Tag Archives: mindset

5 Sure Ways for Stock Traders to Lose His Money

27 May

I have to write this. During this recent bull-run, some of my friends lose quite a substantial amount of their trading capital by shorting the index futures. Instead of cutting their losses quickly, they compound to their mistakes by adding short positions as the index futures traded higher each day. In this post, I would like to bring out 5 sure ways to lose your money in the stock market, commodities market, or forex. You will be surprised that many of the index futures traders out there are practicing these and therefore on their ways to financial ruins. Don’t do this as it will hurt your pocket and causes you to lose your precious trading capital. Apart from sharing with you on these few key points on stock trading wisdom, I will also share with you on the traders’ psychology and why they kept making these mistakes and were not able to rescue themselves out of this financial mess.

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Stock Market Wisdom: Quotations by Benjamin Lee (Part 1)

17 Apr

We often heard the wise sayings from experienced stock traders and investors such as Warren Buffett, George Soros, and Jesse Livermore. The quotations of their thoughts on stock market have been such a great lessons for us all who aspire to understand and grasp the mechanism and the working of these profitable financial markets. In this post, I will share my version of personal thoughts for stock traders and investors.

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Top 10 Biggest Oil Producer Countries

26 Mar

Crude oil had been one of the hottest topics to talk about since 18th century when the Industrial Revolution started. Crude oil and its sub-products had been affecting lives around the globe. With the rises of crude oil prices, other commodities follow and resulting the increasing inflation which had been a toll for common citizen all around the world. Below is the list of top 10 biggest oil producers in the world.

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10 things you don’t know about stock markets

16 Sep

Most of us heard of the stock market before at least once in our lifetime. Some of us invested or traded in it either directly thru equity ownership or indirectly thru mutual funds. I believe most of the people who directly traded or invested in it lose money while only a few percentages of people made a fortune in it. Why do most people lose money? Well, that has a lot to do with our personality and basic understanding which unfortunately does not work well with stock market. All of us who traded or invested in stock market have some preconceived ideas on how it works and various factors that affect it. However, some of them are wrong. Let me give you a test to see if your ideas are myths or facts.

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Patience – The key to successful investing and trading

1 Jul

"Wait….. Wait….. Wait….. NOW!" this phrase is often heard in war movies before they strike the enemy. Patience whispers to us to wait for the right moment before striking. Patience continues its echo in nature and also in many aspects of our life too. This is the principles behind many successful people and this is one of the very important traits for investors and traders. It doesn’t matter whether you are investing for the long run or doing short term trading or even day trading, patience is the key to your success. I can’t stress enough on this. Let’s see how we could improve our investing skill and trading timing with patience as one of our virtue.

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Bearish trend confirmed for Dow Jones Industrial Average. What’s next?

29 Jun

On Thursday 26 June 2008, Dow Jones Industrial Average (DJI) crashed and fell almost 360 points after crude oil futures rose sharply passing above $140 level and was told by OPEC president Chakib Khelil that crude oil prices could go up to $170 per barrel this summer. Dow loses extended to Friday when it dropped 106.91 (-0.93%) to close at 11,346.51. DJI lowest level of 11,634 in Jan 2008 was taken out by the bear and we have a confirmation in the bearish trend as in lower highs and lower lows. However the S&P 500 Index have not breach the lowest point but closed right on it. Nasdaq Composite was far from the lowest level but had broken out from the bear flag last week to continue its downtrend movement. Do we still need to question the recession in US economy? Although we have inter-market divergence and can only confirm bearish market trend for the whole of US when the S&P 500 and Nasdaq Composite break their lowest level in 2008 but I have no doubt that we are already in recession with the credit bubble burst, rising food prices and crude oil prices. The relevant question will be how long will this recession be and where is the next stop for Dow Jones.

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Why losing money in market may not be a bad thing?

14 May

Losing money in market is terrible. Yes, it is. But it depends on how you look at it. Truly everything is in the mind and how we perceive things around us. Many will remorse over the loss of money but now I am telling you that losing money in market may not seems that bad if you keep the following thumb of rules in your mind. Hammer it down to your brain if needed. It works.

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Introduction to Trading vs Investing

12 May

This entry is part 1 of 1 in the series Trading vs Investing 101 - Beginner Guide

This is the common question and also the greatest confusion among many people in regards to trading and investing. Most think that they are the same and don’t even bother of the differences. Some experts even debate on it. I hope to lay down a few key points so that we could see that they are very much different in reality. In fact, failure to recognise this difference is one of the reason of why many people loses money in the financial market. Read entire post of Introduction to Trading vs Investing