Traders Positive Quotes

Privilege implies exclusion from privilege, just as advantage implies disadvantage," Celine went on. "In the same mathematically reciprocal way, profit implies loss. If you and I exchange equal goods, that is trade: neither of us profits and neither of us loses. But if we exchange unequal goods, one of us profits and the other loses. Mathematically. Certainly. Now, such mathematically unequal exchanges will always occur because some traders will be shrewder than others. But in total freedom—in anarchy—such unequal exchanges will be sporadic and irregular. A phenomenon of unpredictable periodicity, mathematically speaking. Now look about you, professor—raise your nose from your great books and survey the actual world as it is—and you will not observe such unpredictable functions. You will observe, instead, a mathematically smooth function, a steady profit accruing to one group and an equally steady loss accumulating for all others. Why is this, professor? Because the system is not free or random, any mathematician would tell you a priori. Well, then, where is the determining function, the factor that controls the other variables? You have named it yourself, or Mr. Adler has: the Great Tradition. Privilege, I prefer to call it. When A meets B in the marketplace, they do not bargain as equals. A bargains from a position of privilege; hence, he always profits and B always loses. There is no more Free Market here than there is on the other side of the Iron Curtain. The privileges, or Private Laws—the rules of the game, as promulgated by the Politburo and the General Congress of the Communist Party on that side and by the U.S. government and the Federal Reserve Board on this side—are slightly different; that's all. And it is this that is threatened by anarchists, and by the repressed anarchist in each of us," he concluded, strongly emphasizing the last clause, staring at Drake, not at the professor.

There is a saying that bad traders divorce their spouse sooner than abandon their positions. Loyalty to ideas is not a good thing for traders, scientists - or anyone.

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.

My goal on Wall Street was never to get rich but to stay in business. There’s a big difference. If you’re out of the business, you can never get rich. That’s why you have to be especially cautious when you’re trading a larger position size.

After buying or selling a large position in a stock during the day, institutional traders compare their price to VWAP values.

we have a large number of “gamblers” (read: traders) playing a risky game, and as long as the average return is positive, the economist suggests that this risky game is worthwhile,

human traders who are not psychologically prepared will often override their automated trading systems' decisions, especially when there is a position or day with abnormal profit or loss.

Kovner lists risk management as the key to successful trading; he always decides on an exit point before he puts on a trade. He also stresses the need for evaluating risk on a portfolio basis rather than viewing the risk of each trade independently. This is absolutely critical when one holds positions that are highly correlated, since the overall portfolio risk is likely to be much greater than the trader realizes.

Undertrade, undertrade, undertrade is my second piece of advice. Whatever you think your position ought to be, cut it at least in half. My experience with novice traders is that they trade three to five times too big.

Behind every cynical (or merely incompetent) banking executive and trader sits an economist, assuring them (and us) from a position of unchallenged intellectual authority that their actions are publicly useful and should in any case not be subject to collective oversight.

Most traders are trading based on their own predictions, opinions, and emotions. These are the worst trading signals. Instead, develop trading rules that will guide you. Replace your opinions with trade signals, your ego with position sizing, and your emotions with a trading plan.

In the same mathematically reciprocal way, profit implies loss. If you and I exchange equal goods, that is trade: neither of us profits and neither of us loses. But if we exchange unequal goods, one of us profits and the other loses. Mathematically. Certainly. Now, such mathematically unequal exchanges will always occur because some traders will be shrewder than others. But in total freedom—in anarchy—such unequal exchanges will be sporadic and irregular. A phenomenon of unpredictable periodicity, mathematically speaking. Now look about you, professor—raise your nose from your great books and survey the actual world as it is—and you will not observe such unpredictable functions. You will observe, instead, a mathematically smooth function, a steady profit accruing to one group and an equally steady loss accumulating for all others. Why is this, professor? Because the system is not free or random, any mathematician would tell you a priori. Well, then, where is the determining function, the factor that controls the other variables? You have named it yourself, or Mr. Adler has: the Great Tradition. Privilege, I prefer to call it. When A meets B in the marketplace, they do not bargain as equals. A bargains from a position of privilege; hence, he always profits and B always loses. There is no more Free Market here than there is on the other side of the Iron Curtain. The privileges, or Private Laws—the rules of the game, as promulgated by the Politburo and the General Congress of the Communist Party on that side and by the U.S. government and the Federal Reserve Board on this side—are slightly different; that’s all. And it is this that is threatened by anarchists, and by the repressed anarchist in each of us,

If I were to construct a God I would furnish Him with some way and qualities and characteristics which the Present lacks. He would not stoop to ask for any man's compliments, praises, flatteries; and He would be far above exacting them. I would have Him as self-respecting as the better sort of man in these regards. He would not be a merchant, a trader. He would not buy these things. He would not sell, or offer to sell, temporary benefits of the joys of eternity for the product called worship. I would have Him as dignified as the better sort of man in this regard. He would value no love but the love born of kindnesses conferred; not that born of benevolences contracted for. Repentance in a man's heart for a wrong done would cancel and annul that sin; and no verbal prayers for forgiveness be required or desired or expected of that man. In His Bible there would be no Unforgiveable Sin. He would recognize in Himself the Author and Inventor of Sin and Author and Inventor of the Vehicle and Appliances for its commission; and would place the whole responsibility where it would of right belong: upon Himself, the only Sinner. He would not be a jealous God--a trait so small that even men despise it in each other. He would not boast. He would keep private Hs admirations of Himself; He would regard self-praise as unbecoming the dignity of his position. He would not have the spirit of vengeance in His heart. Then it would not issue from His lips. There would not be any hell--except the one we live in from the cradle to the grave. There would not be any heaven--the kind described in the world's Bibles. He would spend some of His eternities in trying to forgive Himself for making man unhappy when he could have made him happy with the same effort and he would spend the rest of them in studying astronomy.

Coming back again to the investment bank world, they have meetings and all sorts of stuff going on that suck up time. Traders would all complain about the waste of time, but what it actually meant was that it limited the amount of time they were in front of their screens staring at their positions. You don’t want to be sitting in front of your screen and staring at market prices for 12 hours a day. Staring at the price is not going to tell you very much.

Grazer and Cohn - two outsiders with learning disabilities-played a trick. They bluffed their way into professions that would have been closed to them. The man in the cab assumed that no one would be so audacious as to say he knew how to trade options if he didn't. And it never occurred to the people Brian Grazer called that when he said he was Brian Grazer from Warner Brothers, what he meant was that he was Brian Grazer who pushed the mail cart around at Warner Brothers. What they did is not "right," just as it is not "right" to send children against police dogs. But we need to remember that our definition of what right is, often as not, simply the way that people in positions of privilege close the door on those on the outside. David has nothing to lose, and because he has nothing to lose, he has the freedom to thumb his nose at the rules set by others. That's how people with brains a little bit different from the rest of ours get jobs as options traders and Hollywood producers-and a small band of protesters armed with nothing but their wits have a chance against the likes of Bull Connor

Of course, such historians typically frame this position as a critique of Western arrogance (‘how can you suggest that genocidal imperialists were actually listening to those whose societies they were in the process of stamping out?’), but it could equally well be seen as a form of Western arrogance in its own right. There is no contesting that European traders, missionaries and settlers did actually engage in prolonged conversations with people they encountered in what they called the New World, and often lived among them for extended periods of time – even as they also colluded in their destruction.

believe in the trade. On the one hand, you don’t want the loss on the position to get any worse, but, on the other hand, you are concerned that as soon as you get out, the market will turn around in favor of the liquidated trade. This conflict can cause traders to freeze and do nothing as their losses mount. Steve Cohen also had some useful advice about how to handle this type of situation. “If the market is moving against you, and you don’t know why, take in half. You can always put in on again. If you do that twice, you’ve taken in three-quarters of your position. Then what’s left is no longer a big deal.

The relationship between humanity and work involves money, but in something of a negative correlation. The jobs and roles that are the most human and would naturally be most attractive tend to pay nothing or close to nothing. Mother, father, artist, writer, musician, coach, teacher, storyteller, nurturer, counselor, dancer, poet, philosopher, journalist—these roles often are either unpaid or pay so little that it is difficult to survive or thrive in many environments. Many of these roles have high positive social impacts that are ignored by the market. On the other hand, the most lucrative jobs tend to be the most inorganic. Corporate lawyers, technologists, financiers, traders, management consultants, and the like assume a high degree of efficiency. The more that a person can submerge one’s humanity to the logic of the marketplace, the higher the reward.

Goldman Sachs itself—and so Goldman was in the position of selling bonds to its customers created by its own traders, so they might bet against them. Secondly, there was a crude, messy, slow, but acceptable substitute for Mike Burry’s credit default swaps: the actual cash bonds. According to a former Goldman derivatives trader, Goldman would buy the triple-A tranche of some CDO, pair it off with the credit default swaps AIG sold Goldman that insured the tranche (at a cost well below the yield on the tranche), declare the entire package risk-free, and hold it off its balance sheet. Of course, the whole thing wasn’t risk-free: If AIG went bust, the insurance was worthless, and Goldman could lose everything. Today Goldman Sachs is, to put it mildly, unhelpful when asked to explain exactly what it did, and this lack of transparency extends to its own shareholders. “If a team of forensic accountants went over Goldman’s books, they’d be shocked at just how good Goldman is at hiding things,

If you live in New York City, for example, chances are you will not be going outside for a leisurely stroll down Fifth Avenue in shorts and a T-shirt and flip-flops in the month of February. Why is that? Because, if you’ve lived there for a while and experienced the local seasons, you’ve already identified that in February it will be pretty darn cold. To appropriately adapt, you will want to wear a heavy winter coat and maybe gloves and a scarf and earmuffs. It’s the same with the markets. You need to have “lived there for a while” and experienced a variety of market cycles so you know what “to wear,” or rather how to adapt, so that you are financially comfortable. Instead of knowing to wear a winter coat in February, you will know that in a choppy, sideways, bracketed market you need to adapt your system and rules so that you do not get whipsawed and stopped out a lot. Or you may need to recognize a bull market changing to a bear market so that you can exit your position in a timely fashion to lock in profits.

Because so many people were betting against GameStop —and brick-and-mortar retail in general — the overall short position was enormous, almost comically so. At certain points over the past six months, it had bounced between 50 and even 100 percent of the overall float, meaning nearly all the shares of GameStop in existence had been borrowed and sold by short sellers, all of whom had an obligation to rebuy those shares at some point in the future. So, what if Keith was right, and the stock went up instead of down? It would be like watching investors trying to get out of a burning building, through a single, narrow door. The stock would rocket. As a financial educator, Keith knew that short selling could be one of the riskiest plays on the market. You really needed to be certain a stock was going down, because your upside was limited, but your losses could, theoretically, be infinite. The fact that so many competent investors were short selling GameStop could mean the stock really was a dog; but it also meant the stock was loaded with rocket fuel, and it wouldn't take much to ignite and sent it right to the moon.

At eight-thirty that night Ian stood on the steps outside Elizabeth’s uncle’s town house suppressing an almost overwhelming desire to murder Elizabeth’s butler, who seemed to be inexplicably fighting down the impulse to do bodily injury to Ian. “I will ask you again, in case you misunderstood me the last time,” Ian enunciated in a silky, ominous tone that made ordinary men blanch. “Where is your mistress?” Bentner didn’t change color by so much as a shade. “Out!” he informed the man who’d ruined his young mistress’s life and had now appeared on her doorstep, unexpected and uninvited, no doubt to try to ruin it again, when she was at this very moment attending her first ball in years and trying bravely to live down the gossip he had caused. “She is out, but you do not know where she is?” “I did not say so, did I?” “Then where is she?” “That is for me to know and you to ponder.” In the last several days Ian had been forced to do a great many unpleasant things, including riding across half of England, dealing with Christina’s irate father, and finally dealing with Elizabeth’s repugnant uncle, who had driven a bargain that still infuriated him. Ian had magnanimously declined her dowry as soon as the discussion began. Her uncle, however, had the finely honed bargaining instincts of a camel trader, and he immediately sensed Ian’s determination to do whatever was necessary to get Julius’s name on a betrothal contract. As a result, Ian was the first man to his knowledge who had ever been put in the position of purchasing his future wife for a ransom of $150,000. Once he’d finished that repugnant ordeal he’d ridden off to Montmayne, where he’d sopped only long enough to switch his horse for a coach and get his valet out of bed. Then he’d charged off to London, stopped at his town house to bathe and change, and gone straight to the address Julius Cameron had given him. Now, after all that, Ian was not only confronted by Elizabeth’s absence, he was confronted by the most insolent servant he’d ever had the misfortune to encounter. In angry silence he turned and walked down the steps. Behind him the door slammed shut with a thundering crash, and Ian paused a moment to turn back and contemplate the pleasure he was going to have when he sacked the butler tomorrow.

And as a long-short fund, he'd also been obligated to take short positions — betting against companies — which was a tactic that, to most experts in finance, was uncontroversial. The thinking went, when companies were performing poorly, or were mismanaged, or were in an industry that was being overrun, or were simply likely to fail, taking a short position wasn't just logical — it protected the marketplace by pointing out overpriced stocks, prevented fraud by acting as a check against dubious management, and poked holes in potential bubbles. Short sellers also added liquidity and volume to a stock — because they were obligated to buy the stock back at some point in the future. Yes, short sellers profited when companies failed, but usually a short seller wasn't banking on a company failing — just that the stock's price would eventually correct toward its true valuation. Sometimes, though, a trader picked up a short position because the company in question really was going to fail. Because, perhaps, it was in an industry that was dying; had management that seemed completely unable or unwilling to pivot; and had deep fundamental issues in its financing that seemed impossible to overcome.

Which meant, if somehow GameStop did start to go up, the people who had shorted the company would begin to feel pressure to buy; the more the stock went up, the heavier that pressure became. As the shorts began to cover, buying shares to return them to their lenders, the stock would rise even higher. In financial parlance, this was something called a 'short squeeze.' It didn't happen often, but when it did, it could be spectacular. Most famously, in 2008, a surprise takeover attempt of the German automaker Volkswagen by rival Porsche drove Volkswagen's stock price up by a factor of 5 — briefly making it the most valuable company in the world — in two quick days of trading, as short selling funds struggled to cover their positions. Similarly, a battle between two hedge fund titans — Bill Ackman, of Pershing Square Capital Management, and Carl Icahn — led to a squeeze involving supplement maker — and alleged pyramid marketer — Herbalife, which cost Ackman a reported $1 billion. And perhaps the first widely reported short squeeze dated back a century, to 1923, when grocery magnate Clarence Saunders successfully decimated short sellers who had targeted his nascent chain of Piggly Wiggly grocery stores.

To summarize the VWAP Reversal Strategy: After I build my watchlist in the morning, I closely monitor the shortlisted stocks in the first five minutes after the Open. I identify their opening range and their price action. The stocks will either move higher or below the VWAP. Depending on the price action, I may be able to take an Opening Range Breakout to the long or short side. I monitor the price when it moves away from the VWAP and look for a sign of weakness. If it is above the VWAP, failing to make a new high of the day may be a sign that the buyers are exhausted. If it is below the VWAP, failing to make a new low of the day or a new 5-minute low can be a sign that the sellers are gone, and the stock can be ready for a squeeze back to the VWAP. I take the trade only if I can get a good entry and a good risk/reward ratio. Remember, most of the time stocks move really fast without offering a good entry and a good risk/reward ratio. If I am short above the VWAP, I cover my short at the VWAP and bring my stop loss to break-even. If I am long below the VWAP, I sell part of my position at the VWAP, and keep the rest for a squeeze above the VWAP (or as some traders would call it, a VWAP Pop). Do ensure you bring your stop loss to break-even, because sometimes the stock can bounce back from the VWAP as well.

To summarize my trading strategy for the ABCD Pattern: When I find a Stock in Play, either from my Gappers watchlist or from one of my scanners, or when I’m advised by someone in our chatroom that a stock is surging up from point A and reaching a significant new high for the day (point B), I wait to see if the price makes a support higher than point A. I call this point C. I do not jump into the trade right away. I watch the stock during its consolidation period. I choose my share size and stop loss and profit target exit strategy. When I see that the price is holding support at point C, I enter the trade close to the price of point C in anticipation of moving forward to point D or higher. Point C can also be identified from a 1-minute chart. It is important to look at both time frames in order to gain a better insight. My stop is the loss of point C. If the price goes lower than point C, I sell and accept the loss. Therefore, it is important to buy the stock close to point C to minimize the loss. Some traders wait and buy only at point D to ensure that the ABCD Pattern is really working. In my opinion, that approach basically reduces your reward while at the same time increases your risk. If the price moves higher, I sell half of my position at point D, and bring my stop higher to my entry point (break-even). I sell the remaining position as soon as my target hits or I sense that the price is losing steam or that the sellers are acquiring control of the price action. When the price makes a new low on my 5-minute chart, it is a good indicator that the buyers are almost exhausted.

robbery by European nations of each other's territories has never been a sin, is not a sin to-day. To the several cabinets the several political establishments of the world are clotheslines; and a large part of the official duty of these cabinets is to keep an eye on each other's wash and grab what they can of it as opportunity offers. All the territorial possessions of all the political establishments in the earth—including America, of course—consist of pilferings from other people's wash. No tribe, howsoever insignificant, and no nation, howsoever mighty, occupies a foot of land that was not stolen. When the English, the French, and the Spaniards reached America, the Indian tribes had been raiding each other's territorial clothes-lines for ages, and every acre of ground in the continent had been stolen and re-stolen 500 times. The English, the French, and the Spaniards went to work and stole it all over again; and when that was satisfactorily accomplished they went diligently to work and stole it from each other. In Europe and Asia and Africa every acre of ground has been stolen several millions of times. A crime persevered in a thousand centuries ceases to be a crime, and becomes a virtue. This is the law of custom, and custom supersedes all other forms of law. Christian governments are as frank to-day, as open and above-board, in discussing projects for raiding each other's clothes-lines as ever they were before the Golden Rule came smiling into this inhospitable world and couldn't get a night's lodging anywhere. In 150 years England has beneficently retired garment after garment from the Indian lines, until there is hardly a rag of the original wash left dangling anywhere. In 800 years an obscure tribe of Muscovite savages has risen to the dazzling position of Land-Robber-in-Chief; she found a quarter of the world hanging out to dry on a hundred parallels of latitude, and she scooped in the whole wash. She keeps a sharp eye on a multitude of little lines that stretch along the northern boundaries of India, and every now and then she snatches a hip-rag or a pair of pyjamas. It is England's prospective property, and Russia knows it; but Russia cares nothing for that. In fact, in our day land-robbery, claim-jumping, is become a European governmental frenzy. Some have been hard at it in the borders of China, in Burma, in Siam, and the islands of the sea; and all have been at it in Africa. Africa has been as coolly divided up and portioned out among the gang as if they had bought it and paid for it. And now straightway they are beginning the old game again—to steal each other's grabbings. Germany found a vast slice of Central Africa with the English flag and the English missionary and the English trader scattered all over it, but with certain formalities neglected—no signs up, "Keep off the grass," "Trespassers-forbidden," etc.—and she stepped in with a cold calm smile and put up the signs herself, and swept those English pioneers promptly out of the country. There is a tremendous point there. It can be put into the form of a maxim: Get your formalities right—never mind about the moralities. It was an impudent thing; but England had to put up with it. Now, in the case of Madagascar, the formalities had originally been observed, but by neglect they had fallen into desuetude ages ago. England should have snatched Madagascar from the French clothes-line. Without an effort she could have saved those harmless natives from the calamity of French civilization, and she did not do it. Now it is too late. The signs of the times show plainly enough what is going to happen. All the savage lands in the world are going to be brought under subjection to the Christian governments of Europe. I am

To summarize my trading strategy for VWAP Moving Average Trend trading: When I am monitoring a Stock in Play and notice a trend is establishing around a moving average (usually 9 EMA) in the Late-Morning session, I consider VWAP Moving Average Trend trading. If the stock has already lost the VWAP (from a VWAP False Breakout), it most likely will stay below the VWAP. Similarly, if the stock squeezed above the VWAP in the Late-Morning session, it is most likely that it will stay above the VWAP, as it means the buyers are in control. Once I learn that either 9 or 20 EMA are acting as either a support or resistance, I buy the stock after confirmation of moving averages as a support, but only if I can clearly see it “held” the VWAP. Similarly, I go short below the moving averages if I have the confirmation that it has “lost” the VWAP in the Late-Morning session. I buy or sell short as close as possible to the moving average line (in order to have a small stop). My stop will usually be 5 to 10 cents below the moving average line or, if a candlestick, close below the moving average (for long positions). For short positions, a close above the moving average would stop me out. I ride the trend until the break of 9 or 20 EMA. Usually, 20 EMA is a stronger support or resistance, so it is better to wait for that. I usually do not use trailing stops and I constantly monitor the trend with my eyes, but I know that many traders also use trailing stops. If the stock is moving really high away from the moving average, offering me an equally really nice unrealized profit, I may take some profit, usually at the 1/4 or half-position. I do not always wait until the break of moving average for my exit. Traders will say: you can never go broke by taking good profits. If the price pulls back to the moving average, I may add again to my position and continue the VWAP Moving Average Trend trade. Remember, when you take profit, you should always bring your stop loss to break-even. Never go red on a stock that you already booked some profit on.

The National Socialist Movement has, besides its delivery from the Jewishcapitalist shackles imposed by a plutocratic-democratic, dwindling class of exploiters at home, pronounced its resolve to free the Reich from the shackles of the Diktat of Versailles abroad. The German demands for a revision were an absolute necessity, a matter of course for the existence and the honor of any great people. Posterity will some day come to regard them as exceedingly modest. All these demands had to be carried through, in practice against the will of the British French potentates. Now more than ever we all see it as a success of the leadership of the Third Reich that the realization of these revisions was possible for years without resort to war. This was not the case-as the British and French demagogues would have it-because we were not then in a position to wage war. When it finally appeared as though, thanks to a gradually awakening common sense, a peaceful resolution of the remaining problems could be reached through international cooperation, the agreement concluded in this spirit on September 29, 1938, at Munich by the four great states predominantly involved, was not welcomed by public opinion in London and Paris, but was condemned as a despicable sign of weakness. The Jewish capitalist warmongers, their hands covered with blood, saw in the possible success of such a peaceful revision the vanishing of plausible grounds for the realization of their insane plans. Once again that conspiracy of pitiful, corrupt political creatures and greedy financial magnates made its appearance, for whom war is a welcome means to bolster business. The international Jewish poison of the peoples began to agitate against and to coroode healthy minds. Men of letters set out to portray decent men who desired peace as weaklings and traitors, to denounce opposition parties as a “fifth column,” in order to eliminate internal resistance to their criminal policy of war. Jews and Freemasons, armament industrialists and war profiteers, international traders and stockjobbers, found political blackguards: desperados and glory seekers who represented war as something to be yearned for and hence wished for. Adolf Hitler - speech to the Reichstag Berlin, July 19, 1940

Men are not content with a simple life: they are acquisitive, ambitious, competitive, and jealous; they soon tire of what they have, and pine for what they have not; and they seldom desire anything unless it belongs to others. The result is the encroachment of one group upon the territory of another, the rivalry of groups for the resources of the soil, and then war. Trade and finance develop, and bring new class-divisions. "Any ordinary city is in fact two cities, one the city of the poor, the other of the rich, each at war with the other; and in either division there are smaller ones - you would make a great mistake if you treated them as single states". A mercantile bourgeoisie arises, whose members seek social position through wealth and conspicuous consumption: "they will spend large sums of money on their wives". These changes in the distribution of wealth produce political changes: as the wealth of the merchant over-reaches that of the land-owner, aristocracy gives way to a plutocratic oligarchy - wealthy traders and bankers rule the state. Then statesmanship, which is the coordination of social forces and the adjustment of policy to growth, is replaced by politics, which is the strategy of parts and the lust of the spoils of office. Every form of government tends to perish by excess of its basic principle. Aristocracy ruins itself by limiting too narrowly the circle within which power is confined; oligarchy ruins itself by the incautious scramble for immediate wealth. In rather case the end is revolution. When revolution comes it may seem to arise from little causes and petty whims, but though it may spring from slight occasions it is the precipitate result of grave and accumulated wrongs; when a body is weakened by neglected ills, the merest exposure may bring serious disease. Then democracy comes: the poor overcome their opponents, slaughtering some and banishing the rest; and give to the people an equal share of freedom and power. But even democracy ruins itself by excess – of democracy. Its basic principle is the equal right of all to hold office and determine public policy. This is at first glance a delightful arrangement; it becomes disastrous because the people are not properly equipped by education to select the best rulers and the wisest courses. As to the people they have no understanding, and only repeat what their rulers are pleased to tell them; to get a doctrine accepted or rejected it is only necessary to have it praised or ridiculed in a popular play (a hit, no doubt, at Aristophanes, whose comedies attacked almost every new idea). Mob-rule is a rough sea for the ship of state to ride; every wind of oratory stirs up the waters and deflects the course. The upshot of such a democracy is tyranny or autocracy; the crowd so loves flattery, it is so “hungry for honey” that at last the wiliest and most unscrupulous flatterer, calling himself the “protected of the people” rises to supreme power. (Consider the history of Rome). The more Plato thinks of it, the more astounded he is at the folly of leaving to mob caprice and gullibility the selection of political officials – not to speak of leaving it to those shady and wealth-serving strategists who pull the oligarchic wires behind the democratic stage. Plato complains that whereas in simpler matters – like shoe-making – we think only a specially-trained person will server our purpose, in politics we presume that every one who knows how to get votes knows how to administer a city or a state.

Rule 3: Day traders do not hold positions overnight. If necessary, you must sell with a loss to make sure you do not hold onto any stock overnight.

trading. If you have strong discipline but negative edge system, you will lose over period of time. Similarly, if you have positive edge system and discipline but overleverage, then one black swan event will shut down your trading business. “Men

Many traders think a good trading day is a positive day. Wrong. A good trading day is a day that you were disciplined, traded sound strategies and did not violate any trading rules. The normal uncertainty of the stock market will result in some of your days being negative, but that does not mean that a negative day was a bad trading day.

I don’t recommend day trading for new traders. The pickings are small and the losses could be large. Your tendency to let the losses run and take profits quickly will prevail. You will not put stop losses, or if you see a loss you won’t close the position on the same day, which is the essence of day trading. These kinds of normal trading tendencies among new traders are what lead them into a loser’s game. So wait for a year or two till you have used longer forms of trading and are disciplined with stop losses, closing out losses, and letting profits run before attempting day trades.

Position Trading Position trading works best for traders who can’t spend the whole day trading. Position trades are taken on the larger trend in the market or a stock, and may last many days or even several months. The critical aspect of position trading is to always keep a stop loss and adjust the stop loss as the stock moves. That takes care of any sudden jolts to the stock which may be of a significant nature.

Dans son rapport inaugural, le Forum, à propos de la mondialisation qu'il a symbolisée sous ses formes les plus conquérantes et sûres d'elles-mêmes, évoque avec un sens exquis de l'euphémisme "un risque de désillusion". Mais dans les conversations, c'est autre chose. Désillusion ? Crise ? Inégalités ? D'accord, si vous y tenez, mais enfin, comme nous le dit le très cordial et chaleureux PDG de la banque américaine Western Union, soyons clairs : si on ne paie pas les leaders comme ils le méritent, ils s'en iront voir ailleurs. Et puis, capitalisme, ça veut dire quoi ? Si vous avez 100 dollars d'économies et que vous les mettez à la banque en espérant en avoir bientôt 105, vous êtes un capitaliste, ni plus ni moins que moi. Et plus ces capitalistes comme vous et moi (il a réellement dit "comme vous et moi", et même si nous gagnons fort décemment notre vie, même si nous ne connaissons pas le salaire exact du PDG de la Western Union, pour ne rien dire de ses stock-options, ce "comme vous et moi" mérite à notre sens le pompon de la "brève de comptoir" version Davos), plus ces capitalistes comme vous et moi, donc, gagneront d'argent, plus ils en auront à donner, pardon à redistribuer, aux pauvres. L'idée ne semble pas effleurer cet homme enthousiaste, et à sa façon, généreux, que ce ne serait pas plus mal si les pauvres étaient en mesure d'en gagner eux-mêms et ne dépendaient pas des bonnes dispositions des riches. Faire le maximum d'argent, et ensuite le maximum de bien, ou pour les plus sophistiqués faire le maximum de bien en faisant le maximum d'argent, c'est le mantra du Forum, où on n'est pas grand-chose si on n'a pas sa fondation caritative, et c'est mieux que rien, sans doute "(vous voudriez quoi ? Le communisme ?"). Ce qui est moins bien que rien, en revanche, beaucoup moins bien, c'est l'effarante langue de bois dans laquelle ce mantra se décline. Ces mots dont tout le monde se gargarise : préoccupation sociétale, dimension humaine, conscience globale, changement de paradigme… De même que l'imagerie marxiste se représentait autrefois les capitalistes ventrus, en chapeau haut de forme et suçant avec volupté le sang du prolétariat, on a tendance à se représenter les super-riches et super-puissants réunis à Davos comme des cyniques, à l'image de ces traders de Chicago qui, en réponse à Occupy Wall Street, ont déployé au dernier étage de leur tour une banderole proclamant : "Nous sommes les 1%". Mais ces petits cyniques-là étaient des naïfs, alors que les grands fauves qu'on côtoie à Davos ne semblent, eux, pas cyniques du tout. Ils semblent sincèrement convaincus des bienfaits qu'ils apportent au monde, sincèrement convaincus que leur ingénierie financière et philanthropique (à les entendre, c'est pareil) est la seule façon de négocier en douceur le fameux changement de paradigme qui est l'autre nom de l'entrée dans l'âge d'or. Ça nous a étonnés dès le premier jour, le parfum de new age qui baigne ce jamboree de mâles dominants en costumes gris. Au second, il devient entêtant, et au troisième on n'en peut plus, on suffoque dans ce nuage de discours et de slogans tout droit sortis de manuels de développement personnel et de positive thinking. Alors, bien sûr, on n'avait pas besoin de venir jusqu'ici pour se douter que l'optimisme est d'une pratique plus aisée aux heureux du monde qu'à ses gueux, mais son inflation, sa déconnexion de toute expérience ordinaire sont ici tels que l'observateur le plus modéré se retrouve à osciller entre, sur le versant idéaliste, une indignation révolutionnaire, et, sur le versant misanthrope, le sarcasme le plus noir. (p. 439-441)

Keith was sophisticated enough to understand the inherent risk of options; buying options wasn't as dangerous as short selling, because your potential for loss was capped, because you could always let the options expire. You paid a fee for the right to buy a certain number of shares of a stock at a certain price by a certain date. Sold in 100-share blocks, the fee was based on demand, which related to where people thought the stock price was going. Because the fee you paid for those 100-share blocks was a fraction of the pegged price, you could leverage yourself into a very large position with a relatively small amount of money. If the price went up, you could make a lot; if it went down, your options were worthless, but you only lost what you initially paid. A full 80 percent of the options bought by retail traders like him expired worthless; but when you only had a little to work with, there was no better way to shoot for the moon. Fifty-three thousand dollars was a lot, considering he had a two-year-old, a house, a wife. It was as much money as his dad earned in a year when he was younger. But Keith was that sure, even when the stock was hovering around $5 a share, that he had found value that others had missed.

Continuation patterns offer the opportunity to both pyramid an initial position and to tighten up the protective stops on the initial position.

Reversal patterns offer the opportunity to avoid riding the initial position back to the starting gates (or what I call a popcorn or round-trip move).

It is also possible that a pattern implying a reversal of trend could develop prior to the attainment of an expected target. I may elect to move my protective stop in relationship to a pattern that carries trend implications counter to my position.

if you have to buy one of these late-stage bases, buy small positions so as not to get pummeled if they fail.

Another thing is that if a position doesn’t feel right as soon as you put it on, don’t be embarrassed to change your mind and get right out.

Whenever I enter a position, I have a predetermined stop.

Market reaction was positive but subdued. Many traders apparently had hoped for an explicit signal that rate cuts were imminent.

The term rolling, or rolling over, is commonly used to describe the practice of offsetting a trade in a contract that is facing expiration and entering a similar position in a contract with a distant expiration date. Rolling over is simply offsetting one position and getting into another.

The Koch way wasn’t to react in the moment. It was to hold a long-term view. Soliman called this “managing to expiration,” meaning playing out a position until it expired. Short-term thinking was the death of a good trader—there were just too many wild variables that might cause a market to fall from one month to another. These variables often didn’t have any relation to the underlying reality of the market.

There were, of course, a handful of “speculators” in the early days of the oil markets. These were people who bought oil without ever expecting to actually handle it or deliver it. They were making a bet that they could sell their contract at a higher price before the time came to load a barge. This was a dangerous game. A trader like Howell might be able to sniff out a speculator and simply refuse to buy the oil contract off his hands, putting the speculator in a desperate position because he knew he couldn’t actually take delivery of all that oil. A trader like Howell could hold out until the speculator was forced to give away the oil for pennies on the dollar when it came time to accept delivery. This was a well-known trading maneuver called “the squeeze,” and it was a pitiless tactic that could financially ruin a person in a matter of hours. Traders like Howell (and his counterparts at Chevron and Exxon) were more or less immune to the squeeze. Howell could accept delivery of the barrels of oil, maybe at a loss, but not at a catastrophic loss.

He was tall and thin, with a head of thick, dark hair, and spoke with exacting precision. Soliman was considered a “talent sifter,” meaning that he hired young and bright employees, put them in profoundly challenging positions, and fired the traders who couldn’t handle the challenge. This talent sifting was a vital part of Koch’s strategy to build a trading floor from scratch during the late 1990s and early 2000s.

While traders might have seen what was coming, it appeared that the general public did not. O’Neill saw a gap in the market in early 2000. A giant gap. The price of gas options was cheap—too cheap to account for what was apparently coming down the road. In other words, the insurance policies against a sudden price spike were not as expensive as they ought to have been. So O’Neill started snapping up the options and holding on to them, knowing that they would become more valuable. As usual, he wasn’t just making a bet that prices were going to go up. He was primarily betting that markets were about to become more volatile. He built up a large position with his natural gas options and underliers that was “long volatility,” meaning that he bet volatility would increase. He assumed that the positions would provide a good return for Koch Industries. He was wrong. He grossly underestimated the riches that the coming volatility was about to deliver. Senior executives in Koch Supply & Trading realized that they could no longer pay their traders like engineers. There was a competition for talent, and too many well-trained people were bleeding off the Koch trading floor. There was one person who seemed to resist big paydays for the traders: Charles Koch. The business failures of the 1990s impressed on Charles Koch the need for humility among his workforce. The thinking went that it was the high-flying ambition and loose planning that led to many of the business losses at Purina Mills.

Last night, when he had been showing her how to refasten the bowline, she had feigned incompetence at the simple knot. It was a schoolgirl’s trick, but the poor, honest man had been completely deceived. He’d stood behind her, with her in the circle of his arms and take her hands to guide them through the easy motions. Heat had flushed through her, and her knees had actually trembled at his closeness. A wave of dizziness had washed through her; she had wanted to collapse on the deck and pull him down on top of her. She’d gone still in his loose embrace, praying to every god she’d ever heard of that he would know what she so hotly desired and act on it. This, this was what she was supposed to feel about the man she was joined to, and had never felt at all! “Do you understand it now?” he’d asked her huskily. His hands on hers pulled the knot firm. “I do,” she’d replied. “I understand it completely now.” She hadn’t been speaking of knots at all. She’d dared herself to take half a step backward and press her body to his. She dared herself to turn in the circle of his arms and look up into his whiskery beloved face. Cowardice paralyzed her. She could not even form words. For a time that was infinitely brief and forever, he stood there, enclosing her in a warm, safe place. All around her, the night sounds of the Rain Wilds made a soft music of water and bird and insect calls. She could smell him, a male musky smell, “sweaty” as Sedric would have mocked it, but incredibly masculine and attractive to her. Enclosed by his embrace, she felt a part of his world. The deck under her feet, the railing of the ship, the night sky above her, and the man at her back connected her to something big and wonderful, something that was untamed and yet home to her. Then he had dropped his arms and stepped back from her. The night was warm and muggy, the insects chirred and buzzed, and she heard the night call of a gnat-chaser. But it had all seemed separate from her then. Last night, as now, she knew herself for the mousy, scholarly little Bingtown woman she undoubtedly was. She’d sold herself to Hest, prostituted out her ability to bear a child for the security and position that he had offered. She’d made the deal and signed on it. A Trader was only as good as his word, so the saying went. She’d given her word. What was it worth? Even if she took it back now, even if she broke it faithlessly, she’d still be a mousy, little Bingtown woman, not what she longed to be. She could scarcely bear to consider what she longed to be, not only because it was so far beyond her but because it seemed a childishly extravagant dream. In the dark circle of her arms, she closed her eyes and thought of Althea, wife to the captain of the Paragon. She’d seen that woman dashing about the deck barefoot, wearing loose trousers like a man. She’d seen her standing by her ship’s figurehead, the wind stirring her hair and a smile curving her lips as she exchanged some sort of jest with the ship’s boy. And then Captain Trell had bounded up the short ladder to the foredeck to join them there. She and the captain had moved without even looking at each other, like a needle drawn to a magnet, their arms lifting as if they were the halves of the god Sa becoming whole again. She’d thought her heart would break with envy. What would it be like, she wondered, to have a man who had to embrace you when he saw you, even if you’d just risen from a shared bed a few hours earlier? She tried to imagine herself as free as that Althea woman, running barefoot on the decks of the Tarman.

In a volatile market, high leverage trading can be a double-edged sword. If you’re not an experienced trader, it is best to avoid taking large leverage positions. Protect your capital—start small, learn, and scale wisely.

the last stage of a bear market "is caused by distress selling of sound securities, regardless of their value, by those who must find a cash market for at least a portion of their assets." The market player who avoids being invested near the top of bull markets-where he can really get hurt in a panic crash-and plays the short side in bear markets can be in the position to take advantage of such distress selling. You might miss the last 10 or even 20% of the gains to be made near bull market tops (while making T-bill yields), but you'll definitely still have your capital when the time comes to buy value with tremendous upside potential and almost no downside risk. In my view, the way to build wealth is to preserve capital, make consistent profits, and wait patiently for the right opportunity to make extraordinary gains.

From Senegalese chauvinism to Wolof tribalism, there is but one small step. And consequently, wherever the petty-mindedness of the national bourgeoisie and the haziness of its ideological positions have been incapable of enlightening the people as a whole or have been unable to put the people first, wherever this national bourgeoisie has proven to be incapable of expanding its vision of the world, there is a return to tribalism, and we watch with a raging heart as ethnic tensions triumph. Since the only slogan of the bourgeoisie is “Replace the foreigners,” and they rush into every sector to take the law into their own hands and fill the vacancies, the petty traders such as taxi drivers, cake sellers, and shoe shiners follow suit and call for the expulsion of the Dahomeans or, taking tribalism to a new level, demand that the Fulani go back to their bush or back up their mountains.

Trading is not easy, and it takes years of conscientious practice to master the necessary skills. It also takes developing positive habits to succeed in trading. There is no shortcut to this, and no one should dream about getting rich overnight by stepping into the trading business.

In retrospect, I think our view of market expectations was too dependent on our survey of securities dealers. Futures markets gave us a reliable read of where markets thought the federal funds rate was going—but not for our securities purchases. For that, economists at the New York Fed asked their counterparts at the securities firms, who paid careful attention to every nuance of Fed policymakers’ public statements. In effect, our PhD economists surveyed their PhD economists. It was a little like looking in a mirror. It didn’t tell us what the rank-and-file traders were thinking. Many traders, apparently, didn’t pay much attention to their economists and were betting our purchases would continue more or less indefinitely. Some called it “QE-ternity” or “QE-infinity.” Their assumption was unreasonable and entirely inconsistent with what we had been saying. Nevertheless, some investors had evidently established market positions based on it. Now, like Metternich, they looked at our statements about securities purchases and asked, “What do they mean by that?” Their conclusion, despite the plain meaning of what I said at the press conference, was that we were signaling an earlier increase in our federal funds rate target. They sold their Treasury securities and mortgage-backed securities, driving up long-term interest rates.

The Warburg family is the most important ally of the Rothschilds, and the history of this family is at least equally interesting. The book The Warburgs shows that the bloodline of this family dates back to the year 1001.[28] Whilst fleeing from the Muslims, they established themselves in Spain. There they were pursued by Fernando of Aragon and Isabella of Castile and moved to Lombardy. According to the annals of the city of Warburg, in 1559, Simon von Cassel was entitled to establish himself in this city in Westphalia, and he changed his surname to Warburg. The city register proves that he was a banker and a trader. The real banking tradition was beginning to take shape when three generations later Jacob Samuel Warburg immigrated to Altona in 1668. His grandson Markus Gumprich Warburg moved to Hamburg in 1774, where his two sons founded the well-known bank Warburg & Co. in 1798. With the passage of time, this bank did business throughout the entire world. By 1814, Warburg & Co had business relations with the Rothschilds in London. According to Joseph Wechsberg in his book The Merchant Bankers, the Warburgs regarded themselves equal to the Rothschild, Oppenheimer and Mendelsohn families.[29] These families regularly met in Paris, London and Berlin. It was an unwritten rule that these families let their descendants marry amongst themselves. The Warburgs married, just like the Rothschilds, within houses (bloodlines). That’s how this family got themselves involved with the prosperous banking family Gunzberg from St. Petersburg, with the Rosenbergs from Kiev, with the Oppenheims and Goldschmidts from Germany, with the Oppenheimers from South Africa and with the Schiffs from the United States.[30] The best-known Warburgs were Max Warburg (1867-1946), Paul Warburg (1868-1932) and Felix Warburg (1871-1937). Max Warburg served his apprenticeship with the Rothschilds in London, where he asserted himself as an expert in the field of international finances. Furthermore, he occupied himself intensively with politics and, since 1903, regularly met with the German minister of finance. Max Warburg advised, at the request of monarch Bernhard von Bülow, the German emperor on financial affairs. Additionally, he was head of the secret service. Five days after the armistice of November 11, 1918 he was delegated by the German government as a peace negotiator at a peace committee in Versailles. Max Warburg was also one of the directors of the Deutsche Reichsbank and had financial importances in the war between Japan and Russia and in the Moroccan crisis of 1911. Felix Warburg was familiarized with the diamond trade by his uncle, the well-known banker Oppenheim. He married Frieda Schiff and settled in New York. By marrying Schiff’s daughter he became partner at Kuhn, Loeb & Co. Paul Warburg became acquainted with the youngest daughter of banker Salomon Loeb, Nina. It didn’t take long before they married. Paul Warburg left Germany and also became a partner with Kuhn, Loeb & Co. in New York. During the First World War he was a member of the Federal Reserve Board, and in that position he had a controlling influence on the development of American financial policies. As a financial expert, he was often consulted by the government. The Warburgs invested millions of dollars in various projects which all served one purpose: one absolute world government. That’s how the war of Japan against Russia (1904-1905) was financed by the Warburgs bank Kuhn, Loeb & Co.[31] The purpose of this war was destroying the csardom. As said before, in testimony before the Senate Foreign Relations Committee, James P. Warburg said: “We shall have a world government, whether or not we like it. The question is only whether world government

Andrew Hall may be positioning himself now for the next coming boom cycle, but the market will need more than the predictions of some good traders to turn around. One thing that absolutely must happen is a real and measurable leveling off of production here in the U.S. Early in the bust phase for shale, with crude prices, budgets, and rig counts collapsing, I was of the opinion that indeed, production cuts would come a whole lot sooner than either the EIA or most of the bank analysts believed was possible. But I’ve been impressed by the free flow of capital that has come in to the markets looking to ‘save’ shale oil companies from their excesses, and slowing what I thought would be a violent progression of bond defaults and outright bankruptcies. In a recent note on the state of E+P, Morgan Stanley also noted the trend, when one of its analysts, Evan Calio, wrote: “Secondary offerings have been positively received by investors as a means to shore up balance sheets and pre-fund drilling programs in light of falling crude prices. Secondary offerings remain a logical way to delever [a financial term meaning to reduce debt], but also has the potential to extend the trough rather than hasten its arrival.” (emphasis mine). In other words, there is too much money still chasing oil for a quick weeding out of the weaklings. We might see a longer period of ‘survivability’ before the real wall hits.

Scalp Traders – Positions are held for seconds to minutes with no overnight positions.

A big Wall Street bank’s biggest advantage was its access to vast amounts of cheap risk capital and, with that, its ability to survive the ups and downs of a risky business. That meant little when the business wasn’t risky and didn’t require much capital. High-frequency traders went home every night with no position in the stock market. They traded in the market the way card counters in a casino played blackjack: They played only

Imagine, for instance, that someone passed a rule, in the U.S. stock market as it is currently configured, that required every stock market trade to be front-run by a firm called Scalpers Inc. Under this rule, each time you went to buy 1,000 shares of Microsoft, Scalpers Inc. would be informed, whereupon it would set off to buy 1,000 shares of Microsoft offered in the market and, without taking the risk of owning the stock for even an instant, sell it to you at a higher price. Scalpers Inc. is prohibited from taking the slightest market risk; when it buys, it has the seller firmly in hand; when it sells, it has the buyer in hand; and at the end of every trading day, it will have no position at all in the stock market. Scalpers Inc. trades for the sole purpose of interfering with trading that would have happened without it. In buying from every seller and selling to every buyer, it winds up: a) doubling the trades in the marketplace and b) being exactly 50 percent of that booming volume. It adds nothing to the market but at the same time might be mistaken for the central player in that market. This state of affairs, as it happens, resembles the United States stock market after the passage of Reg NMS. From 2006 to 2008, high-frequency traders’ share of total U.S. stock market trading doubled, from 26 percent to 52 percent—and it has never fallen below 50 percent since then. The total number of trades made in the stock market also spiked dramatically, from roughly 10 million per day in 2006 to just over 20 million per day in 2009.

In contrast, an inner dialogue of positive thoughts will propel you to new heights. You will do things that you thought impossible, and you will realize your goals and achieve success. Having a positive inner dialogue will help you realize your dreams, and your optimism will be a positive force in the lives of those around you.

[I]t is easy to confuse European interest in preserving life to prevent economic loss with positive concern for the captives’ human welfare. But to interpret the regime of the slave ship in that way is to be duped by the slave traders’ rhetoric—a language of concealment that allowed European slaving concerns to portray themselves as passive and powerless before the array of forces (including the agency of the captives themselves) outside their control. Slave merchants and their backers disguised from themselves the ugly truth that the Atlantic regime of commodification took captives from fully realized humanity and suspended them in a purgatory in between tenuous life and dishonorable death.

There is a saying that bad traders divorce their spouse sooner than abandon their positions. Loyalty to ideas is not a good thing for traders, scientists—or anyone.

Key Elements of Five Year Plan ’77 What follows did not happen overnight. Among the guidelines set in February 1977 (remember, Fair Trade on alcohol was not finally ended until 1978): Emphasize edibles vs. non-edibles. I figured that the supermarkets would raise their prices on foods to make up for the newly reduced margins on milk and alcohol. This would give us all the more room to underprice them. During the next five years we got rid of film, hosiery, light bulbs and hardware, greeting cards, batteries, magazines, all health and beauty aids except those with a “health food” twist. We began to cut back sharply on soaps and cleaners and paper goods. The only non-edibles we emphasized were “tabletop” items like wineglasses, cork pullers, and candles. It was quite clear that we should put more emphasis on food and less on alcohol and milk. Within edibles, drop all ordinary branded products like Best Foods, Folgers, or Weber’s bread. I felt that a dichotomy was developing between “groceries” and “food.” By “groceries,” I mean the highly advertised, highly packaged, “value added” products being emphasized by supermarkets, the kinds that brought slotting allowances and co-op advertising allowances. By embracing these “plastic” products, I felt the supermarkets were abandoning “food” and the product knowledge required to buy and sell it. But this position wasn’t entirely altruistic. The plan of February 20, 1977, declared, “Most independent supermarkets have been driven out of business, because they stupidly tried to compete with the big chains in plastic goods, in which the big chains excel.” Focus on discontinuity of supplies. Be willing to discontinue any product if we are unable to offer the right deal to the customer. Instead of national brands, focus on either Trader Joe’s label products or “no label” products like nuts and dried fruits. This was intended to enable the Trader Joe’s label to pick up momentum in the stores. And it worked.

High-frequency traders went home every night with no position in the stock market. They traded in the market the way card counters in a casino played blackjack: They played only when they had an edge.

It is, however, generally supposed that if the whole of a man's surplus production is taken from him, his efficiency and his industry are diminished, The entrepreneur and the inventor will not contrive, the trader and the shopkeeper will not save, the laborer will not toil, if the fruits of their industry are set aside, not for the benefit of their children, their old age, their pride, or their position, but for the enjoyment of a foreign conqueror.

There is a saying that bad traders divorce their spouse sooner than abandon their positions.

Iron Butterfly Strategy is built up using package order for all the spreads simultaneously to avoid slippage. Never opted for making one of the spread before the other or buy and sell all the four individual options separately. Sometimes, the market or any particular stock rally considerably and went to overbought or oversold region. In such cases, the market or stock price is anticipated to take reversal and bounce back. The traders or investors may use MACD or RSI indicator to identify the MACD cross over (bullish or bearish) and overbought or oversold zone in RSI indicator. If the RSI indicator goes below 30 level and bounce back crossing the level of 30 from below, it indicates market going up and time to initiate long position. If it is confirmed by MACD bullish crossover, the Bull Put spread of the Iron Butterfly may be initiated first and subsequently the Bear Call spread at higher level. If the RSI indicator goes above 70 level and bounce back crossing the level of 70 from above, it indicates market going down and time to initiate short position. If it is confirmed by MACD bearish crossover, the Bear Call spread of the Iron Butterfly may be initiated first and subsequently the Bull Put spread at lower level.

Identifying Market Direction Market direction, popularly known as “trend” in trading, is one of the most important concepts that you must follow for you to succeed in this industry. Just like you should sell at resistance zones and buy at support areas, you should always trade along the main market direction. You cannot be trying to sell when the majority of traders and the big players are pushing the market up. There is a common phrase that you will hear traders throwing around; that the trend is your best friend. Many traders hear about this concept, but they fail since they do not understand how to identify the main trend. Luckily for you, this guide will show you the best way to do it. Now, in the market, there are things known as peaks and troughs. The peaks are the highest points that you can see the market reaching before turning back. Troughs are the lowest points that the market reaches before going back up. Both of these are minor support and resistance points. If you connect the points using straight lines, you will end up with a zigzag formation. Peaks and troughs Uptrend When the peaks are formed in higher succession, we say the market is in an uptrend. If a new peak is formed higher than the previous one, we call it a higher-high. During an uptrend, the troughs are also formed in higher succession. In short, each new trough is positioned higher than the previous one. When this happens, we say a higher-low has been formed. Collectively, when a market is forming higher Highs and higher Lows concurrently, then an uptrend is formed. During this time, you should only look for buy trades. Downtrend A downtrend happens when the market starts making lower peaks and lower troughs in succession. In short, when a trough is formed lower than the previous one, we have a descending zigzag direction that we call a downtrend. During a downtrend market direction, lower Highs and lower Lows are formed. In a downtrend, you should only be looking for sell trades.

Rule 3: Day traders do not hold positions overnight. If necessary, you must sell with a loss to make sure you do not hold onto any stock overnight

As explained earlier, some experienced traders never enter the trade all at once. They scale into the trade, meaning that they buy at various points. Their initial share size might be relatively small, but traders will add to their position as the price action validates their idea. They might start with 100 shares and then add to their position in various steps.

Novice traders believe that when they enter the trade, they should not do anything else but patiently wait for the price to hit their profit target or stop loss level. This is the opposite of what professional traders do. The professionals know that this is not enough. When you plan for the trade and enter a position, you have a minimum of information about the market and the validity of your idea. As the market moves after your entry, you will receive new price action and data about your initial trade idea: the price action of the stock is either supporting or not supporting your reasons for being in that trade. Therefore, you need to manage your open position.

After buying or selling a large position in a stock during the day, institutional traders compare their price to VWAP values. A buy order executed below the VWAP would be considered a good fill for them because the stock was bought at a below average price (meaning that the trader has bought their large position at a relatively discounted price compared to the market). Conversely, a sell order executed above the VWAP would be deemed a good fill because it was sold at an above average price. Therefore, VWAP is used by institutional traders to identify good entry and exit points.

Mexico itself gained its independence from Spain after a protracted war from 1810 to 1821, and its population generally consisted of a mix of three groups: a Spanish-origin elite population; mestizos (those of mixed European and Indian ancestry), who were mostly landless but who occupied many middle-tier positions in society (working, for example, as craftsmen, soldiers, laborers, and traders); and, finally, Indians, who remained outside of Spanish-speaking society and who farmed land in a traditional manner.

There have been too many times when I have been shaken out of a good position by looking at the short-term time frame.

From Senegalese chauvinism to Wolof tribalism, there is but one small step. And consequently, wherever the petty-mindedness of the national bourgeoisie and the haziness of its ideological positions have been incapable of enlightening the people as a whole or have been unable to put the people first, wherever this national bourgeoisie has proven to be incapable of expanding its vision of the world, there is a return to tribalism, and we watch with a raging heart as ethnic tensions triumph. Since the only slogan of the bourgeoisie is "Replace the foreigners," and they rush into every sector to take the law into their own hands and fill the vacancies, the petty traders such as taxi drivers, cake sellers, and shoe shiners follow suit and call for the expulsion of the Dahomeans or, taking tribalism to a new level, demand that the Fulani go back to their bush or back up their mountains.

Like all traders and investors, I periodically review the performance of my portfolios and check in on whether they are getting the job done. I say periodically, because the temptation – a dangerous one for many – is to be constantly watching and let’s face it, this is a long term game, not a get rich quick punt, right? As such, over the past few months, one of my personal favourites – the covered call, has continued to deliver the cash flow I seek from that particular portfolio. For example, this calendar year, in the Australian market, FMG being the one blot on the ledger, we have had only one loser from 13 closed positions. For those that obsess about win/loss ratios – a flawed measure in my book – that is a 92% win rate for the calendar year. Of course, this is a reflection of the underlying market conditions, which have been supportive of the strategy.

...randomized trials found a surprisingly positive effect from microsavings programs, which help the poor save small amounts of money. One-third of the world's population has no access to bank accounts and must resort to hiding cash somewhere, such as in a shack with no lock. Moreover, impoverished farmers often receive money in large sums just once or twice a year, after a harvest, and then they are deluged with loan requests. The result is pressure to spend money rather than save it...Then there is usury-not just on loans but also on deposits. In West Africa, villagers can deposit money with susu money traders, but they must pay 40 percent interest on their deposits!

...randomized trials found a surprisingly positive effect from microsavings programs, which help the poor save small amounts of money. One-third of the world's population has no access to bank accounts and must resort to hiding cash somewhere, such as in a shack with no lock. Moreover, impoverished farmers often receive money in large sums just once or twice a year, after a harvest, and then they are deluged with loan requests. The result is pressure to spend money rather than save it...Then there is usury-not just on loans but also on deposits. In West Africa, villagers can deposit money with susu money traders, but they must pay 40 percent interest on their deposits!...One of the most common models for microsavings is the village savings and loan. It is very simple and has spread around the world since being launched by CARE in Niger in 1991....It costs $25 per participant to start a microsavings group through CARE, and it strikes us as a cost-effective way to help people help themselves. Contributions to CARE can be earmarked for the village savings and loan program.

Enron Oil was supposed to have strict controls to prevent the possibility of large losses; its open position in the market was never supposed to exceed 8 million barrels, and if losses reached $4 million, the traders were required to liquidate the position. Yet when the Arthur Andersen auditors had tried to check whether Enron Oil was complying with the policy, they later reported, they discovered that Borget and Mastroeni had made a practice of “destroying daily position reports.” Still, Andersen refused to opine on the legality of what had come to be known internally as Borget and Mastroeni’s “unusual transactions,” claiming that it was beyond their professional competence.

You need to take positions big enough that they make you feel legitimately at risk if things go wrong. You need to be able to drive the car fast enough to win the Grand Prix… But not so fast you slam into the wall.

Francisco, the Yuma Indian trader, recognized the opportunity that lay before him. His two primary partners, the whites at Fort Yuma, and the Mohave, found themselves in a strange position regarding Olive Oatman. Of course, upon hearing the news, the Americans at Fort Yuma told Francisco to buy her back from the Mohave and return her to the fort. According to Stratton, the Mohave were not very keen on selling their prized captive.

Even if the position is a net profit, the trader or investor can go through the Five Stages. Consider when a market position is profitable but not as profitable as it once was. When that happens, he becomes married to the price at which it was the most profitable. He denies that the move is over, gets angry when the market starts to sell off, makes a bargain that he’ll get out if the market moves back to that arbitrary point, gets depressed that he didn’t get out, and maybe even lets the profit turn into a loss, thus slipping again into denial, then anger, etc. He creates a chain reaction of loops that result in further losses.

Très peu de Traders déjà pensé à l'importance de ces deux questions. Ils sont indispensables pour la réussite commerciale. Comme je l'ai présenté au début je vous ai montré un trading pour compte propre dont les résultats sont superbes. Cependant, dans les résultats que j'ai intentionnellement montré les longues périodes où rien ne s'est passé. Il n'y avait pas de profits pour quelques mois ... non mais en fait ans. Si je l'avais quitté, ce qui est facile à faire, je n'aurais pas tombé sur quelques-uns des grands gagnants. En réalité, lorsque vous négociez vous allez passer de longues périodes où rien ne se passe. Vous devez avoir la patience d'endurer ce sinon vous ne réussirez pas. Ce n'est pas facile. Trade réussie est d'être cohérent et suivre votre plan de Trade à plusieurs reprises. J'ai appris au fil des années que mes bénéfices proviennent d'un ensemble de Trades. Il est devenu évident pour moi que je n'ai pas besoin de connaître l'avenir. J'ai simplement suivi mon plan de trading et me mettre dans la position d'être disponible pour les Trades potentiels. Il n'y avait rien d'avoir raison ou tort. J'ai pris l'aspect financier de la question. Il était

I once had a foreign exchange trader who worked for me who was an unabashed chartist. He truly believed that all the information you needed was reflected in the past history of a currency. Now it's true there can be less to consider in trading currencies than individual equities, since at least for developed country currencies it's typically not necessary to pore over their financial statements every quarter. And in my experience, currencies do exhibit sustainable trends more reliably than, say, bonds or commodities. Imbalances caused by, for example, interest rate differentials that favor one currency over another (by making it more profitable to invest in the higher-yielding one) can persist for years. Of course, another appeal of charting can be that it provides a convenient excuse to avoid having to analyze financial statements or other fundamental data. Technical analysts take their work seriously and apply themselves to it diligently, but it's also possible for a part-time technician to do his market analysis in ten minutes over coffee and a bagel. This can create the false illusion of being a very efficient worker. The FX trader I mentioned was quite happy to engage in an experiment whereby he did the trades recommended by our in-house market technician. Both shared the same commitment to charts as an under-appreciated path to market success, a belief clearly at odds with the in-house technician's avoidance of trading any actual positions so as to provide empirical proof of his insights with trading profits. When challenged, he invariably countered that managing trading positions would challenge his objectivity, as if holding a losing position would induce him to continue recommending it in spite of the chart's contrary insight. But then, why hold a losing position if it's not what the chart said? I always found debating such tortured logic a brief but entertaining use of time when lining up to get lunch in the trader's cafeteria. To the surprise of my FX trader if not to me, the technical analysis trading account was unprofitable. In explaining the result, my Kool-Aid drinking trader even accepted partial responsibility for at times misinterpreting the very information he was analyzing. It was along the lines of that he ought to have recognized the type of pattern that was evolving but stupidly interpreted the wrong shape. It was almost as if the results were not the result of the faulty religion but of the less than completely faithful practice of one of its adherents. So what use to a profit-oriented trading room is a fully committed chartist who can't be trusted even to follow the charts? At this stage I must confess that we had found ourselves in this position as a last-ditch effort on my part to salvage some profitability out of a trader I'd hired who had to this point been consistently losing money. His own market views expressed in the form of trading positions had been singularly unprofitable, so all that remained was to see how he did with somebody else's views. The experiment wasn't just intended to provide a “live ammunition” record of our in-house technician's market insights, it was my last best effort to prove that my recent hiring decision hadn't been a bad one. Sadly, his failure confirmed my earlier one and I had to fire him. All was not lost though, because he was able to transfer his unsuccessful experience as a proprietary trader into a new business advising clients on their hedge fund investments.