Wednesday 20 February 2013

Fong Siling: Cscstel

Good news for Cscstel!


今起征税5年

(吉隆坡19日讯)马来西亚皇家关税局将从明天开始,对自4个国家进口的钢线材征收反倾销税,为期5年。
来自中国台北、中国、印尼和韩国的公司将被征收不同程度的税,这是当局完成本地工业请愿书的调查工作后,所做出的决定。
本地工业日前指出,从4个国家出口到我国的钢线材价格比本地市场便宜,不过土耳其除外。
国际贸易及工业部在文告中说,政府将向台湾两家公司中国钢铁(China SteelCorp)和丰兴钢铁(Feng Hsin Iron andSteel Co Ltd)征收10.98%和9.04%反倾销税,其他公司征25.2%税。
尽管来自中国的江苏沙钢国际贸易有限公司(Jiangsu Shagang International Trade Co.Ltd)和江苏永钢集团有限公司(Jiangsu Yonggang Group Co.Ltd)无须被缴税,但其他公司仍须缴25.20%税。
印尼进口的钢线材也须缴25.20%税,除了P.T.Ispat Indo,而韩国公司除了POSCO之外,都须缴税。
当局也打算通过调查,以便根据倾销幅度低于2%,停止向土耳其进口的钢线材征收反倾销税。

Well, what so great about Cscstel?
  • Good dividend yeild with 7 cents in coming June 2013!
  • EPS intact and increasing slowly from the recovering steels! 
  • Currently at year low.
  • Warren Buffet said, Be greedy when others are fearful! 
  • Yes, this is a cash rich company!!!! 

Thursday 7 February 2013

Wind Power update


BofA ML lifts TPs of wind power stocks






Bank of America Merrill Lynch lifted the target prices of all the wind power stocks. HN RENEWABLES (00958.HK) remains the top pick of the broker among Chinese wind power stocks, with target price lifted to $2.4 from $2. CHINA LONGYUAN (00916.HK)'s target price was raised to $8 from $6.7. DATANG RENEW (01798.HK) was upgraded to Neutral from Underperform, with target price raised to $1.7 from $1.3.

The broker foresees more supporting measures for the wind power industry to be rolled out by the Chinese government soon. 

李嘉诚 teaching!


李嘉诚)教五年内买车买房.

假设你的月收入只有2000元,你也可以过得很好。我帮你把钱分成五份。第一份600元,第二份400元,第三份300元,第四份200元,第五份500元。

第一份,用来做生活费。这么少的生活费,每天只能够分到十几元。早餐一份煮米丝,一个鸡蛋,一杯豆浆。中餐一份快餐,一个水果。晚餐自己开个小灶,煮点饭,加俩菜,睡前一杯奶。这样一月的伙食大概是500-600。不过,如果你还年轻,身体暂时还没有太多问题,这样的食谱,够你数年内不会有健康问题。

第二份,用来交朋友,扩大你的人际圈。这就宽裕了。你的电话费可以用掉100元。每个月可以请客两次,每次150元。请谁呢?记住,请比你有思想的人,比你更有钱的人,和你需要感激的人。
每个月,坚持请客,一年下来,你的朋友圈应该已经为你产生价值了,你的声望、影响力、附加价值正在提升,形象又好,又大方。

第三份,用来学习。每个月可以有50元—100元用来买书。钱不多,买的书就要认真阅读,学会学了就用的精神。每一本书,看完后,就把它变成自己的语言讲给别人听,与人分享可以提高你的信誉度,并且,提升亲和力。另外的200元存起来,每一个月参加一次培训。从不间断。等收入高一些了,或者有额外的积蓄,就参加更高级的培训。参加好的培训,既可以免费结交志同道合的朋友,又可以学习平时难以领悟的道理。

第四份,用于旅游,一年奖励自己旅游至少一次。生命的成长来自不断地历练。参加那种自由行的旅游,住进青年旅社,地球其实并不大,每年都出门,几年下来,就可以把红旗插到地图上,许多美好的回忆,成为生命的动力,更加有热情和能量,去投入工作。

第五份,用来投资。先存起来,也可以用来做进货的本钱,小本生意很安全,去批发点产品来卖,亏了反正也不多,赚呢,既赚了金钱,又赚了自信和胆量,还赚来做事情的阅历。赚的钱多了,就可以开始购买长期的投资计划,使自己提早获得一份长久的保障,保证自己和家人在将来,不论发生什么事情,都有一份充足的资金来照顾,生活品质不会下降。

好了,这样熬了一年,第二年如果你还在拿2000元的收入,那就是你的不是了,这么不长进,活着也够丢脸的,看看有什么品牌的豆腐比较硬,买一点来,用头去撞吧。
月收入在3000元以下的,一定要兼职赚钱,不要穷,还很有个性,挑三拣四的,这个不愿意做,那个没有兴趣。收入不高,一定要非常勤奋,尽量去找跟销售有关的工作,销售等。这就是很不错的兼职工作,既可以认识很多有价值的人,又可以锻炼自己的信息收集能力和营销技巧。

衣服啊,鞋子啊,这一年你是得尽量少买了。最好全部通过你的兼职赚的钱去买。当作奖励自己的一种方式。额外多赚钱的时候,记得买个礼物给你的爱人,谢谢他/她支持你的财务计划。很坦诚地告诉他/她,为何你那么勤俭,告诉他/她你的梦想和努力的方向。
到处都有需要帮助的生意人,兼职帮他们做点事情,去磨练自己的意志、口才、和工作能力吧,加上你的理财技巧,第二年,你的收入至少要增加到5000元。最低也应该是3000元,否则你收入的成长还赶不上通货膨胀呢。
无论你的收入是多少,记得分成五份。增加对身体的投资,让身体始终好用,增加对社交的投资,扩大你的人脉,增加对学习的投资,加强你的自信,增加对旅游的投资,扩大你的见闻,增加对未来的投资,增加你的收益。

保持这种平衡,逐渐你就会开始有大量的盈余。这是一个良性循环的人生计划。身体将越来越好,得到更多的营养和照顾。朋友会越来越多,存储许多有价值的人脉关系,同时,你也有条件参加那些非常高端的培训,使自己各方面的羽翼丰满,思维宽阔,格局广大,性格和谐。而你,也就能够逐渐实现自己的各种梦想,购买自己的需要的房子、车子,并且给未来的孩子准备一笔充足的教育基金。
人生是可以设计的,生涯是可以规划的,幸福是可以准备的。现在就可以开始。在你穷的时候,要少在家里,多在外面。在你富有的时候,要多在家里,少在外面。这就是生活的艺术。穷得时候,钱要花给别人,富的时候,钱要花给自己。很多人,都做颠倒了。
穷得时候,不要计较,对别人要好。富的时候,要学会让别人对自己好。自己对自己更好。穷要把自己贡献出去,尽量让别人利用。富,要把自己收藏好,小心别让别人随便利用。这些奇妙的生活方式,是很少人能够明白的。

穷的时候,花钱给别人看。富的时候,花钱给自己享受。穷的时候一定要大方,富的时候,就不要摆阔了。生命已经恢复了简单,已经回到了宁静。

年轻不是过错,贫穷无需害怕。懂得培养自己,懂得什么是贵重物品,懂得该投资什么,懂得该在哪里节约,这是整个过程的关键。别乱买衣服,少买一点,但是可以买几件很有品味的。少在外面吃饭,要吃就请客,要请,就请比自己更有梦想的、更有思想、更努力的人。
一旦生活需要的钱已经够了,最大的花费,就是用你的收入,完成你的梦想,去放开你的翅膀大胆地做梦,去让生命经历不一样的旅程。

经典语录
哈佛有一个著名的理论:人的差别在于业余时间,而一个人的命运决定于晚上8点到10点之间。每晚抽出2个小时的时间用来阅读、进修、思考或参加有意的演讲、讨论,你会发现,你的人生正在发生改变,坚持数年之后,成功会向你招手。

经典语录:
无论你的收入是多少,记得分成五份进行规划投资:增加对身体的投资,让身体始终好用;增加对社交的投资,扩大你的人脉;增加对学习的投资,加强你的自信
增加对旅游的投资,扩大你的见闻;增加对未来的投资,增加你的收益。好好规划落实,你会发现你的人生逐步会有大量盈余。

经典语录:
过去的一页,能不翻就不要翻,翻落了灰尘会迷了双眼。有些人说不出哪里好,但就是谁都替代不了! 那些以前说着永不分离的人,早已经散落在天涯了。收拾起心情,继续走吧,错过花,你将收获雨,错过这一个,你才会遇到下一个。

经典语录:
被人误解的时候能微微的一笑,这是一种素养;受委屈的时候能坦然的一笑,这是一种大度;吃亏的时候能开心的一笑,这是一种豁达;无奈的时候能达观的一笑,这是一种境界;危难的时候能泰然一笑,这是一种大气;被轻蔑的时候能平静的一笑,这是一种自信;失恋的时候能轻轻的一笑,这是一种洒脱
李嘉诚)教五年内买车买房.

假设你的月收入只有2000元,你也可以过得很好。我帮你把钱分成五份。第一份600元,第二份400元,第三份300元,第四份200元,第五份500元。

第一份,用来做生活费。这么少的生活费,每天只能够分到十几元。早餐一份煮米丝,一个鸡蛋,一杯豆浆。中餐一份快餐,一个水果。晚餐自己开个小灶,煮点饭,加俩菜,睡前一杯奶。这样一月的伙食大概是500-600。不过,如果你还年轻,身体暂时还没有太多问题,这样的食谱,够你数年内不会有健康问题。

第二份,用来交朋友,扩大你的人际圈。这就宽裕了。你的电话费可以用掉100元。每个月可以请客两次,每次150元。请谁呢?记住,请比你有思想的人,比你更有钱的人,和你需要感激的人。
每个月,坚持请客,一年下来,你的朋友圈应该已经为你产生价值了,你的声望、影响力、附加价值正在提升,形象又好,又大方。

第三份,用来学习。每个月可以有50元—100元用来买书。钱不多,买的书就要认真阅读,学会学了就用的精神。每一本书,看完后,就把它变成自己的语言讲给别人听,与人分享可以提高你的信誉度,并且,提升亲和力。另外的200元存起来,每一个月参加一次培训。从不间断。等收入高一些了,或者有额外的积蓄,就参加更高级的培训。参加好的培训,既可以免费结交志同道合的朋友,又可以学习平时难以领悟的道理。

第四份,用于旅游,一年奖励自己旅游至少一次。生命的成长来自不断地历练。参加那种自由行的旅游,住进青年旅社,地球其实并不大,每年都出门,几年下来,就可以把红旗插到地图上,许多美好的回忆,成为生命的动力,更加有热情和能量,去投入工作。

第五份,用来投资。先存起来,也可以用来做进货的本钱,小本生意很安全,去批发点产品来卖,亏了反正也不多,赚呢,既赚了金钱,又赚了自信和胆量,还赚来做事情的阅历。赚的钱多了,就可以开始购买长期的投资计划,使自己提早获得一份长久的保障,保证自己和家人在将来,不论发生什么事情,都有一份充足的资金来照顾,生活品质不会下降。

好了,这样熬了一年,第二年如果你还在拿2000元的收入,那就是你的不是了,这么不长进,活着也够丢脸的,看看有什么品牌的豆腐比较硬,买一点来,用头去撞吧。
月收入在3000元以下的,一定要兼职赚钱,不要穷,还很有个性,挑三拣四的,这个不愿意做,那个没有兴趣。收入不高,一定要非常勤奋,尽量去找跟销售有关的工作,销售等。这就是很不错的兼职工作,既可以认识很多有价值的人,又可以锻炼自己的信息收集能力和营销技巧。

衣服啊,鞋子啊,这一年你是得尽量少买了。最好全部通过你的兼职赚的钱去买。当作奖励自己的一种方式。额外多赚钱的时候,记得买个礼物给你的爱人,谢谢他/她支持你的财务计划。很坦诚地告诉他/她,为何你那么勤俭,告诉他/她你的梦想和努力的方向。
到处都有需要帮助的生意人,兼职帮他们做点事情,去磨练自己的意志、口才、和工作能力吧,加上你的理财技巧,第二年,你的收入至少要增加到5000元。最低也应该是3000元,否则你收入的成长还赶不上通货膨胀呢。
无论你的收入是多少,记得分成五份。增加对身体的投资,让身体始终好用,增加对社交的投资,扩大你的人脉,增加对学习的投资,加强你的自信,增加对旅游的投资,扩大你的见闻,增加对未来的投资,增加你的收益。

保持这种平衡,逐渐你就会开始有大量的盈余。这是一个良性循环的人生计划。身体将越来越好,得到更多的营养和照顾。朋友会越来越多,存储许多有价值的人脉关系,同时,你也有条件参加那些非常高端的培训,使自己各方面的羽翼丰满,思维宽阔,格局广大,性格和谐。而你,也就能够逐渐实现自己的各种梦想,购买自己的需要的房子、车子,并且给未来的孩子准备一笔充足的教育基金。
人生是可以设计的,生涯是可以规划的,幸福是可以准备的。现在就可以开始。在你穷的时候,要少在家里,多在外面。在你富有的时候,要多在家里,少在外面。这就是生活的艺术。穷得时候,钱要花给别人,富的时候,钱要花给自己。很多人,都做颠倒了。
穷得时候,不要计较,对别人要好。富的时候,要学会让别人对自己好。自己对自己更好。穷要把自己贡献出去,尽量让别人利用。富,要把自己收藏好,小心别让别人随便利用。这些奇妙的生活方式,是很少人能够明白的。

穷的时候,花钱给别人看。富的时候,花钱给自己享受。穷的时候一定要大方,富的时候,就不要摆阔了。生命已经恢复了简单,已经回到了宁静。

年轻不是过错,贫穷无需害怕。懂得培养自己,懂得什么是贵重物品,懂得该投资什么,懂得该在哪里节约,这是整个过程的关键。别乱买衣服,少买一点,但是可以买几件很有品味的。少在外面吃饭,要吃就请客,要请,就请比自己更有梦想的、更有思想、更努力的人。
一旦生活需要的钱已经够了,最大的花费,就是用你的收入,完成你的梦想,去放开你的翅膀大胆地做梦,去让生命经历不一样的旅程。

经典语录
哈佛有一个著名的理论:人的差别在于业余时间,而一个人的命运决定于晚上8点到10点之间。每晚抽出2个小时的时间用来阅读、进修、思考或参加有意的演讲、讨论,你会发现,你的人生正在发生改变,坚持数年之后,成功会向你招手。

经典语录:
无论你的收入是多少,记得分成五份进行规划投资:增加对身体的投资,让身体始终好用;增加对社交的投资,扩大你的人脉;增加对学习的投资,加强你的自信
增加对旅游的投资,扩大你的见闻;增加对未来的投资,增加你的收益。好好规划落实,你会发现你的人生逐步会有大量盈余。

经典语录:
过去的一页,能不翻就不要翻,翻落了灰尘会迷了双眼。有些人说不出哪里好,但就是谁都替代不了! 那些以前说着永不分离的人,早已经散落在天涯了。收拾起心情,继续走吧,错过花,你将收获雨,错过这一个,你才会遇到下一个。

经典语录:
被人误解的时候能微微的一笑,这是一种素养;受委屈的时候能坦然的一笑,这是一种大度;吃亏的时候能开心的一笑,这是一种豁达;无奈的时候能达观的一笑,这是一种境界;危难的时候能泰然一笑,这是一种大气;被轻蔑的时候能平静的一笑,这是一种自信;失恋的时候能轻轻的一笑,这是一种洒脱

Saturday 2 February 2013

Learning from the GURU!


Show me the ways!



Tips From The Market Wizards

——————————————————————————

Michael Marcus:

“If trading is your life, it is a torturous kind of excitement. But if you are keeping your life in balance, then it is fun. All the successful traders I’ve seen that lasted in the business sooner or later got to that point. They have a balanced life; they have fun outside of trading. You can’t sustain it if you don’t have some other focus. Eventually, you wind up over-trading or getting excessively disturbed about temporary failures”
The above quote by Michael Marcus from Market Wizards, fits perfectly with our style of trading here at LTTTM. We focus on end of day trading methods and “part-time” trading. Essentially, what Michael is saying here is that if you let trading overtake your life, you will end up over-trading and getting too attached to positions. Just like anything else, you need a healthy involvement with trading, not an addiction to it.

Bruce Kovner

brucePosition size. He traded much too big. For every one contract I traded, he traded ten. He would double his money on two different occasions each year, but still end up flat.
In the above quote, Bruce is talking about a trader he knew who he said was a “brilliant trader” but could never keep any of the money he made. He never kept the money he made simply because he traded too big of a position size for his account all the time. This leads to fear, greed and all kinds of emotional trading mistakes.
Whenever I enter a position, I have a predetermined stop. That is the only way I can sleep. I know where I’m getting out before I get in. The position size on a trade is determined by the stop, and the stop is determined on a technical basis.
Bruce is discussing the importance of having a predetermined stop loss in place whenever entering a trade. We talked about how to place stop losses according to the market structure in a recent article, and it agrees with what Bruce is saying that you should place your stop according to the technical picture of the market.
The problem with developing expert systems for trading is that the “rules” of the trading and investment game keep changing. I have spent some time working with expert system developers, and we concluded that trading was a poor candidate for this approach, because trading decisions encompass too many types of knowledge, and the rules for interpreting the information keep changing.
This quote supports the belief that humans make better traders than machines, or trading “robots”. In my article on thehuman mind vs computers in forex trading, we discuss how due to changing market conditions and other variables that are very difficult to put into computer code, humans still make the best traders. That is, at least until we develop some advanced form of artificial intelligence that can develop the type of discretionary chart reading skills that a human can, but to date that has not happened.
First, I would say that risk management is the most important thing to be well understood. Undertrade, undertrade, undertrade is my second piece of advice.
Kovner sounds like me in the above quote; I’m always preaching about trading less, not over-trading, simplifying your trading, etc. Clearly, this idea is not new, but beginning traders loooove to over-trade, and as you read on in this article you will see quotes from other market wizards who essentially preach the same “don’t trade unless there’s an obvious reason to” philosophy.
They personalize the market. A common mistake is to think of the market as a personal nemesis. The market, of course, is totally impersonal; it doesn’t care whether you make money or not. Whenever a trader says, “I wish,” or “I hope,” he is engaging in a destructive way of thinking because it takes attention away from the diagnostic process.
In the quote above, Kovner is basically saying that when you are “hoping” and “wishing” about a trade, it essentially means your trading with too much emotion and this clouds what should be an objective and logical chart analysis process.

Paul Tudor Jones

The Robin Hood Foundation GalaThat was when I first decided I had to learn discipline and money management. It was a cathartic experience for me, in the sense that I went to the edge, questioned my very ability as a trader, and decided that I was not going to quit. I was determined to come back and fight. I decided that I was going to become very disciplined and businesslike about my trading.
In the above quote, Paul Tudor Jones is reflecting on a very bad trade that he lost a lot of money on and how it drove him to be more disciplined and focus more on money management. You don’t have to wait until you have a near account-blowout trade (or an account blowout) to start managing your money properly and being disciplined. You can learn from other traders and start treating your trading as a business today.
The most important rule of trading is to play great defense, not great offense. Every day I assume every position I have is wrong. I know where my stop risk points are going to be. I do that so I can define my maximum possible drawdown. Hopefully, I spend the rest of the day enjoying positions that are going my direction. If they are going against me, then I have a game plan for getting out.
Don’t be a hero. Don’t have an ego. Always question yourself and your ability. Don’t ever feel that you are very good. The second you do, you are dead. My biggest hits have always come after I have had a great period and I started to think that I knew something.
The above quote talks about how Paul Tudor Jones focuses more on defending his capital and managing risk than on how much money he can make. If you focus on risk first then the profits will tend to take care of themselves. Also, in the second quote, he is talking about how becoming over-confident or arrogant after a series of winning trades is often the kiss of death for traders.
My major problem was not the number of points I lost on the trade, but that I was trading far too many contracts relative to the equity in the accounts that I handled. My accounts lost something like 60 to 70 percent of their equity in that single trade.
In the above quote, Tudor Jones discusses how if you risk too much relative to your account, you can lose almost all, or all of your account on one single trade. So, you’re not alone if you’re losing money, even the pros lost money while they were learning and improving. The difference is, will you learn from your big losing trades or will you continue to make the same mistakes? Pro traders like Paul Tudor Jones and others don’t typically make the same big mistake twice.

Richard Dennis

It was an intellectual experiment. We trained them as well as we could. That was the way to do the experiment right, I thought. I tried to codify all the things I knew about the markets. We taught them a little bit about probability, money management, and trading. It turned out I was right. I don’t say that to pat myself on the back, but even I am surprised how well it worked. It’s frightening how well it worked.
In the above quote, Richard Dennis is referring to the famous “Turtle Traders” experiment conducted by him and his trading partner William Eckhardt in the 1980s. Dennis is saying that the experiment proved that you could indeed teach complete beginners how to trade successfully with a simple set of trading rules and some insight from their mentors. This is more confirmation that forex trading can be taught successfully to people who are willing to be disciplined, even complete novices.
The key is consistency and discipline. Almost anybody can make up a list of rules that are 80 percent as good as what we taught our people. What they couldn’t do is give them the confidence to stick to those rules even when things are going bad.
On any individual trade it is almost all luck. It is just a matter of statistics. If you take something that has a 53 percent chance of working each time, over the long run there is a 100 percent chance of it working. If I review the results of two different traders, looking at anything less than one year doesn’t make any sense. It might be a couple of years before you can determine if one is better than the other.
In the above two quotes, Dennis is referring to the fact that many traders give up on their trading method the minute they hit some adversity. One thing you can’t do is ditch your trading method just because you hit a few losers. Any method or system will have losing trades, you measure the success or failure of a particular trading method over a large series of trades, not 3 or 4. So, you have to give any legitimate strategy enough time to play out before you cast judgement on it. Not having the discipline to stick to a trading plan or a trading method drives many traders to their trading “graves”.
I’ve certainly done it – that is, made counter-trend initiations. However, as a rule of thumb, I don’t think you should do it.
Richard Dennis was famously a very successful trend-trader and in the above quote he is stating his feelings on trading counter-trend. Interestingly, this is pretty much how I feel about trading counter-trend; sometimes it’s warranted, but most of the time it’s not, and it takes a skilled trader to be able to trade counter-trend successfully.

Ed Seykota

seykotaThe key to long-term survival and prosperity has a lot to do with the money management techniques incorporated into the technical system. There are old traders and there are bold traders, but there are very few old, bold traders.
The quote above by Ed Seykota refers to the fact that you won’t stick around very long if you continue to trade too “bold”. By “bold” he basically means risking too much per trade and / or over-trading…you can only be overly bold in the markets for so long…it will eventually catch up to you.
Fundamentals that you read about are typically useless as the market has already discounted the price, and I call them “funny-mentals”.
I am primarily a trend trader with touches of hunches based on about twenty years of experience. In order of importance to me are: (1) the long-term trend, (2) the current chart pattern, and (3) picking a good spot to buy or sell. Those are the three primary component of my trading. Way down in a very distant fourth place are my fundamental ideas and, quite likely, on balance, they have cost me money.
In the above quotes, Seykota is talking about how he doesn’t really use fundamental data to make his trading decisions; he is almost purely a technical trader. I agree with this totally and my price action trading strategies and trading philosophy reflect the belief that all fundamentals are factored into price and you can save a lot of time and stress by just learning to analyze price and avoiding forex news and fundamentals.
I prefer not to dwell on past situations. I tend to cut bad trades as soon as possible, forget them, and then move on to new opportunities.
Essentially, Seykota is saying “Don’t become emotional about losses”. Dwelling on a lost trade is only going to cause negative emotions and tempt you to try and “make back” the money you lost. Forget about your last losing trade and move on.
I feel my success comes from my love of the markets. I am not a casual trader. It is my life. I have a passion for trading. It is not merely a hobby or even a career choice for me. There is no question that this is what I am supposed to do with my life.
Whilst you don’t need to be glued to your screen all day and night, you do need to have some passion and interest in trading and markets, otherwise you will be forcing yourself to trade just because you want to make money. People who succeed at trading are those that have a genuine interest in the markets and in the art and skill of trading.
Having a quote machine is like having a slot machine on your desk – you end up feeding it all day long. I get my price data after the close each day.
Here, Seykota is talking about end of day data. I’ve been teaching traders the power and simplicity of trading “end of day” for years. It’s the perfect option for most traders, especially those first starting out or those who want to trade successfully with a day job.
Win or lose, everybody gets what they want out of the market. Some people seem to like to lose, so they win by losing money.
Seykota is talking about how people tend to indirectly let their emotions control their trading. He talks about one trader who “seems to get in near the start of every substantial bull move and works his $10 thousand up to a quarter of a million in a couple of months. Then he changes his personality and loses it all back again. This process is repeated like clockwork.” Many traders don’t even know that their emotions are guiding their trading more than logic or rationality, thus, they cannot keep their winnings or control their losers…because they are doing what feels good…thus they are “getting what they want”, if only temporarily.

Larry Hite

While the speculator doesn’t have the product knowledge or speed, he does have the advantage of not having to play. The speculator can choose to only bet when the odds are in his favor. That is an important positional advantage.
In the above quote, Larry is referring to the fact that smaller retail traders have the advantage of being able to sit out an wait patiently for the best opportunities. Bigger institutional traders have to trade more and whilst they might have a speed advantage, the retail trader has to use his advantage of being able to trade like a sniper to its fullest.
Frankly, I don’t see markets; I see risks, rewards, and money.
The above quote stresses the importance of seeing each trade as a risk reward ratio, rather than just a potential profit opportunity. Pro traders calculate their risk first and then their reward, if the risk reward ratio of a trade doesn’t make sense then they don’t trade.

Marty Schwartz

 I always laugh at people who say, “I’ve never met a rich technician.” I love that! It’s such an arrogant, nonsensical response. I used fundamentals for nine years and got rich as a technician.
In the above quote, Marty is clearly supporting the use of technical analysis over fundamental analysis. At the time the Market Wizards books were written; late 80′s early 90′s, technical analysis was not as widely accepted as it is today. As Schwartz said “I got rich as a technician”….it’s because all the fundamentals are factored into price, as I mentioned earlier.  As most of you know by now, I strongly believe traders should study charts and should avoid trading news & fundamentals like the plague.
Learn to take losses. The most important thing in making money is not letting your losses get out of hand. Also, don’t increase your position size until you have doubled or tripled your capital. Most people make the mistake of increasing their best as soon as they start making money. That is a quick way to get wiped out.
Learning that you HAVE to take losses and HOW to minimize them are two very critical lessons you have to learn before becoming a pro trader. Also, I think what he says about increasing position size is interesting; it supports my view on measuring risk in dollars, not percentages…and he is also saying that you shouldn’t increase your position size too soon..build your account up a bit first.

James B. Rogers, Jr. (Jim  Rogers)  ‘The man in the bow tie’

jimrOne of the best rules anybody can learn about investing is to do nothing, absolutely nothing, unless there is something to do. Most people – not that I’m better than most people – always have to be playing; they always have to be doing something. They make a big play and say, “Boy, am I smart, I just tripled my money.” Then they rush out and have to do something else with that money. They can’t just sit there and wait for something new to develop.
I just wait until there is money lying in the corner, and all I have to do is go over there and pick it up. I do nothing in the meantime. Even people who lose money in the market say, “I just lost my money, now I have to do something to make it back.” No, you don’t. You should sit there until you find something.
I really like the part above where Jim Rogers says “I just wait until there is money lying in the corner…” because that really sums up what I try to teach my students as well as my own personal trading style. Rogers is dead on with the above quotes; most traders do WAY too much…there is nothing wrong with doing nothing if there isn’t anything to do! In other words…don’t force a trade if an obvious one isn’t there, it’s better to save your capital for a solid opportunity that’s just around the corner.

Mark Weinstein

It is experience and gut feel. I use all forms of technical analysis, but interpret them through gut feel. I do not believe in mathematical systems that always approach the markets in the same way. Using myself as the “system,” I constantly change the input to achieve the same output – profit!
In the above quote, Market Weinstein is referring to his style of trading which is based on technical analysis combined with “gut feel”. I talk about gut feel and discretionary trading skill and it’s really an important thing to develop as a trader. As you learn price action or any other strategy, you will naturally develop more “gut feel” and discretionary skill for applying that strategy in the market. Over time, this will increase your ability to select winning traders over losing trades.

Dr. Van K. Tharp

The top traders that I’ve worked with began their careers with an extensive study of the markets. They developed and refined models of how to trade. They mentally rehearsed what they wanted to do extensively until they had the belief that they would win. At this point, they had both the confidence and the commitment necessary to produce success.
When I read the above quote, the first thing I thought of was demo trading and learning to master your trading strategybefore you try to trade it live. People who can apply more patience and discipline in learning and mastering their trading method before they go live will naturally have a far easier time making money in the markets than those who just jump in head-first with no plan of action.

Tips from The New Market Wizards

——————————————————————————————

Bill Lipschutz

wlipschutzI don’t think you can consistently be a winning trader if you’re banking on being right more than 50 percent of the time. You have to figure out how to make money being right only 20 to 30 percent of the time.
Everyone should read the above quote again, and again. I have preached the fact that you can lose on the majority of your trades and still make money in many articles, yet I still get emails everyday from new traders who seem to be looking for the “holy-grail”. The truth is, many pro traders are not winning more than 50% of the time, but because their money management is so good, and their understanding of risk reward is so deep; they still make a sickening amount of money in the markets. Once you can learn that winning percentage doesn’t really matter and throw your ego in the garbage…you will probably start doing a lot better.

Randy McKay

I never try to buy a bottom or sell a top. Even if you manage to pick the bottom, the market can end up sitting there for years and tying up your capital. You don’t want to have a position before a move has started. You want to wait until the move is already under way before you get into the market.
This quote by Randy McKay speaks to the fact that trying to pick the top or bottom of a trend is futile, yet many traders try to do it. Indeed, it almost seems to be a part of our evolutionary wiring to want to try and be the “hero” and constantly pick the top of a big up trend or the bottom of a down trend. It’s far easier and more lucrative to wait for a trend to get underway and then trade with the trend until it ends.

William Eckhardt

William_EckhardtEither a trade is good enough to take, in which case it should be implemented at full size, or it’s not worth bothering with at all.
William Eckhardt was Richard Dennis’s trading partner and colleague for the Turtle Trader experiment. Eckhardt challenged Dennis’s belief that trading could be taught to anyone by saying that he thought trading success was more of an innate thing that could not easily be taught. Eckhardt admits in The New Market Wizards that he was wrong and Dennis was right; trading can indeed be successfully taught even to complete beginners.
In his quote above he is talking about something I have long believed in; either you take a trade or you don’t…I don’t like reducing my position size because I don’t fully believe in my trade. If I don’t fully believe in a trade setup than I simply don’t take it, and if I do believe in it then I risk my standard amount per trade.
I haven’t seen much correlation between good trading and intelligence. Some outstanding traders are quite intelligent, but a few aren’t. Many outstandingly intelligent people are horrible traders. Average intelligence is enough. Beyond that, emotional makeup is more important.
This quite is pretty self-explanatory; you don’t have to be smart to be a trader. Intelligence helps for sure, but emotional makeup and discipline is far more important.
The desire to maximize the number of winning trades (or minimize the number of losing trades) works against the trader. The success rate of trades is the least important performance statistic and may even be inversely related to performance.
In the above quote, Eckhardt is talking about how many traders tend to take small profits because they are more concerned with “winning” than with their long-term profitability. He also says that “While amateurs go broke by taking large losses, professionals go broke by taking small profits. The problem, in a nutshell, is that human nature does not operate to maximize gain but rather to maximize chance of gain”. In other words, it’s against our human nature to want to let our profits run into large winners, it’s easier and it certainly feels better temporarily to take smaller gains. This, of course, puts traders in a very tough position of having to have a high winning percentage of their trades to succeed long-term.

Monroe Trout

I don’t pull out any money. I rent my condo and I drive a cheap car.
The above quote by Mr. Trout is a good example of my minimalist approach to trading and life that I recently wrote about. Clearly, I am not the only person who has had this idea or who finds it appealing.
First, many people get involved in the markets without any edge. They get in the market because their broker told them that the market is bullish. That is not an edge. However, to tell the truth, most small speculators will never be around long enough to find out whether their system could have worked, because they bet too much on their trades, or their account is too small to start.
In this quote, Trout is right on in saying that many people begin trading without any edge. I get emails from traders everyday who clearly have not mastered any type of trading strategy (edge) yet are telling me they’ve already lost thousands of dollars in the markets. You have to have a trading method that gives you a high-probability edge in the market and you have to stick to it and not risk too much per trade, especially if you have a very small account. Otherwise, you won’t be around very long in the markets.

Stanley Druckenmiller

stanley-druckenmillerI’ve learned many things from him [George Soros], but perhaps the most significant is that it’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.
The above quote is reference to George Soros who mentored Druckenmiller for a while. This quote fits perfectly with an article I wrote recently about how you don’t have to be right to make money trading. Most traders get far too concerned about the number of winners they have compared to losers when really they should totally forget about that number and instead focus on their overall risk / reward. In other words, how much money are they making for every dollar they have risked.

Victor Sperandeo

When he finally got out, he felt a sense of relief – which is somewhat ironic since he had just lost 70 percent of his money. There’s nothing logical about this process. It’s all an emotional pitfall. Planning where to get out before putting on the trade is a means of enforcing emotional discipline.
In the above quote, Sperandeo is talking about the psychological process involved when a trader doesn’t have a predetermined stop loss and when the trade goes into negative territory and they keep thinking the market will turn around so they can get out at breakeven. He goes on to say that very often the trader exits when he feels the “onset of panic” and he can’t take anymore open losses against him…and typically it’s around that time or shortly after that the market reverses back in his favor. He talks about “emotional discipline” in other parts of the interview too, and it goes to underscore the fact that we need to take proactive steps to manage our emotions as we trade, otherwise they can very easily get out of control.

Tom Basso

tombMy reinforcement came when my losses gradually became smaller and smaller. I was getting very close to the breakeven point. I also kept my losses at a manageable level. I always traded a very small account – an amount that I could afford to lose without affecting my life-style.
The above quote is one of the key points that I talk about in regards to money management and risk management; never risk more than you are emotionally OK with losing. Basso is saying that when he was starting out he traded a small account that even if he blew-out it would not affect him or his lifestyle. I see many traders coming into the markets risking money they clearly can’t afford to lose, and this puts them behind the curve right out of the gate because they feel a strong emotional attachment to the money and thus to every trade they take.
I would tell that trader to think of each trade as one of the next one thousand he’s going to make. If you start thinking in terms of the next one thousand trades, all of a sudden you’ve made any single trade seem very inconsequential. Who cares if a particular trade is a winner or a loser? It’s just another trade.
The above quote was Basso’s response to a question from Schwager about what he would say to a trader who says he can’t stand to lose. Learning that any individual trade is really inconsequential in the long-run, is one of the main realizations that will help you detach yourself emotionally from your trades. Also, if you really understand and believe this, you should not have any desire to over-leverage your trades…because you know that it’s the series of trades over time that matters, not any one in particular.

Linda Bradford Raschke

It never bothered me to lose, because I always knew that I would make it right back. I always knew that no matter what happened, I could go into any marketplace, with any amount of money, and make a living.
The above quote by Linda Bradford Raschke was the main one that I remembered from her interview when I first readThe New Market Wizards about five or six years ago. It is really a very motivating quote, because it basically says that once you have mastered your trading strategy, you should have the ability to go into any market and make money. This is especially true for a price action trader, since price action strategies can be applied to any market; once you master them you really can trade any market you want.

Al Weiss

The essential element is that the markets are ultimately based on human psychology, and by charting the markets you’re merely converting human psychology into graphic representations. I believe that the human mind is more powerful than any computer in analyzing the implications of these price graphs.
In the above quote, All Weiss describes the essence of price action trading; trading from the “graphic representations” of human psychology in the market, as well as other variables that affect a market. These “graphic representations” of different market variables are what I call price action, and a market’s price action reflects all the variables that influence it.

In Closing

—————————–
I hope you’ve enjoyed this overview of some of my favorite quotes from Jack Schwager’s Market Wizards books. I actually had to leave out a few of the traders who were interviewed because this article was just getting way too long. But, I highly recommend everyone read the Market Wizards Series of books at some point in the future, because there’s a lot more to learn from them. You can buy these books here. Jack Schwager has also released a new edition to the series called Hedge Fund Market Wizards.
In all of my trading courses and teachings I draw great inspiration from the very same techniques, principals and philosophies put forward by the famous traders interviewed in the Market Wizards series. If you want to learn how to read the “graphic representation” of human psychology on the charts as mentioned by Al Weiss in his quote above, as well as more about the principles discussed today, checkout my price action trading course and traders community.



Quoted from 
http://www.learntotradethemarket.com/forex-articles/how-to-trade-like-the-market-wizards