Great Posts By Great Traders

Don't be a hero. Don't have an ego. Always question yourself and your ability. Don’t ever feel that you are very good. The second you do, you are dead. (PTJ)

excerpt from one of my favorite writers, jim sloman......

Inflation is properly defined as an increase in the supply of money and credit. This process is brought about by governments because it seems—at first—to be such a pleasant solution to grave fiscal problems

(This is the end of Part 2. Go to Part 3.)

—jim sloman, 03.04.05

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.....h

For a significant number of habitual speculators, is the primary
motivation for continuous trading the recreational utility derived merely from having a market
position? That is, does the "chase" become the end as opposed to being a means to an end?

While earlier works have hinted that at

“sporting utility," the project at hand is the first known
effort to study specifically the recreational utility aspect of commodity trading.


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if you look close enough odds are you will see yourself in this paper.....

and if you look real real close you can see a long time resident in the recreational trading community........ me.... ......h

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I will quote myself now, this isnt really my words but its how I do it and a small summary of several great traders advices...

[quote=Larseg;5018679]


Its time to listen, understand and accept, this is the last time I will say this...

1. Trade with an amount which correlates so you can loose 15-20 times before you have to decrease the amount you trade with (static size).
2. Start to think overall net profit in pips...
3. When you have sufficient data you can tweak it a bit if you are as I suspect trying to grow your account...
4. Understand that the method or system itself is not making you money, its how you handle your losses and money management... the simpler the better (if its not boring you are doing something wrong)..

I am saying this cause a question like that would only come from someone who aren't consistently profitable...

When you have reached the goals above you aren't done, you have to be able to accept the winnings... The more you accept the greedier you can be, I think the few of us that are reaching that step are so surprised that it actually works that they still do mistakes, I still do but far less than in 2002-3... However, put yourself in a winning position...

Think that you are suppose to make money from your account not grow your account... its a massive difference...

I am not growing my account and I play with a static amount, i have already made it very simple for myself cause I will never increase risk when a loosing position occurs... Which you guys have to do if you're trying to reach 1% a day...

Its all about average net positive.... and use limit orders... We arent keen on paying the spread are we?

Good luck,

interview question: You provided many traders with a very interesting tool. Did the open-source approach prove its value? The majority got it without giving anything in return. How did you benefit from the development?

"I would not agree that nothing was given in return", nen

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........h

Old Baron Rothschild's recipe for wealth
winning applies with greater force than ever to speculation.
Somebody asked him if making money in the Bourse was not a very
difficult matter, and he replied that, on the contrary, he
thought it was very easy.
"That is because you are so rich," objected the
interviewer.
"Not at all. I have found an easy way and I stick to it. I
simply cannot help making money. I will tell you my secret if
you wish. It is this: I never buy at the bottom and I always

sell too soon."

from jessie livermore

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......h

in a world flat full of rules to break, jamie has narrowed it down to 3.....h

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Three little rules


Jamie’s rules for forex traders:

1. Understand the basics of technical analysis. You don’t need to be a quant-geek to be successful, but understanding the first ten chapters or so of the classic Technical Analysis of the Futures Markets: A Comprehensive Guide to Trading Methods and Applications by John J. Murphy would be a great start.
2. Understand the basics of fundamental analysis. Pay attention to trends in interest rates, commodity prices, prevailing direction of investment flows, among other. When the fundamental and technical outlooks for a currency differ, always side with the techs.
3. When the fundamental and technical outlooks for a currency converge, go for it! Take a more aggressive position than normal.

an elder's view on a traders three stages......h

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According to Alexander Elder, there are three stages to trading:

1. The trader who is technically well versed but devoid of an understanding with respect to the human component.

2. The trader who realizes that in spite of technical knowledge there is no guarantee to success. As such, he will attempt to recreate the mindset and decisions he made during successful stock trades, and avoid those that he made during unsuccessful ventures. Dr. Elder calls this the awakening of a psychological understanding with respect to stock trades.

3. This trader understands that successful stock trading requires control and money management. Rather than letting stats and positions move him, it is the management of the money and the control thereof that causes him to anticipate future positions.

Larry Hite wants to know what you can afford to lose.......h


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Every time i read ROASO i learn something new, this one i picked up on my 5-6 read.

Its not that i don't concentrate when i read it, but its just that you cant understand certain facts until you don't experience them yourself.
.

The speculator is not an investor. His object is not to secure a steady return on his money at a good rate of interest, but to profit by either a rise or fall in the price of whatever he may speculate in. Therefore the thing to determine is the speculative line of least resistance at the moment of trading; and what he should wait for is the moment when that line defines itself, because that is his signal to get busy.

Another quote from Reminiscences of a Stock Operator.

One of my fave's. This quote reminds me of entering a trade in the direction of the overall trend after a minor correction. Kind of like waiting for that reverse pivot towards it's true destination.

Nice thread Larseg
Inspiring storied or quotes always usefull for motivate us for keep going

Good Post!

Have several though and will try share here one by one..here the first one

"Holding your loses is the same as prove yourself right than Mr.Market"

Thanks bro

can never get enough motivation

“Know Thyself” may have come to us from the Greeks of old, but present day wisdom also confirms that if one attempts to act in a way counter to their true “authentic self”, then they are destined for disaster at some point. tom clevland on types.....

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mirror mirror on the wall, who is the,,,,,.......h

i will not do it again....
i will not do it again....
i will not do it again....
i will not do it again....
i will not do it again....
i will not do it again....

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yeah, right..... you can bet ya bottom dollar i will.......h

nikolay on pastimes and rewards thereof......

To be honest, prior to this championship of trading robots, I did not take automated trading very seriously and supposed this occupation to be a kind of just a highbrow pastime. So, in MQL 4, I concentrated on development of more and more complicated indicators for manual trading. But preparations for the Championship, its process itself followed by analysis of inaccuracies made in setting of external variables in my EA assured me: Automated trading has much more advantages than the manual one! As a matter of fact, it just needs spending some time to develop and create much more complicated and smart Expert Advisors capable to adjust to the current market conditions more delicately and more dexterously! At present, computers can beat humans at chess. So now we have just to concentrate on creation of programs similar to chess programs, but developed for financial markets. I don't think, of course, that this way will be easy and bestrewn with roses. But my opinion is: Those who will be able to appreciate advantages of this field at their true value and invest the most of their intelligence into creation of Expert Advisors will once be definitely rewarded for their efforts!


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..............h

turtles on stops.....h

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The Turtles always used stops.

For most people, it is far easier to cling to the hope that a losing trade will turn around than it is to simply get out of a losing position and admit that the trade did not work out. Let us make one thing very clear. Getting out of a losing position is absolutely critical. Traders who do not cut their losses will not be successful in the long term. Almost all of the examples of trading that got out of control and jeopardized the health of the financial institution itself, such as Barings, Long-term Capital Management, and others, involved trades that were allowed to develop into large losses because they were not cut short when they were small losses.

The most important thing about cutting your losses is to have predefined the point where you will get out, before you enter a position. If the market moves to your price, you must get out, no exceptions, every single time.

Wavering from this method will eventually result in disaster.

when asked, ' how long do you think it would take for someone to master the art of trading'......

joe responded 'the time is variably depending on you.... i often like to talk about the 5 and 50 rule'......

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are we there yet...... are we there yet...........h