TRT Seminar on Oct 29 2010

Cross ref:

http://anatrader07.wordpress.com/2010/10/08/trt-seminar-by-ray-on-oct-29-2010/

For your information, Seats are limited to 30. Please register early to avoid disappointment.

Details at:

Discipline – How to Acquire It; How to Maintain It

TRAINER

Mr. Ray Barros

CONTENT

 

http://www.tradersroundtable.com.sg/wp-content/uploads/2010/10/Ray-Barros-278x300.jpg

Understanding the Nature of Discipline

  • Why Will Power is Not Enough
  • The Rider and Elephant Analogy
  • Not Knowing What We Don’t Know – Our Governing Default Futures
  • Tools to Uncover and Change our Default Futures.
  • The Coyle Model and Our Default Futures
  • Traders Winners Bible
  • Emotional Transformation
  • Uncovering Our Hidden Drivers and The SCARF model
  • The Ultimate Success Formula

DELIVERY

The 3-session presentations will adopt the learning model in which concepts are explained, then an example is shown, and finally you will be asked to design each step of the new material. In this way, you will have at the end of each session, the new wiring that will lead you to your path of greater consistency. With this new wiring, you need only do the homework in preparation for the next session for the wiring to grow and take hold.

CLASS SCHEDULE

Date

Time

29th Oct 2010 (Friday)

19:00 hours – 22:00 hours

6th Nov 2010 (Saturday)

14:00 hours – 16:00 hours

12th Nov 2010 (Friday)

19:00 hours – 21:00 hours

Register for Event

 Idkit

Ag Moderator

Learning from Bill Gates

To succeed in trading, one only needs to go back to basics – what Bill Gates advocated apply equally to becoming a successful trader.

Perhaps, we should print this advice out and pin it at our desk in addition to what we learn in our trading courses.

Bill Gates speech: 11 rules your kids did not and will not learn in school

by Kent Summers

Rule 1: Life is not fair – get used to it!

Rule 2: The world doesn’t care about your self-esteem. The world will expect you to accomplish something BEFORE you feel good about yourself.

Rule 3: You will NOT make $60,000 a year right out of high school. You won’t be a vice-president with a car phone until you earn both.

Rule 4: If you think your teacher is tough, wait till you get a boss.

Rule 5: Flipping burgers is not beneath your dignity. Your Grandparents had a different word for burger flipping: they called it opportunity.

Rule 6: If you mess up, it’s not your parents’ fault, so don’t whine about your mistakes, learn from them.

Rule 7: Before you were born, your parents weren’t as boring as they are now. They got that way from paying your bills, cleaning your clothes and listening to you talk about how cool you thought you were. So before you save the rain forest from the parasites of your parent’s generation, try delousing the closet in your own room.

Rule 8: Your school may have done away with winners and losers, but life HAS NOT. In some schools, they have abolished failing grades and they’ll give you as MANY TIMES as you want to get the right answer. This doesn’t bear the slightest resemblance to ANYTHING in real life.

Rule 9: Life is not divided into semesters. You don’t get summers off and very few employers are interested in helping you FIND YOURSELF. Do that on your own time.

Rule 10: Television is NOT real life. In real life people actually have to leave the coffee shop and go to jobs.

Rule 11: Be nice to nerds. Chances are you’ll end up working for one.

Idkit aka Ana

Ag Moderator

Learning from Bill Gates

To succeed in trading, one only needs to go back to basics – what Bill Gates advocated apply equally to becoming a successful trader.

Perhaps, we should print this advice out and pin it at our desk in addition to what we learn in our trading courses.

Bill Gates speech: 11 rules your kids did not and will not learn in school

by Kent Summers

Rule 1: Life is not fair – get used to it!

Rule 2: The world doesn’t care about your self-esteem. The world will expect you to accomplish something BEFORE you feel good about yourself.

Rule 3: You will NOT make $60,000 a year right out of high school. You won’t be a vice-president with a car phone until you earn both.

Rule 4: If you think your teacher is tough, wait till you get a boss.

Rule 5: Flipping burgers is not beneath your dignity. Your Grandparents had a different word for burger flipping: they called it opportunity.

Rule 6: If you mess up, it’s not your parents’ fault, so don’t whine about your mistakes, learn from them.

Rule 7: Before you were born, your parents weren’t as boring as they are now. They got that way from paying your bills, cleaning your clothes and listening to you talk about how cool you thought you were. So before you save the rain forest from the parasites of your parent’s generation, try delousing the closet in your own room.

Rule 8: Your school may have done away with winners and losers, but life HAS NOT. In some schools, they have abolished failing grades and they’ll give you as MANY TIMES as you want to get the right answer. This doesn’t bear the slightest resemblance to ANYTHING in real life.

Rule 9: Life is not divided into semesters. You don’t get summers off and very few employers are interested in helping you FIND YOURSELF. Do that on your own time.

Rule 10: Television is NOT real life. In real life people actually have to leave the coffee shop and go to jobs.

Rule 11: Be nice to nerds. Chances are you’ll end up working for one.

Idkit aka Ana

Ag Moderator

 

 

To succeed in trading, one only needs to go back to basics – what Bill Gates advocated apply equally to becoming a successful trader.

Perhaps, we should print this advice out and pin it at our desk, in addition to what we learn on becoming a successful trader.

Bill Gates speech: 11 rules your kids did not and will not learn in school

by Kent Summers

Rule 1: Life is not fair – get used to it!

Rule 2: The world doesn’t care about your self-esteem. The world will expect you to accomplish something BEFORE you feel good about yourself.

Rule 3: You will NOT make $60,000 a year right out of high school. You won’t be a vice-president with a car phone until you earn both.

Rule 4: If you think your teacher is tough, wait till you get a boss.

Rule 5: Flipping burgers is not beneath your dignity. Your Grandparents had a different word for burger flipping: they called it opportunity.

Rule 6: If you mess up, it’s not your parents’ fault, so don’t whine about your mistakes, learn from them.

Rule 7: Before you were born, your parents weren’t as boring as they are now. They got that way from paying your bills, cleaning your clothes and listening to you talk about how cool you thought you were. So before you save the rain forest from the parasites of your parent’s generation, try delousing the closet in your own room.

Rule 8: Your school may have done away with winners and losers, but life HAS NOT. In some schools, they have abolished failing grades and they’ll give you as MANY TIMES as you want to get the right answer. This doesn’t bear the slightest resemblance to ANYTHING in real life.

Rule 9: Life is not divided into semesters. You don’t get summers off and very few employers are interested in helping you FIND YOURSELF. Do that on your own time.

Rule 10: Television is NOT real life. In real life people actually have to leave the coffee shop and go to jobs.

Rule 11: Be nice to nerds. Chances are you’ll end up working for one.

A Matrix for Success

 A good lesson from F1, cross ref:

http://anatrader07.wordpress.com/2010/09/27/a-lesson-from-formula-1/

We in Singapore have been lucky to enjoy and witness first hand the weekend practice sessions leading up to last night’s final lap at the first ever night race held in Singapore – the Red Dot!

I watched every practice session over the weekend starting on Friday night and it reinforces my conviction that to succeed, one has to be focused, practise consistently and to put to practice what one learns re techniques – ie to follow one’s plan to the finish!

The participants all showed good showmanships although only three emerged as top winners at the end of the race.

Throughout the final laps, one could only marvel at the persistence of the participants especially Alonso – Ferrari who truly put up the best show to emerge the number one spot of the Grand Prix.

Behind the scene, there was good support and when it was necessary to change tyres, one could witness how precise they all worked to give the contenders a chance to resume and to contend for the top three places.

As traders, we can take a leaf from the precision and plan of the contenders and their team mates to simulate our own plan to trade successfully.

It is all hard work to win and then not all will win, as we witness how pooped the contenders were after passing  the chequered flag.  This is the price of being a good contender in all we endeavour.

Some video clips of F1 of the final lap:

http://www.youtube.com/watch?v=h9O7RLJ7wSg

http://www.youtube.com/watch?v=kx-e-2By2BI

Idkit aka Ana

Ag Moderator

Expectancy is It!

Our mentor is advised to rest his eyes due to a corneal scratch.  I am standing in as acting moderator today.

As those who have attended his courses will know, he places great importance on Expectancy Returns.

I have a post on this topic  of PE at my website which you are free to read:

Quote:

Today Scott is sharing tips on how to get the most out of your trades by showing you how to discern high expectancy trades from low expectancy trades.

http://anatrader07.wordpress.com/2010/06/25/expectancy-of-your-trades/

Here is the formula:

Profit Expectancy (PE) = (probability of winning trade * average size of winner) – (probability of losing trade * average size of loss)

 Idkit

Ag Moderator

Trading Success

BarroMetrics Views:  Trading Success

I started trading in the early ’70s  to mid ’70s. Looking back I can see the great strides made in the understanding of the human psyche – how we make decisions, what drives us,  etc; we have also made great strides in our ability to test our trading theories. But despite the great improvements, this generation’s success rate is no different to that of the ’70s: 80% to 90% of traders are unprofitable over a large sample size.

I believe the reason for the high rate of failure lies in the ability of humans to deny reality and in the process,  fail to learn the lessons history can teach us: witness Obama’s resort to government regulation to ‘save the US from the business cycle’ – but that is another blog for another day. Today we are speaking about why traders fail.

Traders fail because in the last resort they fail to manage their risks and fail to manage their trades to minimize their losses.

Let me give you an example.

Recently I have been communicating with someone (X) who is especially open and communicative. It’s a trait I think is necessary for success because we first need to be aware of the problem before we can find a solution. X said:

“when it comes to real life trading, I am still unbelievably biased and stubborn, not willing and daring to admit that I was wrong.

And

“I started short positions too early. And again, because I BELIEVE that this is a bear market rally, I never put a stop loss on my short positions. I believed that the market eventually would come down. I figured that I could not go too wrong by going short in a bear market. Well, I am deeply under water now”.

Will X make it? I believe he/she has a great chance because he/she is prepared to face his/her shortcomings.

Most traders I have met will deny and rationalize. In so doing, they lose any hope they have of solving their  problems. But being aware is only the first step; X still needs to take action to manage his/her risk and manage his/her trade.

All the best X!

Can we trade the news?

I have just received a chat message from our mentor to post for him, if possible. Today being his last day to spend full time with his fragile mother in Sydney, he is rather tired mentally and would like to turn in early. As usual, I cannot refuse although at such short notice. So please bear with me if I touch on a topic which has nothing to do with technical analysis, more on fundamentals. I thought it may be good to touch on trading the news since our mentor is also on television now and then. Here goes:

Trading the news:

Seasoned traders including my mentor seldom watch the media coverage of the markets. Instead he will tell you he prefers to relax by watching HBO or Star Movies. He may now and then flip the remote control to CNBC, BBC or Bloomberg more for Economic News, or to see how the Indices , or Commodities are quoting. Even then he is of the opinion that the quotes that we see on the screen may not be current.

On a side note, he is always joking about American Idol , as he thinks it is so entertaining , vowing one day, he may want to sing in Singapore Idol or Hong Kong Idol. He often related in class how he sang in the street of Sydney and received a big tip for dinner!  Well, what do you know?

Why do other seasoned traders not listen to the media coverage ?

Firstly the news is probably old and trading a stock may not depend on it. We know the adage: Buy on rumour, sell on news!

Secondly it is hard to captilalize on the news if you are not in the trade already. Small online investors may take advantage of the news. The price may move up but there is no momentum to push the price higher to sell for a good profit. The risk reward is minimal and probably may lead to a loss.

EXCEPTIONS:

As with conventional trading wisdom, there are always exceptions. It is a little naïve to think that the talking heads in the financial sections have a crystal ball. Usually, their main objectives are to entertain, achieve high ratings, or sell their products.

Most strategies, however, only work if one has a position already open. For example, one way to capitalize on news involves closely following a stock pattern over time, so that one knows almost exactly how the price moves in cycles throughout the day or week. When a television guest analyst or reporter makes a forecast, the price should move a little, and should the move be in one’s favor, the position could then be liquidated to capitalize on the news.

A related method some traders have involves sheer luck. Suppose one has an open position in a particular stock and a news report rightly or wrongly claims the stock has potential growth. Some traders are able to sell off their existing position for a huge profit following the advice of the media analyst or talking head.

But trading the news is dangerous. It is vital to manage Risk. Some traders have made the mistake of believing a forecast and watching their account balance dwindle.

An innovative contrarian may make money. It takes a special kind of trader to develop trading strategies based on media news. One cannot be a follower of the pack, but an innovative contrarian who must anticipate how the masses will react to the news. The approach may not always work, and so a trader must be able to accept that he or she may be wrong and live with the consequences.


CONCLUSION

Trading the news can make you an unexpected profit or zerolise your account. It is not foolproof method. One should therefore take proper precautions to control risk in the event that it does not work.

Ana aka Idkit

Ag Moderator

6-Week Webinar Course

For some time now there have been requests for a course that straddles the 2-day Habits of Success seminar I run in Singapore and the Mentor Program that I deliver over the net.

Well folks, I have finally completed its design. For details, please go to:

http://www.tradingsuccess.com/6-week-course.php

The delivery platform has been the main problem. I solved that by using omNovia. We tried it with the free webinar and it passed with flying colours – not a hitch with the delivery platform.

The content will be the Nature of Trends material. So if you have read the book and want a clear understanding of how to apply it, now is your chance. Go to http://www.tradingsuccess.com/6-week-course.php, see what it’s all about and, if you like what you read, register.

Trading Rules Guidelines

GUIDELINES to Trading Rules

Cross ref http://awanginvest.com/?p=709

Before I proceed, as you can see, I prefer to use my real name although short ie Ana aka IDkit in all my posts or comments in my own weblogs or others. After all in my own city, I am almost demi-public, and there is no point in my hiding behind an anonym. In fact, I tried to hide behind my popular name under Yin Wang at a recent free webinar for NOT (Nature of Trends), and I received a couple of queries whether I was Ana. Yes, I am Ana aka Yin aka IDkit.

Here, I am also echoing the sentiments of John Forman , author of The Essentials of Trading.

I say this because in the past, not now since I started my own Newsletter IDkit, I encountered some  cantankerous characters , taking my posts personally or did not like me/my mug for whatever reasons. The best way to deal with such is to either write them off or explain briefly your stand, without more. This is the best way to stop further acrimony, and move on in a positive light.

Having said all this, I would like to comment on some other trading rules to which you are free to comment too, but civilly, please.

Here goes:

Some Trading Rules to do:

1. Using Stop orders. I refer to my post yesterday on Stops. Comments have been mild so far. I know some traders, especially the experienced ones, may not believe in putting on a stop, although they admit they have a ‘mental stop’. I have also touched on mental stops in my own post, if you care to read.

2. Do not change your stops. My mentor teaches the same but what he means is we should not put a wider or shorter stop after having put it in. This is also generally good advice.

3. Close your position when profit is decent. Yes and no. I have been taught to run my profits long. One way is to use the Rule of 3 from my mentor, which is essentially scaling my exits to run my profits long, with trailing stops.

4. Do not overtrade. This is why money management is important and one simple way is to use the Turtle Formula for newbies.

5. Position sizing is vital. Again the Turtle formula for newbies would be a starter.

6. Look out for trending or range bound market. This is the first thing to look at because how you take a trade depends on going with the trend, which is your friend. Different rules apply for trending or directional market and sideways market.

7. Plan your trade and trade your plan. Having a plan is one thing, but to be able to recognize your plan is wrong, one must act swiftly and exit if necessary.

8. Clear rules of trading plan. As my mentor often does, he uses scenarios to base his rules for trading. One way is to use the If/then logic.

9. Paper trading for would-be traders. Most trading platforms offer paper trading for those completely new to trading and this is a good way to start. However, once this period of learning how to put on a trade is over, a newbie must learn how to trade LIVE in order to feel the pressure of trading with money on the line. Those who trade know the psychological difference when paper-trading and live-trading. Unless a newbie has traded LIVE, one cannot gauge one’s ability to trade well.

10. Aim for consistent profits , not to make money . For newbies, trading to make consistent profits is the hardest thing. This may take up to three years for most newbies to achieve just trading well consistently.

11. KISS system – Keep It Simple, Student (stupid is the saying). At the recent August seminars that I organized at the SMU, I find that some newbies are impatient and instead of focusing on learning good habits , the aim of the seminar, some want to learn more tools eg Barros Swings and Ray Wave, which are for advance students of BarroMetrics, to start with. Until one has mastered the basics with good habits, it is not helpful or too soon to add more tools to your learning curve.

12. Always or Never. Be careful of these two words as not all strategies are optimal. There are always grey areas in any rule, as my mentor has always reminded us.

AND ALWAYS strive to learn continually, and you will NEVER be in vain to be a better trader.

I welcome more comments on trading rules to add to the list aforementioned.

ANA aka IDKIT

Ag Moderator