Mental Ceilings and self fulfilling prophesies
- Thread starter Girlpower
- Start date
Scientist,
I agree the mental aspect is the most important aspect in trading,
and thats why I think most people fail.
As I have said before most people go in to late and also
go out to late in a trade, in the Es 30 seconds of to late
entry and 30 seconds to late exit can be the difference
between profit and loss.
To be really successfull you must have the ability to
swich on a dime,i.e go out a losing positition and at
the same time reverse the position.
How many can manage that, I´m close but still not
there.
I agree the mental aspect is the most important aspect in trading,
and thats why I think most people fail.
As I have said before most people go in to late and also
go out to late in a trade, in the Es 30 seconds of to late
entry and 30 seconds to late exit can be the difference
between profit and loss.
To be really successfull you must have the ability to
swich on a dime,i.e go out a losing positition and at
the same time reverse the position.
How many can manage that, I´m close but still not
there.
Exit too late is deadly, entering too late not necessarily.
The later you can enter, the better. The lesser your exposure time, the lesser the chances of the market turning around. If you can buy a breakout at the breakout, rather than at the base, you can enormously cut down your risk, because if you buy at the base, the breakout could still fail. If you buy 1 tick above, you can still catch a healthy move and reduce your risk.
Just an example - Myself, I tend to buy breakouts at the base quite often, too. But if I do, I make sure it's 1-4T below the top of the base - That way I reduce the risk of a fakeout failing the breakokut. Use the pro's fakeouts to get it - That is - when price slumps 2-3T below before the breakout. Everybody thinks the breakout has failed now and sells, but this is where the pro's buy. This can give you another 1-4 T for the breakout, making all the difference. Make sure you observe this next time you trade. The pro's always want to buy at a great discount, so they use fakeouts. Do the same and go with them, rather than the crowd, and you're halfway there. Of course this also applies reverse for downside breakouts. If you catch 5 breakouts a day, just doing what I just told you could make you another 2-4T X 5 = 2-4 extra ES points per day. Most people just don't even get this.
But really, generally: Enter as late as possible. Don't ever linger in uncertainty. Use time stops. The pendulum always swings. Make sure it swings for you. Enter late, exit early.
All the Best,
~Scientist
I am just curious! Your friends probably are super at what they do in their sector of the financial industry. Fish sauce, here, is in that boat too. They are all macro analysis oriented. And so they focus on many markets in general ways. They have no opportunity to make high velocity money ever anywhere.
It is their choice. With 500 million or a thousand times that, they will be unable to ace the markets easily.
Personally I crap out at a high of 100,000 shares per item in my portfolio. To get anywhere further I have to slow cycles and go for large % profits per cycle. Like 17 point net on a 11 point entry.
That can take many weeks sometimes. These guys are doing trades 200 times larger than me per thread. so they have less and less flexibility.
You can see by this that they are driven out of the faster fractals immediately and they operate only on the slowest ones. They are limited as well in terms of where they can play. I play 3 beta stuff and not below. The relation of float to beta works against big capital entirely.
These people do not have as a priority personal wealth either. I do and so do some others here.
What people need for their lives often lies in the range of dollars that are procurable in the shortest time periods by using high money velocity instead of high capitalization. I only have a Life Value that is so big. It is just millions of this and than in value. You get there slow or you get there fast.
Macro analysis types do not figure this out. the finacial industry is a very unleveraged place as they are telling you. the Asset allocation of financial planners was always primitive and largely based upon fee based manipulation of assets which is a slow (fee basing) wealth creating process. Financial planners do not get rich fast.
The construct for duplicating Gates is not complex. For health reasons I have backed off one recently that I discovered accidentally while refining another person's interests. Just now I have agreed to participate (briefly for a couple hours a week) with a group that realizes the mechanism (they have been around 30 years in the field).
Do this:
Model>>>JV>>>>Institutionalization>>>>TFSE>>>>>Assignment of profits>>>>P/E ratio improvement>>>> Collateralization of wealth>>>>liquidity. This is converting an idea into money. C corps for Model and using local C corps to Institutionalize. The TFSE into a public corp and using overrides as swap basis gets you a P/E to play with. Since overrides have no costs, fixed or variable, all growth is leveraged by P/E ratio. P/E ratios optimize on future expectations. Collateralize with the expectations for liquidity and give this liquidity to your buddies as their beginning point so you can sqeese a little more out of it.
The key is touching moving money ( going from old home to new home) by taking an override. I started with 20% in this one. The capital source is four times larger than the present application (the application has to be grown too). This is econometrically speaking about a direct effect only. Nothing is new thogh. the indirect effect and induced effects are not a matter of consideration. There is a substitution effect that is devistating. The substitution made takes all from that financial industry sector by obsoleteing it. It is presently four times larger than the take over industry. Globally.
Think of putting wings on railroad passenger cars. They had trouble doing it so they gave up and substituted stuff as required.
Your buddies are very smart and they are going to improve railroads passenger cars for sure. Others are going to work to change the place where they operate. One person makes just so much money another person makes more a lot more.
I have not been trading the us-markets today because the
the problems with electricity and potenial brokerproblems.
Thats why I´m writing so much on ET.
Next week I will not disturb you.
But I think my simple technical tradingplan is good.
Today I had the following signals on the e-minis.
15:27 enter L 988.00
15.36 exit 987.5 Loss 0.5
15.50 enter S 987.00
16:02 exit 986.50 Profit 0.5
16:05 enter L 987.00
16:46 exit 991.00 Profit 4.00
16.52 enter S 990.5
19:08 exit 987.5 Profit 3.00
19:57 enter L 988.00
22.08 exit 990.00 Profit 2.00
Total Profit 9.00
Please observe that I have not been trading today, so this
is theoretical results.
What results in theory do Bubba and scientist have.
I should appreciate if you show them.
the problems with electricity and potenial brokerproblems.
Thats why I´m writing so much on ET.
Next week I will not disturb you.
But I think my simple technical tradingplan is good.
Today I had the following signals on the e-minis.
15:27 enter L 988.00
15.36 exit 987.5 Loss 0.5
15.50 enter S 987.00
16:02 exit 986.50 Profit 0.5
16:05 enter L 987.00
16:46 exit 991.00 Profit 4.00
16.52 enter S 990.5
19:08 exit 987.5 Profit 3.00
19:57 enter L 988.00
22.08 exit 990.00 Profit 2.00
Total Profit 9.00
Please observe that I have not been trading today, so this
is theoretical results.
What results in theory do Bubba and scientist have.
I should appreciate if you show them.
Quote from Whamo:
Will you charge for this? And will you have someone proofread it and put it in english?
After realising Scientist's capability of interpreting Jack's English, I am thinking to have a joint venture with Scientist to sell you a Decoder manual for Jack's Coder book. Its price is to be advised, about 10% of your profits.
