VACILLATING WEDNESDAY

FROM AN EXPERIENCE

Losing discipline is not a trading problem; it is the common result of a number of trading-related problems. Here are the most common sources of loss of discipline, culled from my work with traders:

10) Environmental distractions and boredom cause a lack of focus;

9) Fatigue and mental overload create a loss of concentration;

Overconfidence follows a string of successes;

7) Unwillingness to accept losses, leading to alterations of trade plans after the trade has gone into the red;

6) Loss of confidence in one’s trading plan/strategy because it has not been adequately tested and battle-tested;

5) Personality traits that lead to impulsivity and low frustration tolerance in stressful situations;

4) Situational performance pressures, such as trading slumps and increased personal expenses, that change how traders trade (putting P/L ahead of making good trades);

3) Trading positions that are excessive for the account size, created exaggerated P/L swings and emotional reactions;

2) Not having a clearly defined trading plan/strategy in the first place;

1) Trading a time frame, style, or market that does not match your talents, skills, risk tolerance, and personality.

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BEING "SCATTERED"

This is a diagram I drew to represent a very definite negative state associated with trading which I have called “being scattered”… I know many of you will know what this means. This could relate to various things in life, but lets just relate it to trading.

The big red dot of course represents a negative emotion, either from something like a large drawdown, frustration that you are not making progress, getting stopped out yet again, feeling as though you’ll never master this skill etc. The little blue dots are what happens to your ability to focus as a result. It just blows your thoughts to dust.
I find that when I enter this state, I start making lots of little crazy trades or I start tinkering with things, like indicators and EA’s or surfing the net and reading a million articles etc. I now tend to do that in my demo account in the name of experimentation but actually it is just negative undisciplined behavior. You just basically totally lose it. You come apart in your head.
Now the point is that this is the worst worst time to be trading – you need to get yourself out of it ASAP. The problem is I’ve observed you can be stuck in this state for days and not even realize.
The way I now get myself out of it is to do a massive conscious refocus. You have to STOP and start over.
Get clear on you goals. Do you want to be a professional or just mess about for ever wasting time and money? (These are the types of questions I say to myself). 
AND I find it’s important at these times to scale back – scale back in you margin, focus on practicing ONE THING at a time. Or even just leave it for a while.
I’ll tell you honestly what a big source of this is for me, the idea that it will possibly take me years to master this skill just throws a spanner in my works. Occasionally, perhaps after a trading loss, I’ll just get thrown into the scattered state – my head is buzzing with conflicting trading idea, like a swarm of flies. It’s all in a million disconnected pieces, I can remember it all but put non of it together. I’m confuuuuused!!! 

                                                      

 WIKILEAKS REVEALS PLANS FOR NORTH KOREAN COLLAPSE

BEIJING — Leaked U.S. diplomatic cables show China’s frustration with communist ally North Korea and speculate Beijing would accept a future Korean peninsula unified under South Korean rule, according to the documents released by whistle-blowing website WikiLeaks.

The memos posted online by media organizations indicate the enormous import American and South Korean diplomats place on China’s attitude toward the future survival of the isolated and impoverished hard-line communist regime in Pyongyang.
The release of the documents follows new tensions in the region with North Korea unleashing a fiery artillery barrage on a South Korean island that killed four people a week ago. The regime also warned that joint U.S.-South Korean naval drills this week had pushed the peninsula to the “brink of war.”
China “would be comfortable with a reunified Korea controlled by Seoul and anchored to the US in a ‘benign alliance’ as long as Korea was not hostile towards China,” then-South Korean vice-foreign minister, Chun Yung-woo, is quoted as telling U.S. ambassador to South Korea Kathleen Stephens in February.
Chinese officials are also quoted as using mocking language in reference to North Korea, pointing to tensions between the two neighbors in contrast to official statements underscoring strong historical ties.
Then-Deputy Foreign Minister He Yafei is quoted as telling a U.S. official in April 2009 that Pyongyang was acting like a “spoiled child” by staging a missile test in an attempt to achieve its demand of bilateral talks with Washington.
China is also preparing to handle any outbreaks of unrest along its border with North Korea that could follow a collapse of the regime. Chinese officials say they could deal with up to 300,000 refugees but might have to seal the border to maintain order, the memos said, citing an unidentified representative of an international aid group.
The diplomatic cables warned, however, that China would not accept the presence of U.S. troops north of the demilitarized zone that currently forms the border between the two Koreas.
U.S. Secretary of State Hillary Rodham Clinton asserted Monday that WikiLeaks acted illegally in posting the material. Officials around the world have said the disclosure jeopardizes national security, diplomats, intelligence assets and relationships between foreign governments.
Britain’s the Guardian newspaper and The New York Times were among five international media organizations to receive the documents in advance.

China has largely rebuffed calls to use its influence to force Pyongyang to moderate its behavior, while opposing harsh economic sanctions or international censure. Beijing has responded to the latest crises by repeating calls for a return to long-stalled, six-nation denuclearization talks that the North has rejected.

o

TODAY’S TRADING STRATEGY

OF NIFTY FUTURES –  DEC 1 

WATCH 5904 TODAY

If trades above 5893 for 15-20 minutes and cuts 5904

decisively a hike upto 5920-40-57 is seen on cards.

Or otherwise if cuts 5880 & trades below the level

see a slide upto 5865 and if this breaks with

good volume more slide upto 5847-37

Since a very volatile session is expected today,

traders have to be extra cautious.

BANK NIFTY

 Buy btwn 12073-12102

T1 – 12148-71      

T2 – 12186-95

T3 – 12224

Sell btwn 11978-49

T1 – 11902-879

T2 – 11864-55

T3 – 11826

  

  

SHARE TIPS TODAY (DEC 1) 

1) Sell DEN @ 178.25

    T1 – 176.25

    T2 – 174.25

    T3 – 172.25-170.10

2) Sell HANUNG @ 298.85

    T1 – 296.60

    T2 – 294.75

3) Sell ESCORTS @ 189.9

    T1 –  188.50

    T2 –  187.75      

4) Sell ICICIBANK @ 1141

    T1 – 1132

    T2 – 1124

     

IMPORTANT THINGS TO BE NOTED

1. NEVER EVER COVER THE POSTION

TILL TARGET1 IS ACHIEVED 

(TAKE YOUR OWN DECISION AFTER T1)

2.NEVER EVER ENTER INTO A TRADE

BEFORE THE ABOVE MENTIONED LEVELS

or AFTER THE TARGETS WERE ATTAINED.

3.STOPLOSS LEVELS, REVERSE TRADING

& MORE INTRADAY TIPS IN MARKET HOURS

 EXCLUSIVELY TO THE SUBSCRIBERS

Disclosure:

Solely I have all the rights to stop the free trials

provided in this space at any moment.

Pls subscribe as soon as possible,

join hands with us and enjoy.

AN ASTRAL VIEW OF MARKET TODAY

Stock Market Prediction for 1st December 2010

Transiting Moon will be passing through Virgo Zodiac sign. Transiting Moon will be in applying aspect with Transiting Saturn. Moon is placed in cardinal sign, which is good for the market. Market may do good business during first trading session. Market may go up between 10.05 and 10.30. Market trend may change after 11.43. Market may gradually go up. Market would go up during last trading session.

Disclaimer

On repeated requests of the readers this astral prediction is started.

Traders are advised to attain some technical knowledge

before they get into trades anyway

                                                                                                   -EDITOR

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Contact Admin (Analyst) @

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IS VENTING EMOTION GOOD FOR TRADING?


Does venting emotion help a trader regain focus or does it exacerbate emotional and physical arousal and interfere with concentration and decision making? Research actually suggests that venting emotion after a traumatic event can lead to worse psychological outcomes.
The key seems to be whether the venting allows for a reprocessing of the stressful events. If the venting leads to new ways to interpret what has happened–new perspectives–it can be helpful. If there is no such transformation of the stressful event, venting can simply amplify stress responses and reinforce them. Venting in a social manner to gain control can constitute good coping. But losing emotional control simply reinforces a sense of lost control.

How do *your* coping efforts work for you?

Take a look at how well you trade after a position has gone against you. Do you trade better after a drawdown or worse?

How about after you have a few winning trades, days, or weeks in a row? Do you trade better or worse? Breaking down your performance as a function of recent performance will tell you a great deal about how effective you are in coping with risk and reward.
The other excellent indicator of whether your coping is working for you is your emotional experience during trading. If you find that anxiety, overconfidence, frustration, and stress are pushing you into poor decisions, you know that you’re not coping well with the uncertainties of markets.
Finally, it is helpful to identify the sequences of coping behaviors that you utilize when you’re making good decisions and the sequences when you’re trading poorly. Knowing how your individual coping responses come together to form coping strategies can help you cultivate your coping strengths.
Tracking how you deal with challenges when you are at your most effective enables you to create a mental model of that coping that you can call upon during periods of high stress. We cannot avoid the stresses of trading, but those do not have to generate distress and biased decisions.

A REVIEW - POPES & BANKERS

Over the last weekend I finished reading Popes and Bankers: A Cultural History of Credit and Debt, from Aristotle to AIG by Jack Cashill and enjoyed it a great deal. It’s not a perfect book, but it has a lot going for it: the amount of information contained in it is simply amazing for a relatively thin, easy-to-read paperback and it is written from an ethical perspective that I believe most members of this list will find agreeable. I certainly could disagree with very little of the moral and ethical commentary contained therein.

The book is really a collection of loosely tied essays and historical notes on the origins and use of credit and money. Surprisingly, more than anything is is also a kind of a history of Jewish people in Europe and, to a lesser degree, in the US. It is also a cautionary tale about “prodigals” turning on the “usurers” through history demonstrating that little is new under the sun in the financial area other than the technical innovations. The specific distinct areas of the book are too numerous to mention, but even after having a lifelong interest in the origins of money and credit I learned a great deal about the contributions of the Greeks and Romans, the Medicis, Luther and Calvin, as well as Marx and Aristotle and the almost endless parade of German and American Jews. 

For those who have read more than one description of the various early European manias and the creation of the Fed, those in the book can be safely skipped, but it was worth it for me to pick up some details I wasn’t aware of before.

On the negative side, while interesting there were too many citations from Michael Lewis with respect to the modern American portion of the material. These made for a somewhat amateurish quality of those chapters, and of course reminded me of our host’s lack of respect for the man. Overall though it was a very satisfying book so I highly recommend it.

BERNARD BARUCH  - TRADING QUOTES

• 

• A speculator is a man who observes the future, and acts before it occurs.
• If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he is wrong.
• During my eighty-seven years I have witnessed a whole succession of technological revolutions. But none of them has done away with the need for character in the individual or the ability to think.
• Age is only a number, a cipher for the records. A man can’t retire his experience. He must use it. Experience achieves more with less energy and time.
• Do not blame anybody for your mistakes and failures.
• Every man has a right to his opinion, but no man has a right to be wrong in his facts.
• I made my money by selling too soon.
  I never lost money by turning a profit.
• Most of the successful people I’ve known are the ones who do more listening than talking.
• Never pay the slightest attention to what a company president ever says about his stock.
• Whatever failures I have known, whatever errors I have committed, whatever follies I have witnessed in private and public life have been the consequence of action without thought. 
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WE SMELL A VERY BIG SCAM ....IN FORTHCOMING MONTH WHICH WOULD KILL INDIAN MARKET ... (WILL UPDATE SOON)

MESSAGE TODAY

It is the tension between creativity and skepticism that has produced the stunning and unexpected findings of science
                                                                                   -CARL SAGAN

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