Trading Futures and Options on Futures involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
May 31, 2012
"What does it mean to think in probabilities?"
"What does it mean to think in probabilities?"
It means to believe at the very core of our identity that:
anything can happen
every moment is unique
there is a random distribution between wins and losses on any given set of variables that define an edge
Each one of these beliefs will keep your expectations in line with what is possible from the markets perspective. To the extent your expectations correspond with what is possible from the markets perspective, you eliminate the potential to define and interpret market information as painful.
Ultimately ~ you can get to the point where you can trade from a "carefree" and "objective" state of mind where you are making yourself available to perceive and act upon whatever the market is offering you in any given "now" moment from its perspective."
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1.Each trading result generated from pattern is random and unique.
2.There is no relationship from pattern and outcome.
3There is no corelelation ship between pattern and risk.
4.Technical method will give winning percentage over series of trade.
5.I am dependent on some body else to make me a winner.so stoploss is essential.
6.Pattern - whem this set of criteria there is higher proabilities one thing over another.
7.When pattern present itself => there is no points analyzing the pattern.
8.It required no skills to be winner.
9.Trading in the markets is an odds game, and the object is always keep the odds in your favor .
10.Proper execution of signal require mental skills.
11.Technical method are designed to put odd in our favor over a series of trade. we will never know sequence of win and losses .
12.Trading in its simplest form, is a pattern recognition
numbers game. We use market analysis to identify the patterns, define the risk, and determine when to take profits. The trade either works or it doesn't. In any case, we go on to die next trade. It's that simple.
13.There is a random distribution between wins and losses for any given set of variables that define an edge. In other words, based on the past performance of your edge, you may know that out of the next 20 trades, 12 will be winners and 8 will be losers. What you don’t know is the sequence of wins and losses or how much money the market is going to make available on the winning trades. This truth makes trading a probability or numbers game. When you really believe that trading is simply a probability game, concepts like ‘right’ and ‘wrong’ or ‘win’ and ‘lose’ no longer have the same significance. As a result, your expectations will be in harmony with the possibilities. - Mark Douglas: ‘Trading in the Zone’
14.I know it may sound strange to many readers, but there is an inverse relationship between analysis and trading results. More analysis or being able to make distinctions in the market’s behavior will not produce better trading results. There are many traders who find themselves caught in this exasperating loop, thinking that more or better analysis is going to give them the confidence they need to do what needs to be done to achieve success. It’s what I call a trading paradox that most traders find difficult, if not impossible to reconcile, until they realize you can’t use analysis to overcome fear of being wrong or losing money. It just doesn’t work!” – Mark Douglas
15.To whatever degree you haven’t accepted the risk, is the same degree to which you will avoid the risk. Trying to avoid something that is unavoidable will have disastrous effects on your ability to trade successfully. – Mark Douglas
16.The less I cared about whether or not I was wrong, the clearer
things became, making it much easier to move in and out of positions,
cutting my losses short to make myself mentally available to take the next opportunity.
- Mark Douglas -
17. If you really believe in an uncertain outcome, then you also have to expect that virtually anything can happen. Otherwise, the moment you let your mind hold onto the notion that you know, you stop taking all of the unknown variables into consideration. Your mind won’t let you have it both ways. If you believe you know something, the moment is no longer unique. – Mark Douglas
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May 30, 2012
May 29, 2012
Nifty Analysis For 30 May 2012
"What does it mean to think in probabilities?
It means to believe at the very core of our identity that:
anything can happen
every moment is unique
there is a random distribution between wins and losses on any given set of variables that define an edge
Each one of these beliefs will keep your expectations in line with what is possible from the markets perspective. To the extent your expectations correspond with what is possible from the markets perspective, you eliminate the potential to define and interpret market information as painful.
Ultimately ~ you can get to the point where you can trade from a "carefree" and "objective" state of mind where you are making yourself available to perceive and act upon whatever the market is offering you in any given "now" moment from its perspective."
- Mark Douglas
10 Trading Tips for Trader
Here are our top 10 Trading Tips for Traders and Investors. It really doesn’t matter whether you’re a veteran trader or just getting started, we think these are all very important!
1. “Between stimulus and response, lies our freedom to choose” – Steven Covey
This quote is very important. What it tells us as traders is that there should be a specific setup you’re looking for (a pattern of sorts) and then a specific protocol that follows it. Too many traders just “wing it” when they are trading instead of having a specific setup and plan that they know works and they know what their risk/reward is. If you don’t know what you’re looking for and you don’t know exactly what you’re doing when you see it, you’re likely headed down the wrong path.
2. Stick to your plan.
It’s extremely easy to lose focus of what you’re doing and start doing what someone else is doing. Stick to your trading plan and what you know works.
3. Ignore the noise.
Noise comes in a variety of ways. At times it’s economics news, at times it’s other traders. It’s not uncommon for traders to seek what other traders think about their trades because they are unsure about their trade setups. Noise for many traders usually results in less profits and larger losses.
4. Be patient.
Anyone who is successful at anything has patience. Whether it’s an athlete, your favorite musician or successful entrepreneurs, they all have patience. You don’t become successful without having patience. Just as important it is to have a set plan and rules, patience is just as important.
5. Stay Disciplined and Focused.
This is one of the hardest things for traders to do. It falls inline with being patient. Discipline may be the most important factor in trading success. A lot of traders think it’s the trading system but they are mistaken. Many trading systems work, but only when it’s executed with discipline each and every time.
6. Pick one methodology.
Another problem many traders seem to have is that they trade too many methodologies and try to do too many things. A professional basketball player usually sticks to just playing basketball. They usually aren’t nearly as good at playing another sport. As a trader you should focus on one approach to the market and stick to it. Master one way to do something and you’d be amazed with the results.
7. Undertrade.
Under-trading is always better than over-trading. Start off slow and get the hang of what you’re looking for. Most traders who are consistently profitable are not over-trading or over-leveraging their accounts.
8. Repetition is key.
If you want to be successful it’s important that you develop the proper habits and repetition. Anything that you’re good at is likely the results of practice and continuous repetition.
9. Execute
If you want to make money trading, then you have to know when to execute. Being “gun shy” is not going to work in this business. You have to what you’re looking for and when you see it you gotta be ready to pull the trigger.
10. “We haus”ve met the enemy, and it is
A famous quote from the Walt Kelly cartoon strip, Pogo. As traders you must understand that we have complete control over our wins and losses. We choose when to enter, we choose when to exit. We decide on what price to buy or sell whichever market we are trading. You can’t blame anyone but yourself, so remember, if you want to be a successful trader it’s important to have a trading plan, stay focused, be patience, and have discipline.
Explore Trading................
1.Each trading result is random and unique.
2.There is no relationship from pattern and outcome.
3.There is a random distribution between wins and losses for any given set of variables that define an edge.
4.Technical method will give winning percentage over series of trade.
5.I am dependent on some body else to make me a winner.so stop-loss is essential.
6.Stop-loss is an essential risk control mechanism and it should always be there.
7.Pattern - whem this set of criteria there is higher proabilities one thing over another.
8.If you asked me to distill trading down to its simplest form, I would say that it is a pattern recognition numbers game. We use market analysis to identify the patterns, define the risk, and determine when to take profits. The trade either works or it doesn't. In any case, we go on to die next trade. It's that simple,
9.When pattern present itself => there is no points analyzing the pattern.
10.It required no skills to be winner.
11.Random outcome .
12.Trading in the markets is an odds game, and the object is always keep the odds in your favor .
13.Trading a technical indicator is not right or wrong .it is just a odd game.
14.profit gap -method uses it full potential
15.There is no corelelation ship between pattern and risk
16.Random Principles
17.Proper execution of signal require mental skills.
18.Staying focus on the process of trading is more important.
19.Our method cannot forces predefines risk , take loss, stop closes to entry point , getting in to late,getting out too late.
20.Technical method are designed to put odd in our favour over a series of trade. we will never know sequence of win and losses .
21.There are various reasons to "book-out" at certain levels based on Channel top, -ve div, intra charts displaying OB with -ve div, Closing below HHEma, etc.
Similarly there are various reasons to "re-enter" at certain levels based on Channel bottom, +ve div, intra charts displaying OS with +ve div, reaching below HLEma, etc.
If your reason for "book-out/ re-enter" gets negated, reverse or close your trades.
As emphasised in the pre-market view:
As long as the higher T/F TA is uptrending, the Hour weakness will produce 50-100 points of corrections only.
22.There is a random distribution between wins and losses for any given set of variables that define an edge. In other words, based on the past performance of your edge, you may know that out of the next 20 trades, 12 will be winners and 8 will be losers. What you don’t know is the sequence of wins and losses or how much money the market is going to make available on the winning trades. This truth makes trading a probability or numbers game. When you really believe that trading is simply a probability game, concepts like ‘right’ and ‘wrong’ or ‘win’ and ‘lose’ no longer have the same significance. As a result, your expectations will be in harmony with the possibilities. - Mark Douglas: ‘Trading in the Zone’
24.I know it may sound strange to many readers, but there is an inverse relationship between analysis and trading results. More analysis or being able to make distinctions in the market’s behavior will not produce better trading results. There are many traders who find themselves caught in this exasperating loop, thinking that more or better analysis is going to give them the confidence they need to do what needs to be done to achieve success. It’s what I call a trading paradox that most traders find difficult, if not impossible to reconcile, until they realize you can’t use analysis to overcome fear of being wrong or losing money. It just doesn't work!” – Mark Douglas
23.If you really believe in an uncertain outcome, then you also have to expect that virtually anything can happen. Otherwise, the moment you let your mind hold onto the notion that you know, you stop taking all of the unknown variables into consideration. Your mind won’t let you have it both ways. If you believe you know something, the moment is no longer unique. – Mark Douglas
24.To whatever degree you haven’t accepted the risk, is the same degree to which you will avoid the risk. Trying to avoid something that is unavoidable will have disastrous effects on your ability to trade successfully. – Mark Douglas
25.The less I cared about whether or not I was wrong, the clearer
things became, making it much easier to move in and out of positions,
cutting my losses short to make myself mentally available to take the next opportunity.
- Mark Douglas -
May 28, 2012
Nifty Analysis For 29 May 2012
"What does it mean to think in probabilities?
It means to believe at the very core of our identity that:
anything can happen
every moment is unique
there is a random distribution between wins and losses on any given set of variables that define an edge
Each one of these beliefs will keep your expectations in line with what is possible from the markets perspective. To the extent your expectations correspond with what is possible from the markets perspective, you eliminate the potential to define and interpret market information as painful.
Ultimately ~ you can get to the point where you can trade from a "carefree" and "objective" state of mind where you are making yourself available to perceive and act upon whatever the market is offering you in any given "now" moment from its perspective."
- Mark Douglas
May 27, 2012
Nifty Analysis For 28 May 2012
"What does it mean to think in probabilities?
It means to believe at the very core of our identity that:
It means to believe at the very core of our identity that:
- anything can happen
- every moment is unique
- there is a random distribution between wins and losses on any given set of variables that define an edge
Each one of these beliefs will keep your expectations in line with what is possible from the markets perspective. To the extent your expectations correspond with what is possible from the markets perspective, you eliminate the potential to define and interpret market information as painful.
Ultimately ~ you can get to the point where you can trade from a "carefree" and "objective" state of mind where you are making yourself available to perceive and act upon whatever the market is offering you in any given "now" moment from its perspective." - Mark Douglas
Ultimately ~ you can get to the point where you can trade from a "carefree" and "objective" state of mind where you are making yourself available to perceive and act upon whatever the market is offering you in any given "now" moment from its perspective." - Mark Douglas
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