Dump it Here

[Skate]

Series of posts
If you're starting your investment journey - this series of posts are for you.

Being irrational
In life, not just the markets, most rational people make irrational decisions.

Oh, the pain of it all
Every drawdown comes to an end & it always occurs when you are at your emotionally lowest, when you think it just can’t get any worse.

Don’t panic
What I like about the psychology aspect of trading is that it is really universally-applicable in anything you do. I know it’s helped my life for the better and will only continue to do so.

Change your way of thinking
What I’ve learned so far can almost feel applicable to any situation in life where the possibilities are endless and it’s difficult to be consistently right. It can change your way of thinking, or even your outlook on life.

Skate.

 

[Gringotts Bank]

Simply where all your various timeframes indicate the same direction [based on your analysis, which may of course be wrong].

Usually, each timeframe is slightly out of sync. The 5 mins chart indicates a short position, while the 1 hour chart suggests a long position, etc. Occasionally they all line up together. These are usually a strong probability of a successful trade.

The issue is more when they don't align. Which timeframe dominates, which will you trade. There is no good answer to that as it varies.

jog on
duc

Thank you.

That's my preferred method of trading lately. Wait for a single issue where the ducks line up on 4 time frames, check fundamentals, use a much larger portion of capital and hold for longer. I don't like trying to manage stock positions every day on the ASX. The liquidity is so terrible that you can spend an entire day looking for volume to sell into.

 

[Skate]

Series of posts
If you're starting your investment journey - this series of posts are for you.

Dumb mistakes we all make as beginners
(a) Trading without an edge
(b) Buying and holding
(c) Trading big positions
(d) Over-trading
(e) Holding losses too long
(f) Cutting winners short
(g) Getting emotionally involved

You need an Edge
The most basic thing you need to be a successful trader is an edge, an advantage in your trading that produces a positive net profit over the long-term. This edge is the culmination of all your research, planning, execution, and state of mind while managing your portfolio.

Skate.

 

[Skate]

Series of posts
If you're starting your investment journey - this series of posts are for you.

Check the history
When you want to make money over the long-run, a good way to analyse a strategy is to look at the history of its returns.

Controlling risk (read peter2 thread for more on risk)
One way to obviously improve your odds is to get your average profit greater than zero. However this is not enough, because although you are now likely running a profit, you aren’t controlling risk.

Worth remembering
What is most important is the old adage "cut your losses short and let your winners run", one that is obeyed by all the great traders I’ve researched. When you do that you tend to incur many more little losses, but since your gains are essentially unbounded, they usually make up for your losses and drive a profit.

Skate

 

[Skate]

Series of posts
If you're starting your investment journey - this series of posts are for you.

Is this crap advice ?
"Cutting your losses short and let your winners run" - well no it isn't as it's is hallmark of all the great traders & your ability to incur those many small losses and hold out for the big winners is solely dependent on your ability to execute your trading plan flawlessly and maintain your edge.

Please read (more than once)
Your ability to incur many small losses and hold out for the big winners when you’re dealing with your own money, gets very complicated, very quickly!

Skate.

 

[Skate]

Series of posts
If you're starting your investment journey - this series of posts are for you.

My personal struggle
I struggled to understand the culture of Share Trading as an investment vehicle at first because I couldn’t follow the logic behind the market movements. I couldn’t understand what moved the share price as it seemed to me logic was the missing link when it came to trading the markets.

Hunches, opinions, fear and greed
I soon realised logic is not part of the trading game but fear and greed was. It didn’t take me long to realise that trading decisions don’t follow logic, then the penny dropped, trading decisions are made on hunches, opinions, fear and greed.

Skate.

 

[Skate]

yes skate, we can see the duplicates.

Gringotts Bank, I prefer to call it conditioning. Most readers skim over material so quickly they don't allows themselves to fully comprehend what they are reading let alone absorb it.

Short Bursts
I post in short bursts in the hope of retaining the readers interest. The 'Dump it here' thread is for others to put an alternative view to mine when it comes to trading.

I'll wrap it up
I take it you are a bit over this short series of posts so I'll wrap it up. The last thing I want to do is to post material that others find not enjoyable, uninteresting or in general they don't see value.

Skate

 

[Skate]

Hip hip hooray !!

This is the END of this series of posts
The END have come on this series of posts & if I make additional posts the will be generic in format.

Why should I keep reading?
If you are new to trading please make an effort to read my ‘Dump it here’ thread from the very first post as it may save you many years of self-education if you have the slightest interest in trading.

New traders lose 98% of the time (poor odds indeed)
In this short series of posts I wanted to point out the dangers and pitfalls associated with trading and to inform you about the emotional roller coaster you will soon start experiencing once you start trading.

Skate.

 

[Gringotts Bank]

I'll wrap it up
I take it you are a bit over this short series of posts so I'll wrap it up. The last thing I want to do is to post material that others find not enjoyable, uninteresting or in general they don't see value.

Skate

I'm not over it or under it. Just reading and picking up a few crumbs here and there.

 

[Skate]

I'm not over it or under it. Just reading and picking up a few crumbs here and there.

Well, thank you Gringotts Bank - I fully understand my thread is not for everyone.

Crumbs
Hansel and Gretel follow the (crumbs) back home, it's where they wanted to be. If some of my crumbs as you say have helped, I'm happy to have made the posts you found of interest.

Skate.

 

[Joe Blow]

Hip hip hooray !!

This is the END of this series of posts
The END have come on this series of posts & if I make additional posts the will be generic in format.

Why should I keep reading?
If you are new to trading please make an effort to read my ‘Dump it here’ thread from the very first post as it may save you many years of self-education if you have the slightest interest in trading.

New traders lose 98% of the time (poor odds indeed)
In this short series of posts I wanted to point out the dangers and pitfalls associated with trading and to inform you about the emotional roller coaster you will soon start experiencing once you start trading.

Skate.

Skate, congratulations on seeing this thread through to this point. There is so much great food for thought in here that it's hard to quantify it. You have created something quite unique and I'm sure it will be appreciated by many others in years to come. I also hope that we continue to see numerous additional dumps in this thread, both by yourself and other contributors. It has become the place on ASF to dump random wisdom and interesting and thought provoking ideas.

 

[myrtie100]

Thank you Skate, what an effort!

I have found your thread, thought provoking, educational and conformational.

Stacks of stuff in here, well done

 

[Skate]

Joe, myrtie100, thank you both for your kind words, it's been my wish for the more experienced traders to share their wisdom with those who lack it. We have a good community spirit here on ASF but once we had a great forum & (IMHO) it's worth capturing again. I apologise in advance for the length of this post.

Stimulate discussion
I've made a lot of posts to stimulate members to open up & express their point of view, alternative trading ideas. I't been very hard to keep my posts short, snappy, generic & light-hearted trusting members to post in the same vein. Trading is confusing for the best of us & extremely confusing starting out on your trading journey.

Seeking answers
New members visit our community looking for answers & when members express alternative opinions it gives them something to think about on a deeper level.

Right or wrong it doesn't matter
The 'Dump it here' thread is not about right or wrong or whether you’re right & they're wrong that's not what is important. What is important is the choice of words members use to express an alternative point of view & expressing an opinion from experience in a respectful manner.

Please Note
The 'Dump it here' thread gives everyone the ability to express their views without being ridiculed or challenged.

Opinions are welcomed
All I’ve ever asked is for others not to ridicule or challenge posters as it serves no purpose other than curtailing the flow of respectful conversation – everyone has the right to express an alternative point of view. Instead of contesting a member method of trading it would be better for others to explain an alternative, or their methodology when it comes to their trading style

Listen to everyone
From my experience it pays to listen to everyone & than you decide if it’s relevant or helpful. You get to decide what to keep & what to discard & when you don’t listen you forgo the right to learn.

Skate.

 

[tech/a]

Skate

Keep it coming.
Great job and one of the most proactive posts I've seen.
Make this a sticky Joe!

Some Daffy Advise.



A heart felt Thanks Skate.

 

[Joe Blow]

Opinions are welcomed
All I’ve ever asked is for others not to ridicule or challenge posters as it serves no purpose other than curtailing the flow of respectful conversation – everyone has the right to express an alternative point of view.

I think this point is worth re-iterating. Every day we are faced with choices. We can choose to be kind to others, to be respectful to others, to help others, to educate others and to inspire others. Or we can choose to be unkind, disrespectful, critical, negative and unhelpful. Those choices affect others in a very real way. The consequences of those decisions linger and leave either positive or negative ripples in people's lives. In the case of this community, it affects the mood and sets the tone and makes ASF either a pleasant or unpleasant place to be.

I think what we can all take from this thread is that there is no limit on our potential to give to others and to leave positivity in our wake. Our posts live on after us and they reflect how we chose to contribute to this community and relate to those in it. I have witnessed constructive, positive eras here at ASF and more divided, negative ones. The negative ones have only led to more negativity and it was not until that negativity was removed that the community could return to a more positive place. I feel we are back there now and this thread in particular has helped contribute to that in a very real way. I would like to see it continue and I hope this thread inspires others to carry on and perpetuate that constructive, positive ethos. I think the results speak for themselves.

 

[Skate]

If you have a Gem 'Dump it here'

When you wake up
When you wake up, put a smile on your dial, be positive, be kind, be you – Repeat.

Skate.

 

[Skate]

If you have a Gem 'Dump it here'

Have a goal
My goal is not to be better than anyone else but to be better than I used to be.

Skate.

 

[Skate]

If you have a Gem 'Dump it here'

Make a change in your life
It's worth remembering - "Nothing Changes if nothing changes"

Skate.

 

[tech/a]

It's worth remembering - "Nothing Changes if nothing changes"

Radical change gives rise to Radical results.

 

[Skate]

What’s so good about Mechanical Trading Systems ?
Mechanical trading systems that are well coded have the ability to find positions where markets are somewhat inefficient & can detect patterns in historical data that precede profitable opportunities ensuring those patterns persist long enough to make profitable trades.

Discretionary traders
Trading is not an exact science whereas trading a mechanical system exceeds my personal ability to use an alternative discretionary method of trading. Good discretionary traders (IMHO) have a gift that I admire.

Skate.