FROM AN EXPERIENCE
There are so many ways to lose money in the stock market but whether it is from blindly trusting what turns out to be a Bernie Madoff ponzi scheme to refusing to take a loss on a “sure thing”, the root cause of losses is our inability to objectively perceive market action without the many and varied biases associated with “money on the line”.
According to Mark Douglas…
In any particular trade you never really know how far prices will travel from any given point. If you never really know where the market may stop, it is very easy to believe there are no limits to how much you can make on any given trade. From a psychological perspective this characteristic will allow you to indulge yourself in the illusion that each trade has the potential of fulfilling your wildest dream of financial independence. Based on the consistency of market participants and their potential to act as a force great enough to move prices in your direction, the possibility of having your dreams fulfilled may not even remotely exist. However, if you believe it does, then you will have the tendency to gather only the kind of market information that will confirm and reinforce your belief, all the while denying vital information that may be telling you the best opportunity may be in the opposite direction.
There are several psychological factors that go into being able to assess accurately the market’s potential for movement in any given direction. One of them is releasing yourself from the notion that each trade has the potential to fulfill all your dreams. At the very least this illusion will be a major obstacle keeping you from learning how to perceive market action from an objective perspective. Otherwise, if you continually filter market information in such a way as to confirm this belief, learning to be objective won’t be a concern because you probably won’t have any money left to trade with (italics mine).
From Chapter Four of THE DISCIPLINED TRADER
Bottom line: successful trading is about making money…not about being right.
(to be contd)
NIFTY LEVELS FOR MONDAY (MARCH 12)
RESISTANCE @ 5397 & 5421
SUPPORT @ 5342-30 & 5308 & 5288
IN A NORMAL OPENING
If trades above 5367 for 5 minutes NF will reach 5394
If trades below 5366 for 5 minutes NF will slide to 5343-35-29
IN A GAP-UP OPENING
If opens and trades above 5394 for 5 minutes,
non-stop hike upto 5421 is seen..
non-stop hike upto 5421 is seen..
In a gap-up opening support will be @ 5367 & 5341
IN A GAP DOWN OPENING (Chances are remote)
If opens and trades below 5337 for 5 minutes,
a slide upto 5308 & 5289 is seen
a slide upto 5308 & 5289 is seen
INTRADAY SELLING TIPS TODAY (MAR 12)
Also you can sell CONCOR on rise today
IMPORTANT QUOTES
- To be a successful trader/investor, your intellect and emotion must work as a team, which is easier said than done.”- James Dalton
- ” Successful traders accept and expect losses. Losses are endemic to trading; they are the cost of doing business. The consistently successful trader accepts deep in his heart that his winnings will be tempered with inevitable loss. But the trader anticipates his ultimate triumph because he has structured the probabilities in his favor”.-LBR
- “To be a successful trader you need to trade without fear. When you use fear as a resource to limit yourself, you will create the very conditions you are trying to avoid. Or to say this another way, you will experience your fears.”-Mark Douglas
- “The man who insists upon seeing with perfect clearness before he decides, never decides.”- Henri-Frederic Amiel
- “…to be a successful trader, I must love to lose money and hate to make money…The first loss is the best loss; there is no better loss than the first loss…Trading is a discipline.”- EEK
CANCEROUS COKE
When the state of California added the compound 4-methylimidazole, also known as 4-MI or 4-MEI, to its list of known carcinogens in 2011, it created a problem for the soda industry.
The caramel color they used to give colas that distinctive, brown hue contained levels of 4-MI that would have warranted a cancer warning label on every can sold in the state.
And this wasn’t the industry’s only challenge. The Center for Science in the Public Interest petitioned the U.S. Food and Drug Administration to ban ammonia-sulfite caramel color. It’s a request the CSPI repeated this week after finding 4-MI in samples of Coke and Pepsi.
“This is nothing more than CSPI scare tactics, and their claims are outrageous,” writes the American Beverage Association in a statement released to the media.
“The science simply does not show that 4-MEI foods or beverages is a threat to human health,” the statement continues.
And the FDA seems to agree.
FDA spokesman Douglas Karas wrote in a statement that the FDA is currently reviewing the CSPI petition, but “it is important to understand that a consumer would have to consume well over a thousand cans of soda a day to reach the doses administered in the studies that have shown links to cancer in rodents.”
But in order to meet the requirements of California law — and avoid cancer warning labels on cans — soda manufacturers have come up with a solution: switch to a new, low 4-MI formulation of caramel coloring. Coca-Cola tells The Salt they’ve already begun the change.
“The company did make the decision to ask its caramel suppliers to make the necessary manufacturing process modifications to meet the requirement of the State of California,” Diana Garza Ciarlante, a Coca-Cola spokeswoman, wrote in an email.
Garza Ciarlante says caramel coloring in all Coke products has always been safe.
“The fact is that the body of science about 4-MEI in foods or beverages does not support the erroneous allegations that CSPI would like the public to believe,” she writes. Outside of California, no regulatory agency concerned with protecting the public’s health has stated that 4-MI is a human carcinogen.
“Caramel color is now — and has always been — safe and harmless” says Ted Nixon, CEO of D.D. Williamson, the world’s largest supplier of caramel color.
He explained that in order to modify the caramel color to reduce the levels of 4-MI, he sent his scientists back to the drawing board to change the manufacturing process.
“We did have to change these various inputs of temperature, pressure and the various ingredients we’re using in order to change [4-MI concentrations],” Nixon says.
And Nixon says he’ll be able to meet the demand of all of his soda clients, in rolling out this modified caramel color in products nationwide, and worldwide.
Coke says it will expand the use of the low-4-MI caramel color nationally, though Garza Ciarlante says it’s important to note that the modifications will not change Coca-Cola product.
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