Old Notes 1 From 2008

 Go Back to some basics first:

最近操作中重温学到的一些东西(有些是书里摘录的):

1.  Focus on Becoming a good trader, not money gain/loss
2.  不要怕Miss. 市场每一分钟都是机会. 等待好的时机.
3.  Opinion and Vision is like Belly Button. Everyone has one.
4.  Never expose yourself to uncontrollable risk in the first place.
5.  Don't let the excessive gain/loss traumatize you. It destroys a trader's mindset.
6.  Don't listen to ANYONE when it comes to a specific trade setup and execution.
7.  Be a sniper. Don't be a soldier in the first troop on the Omaha Beach.
8.  TA is just a tool. At the bottom of the ocean, every sunken ship has a freaking chart.

9.  Have good sleep and rest... Otherwise, you will be like me, forgetting rest lessons learned in past weeks already.

10.  Market is never random. It moves because it is forced to move.
       It always gives out hints before it moves.
       Understand what moves, when it moves, how it moves, and why it moves, then you have an edge.

11.  Spot the pivot point; get in once, and take profit. get in second time, and take profit. get in third time, and hold.

12.  Life can be really like shit, and you may even wonder what is the purpose of coming to this world.
But if you can endure it; have faith; work hard, work harder, work harder than anyone else...
You can grow beautiful flowers out of the shit.
When the spring comes, you see the beauty of life.

13.  Stay away from forums. It is mostly waste of time. (realtime)
14.  Never lose control. never risk your family security.

15. Water less and spend more time working out better models to rob the suckers' money.

Lesson 16:  Quality of successful traders
(quoted from book)

These simple words represent real principles for living too.

In general, a successful trader has these character traits:

Judgement     Integrity 
Courage         Loyalty
Self-criticism   Self-truthfulness
Commitment   Devotion to Winning
Honor             Honesty

The attitude of a successful trader:

Self-esteem:    the feeling you are good, able, worthy
Optimism:        never giving up and always seeing a positive future
Trust:               in your competence
Flexibility:         to change
Perseverance:  to study and learn constantly
Admiration:     to think highly of the success of others,  rather than feeling envy

Lesson 17: The single most important skill to develop as a trader is the dispassionate ability to cut losses. It goes much deeper than "admitting I was wrong".

Lesson 18: Have a trading plan. It is different from a trading strategy/system.

Trading plan helps you to minimize the loss when your trading system is wrong.
Trading plan helps you to minimize the loss when you are suffering a series of loss
or even out of your freaking mind.


Lesson 19:

1. have enough sleep every day
2. exercise 4 times a day per week
3. don't have to make even a dollar, but should not lose a penny.
    In another word, "preserve your capital" and "never get your loss out of control"


Lesson 20:

我经常以为我是最蠢的, 没想到市场更stupid.

Lesson 21:

Let the profit run. Don't second guess winners and rush to reverse positions.



Lesson 22:  Market is full of opportunities and risks every single minute.
Patience and Discipline are the top quality to grow. Making money should not the be the focus.



Lesson 23:

Holy Trail of the game...

1. Understand the game, inside and out.
2. Cut Loss fast. Cut cut cut.
3. Let the profit run (to where it can).   Kick my butt.   Repeat,  let the profit RUN.

 Lesson 25:

Sorry. Previous Lesson was just kidding.

There is no holy trail.