Saturday 6 August 2011

Concentrate

My primary flaw at the moment is concentration.  Sometimes I have missed signals to trade whilst reading/watching news, going away from the screens for a few minutes or whatever it may be.  There are far too many times when I miss signals.  Had I taken all of the signals available on my indicators since the start I would be up by several orders of magnitude.  I've been following a brilliant blog by another daytrader - http://bankrobbertrades.blogspot.com.
It's a rich and varied resource detailing many aspects of what it takes to be a successful trader.  Some time ago I wrote about the market being like a mirror.

"The thoughts, emotions, and beliefs of all market  participants are collected together and expressed in the form of price.   A continuous stream of opportunity and risk.  A perfect reflection of  reality.

Many have hopes that x will continue higher, their collective thoughts  are expressed in the form of price, their hopes may be overwhelmed by  the fears of the sellers, wave after wave of sellers can overtake the  hopes of the buyers, forcing the prices down, reinforcing the price,  reflexively reinforcing the fears of the sellers.

The market is nothing but a mirror.   And, if you look hard, you will see your reflection in it.  A  reflection of your beliefs, your emotions, your hopes, your fears, all  reflected back at you.  It reflects the collective mind but also the  individual mind, and that is what makes it so fascinating."

But also the market is a teacher.  James Dines stated an old Wall Street saying that the market will find your weaknesses.  It's very true, the market shows you your weaknesses, it throws down the gauntlet and challenges you to face them head on, and overcome them.

The blog linked about includes a link to a book by Theron Q Dumont - The Power of Concentration.  Looking very useful so far.

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