ComputerHunter.org |
|
|
|||
|
 |
Discipline in Investing and Trading
Discipline can be simply defined as your ability to follow your investing and trading plan. Discipline is a rather simple concept. You just need to define what, when and how you want to trade and manage it. You also need to decide how to handle your account when you are making money and also when bad days come along! Psychological issues make up 90% of the trading equation. Discipline is the essence of all of the psychological issues. It permeates throughout the whole process. All the rules and procedures and plans do not matter if they are not followed. There is little doubt that for those who seek success in trading, failure rarely comes from writing the wrong plan. It comes from not writing one at all, or not following the one that is written! Once you make your plan the following three rules are in order: 1. Don't change your plan during the trading day. 2. Commit to only making changes when the market is closed and 3. Go over your plan every morning before you trade. The best way to enforce discipline is just by awareness. Keep records of your trades. On every trade, include an answer to the simple question, "Was this trade part of my trading plan?". Yes or no. There is no in-between! Be aware that the undisciplined traders are almost guaranteed failures. Ask yourself if you are keeping the discipline, or are you just taking random trades that look good at the moment? You can't fix something if you do not know it is broken. You must first be aware that you have a discipline problem! If you do have the discipline problem, there is an absolute answer for you! The answer is this: JUST DISCIPLINE YOURSELF... There is no alternative! Copyright © 2005 I.E.C. Haramis haramis@greekshares.com http://www.greekshares.com Ioannis - Evangelos C. Haramis was born in Greece in 1951 and he studied in Greece, USA and in Belgium. He has been active in the stock markets since 1972. Since 2002 he is New Business Development Managing Director at an Investment Bank.
Google News - Top Stories
|
|
|
|
RELATED ARTICLES
Seven Investment Terms Everyone Should Know For those who have never given their financial future a second thought, the term "Financial Planning" could be a scary one. Investments can be a smart way to invest money for your future, but it can be confusing for those who have no experience in the financial business. Before you consult a financial planner it is wise to become familiar with some of the terminology that you are likely to hear from him or her. Why You Need To Buy and Sell Gold Coins (Part 6) Pre-1933 Gold Outperforms Today's Gold Bullion... The Perfect Economy? The U.S. economic data reported this week showed strong output growth with tame inflation. Industrial Production expanded at about 1% in June, three times greater than expected, while both the June Consumer and Producer Price Indices were unchanged. Also, the June Capacity Utilization rate rose to 80.0%, and the June Unemployment Rate fell to 5.0%. The June data generally show there is neither strain nor slack in the U.S. economy. Therefore, the U.S. economy is expanding at an optimal rate. California Deparment of Corporations and Franchise Opportunities Law What CA Needs To Do To Address Issues in Franchising Discipline in Trading and Investing The one thing I can think of that most affects both trading and investing has to be self-discipline. Stocks, Oil, and Bonds A barrel of oil bounced to over $60 Thu, which triggered a steep sell-off in the stock market Thu and Fri, although oil pulled-back to around $59 a barrel, and closed at $59.84 a barrel Fri. How to Calculate the Value of Your U.S. Savings Bonds If you're like many Americans over the age of 55, you've probably had money taken out of your paychecks for years and years in order to purchase U. S. savings bonds. Those bonds are probably sitting in a safe deposit box at your local bank or in a drawer safely tucked away at home. But, while you might know where those bonds are right now, do you have any idea how much they are actually worth? Finding False Gold in Penny Stock As far as traders go, many do not see the penny stock as a solid way to do business. Many believe that dealing with penny stock is a risky business. And it really is. Some traders think that the next Microsoft and Walmart stock is buried in a penny stock, which is why they stick around trading unknown stocks over the market. Tyranosaurus Rex Everyone knows T Rex was the most fearsome of all dinosaurs. He could and did kill everything in his path for food or maybe stupid meanness. His brain was very small and he did not survive. Oil and Gasoline Price Uncertainties The Light Crude Continuous Contract hit an all-time high at $70.85 a barrel, while Unleaded Gasoline Futures spiked 50% or $1 a gallon on Tuesday. However, oil closed the week at $67.57 a barrel, while gasoline finished the week up 15%. There's still uncertainty over the extent of oil and gasoline disruptions in the Gulf, over the next few weeks or months, caused by hurricane Katrina. However, there are many forces keeping a lid on oil and gasoline prices. Day Trading the SP Futures with Initial S/R and the NYSE TICK For instance, if the market moves up in the first 20 minutes of trading, touches the initial resistance zone, and then turns down, this implies that a good tradable downtrend move is likely to develop. Easily Finding A Good Stock There is a tremendous amount of software, complicated high priced newsletters, radio and TV stock pickers and Internet web sites that will help you find a stock that is going to make you rich. Investing in Car Dealerships: How to Do It Right The financial characteristics of the automobile dealership are attractive: Asset Location ? Increase Investing Returns & Reduce Your Taxes Location ? Once the holy grail only for real estate investors is fast becoming the mantra for every stock, bond, and mutual fund investor. Experts and studies now recognize managing asset location is second only to asset allocation in determining the success of your investment returns. Discover the Foundation of Retiring Wealthy - The IRA! Let me tell you about some legal ways to avoid getting taxed on profits from the stock market. You can make a lot of money now with the stock market as low as it is at this time as I teach you in my home study course. The very best way is to buy and sell your stock through Individual Retirement Accounts (IRAs). IRAs can help you legally avoid taxes and add a fantastic boost to your retirement plans. The IRA was originally developed in 1974 for people not covered by a company pension plan. "The individual retirement account legislation allowed the average person a chance to put money into a tax-advantaged account," according to Bruce Grace, a Chartered Financial Analyst and Assistant Professor of Finance at Morehead State University. Protecting the Tax Advantage of Your Deferred Compensation The American Jobs Creation Act of 2004 imposed strict new rules on non-qualified deferred compensation plans. Beginning in 2005, deferred compensation programs that are not in compliance with the new rules may be taxed as wages, slapped with a 20% excise tax, plus charged an interest penalty. Quit and Retire Three Years Earlier! For most people, there is a direct correlation between how worried they are about retirement income, and how much they can actually do about it. This is because the more worried you are, the closer you probably are to retirement, and the less time you have to do anything ? like save up. Effective 'saving up' requires time. Time so your money can grow. Save an extra $200 a month, three years before retirement (at age 62), and you'll amass a grand total of $7,887 (averaging 6% growth). Not likely to have a big impact on your retirement lifestyle. Copy Cat or How to Use a Successful Trading System How many books have you read about successful traders? How they did this or that and made a fortune and are still doing it. You say to yourself, "I'm going to follow his method and get rich". Forex market offers opportunity and information The forex market is what is called an international exchange currency market, where currencies are exchanged on a daily basis. There are five forex market centers around the world ? New York, London, Tokyo, Frankfurt and Zurich. One does not need to be on the trading floor, so to speak to be involved in the forex market. Today, forex trading can be done from home on a computer. Should You Put Your Annuity in an IRA? Let me start by answering that question...if an annuity fits your investment objectives than there is no reason that an annuity should not go in your IRA. Okay all you smarty pants out there who keep arguing that it is tax deferred and it does not belong in your IRA...SO WHAT??? The fact that it is tax deferred is only one reason why people buy annuities.
|
|
|
|
|
