Words of Philosophy & Psychology---

Success tends to go not to the person who is error-free, because he also tends to be risk-averse. Rather it goes to the person who recognizes that life is pretty much a percentage business. It isn't making mistakes that's critical; it's correcting them and getting on with the principal task."

"It is very important to visualize the many ways in which the market may unfold, rather than trying to forcast or predict how it will unfold. With a market understanding, you can begin to visualize each possibility, and what each would indicate to you about the market and your position."

--- Steidlmayer

"Successful real-time traders have a far better chance of taking their successful trading techniques and applying them to automated trading systems than successful programmers have of applying their guesses at what a good trading method should look like. You simply don't have the built-up experiences of trading live markets to have the right feel for what works and what doesn't work."

"Luck in trading is like a bar of soap in a prison shower. If you squeeze it too hard you'll need to bend over to pick it up."
M-MM

"There are hundreds of trading systems that work, but they are all very difficult to find."

--- Schwager

"I'll reiterate that demand, supply, support, resistance, buying pressure, selling pressure are all related, but distinct. Unfortunately, the meaning of demand and supply have become corrupted, like "overbought" and "oversold". Supply, for example, does not refer to some hoard somewhere that is drawn upon in order to satisfy and overwhelm demand, like a trainload of avocados. Thinking of it in this way is not productive, or even useful, and it can lead to errors in perception which can lead to further errors in strategy creation, trade entry and trade management. For example, thinking of supply as a pile of something can lead to expectations that it will eventually run out. These expectations may not occur if one perceives the activity as selling pressure instead. Selling pressure can last for a good long while."

"Wisdom too often never comes, and so one ought not to reject it merely because it comes late."

--- Felix Frankfurter

Awesome...lol, probably the most accurate analogy you could get

"Daytrading is an active pursuit, requiring constant attention.Most of the time nothing is happening, but when it does the trader must be ready.Many beginners decide to concentrate on one market, to get to know it in detail.This is the route to success in the nontrading world; so it must be true of trading,right? Wrong! Any given market offers low-risk-trading opportunity only rarely, and sometimes nothing happens for days.It is extremely difficult for a committed trader to do nothing for long periods.Watch the ticker, take no action; watch the ticker, take no action...boredom.Ennui.Monotony."

“Hey, Kid, see how these guys all talk among themselves, figuring stuff out about why this happens and why that happens? You see how often they are wrong? Well, I’ll tell you something that could help you: It isn’t what these guys say to each other that counts—it’s only what the tape says that counts."

--- Reminiscenses of a Stock Operator

This one is an excerpt of an email I got recently---forgive me if it is too long & boring, but, I found it interesting to share


In the 1400's a law was set forth in England that a man was allowed to
beat his wife with a stick no thicker than his thumb. Hence we have "the
rule of thumb"
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Many years ago in Scotland , a new game was invented. It was ruled
"Gentlemen Only...Ladies Forbidden"...and thus the word GOLF entered
into the English language.
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The first couple to be shown in bed together on prime time TV were Fred
and Wilma Flintstone.
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Every day more money is printed for Monopoly than the U.S. Treasury.
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Men can read smaller print than women can; women can hear better.
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Coca-Cola was originally green.
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It is impossible to lick your elbow.
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The State with the highest percentage of people who walk to work: Alaska
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The percentage of Africa that is wilderness: 28% (now get this...)

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The percentage of North America that is wilderness: 38%
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The cost of raising a medium-size dog to the age of eleven: $ 16,400
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The average number of people airborne over the U.S. in any given hour:
61,000

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Intelligent people have more zinc and copper in their hair.
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The first novel ever written on a typewriter: Tom Sawyer.
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The San Francisco Cable cars are the only mobile National Monuments.

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Each king in a deck of playing cards represents a great king from
history:



Spades - King David



Hearts - Charlemagne



Clubs -Alexander, the Great



Diamonds - Julius Caesar



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111,111,111 x 111,111,111 = 12,345,678,987,654,321



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If a statue in the park of a person on a horse has both front legs in
the air, the person died in battle. If the horse has one front leg in
the air the person died as a result of wounds received in battle. If the
horse has all four legs on the ground, the person died of natural
causes.



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Only two people signed the Declaration of Independence on July 4th, John
Hancock and Charles Thomson. Most of the rest signed on August 2, but
the last signature wasn't added until 5 years later.



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Q. Half of all Americans live within 50 miles of what?



A. Their birthplace



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Q. Most boat owners name their boats. What is the most popular boat name
requested?



A. Obsession



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Q. If you were to spell out numbers, how far would you have to go until
you would find the letter "A"?



A. One thousand



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Q. What do bulletproof vests, fire escapes, windshield wipers, and laser
printers all have in common?



A. All were invented by women.



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Q. What is the only food that doesn't spoil?



A. Honey



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Q. Which day are there more collect calls than any other day of the
year?



A. Father's Day



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In Shakespeare's time, mattresses were secured on bed frames by ropes.
When you pulled on the ropes the mattress tightened, making the bed
firmer to sleep on. Hence the phrase......... "goodnight, sleep tight."



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It was the accepted practice in Babylon 4,000 years ago that for a month
after the wedding, the bride's father would supply his son-in-law with
all the mead he could drink. Mead is a honey beer and because their
calendar was lunar based, this period was called the honey month, which
we know today as the honeymoon.



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In English pubs, ale is ordered by pints and quarts... So in old England
, when customers got unruly, the bartender would yell at them "Mind your
pints and quarts, and settle down."



It's where we get the phrase "mind your P's and Q's"



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Many years ago in England , pub frequenters had a whistle baked into the
rim, or handle, of their ceramic cups. When they needed a refill, they
used the whistle to get some service. "Wet your whistle" is the phrase
inspired by this practice.



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~~~~~~~~~~~AND FINALLY~~~~~~~~~~~~



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At least 75% of people who read this will try to lick their elbow!



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-



Don't delete this just because it looks weird. Believe it or not, you
can read it.



I cdnuolt blveiee taht I cluod aulaclty



uesdnatnrd waht I was rdanieg. The



phaonmneal pweor of the hmuan mnid Aoccdrnig to rscheearch at Cmabrigde



Uinervtisy, it deosn't mttaer in waht oredr the



ltteers in a wrod are, the olny iprmoatnt tihng is taht the frist and
lsat ltteer be in the rghit



pclae. The rset can be a taotl mses and you can sitll raed it wouthit a
porbelm. Tihs is bcuseae the huamn mnid deos not raed ervey lteter by
istlef, but the wrod as a wlohe. Amzanig huh?



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----------------



YOU KNOW YOU ARE LIVING IN 2007 when...



1. You accidentally enter your PIN on the microwave.



2. You haven't played solitaire with real cards in years.



3. You have a list of 15 phone numbers to reach your family of three.



4. You e-mail the person who works at the desk next to you.



5. Your reason for not staying in touch with friends and family is that
they don't have e-mail addresses.



6. You pull up in your own driveway and use your cell phone to see if
anyone is home to help you carry in the groceries.



7. Every commercial on television has a web site at the bottom of the
screen.



8. Leaving the house without your cell phone, which you didn't even
have the first 20 or 30 (or 60) years of your life, is now a cause for
panic and you turn around to go and get it.



10. You get up in the morning and go on line before getting your
coffee.



11. You start tilting your head sideways to smile. : )



12. You're reading this and nodding and laughing.



13. Even worse, you know exactly to whom you are going to forward this
message.



14. You are too busy to notice there was no #9 on this list.



15. You actually scrolled back up to check that there wasn't a #9 on
this list.



AND NOW U R LAUGHING at yourself.

Some days it isn't hardly worth chewing through the restraints to get
out of bed.

"Investors do not appear to be as rational as they claim to be. Many investors react to irrelevant information called "the noise signals". Though they think they are acting intelligently, these investors can expect to earn the same return as an investor who buys and sells based on a coin flip. Investors who follow the advice of financial gurus who base their advice on noise signals are noise traders by proxy.
In fact , investors are guilty of numerous departures from rationality.They fail to diversify, they trade too actively, they increase their tax liability by selling appreciated stocks but hold onto losing positions, and they trade mutual funds with high fees. Investors' deviations from maxims of economic rationality turn out to be hughly pervasive and systematic. For example, when choices are framed in terms of potential gains, investors tend to choose the option most likely to earn a gain, even if insignificant in amount. However, when the same choices are framed in terms of potential losses,investors will assume the risk of a very significant loss just to avoid the certainty of a small loss. This error, called the disposition effect, is thought to explain why investors sell winners quickly, so as to be sure to earn a gain,even if it is small, and hold onto losses even if it means there is a chance the loss will turn into a much larger one."

---Fischer Black

"One day Kiichiro Toyoda was walking through the vast plant when he came upon a worker scratching his head and muttering that his grinding machine would not run. Kiichiro took one look at the man, then rolled up his sleeves and plunged his hands into the oil pan. He came up with two handfuls of sludge. Throwing the sludge on the floor, he said: “How can you expect to do your job without getting your hands dirty!”

--- The Toyota Way document , Toyota Motor Corporation

"There is no man more pusillanimous than I when I am planning a campaign. I purposely exaggerate all the dangers and all the calamities that the circumstances make possible. I am in a thoroughly painful state of agitation. This does not keep me from looking quite serene in front of my entourage; I am like an unmarried girl laboring with child."

--- Napoleon

“Your time is limited, so don't waste it living someone else's life. Don't be trapped by dogma - which is living with the results of other people's thinking. Don't let the noise of other's opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary.”


--- Steve Jobs

An idiot is someone not smart enough to avoid the mistakes that you made when you were their age.

~X~

so true.

“Do nothing which is of no use.”
Miyamoto Musashi

To know that you don't know is a good start.