between the reality of trading and the academic and regulatory interpretation of how markets should work in a bubble. Unfortunately, too many traders get sucked into the complexities of academia and think that such intricacies are the ticket to their salvation. As always we come back to the notion that trading is a simple affair that is driven not by what the market does but by your reaction to it.” – Chris Tate

“By design, my trading system produces a highly asymmetric return with 80% of my total gains coming from 20% of my trades. Since the majority of profits from the system come from a minority of trades, missing out on just one could be a costly error as it could become one of the most profitable trades.” – VTI

www.tallinex.com wants you to become a successful trader

Trading on a wheelchair – Life’s lessons

A TRUE LIFE STORY OF A VETERAN TRADER

We were in a midst of a popular monthly traders’ forum when an elderly man on a wheelchair was helped into the hall.

The moderator asked us to stand up for the man, whom he called “a soldier on the battlefield of the financial markets.”

As the forum was about to be concluded, someone suggested that we allow the professional on a wheelchair to give a short speech.

A mic was given to him. He held the mic and said:

“My fellow traders. Thank you for standing up for me, and thank you for giving me a privilege to talk in this forum.

I started trading 12 years ago. And I am still trading. I will trade for as long as I breathe. I am one of the most popular Forex traders in this country.

Sadly, the one who coached me for Forex trading stopped trading in 2008, because of subprime crises and market crashes. He lacked risk control skills.

I pressed on, to become a regular columnist in a popular newspaper, writing about Forex trading on daily basis. I also provided trading signals for people, as well as trading my personal accounts.

I have 2 powerful manual strategies that I use. I developed the strategies based on my many years of experience. Trainees who apply my strategies have been sharing wonderful testimonies since.

A few years ago, I fell ill. Diagnosis revealed that I had cancer of the bone marrow. I required surgery in a foreign hospital. I gathered all the funds I could gather, and well-wishers and friends also contributed what they could.

I was transported to a foreign country (I was already paralyzed).

Luckily, the surgery was successful. I can say, partially successful, for the paralysis was partially corrected. I can now speak and use my hands. I can also stand up, but I cannot walk.

While I was on a hospital bed and my legs were tied. I was trading profitably on mobile devices. I was even providing trading signals and mentorship to people online.

Then, a client couldn’t believe I was providing services to clients on a hospital bed until we connected on Skype, doing video calls. I was seen trading on a bed, while I was strapped to the bed.

Several months ago, I came back to my country, and I have continued trading, training and providing signals since then.

[He burst into tears].

Traders. Let me tell you this. Online trading remains the best tool for financial freedom. Please do anything possible to become a winning trader.

Look at my condition now. I am advanced in age. I can only stand up, but I cannot walk. I need crutches and a wheelchair to move about.

Imagine. If I was someone who did 9.00 A.M – 5.00 P.M. work, what would be my lot now? My employers would have laid me off. If I was fortunate enough to get anything from them, it could have been exhausted by now.

I would have become a beggar by now. Or what makes me special when compared to other handicapped persons who have now become beggars? Clearly, online trading makes the difference!

Imagine. If I go to Mr. Henry to beg for $30, I would finish spending it. If I go to Mr. Johnson to beg for $20, I would finish spending it.

If Mr. Johnson was kind enough to give me $20 three times. He would eventually stop giving me more money because he got his own responsibilities. He might not pick my calls again; or he would instruct his folks to tell me he is not at home, when I visit him next (to beg for money).

This is a lesson you must learn. Please learn from my story. I trade on a wheelchair, and I make money from signals provision, coaching and trading. I can sustain myself, my wife, my 3 kids and my aged mother.”

He dropped the mic.

And the forum ended.

I conclude this articles with the 3 quotes below:

“You must be disciplined in following the plan of your trade religiously. Once you have closed your position, you should record everything about the trade. Write down where you wanted to enter the trade, what you expected out of the trade, and what you actually did get out of the trade. Make sure to include notes that will help you learn from the trade, reasoning what actually took place once you entered the trade. Explain why the trade was a winner or a loser. If you keep detailed records, you can learn from past trades and increase your chances of recognizing your strengths and weaknesses. Build on your strengths and stay away from trades you have demonstrated weakness in.” – Andy Jordan (Source: Tradingeducators.com)

“Humans are an error based machine, we make mistakes and perfection is never really on our radar despite our best efforts. The realisation that mistakes are at the core of good trading is hard for many to accept as they are locked into the belief that you cannot make money if you get trades wrong. Fortunately there is no nexus between making money and being right. Many, many years ago i discovered that the fewer bleeps I gave the more I made. To revert to a past life choice of mine – you could never be a fighter if your expectation was that you would never be hit.” – Chris Tate

“Avoid illiquid markets. Be sure to check volume. How much is it on average and is it steady day after day. And perhaps the greatest lesson of all should you happen to leap before you look--never, ever trade on hope or stay in a trade based on hope. If you are wrong, get out. If you don't have the discipline to do that, you shouldn't be trading.” – Joe Ross

Traders’ realities: http://www.advfnbooks.com/books/unlockpotential/index.html

Source: www.tallinex.com

Do you trade for money or emotional satisfaction?

DO YOU WANT TO BE ENTERTAINED OR RICH?…IT’S YOUR CHOICE

I came across this excellent chart the other day. It shows those times in history when the S&P 500 doubled over a ten year period and the trajectory that this doubling took.

Please see here for a relevant chart: https://www.tradinggame.com.au/want-entertained-rich-choice/

Much commentary that followed on twitter related to the steady low volatility climb that characterised the latest run and how boring this was. One of the interesting thing about markets and money in general is that people betray their true desires and personality.

Markets are the true window into the soul and in this instance what traders were actually saying is that they wanted to be entertained and not rich. The constant current moaning about the lack of volatility is little more than the plaintiff cries of children who bedevil their parents every school holidays with cries of …I’m bored.

This lay observation tallies with what others have found. The seminal work in this field of trader immaturity is An Analysis of the Profiles and Motivations of Habitual Commodity Speculators by W.B. Canoles, S.R. Thompson, S.H. Irwin, and V.G. France. I have summarised their findings below and have added my own emphasis.

“The typical trader assumes a good deal of risk in most phases of his life. He is both an aggressive investor and an active gambler.

[He] does not consider preservation of capital to be a very high trading priority.

As a result, he rarely uses stop loss orders. He wins more frequently than he loses (over 51% of the time) but is an overall net loser in dollar terms. In spite of recurring trading losses, he has never made any substantial change in his basic trading style.

To this trader, whether he won or lost on a particular trade is more important than the size of the win or loss. Thus he consistently cuts his profits short while letting his losses run.

He also worries more about missing a move in the market by being on the sidelines than about losing by being on the wrong side of a market move; i.e., being in the action is more important than the financial consequences.

Participating brokers confirmed that for the majority of the speculators studied, the primary motivation for continuous trading is the recreational utility derived largely from having a market position.

Numerous indications in our survey indicate that they are not trading solely or even primarily for profit, but may be maximizing excitement or the number of winning trades.”

So we come back to the original question. Do you want to rich or be entertained as the choice is entirely yours.

Author: Chris Tate
Article reproduced with kind permission of Tradinggame.com.au.

The article is concluded by the quotes below:


“It's in your best interest to focus on building your trading skills rather than on achieving a huge profit every month.” – Joe Ross

“No matter how good you may think you are, nobody is bigger than the market and it will beat you to your knees if you don't treat it with the respect it deserves.” - Adrian Alberts

“Trading does not have to be very difficult — what can be difficult is finding the right path early on and properly understanding the major impact of your mental state on your trading results” - Gabriel Grammatidis



www.tallinex.com wants you to be a successful trader


Trading realities: http://www.advfnbooks.com/books/unlockpotential/index.html