Sunday, March 31, 2013
Thursday, March 28, 2013
Tuesday, March 26, 2013
Monday, March 25, 2013
Thursday, March 21, 2013
- Philip Arthur Fisher was a soldier of the financial markets. He was a market veteran with more than 70 years of experience. He died as a hero of the financial markets. Are you a soldier on the battlefield of the financial markets? Are you a successful soldier? Is trading your passion of a lifetime? If you didn’t have this thought in mind. You’d better start cultivating it now. Trading is a wonderful experience and a fantastic way of life – something that will eventually bring you your desired financial freedom if you don’t relent.
- Philip was a very private man. Nevertheless, his trading and investing prowess eventually brought him to limelight. Please concentrate on developing your trading skills; endeavoring to be the best trader you can be. Ultimately, your skills shall make you a famous and a sought-after genius. You’ll eventually join the ranks of the celebrated market wizards.
- Philip was a position trader. A position trader is a trend follower who holds his trades for a long period of time. Do you have the patience and the discipline to open orders and hold them for as long as the trend is valid? As a Forex trader, if you’d sold the GBPCHF since July 2007 and held it till now, you’d have gained far more than 10,000 pips on that single trade. If you’d bought the EURUSD at the beginning of the year 2001 and held it until the beginning of the year 2007, you’d have gained more than 7300 pips on that trade alone. If you’d shorted the EURAUD from the beginning of 2009 and held till now, you’d have gained more than 7000 pips as profits on the position. If EURZND had been sold (at the same time the EURAUD was sold) and held till now, you’d have gained far more than 9000 pips on that. There are far bigger profits to be made by riding the primary trends for as long as they last, but, unfortunately, most of us don’t have the patience and discipline to do this. Philip invested in good companies with highly encouraging facts and figures, and he attained enviable goals in the markets (excellent profits). For example, he went long on Motorola in 1955 and he held onto that till he breathed his last (at the age of 96).
- How did Philip select the stocks he would invest in? He gathered as much information as possible on a company. This technique was highly invaluable to him. According to him, there are 15 points to look for in a market, and some of them are quality management and good business characteristics, adaptability, conservative accountability, good personnel management and relations… great sales strategies, ongoing research and products development, encouraging returns, and so on (All these points can’t be mentioned here). One thing that Fisher rarely did was to sell his stocks. He was a permabull: a style that’s no longer suitable for today’s markets. He once said that the best time to sell a stock was "almost never". On the contrary, I’d say that the best time to sell anything is when it’s completely clear that the bullish trend has ended and the bearish trend has been fully confirmed (for position traders).
- According to Philip, what you refuse to do in the markets is as crucial as what you elect to do. There are things you oughtn’t to do as a trader/investor. For example, he said you shouldn’t overstress diversification and that you shouldn’t follow the crowd.
- I’d like to mention with interest, the title of his 2nd book (Conservative Investors Sleep Well). It’s possible to trade with peace of mind and sleep soundly when you’ve open positions in the markets. If I know that only 0.5% of my account is at stake, I’ll be able to sleep well. But if about 40% of the account is at stake, I won’t be able to sleep well. The same thing is true when only 5% of an account is being risked as compared to when about 75% of an account is being risked. That’s one of the reasons why I recommend very small position sizing, coupled with other basic risk control tools.
Tuesday, March 19, 2013
Monday, March 18, 2013
Friday, March 15, 2013
Tuesday, March 12, 2013
Sunday, March 10, 2013
Saturday, March 9, 2013
- It’s part of Louise’s trading tactics to stay away from the markets that aren’t sexy. Trading the markets that move protractedly in a zigzag or sideways or highly unpredictable manner can’t improve your trading stats. Trade only sexy and attractive markets, i.e. the markets that are trending well (moving in a predictable manner).
- There are highly successful traders who’re also effective trading coaches, just like Dr. Van K, Tharp, Joe Ross, Steve Ward, Ken Long, Mike Baghdady… Louise Bedford, etc. These people have left indelible footprints in the world of trading (and they’re still active). Learn from them; learn from other great coaches whose names aren’t mentioned here. But you need to follow their track records first. I don’t think people can give what they don’t have. If a coach can’t trade successfully on their own, can they teach others to trade successfully? I prefer to take lessons from those who’re successful traders themselves. Are you facing recalcitrant challenges in trading today? Please enlist the help of a successful trader who’s also gotten a nice teaching talent. I’ve done it and it’s worked for me!
- I’ll continue to reiterate that our women have some precious innate qualities that can be used to their advantage in trading (but mentioning those qualities is beyond the scope of this article). Hetty Green, Linda Raschke, Kathleen Brooks, Kathy Lien, Tillie Allison, Dr. Janice Dorn, Louise, etc., are trading experts. Profitable trading isn’t men’s birthright only. Your girlfriend can be a successful trader. Your sister can be a successful trader. Your aunt can be a successful trader. Your niece can be a successful trader. Your mom can be a successful trader. Your daughter can be a successful trader. Your sister-in-law, mother-in-law, or daughter-in-law can be a successful trader. Your half-sister or stepmother can be a successful trader.
- What can you learn from trading coaches? You can receive peerless and insightful lessons from them, and these can take your trading experience to the next level. Louise Bedford, featured in this article, once included a helpful lesson in one of her past newsletters. Here’s an excerpt: ‘TRADERS – we’re an impatient bunch. Some of us take our foot off the accelerator just before we cross the finish line. The lovely Verica Cvetkovik shared these words of wisdom on our exclusive Mentor Program forum: You take a little seed, plant it, water it, and fertilize it for a whole year, and nothing happens. The second year you water it and fertilize it and nothing happens. The third year you water it and fertilize it and nothing happens. How discouraging this becomes! The fourth year you water it and fertilize it, and nothing happens. This is very frustrating. The fifth year you continue to water and fertilize the seed and then... take note. Sometime during the fifth year, the Chinese bamboo tree spouts and grows 90 feet in 6 weeks.
- Everyone was born into this world with a potential for becoming a great trader. But as you expect, it’s one thing to have the potential to be something, but it’s entirely a different ball game to run in the race and actualize the potential. If you want to be a top trader, acquire a good trading skill. The market needs diligent, hardworking and skilled traders to tap its riches. You can’t afford to trade the ways others are trading and become a successful trader. Others hold onto their negative trades and truncate their positive traders, but you can’t afford to do that. Every potential market wizard would need to face severe situations, circumstances and experiences before becoming a market wizard. The one who’ll excel must be disciplined. You can be great. There’s a crowd at the bottom, but too few at the top. There’s a plenty of room at the top, but the issue is whether you’re willing to do the work that’ll qualify you for the top. To remain on top, there’s a need to continue to improve your skill and knowledge. Try things a bit different from how you normally do them.
- As unpleasant as losses are, for all traders, it’ll take facing losses triumphantly to move you to the next level in trading. May the losses that come your way from now bring out the best trader in you. Are you a facing some losses today? Congratulations! You’ll come out being a victor. Losses are an assurance that there is something greater on the other side. It’s your risk control tactics that will show your probability of survival in the long term. It’s foolishness to trade the markets without risk control measures.