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Developing ideas: Writing |
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Written by Administrator
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Tuesday, 04 November 2008 23:37 |
Developing ideas: Writing
For today’s blog, I decided I would address the developing ideas that lead to successful trading. In an observation I recently read, it suggests that there are as many ways to trade as there are traders: If you give 100 people the same trading tool and set of instructions, you will end up with 100 different outcomes after 30 days. This is because no trader is the same.
There are things that everyone can do to improve their trading, but these are generalities such as journaling, focus, and consistency. Other strategies must be individualized, targeted, and focused for each trader. Examples of these include risk assessment, targeting, and trading times. I would like to address an important general strategy: writing.
I have discovered that my best ideas on how to solve problems come out while I am writing. There are many traders who do not implement this strategy, but I highly recommend it. A trading journal can be very useful. This includes writing out your strategies as well as your thoughts and your ideas. The simple act of putting pent to paper tells your brain to turn on and focus on what you’re currently working on.
The following is an example of one type of writing that I do on a daily basis. This example is a problem sheet—a piece of paper in front of me for doodling, writing numbers on, and making calculations. This is what I like to call the beginning of my problem solving. I then take my ideas and focus them on chart analyzing, scripting, scheduling, or whatever focus I should have. In this particular example, I included a movie I heard about and wanted to see, which triggered a message to my personal mail. In the bottom right-hand corner, I have mapped out a way to handle a scripting problem before going to the scripting platform. When that was done, I then went to the scripting platform and began writing my script.
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Seven runs down: Can you ever come back? |
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Written by Administrator
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Tuesday, 21 October 2008 22:06 |
The Red Sox were down in the final three innings and the ALCS Championship by seven runs. At this point, many disappointed fans were leaving the stadium.
The players, however, were not ready to reach defeat yet. Instead they played as though they weren’t losing. They hung in and gave their all to the sport they love.
By the end of the 7th, the fans emptied the stadium. But the fans that hung around continued to support the team. They were able to say “I was there”. Those that left early know that they weren’t.
Nothing comes without sacrifice and success isn’t always easy. Patience is important and it is also important to remember that everything won’t be handed to us on a silver platter.
When trading currencies, it is difficult when we get handed a loss. But go on, because there’s a winner out there waiting—you just have to be there to take it. If you give up and leave the ball park too soon, how do you expect to come back from seven runs down? |
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Written by Administrator
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Monday, 13 October 2008 20:01 |
Electronic trading has provided anyone with access at anytime to global markets and trading information. Although electronic trading has been around for some time, recent technologies have provided easy access and the market has boomed.
Individuals who normally wouldn’t choose to trade have now turned to the industry because of its easy access and availability. Many are able to put in a trade before they leave for work and after they come home. Traders have easy access to market news, price alerts, and charts. As a result, market volume has reached an all-time high which also results in liquidity. Traders now have the advantage to contracts being easily bought and sold with tight bid ask spreads. These tight spreads then lower the cost of trading. Electronic trading will also transfer a local market to a global market and the 24-hour market allows traders to make decisions and implement their actions beyond the cash market trading hours. This provides more flexibility for entry and exit, which creates more flexibility on the trader’s strategies.
Most importantly, the trading playing field has been leveled, thanks to the electronic market. Once upon a time, information was only available for professional traders, but now any private trader can access that information. And the electronic market makes this access instant. Firms now also benefit with electronic trading because they have access to create new ways to interface with the markets. They provide real-time access to the market with managed accounts, live spreads, and mentoring. Finally, electronic trading does not limit traders to be physically present on the trading floor of the exchange vendor. |
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Last Updated ( Monday, 13 October 2008 20:57 )
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