Forex Trading Philosophy

start small, think big and the most important thing that can not be said:

Inserted Video

get up and never give up

www.youtube.com/watch?v=hzBCI13rJmA

do not afraid to fail

This is How Winners Are Made

Planning, Discipline & Patience.

 

1. ‘Predicting rain doesn't count; building arks does': Warren Buffett’s Noah Rule.
2. "To know and not to do, is not yet to know" – Courtesy of Tom Witters.
3. ‘It's easy to have faith in yourself and have discipline when you're a winner, when you're number one. What you got to have is faith and discipline when you're not a winner.’ – Vince Lombardi
4. ‘After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight!’ – Jesse Livermore

Perspectives

 

1. ‘Don't worry what others think... They don't do it very often’ – Courtesy of Mark Carstens.
2. "A little learning is a dangerous thing, but we must take that risk because a little is as much as our biggest heads can hold." - George Bernard Shaw.
3. "Those who cannot remember the past are condemned to repeat it" - George Santayana.
4. “Glory is fleeting but obscurity is eternal” – Napoleon
5. ‘A long term investment is when I break even.’ – Courtesy of David Wong.
6. "There are many truths, but only one reality" – Courtesy of Robin Farrell.
7. ‘It's not whether you get knocked down, it's whether you get up.’ – Vince Lombardi.
8. 'We would accomplish many more things if we did not think of them as impossible.’ – Vince Lombardi
9. "Vision - It reaches beyond the thing that is, into the conception of what can be. Imagination gives you the picture. Vision gives you the impulse to make the picture your own." – Robert Collier.
10. "If you're 30 minutes into the game and you don't know who the patsy is, you're the patsy." – Courtesy of Saranjot Dosanjh.
11. ‘Price is observable and objective while value is perceived and subjective’. – John Murphy.
12. ‘In theory, there is no difference between theory and practice. In practice there is.’ – Yogi Berra.
13. “As a rule, Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works…. The Failure of great banks… and mercantile firms…are the symptoms incident to the disease, not the disease itself.” – John Stuart Mill (1867).
14. “Never in recorded history, has the supply of capital not overwhelmed the supply of opportunity.” – Joseph Lassiter .
15. 'You only live once but if you work it right, once is enough'. – Joe E. Lewis.
16. ‘Another lesson I learned early is that there is nothing new in Wall Street. There can't be because speculation is as old as the hills. Whatever happens in the stock market today has happened before and will happen again.’ - Jesse Livermore.
17. "Economic history is a never-ending series of episodes based on falsehoods and lies, not truths. It represents the path to big money. The object is to recognize the trend whose premise is false, ride that trend, and step off before it is discredited." – Soros.

On Losses (and Profits).

 

1. ‘Tradings only real secret is... The best loser is the long-term winner’
2. ‘Losses can either be lost money, or tuition in the school of trading’ - Courtesy of Mark Moskowitz.
3. ‘The worst advice I use to get was. - 'No one went broke taking a profit'’. - Courtesy of John Berra.
4. "It seems that the necessary thing to do is not to fear mistakes, to plunge in, to do the best that one can, hoping to learn enough from blunders to correct them eventually." - Abraham Maslow
5. ‘“Learn to like your losses". Why? Because they are small!’ – Courtesy of Stuart A.Brown.
6. "One common adage...that is completely wrongheaded is: You can't go broke taking profits. That's precisely how many traders do go broke. While amateurs go broke by taking large losses, professionals go broke by taking small profits." - William Eckhardt.
7. “Its not about being right or wrong, rather, its about how much money you make when you’re right and how much you don’t lose when you’re wrong.” – George Soros.
8. "The first loss is the best loss." - Jim Rogers.
9. "Losers average Losers"...Paul Tudor Jones.
10. “You learn nothing from your winners and everything from your losers.” – Courtesy of Jeff Horn.
11. “To become a Master Trader, you must first be a successful loser.” – Jeff Horn.

Ego

 

1. "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." - Paul Tudor Jones

Personal Responsibility and Self-awarenss

 

1. ‘……you get the results you want. You produce your own success" – Gene Agatstein.
2. "I know from experience that nobody can give me a tip or series of tips that will make more money for me than my own judgement." - Jesse Livermore.
3. 'There is no holy grail, and there is no magical system. You have to win the battle within you first before you can win with the markets''
4. "If you are distressed by anything external, the pain is not due to the thing itself, but to your estimate of it; and this you have the power to revoke at any moment." - Marcus Aurelius.
5. “If you don't know who you are, this is an expensive place to find out" - Adam Smith, The Money Game.

Personal and Trading advice

 

1. 'Successful trading comes down to this: overcoming your personal psychological barriers and conditioning yourself to produce feelings of self-trust , high self-esteem, unshakable conviction, and confidence which will naturally lead to good judgement and winning trades based on a proven methodology’ – Courtesy of James Buzzard.
2. "If everything feels under control, you are not going fast enough" -Mario Andretti, 1978 Formula One World Champion.
3. "If you sit by the river long enough, a dead body will sooner or later float down there" – Japanese Proverb.
4. 'The most important rule of trading is to play good defense, not great offense.’ -Paul Tudor Jones.
5. "When the facts change, I change my mind. What do you do, sir?" - John Maynard Keynes.
6. “Holding cash is uncomfortable, but not as uncomfortable as doing something stupid.” – Warren Buffet
7. "Trade the market, not the money...if you exercise your strategy with discipline, the money will follow." – Courtesy of Umar Ali.
8. “If you ACCEPT the risk of the trade and SHARE SIZE appropriately then you should be able to trade in a relaxed and optimum state of mind.” – Courtesy of Tom Willard.
9. "There are old traders and there are bold traders, but there are very few old, bold traders." - Ed Seykota
10. “Falling knives have to land somewhere.....” – Courtesy of Aidan Philipson.
11. ‘The dictionary is the only place where success comes before work!’- Vince Lombardi.
12. “Luck is what you have left over after you give 100 percent” - Langston Coleman.
13. ‘Traders (Leaders) are made, they are not born. They are made by hard effort, which is the price which all of us must pay to achieve any goal that is worthwhile.
14. It's easy to have faith in yourself and have discipline when you're a winner, when you're number one. What you got to have is faith and discipline when you're not a winner.’ – Vince Lombardi.
15. “I’ve missed more than 9,000 shots in my career. I’ve lost almost 300 games. 26 times, I’ve been trusted to take the game-winning shot and missed. I’ve failed over and over and over again in my life. And that is why I succeed.” - Michael Jordan
16. ‘What sets successful traders apart?......Most people think that winning in the markets has something to do with finding the secret formula. The truth is that any common denominator among the traders I interviewed had more to do with attitude than approach’. – Jack Schwager.
17. "There is little difference in people, but that little difference makes a big difference. That little difference is attitude. The big difference is whether it is positive or negative." – Robert Collier.‘Ours is not to reason why, ours is but to sell and buy.’ - Courtesy of Mark Moskowitz.
18. "Success is the sum of small efforts - repeated day in and day out." – Robert Collier.
19. "A professional writer is an amateur who didn't quit." - Richard Bach
20. “Golf is a game played on a 5 inch Course- the distance between your ears.” – Bobby Jones.
21. "...It's all to do with the training: you can do a lot if you're properly trained..." - Queen Elizabeth II.
22. "The person who goes farthest is generally the one who is willing to do and dare. The sure-thing boat never gets far from shore." - Dale Carnegie.
23. "You are - face it - a bunch of emotions, prejudices, and twitches, and this is all very well as long as you know it. Successful speculators do not necessarily have a complete portrait of themselves, warts and all, in their own minds, but they do have the ability to stop abruptly when their own intuition and what is happening Out There are suddenly out of kilter. - Adam Smith, The Money Game.
24. ‘“Everyday my trading skills are getting better and better". I repeat it like a daily mantra’ – Purportedly attributed to Emile Coue.

Strategy

 

1. "Only movement brings victory" - German Colonel General Heinz Guderian, father of modern armoured warfare.

On Models:

 

1. “Fashion models and financial models bear a similar relationship to the everyday world. Fashion models are idealised concepts of male and female beauty. Financial models are idealised representations of the real world. Neither is real. Models don’t quite work in the way that the real world works. There is celebrity in both worlds. In the end, there is the same inevitable disappointment.” Satyayit Das, author of Traders, Guns & Money
2. “All models are wrong, but some are useful” - George Box.

Risk, Money, Liquidity Management.

 

1. "When the music stops, in terms of liquidity, things will be complicated. But as long as the music is playing, you’ve got to get up and dance. We’re still dancing.” – Chuck Prince, former CEO at Citibank just before the credit crunch.

On Perfectionism.

 

1. ‘Something that fails to live up to perfection is more despised than something that was never idealized in the first place.’ – Aaron Brown, former risk manager at Morgan Stanley.

Poems:

 

1. 'IF' by Rudyard Kipling.

If you can keep your head when all about you
Are losing theirs and blaming it on you;
If you can trust yourself when all men doubt you,
But make allowance for their doubting too:
If you can wait and not be tired by waiting,
Or, being lied about, don't deal in lies,
Or being hated don't give way to hating,
And yet don't look too good, nor talk too wise;

If you can dream---and not make dreams your master;
If you can think---and not make thoughts your aim,
If you can meet with Triumph and Disaster
And treat those two impostors just the same:.
If you can bear to hear the truth you've spoken
Twisted by knaves to make a trap for fools,
Or watch the things you gave your life to, broken,
And stoop and build'em up with worn-out tools;

If you can make one heap of all your winnings
And risk it on one turn of pitch-and-toss,
And lose, and start again at your beginnings,
And never breathe a word about your loss:
If you can force your heart and nerve and sinew
To serve your turn long after they are gone,
And so hold on when there is nothing in you
Except the Will which says to them: "Hold on!"

If you can talk with crowds and keep your virtue,
Or walk with Kings---nor lose the common touch,
If neither foes nor loving friends can hurt you,
If all men count with you, but none too much:
If you can fill the unforgiving minute
With sixty seconds' worth of distance run,
Yours is the Earth and everything that's in it,
And---which is more---you'll be a Man, my son!

“ The great mistake is to anticipate the outcome of the engagement;
you ought not to be thinking of whether it ends in victory or defeat.
Let nature take its course, and your tools will strike at the right moment. ”

~ Bruce Lee

"In neither sun nor ocean is the power that rests in you" - chapter 18, the dream and the reality, A Course in Miracles

http://www.youtube.com/watch?v=LemPnZn54Kw

More about Time.
Now and the Reality:

On the same topic with explanation and example:

Life is what happens to us while we are making other plans.

(Thomas La Mance)

Future and making plans

love this thread full of inspiring message thanks guys....

Advice of the week

I agree. I think risk management is of the most importance.
I control the max loss of per trade under 1.5% and my max dd last month is only 3.65%.

"I see the younger generation hampered by the

need to understand and rationalize why

something should go up or down. Usually, by the

time that becomes self-evident, the move is

already over. When I got into the business, there

was so little information on fundamentals, and

what little information one could get was largely

imperfect. We learned just to go with the chart."

~ Paul Tudor Jones

We learned just to go with the chart.

chart is like a 3D image, when you master it you will see the real image which always has been staring at you.

CP, thanks for your participation. I (and i assume few other occasional visitors of this thread) would greatly appreciate if you can share your thoughts with us on the philosophy of trading. This thread is free of discussions on trading systems or methods and solely concentrates on "intangible" side of the trading. as a quantum physics fan, i believe the base of the matter is something intangible.
the most essential thing, the core, the base of any successful trading is the mindset, a good understanding of trading philosophy. in my opinion, any trader who wants to be successful in long term, must have a good knowledge of trading philosophy, unfortunately, mostly neglected by majority.

we give ourselves a question: there must be a solid rationale behind the price action, what is it? we seek answer from fundamental and technical analysis, news, indicators etc. soon find ourselves in a chaos, total mess: things do not work as we were expecting, after spending so much time on finding an answer, we realize we are no better than a newbie or even a 7 yrs old kid. we keep digging deeper until we understand that from the very beginning we were searching for an answer for a wrong question.

Hi Tashkent,

Thanks for all the wonderful videos and quotes. Looking forward to read more of your posts.