Saturday, January 31, 2015

Your Life Will Be Much Better If You Can Do These 10 Things

Life is all about learning. The ups and downs. The triumphs and falls. For those at the bottom looking up to the people at the top of the success ladder, it seems as if they got there so effortlessly. So what is their one ingredient to success? What has been their one magic ingredient pushing them forward?
It isn’t just one thing that pushes someone to success, but a series of attitudes and habits that they adopt over the years, developing habits that can help push them further, in order to achieve more. What I have learnt personally and observed from others over the years, is that when you feel like quitting, taking a break or simply not sure of how to reach your goal, it is important to know how to spur yourself back on.
The art in reaching your goals and pushing yourself forward is to not quit. By not quitting you are still outdoing those with their butts on the sofa making excuses. So even if you think you are making little to no progress, you are! Sure, sometimes it is tough, tiring or tedious but if it is worth having, you can push yourself on.
We all lose our way sometimes, taking our eyes off the bigger picture or our main goal. We’re human, after all! But the problem isn’t when you fall or stumble, the problem occurs when you don’t get back on the horse and carry on! Reminding yourself and pushing yourself on (even when you’re fed up, tired or ready to quit) is what separates the winners from the losers.
So whether your goal is to run a marathon, start your new business or grab that promotion, here are 10 easily digestible things you can do to keep on going toward success.

1. Know that you CAN cope

Whenever you reach a hurdle or a setback, just knowing that you can cope with whatever comes your way (even unexpectedly), will help spur you on. If you’re facing a challenging time, and adopt the attitude that you can’t overcome it, then you’re going to struggle to push yourself on. Knowing that you can cope with anything that life throws at you will help you take one step in front of the other, helping to push yourself on toward achieving.

2. Don’t let perfect be the enemy of good

This is something my first boss taught me four years ago and I have never forgotten it.  “Don’t let perfect be the enemy of good,” she used to tell me all the time. In my desperation to be perfect at work and not make mistakes (I wanted to make a good impression), I was putting undue stress on myself. Of course it is good to keep pushing and developing yourself, but don’t aim for perfection because it simply isn’t achievable. Aim to improve yourself, one small step at a time, but focus on the journey and don’t let perfection be the destination.

3. Know that one bad day is not the end of the world

When you are on the path to reaching your goals, think of the end goal as if you will have won the war. Along the way there will be a series of battles that you have to win, but you won’t be able to win them all. But that doesn’t matter, because you don’t have to win all the battles to win the main war, just the majority. If you are having a bad day, week, month or even year, try to see the bigger picture in terms of your end goal. Chances are that in the grand scheme of things, it won’t matter. If you can remind yourself that one bad day isn’t the end of the world, you’ll be able to push yourself on so much further.

4. Ask questions

In my experience, most people don’t ask enough questions – either they are too scared or embarrassed or they just cat be bothered. I don’t know why, but we seem to live in a culture where asking questions implies that you aren’t clever. The beauty of asking questions however, is that you can find out more and learn from others by doing so. By picking the brains of experts, you can absorb their knowledge without having made the mistakes and experiences they did. Ask questions to the right people and you can help to reach your goals.

5. See challenges, not problems

When pushing further, one thing that really helps is if you can adopt an attitude where you don’t see problems but see challenges, solutions and experiences. At the end of the day, life is one big learning curve. Of course life is going to throw hurdles at you, and there will be times that you’ll struggle and have to overcome problems, but so long as you’re still standing and come out the other side, you’ve pushed yourself further. A positive can-do attitude won’t magically make difficulties disappears but they will help you overcome them, making way for a happier and more successful time.

6. Feel the emotions

Life is full of ups and downs and if it wasn’t, it would probably be pretty boring! When reaching your goals and pushing yourself further, it helps if you can be open to the emotions that come with it. There will be times of joy and for celebration, and there will also be times when all you want to do is curl up and not leave the house. But it is O.K. to cry! Don’t fight the emotions, but instead ride them through. You’ll come out stronger on the other side.

7. Don’t compare yourself to others

Unless you’re someone like Beyonce or Jay Z, Victoria Beckham or Bill Gates (with his $79 billion wealth), then there is always going to be someone who is more successful, prettier, skinnier, has a better job, earns more money, has more friends or has a more luxurious lifestyle than you. Don’t compare yourself with others. You should be pushing yourself on because you want to and not because you feel you have to in order to “keep up with the Joneses”.  Besides, the person with the five bedroom house and two sports cars sitting in the drive might not even be that happy! You are your own benchmark.

8. Eat healthy and exercise

You cannot expect to climb mountains and achieve great things if your body and mind aren’t running at full capacity. Your body needs to be correctly fueled, maintained and trained if you are expecting to achieve. The only way to ensure all cylinders are firing efficiently is to be healthy, in both mind and body. Eating healthily and exercising are key to this. A simple formula, but it works and anyone can adopt this habit. Of course you don’t have to go overboard – no one likes the obsessive person who is down at the gym every spare hour, nor would life be fun without the odd chocolate cake – but make sure you’re taking the right steps to be ensure a good well-being.

9. Know that you control your life

The beauty in life is that you are in the driver’s seat. It is up to you how you steer your life and what the end destination is. If you can drive yourself in the right direction, you’ll be giving yourself the power to go where you want to. Knowing this and doing this will help spur you on, especially on those days when you don’t feel like it. Of course, we can’t predict or stop external circumstances, but you can do your best to swerve to avoid them or drive right over them.

10. Know that success isn’t linear

Over the years the one thing that has really struck me and helped me spur myself on is knowing that success isn’t a linear straight line shooting up. It’s sometimes one step forward, two steps back, followed by a going-round-in-circles until you are dizzy! By accepting this you will feel more empowered than ever. Knowing what success really looks like reminds us on those ‘bad’ days that it is O.K., and progress is still being made.
Finally, the most important thing you can do in life on your road to success is to have fun!
Whatever you do, put some love and life into it. That way, when there are tough days, at least you can do it all with bit of a smile!

Tuesday, January 20, 2015

9 STEPS TO STOP DREAMING AND START DOING

Having a dream and being a dreamer are two different mindsets. Dreamers are drifters just floating through life with no real plans. One who has a dream, is a doer on the path towards achieving their goal.

Once you decide to remove your head from the clouds, tackle the obstacles that face you, and organize a plan of attack, you become a doer. If you are ready to put in the work, here are 9 steps to stop dreaming and start doing.

1. Accept responsibility for your own actions

“Start where you are. Use what you have. Do what you can.” -Arthur Ashe

It is the most unattractive thing to hear someone constantly wine and complain about their life. Especially when they blame the world for their problems. The whole universe is probably against you, does not care about you, and will deceive you. This does not make any actions, or lack there of, on your behalf their fault. Say this statement out loud, “I am in control of my behavior and choose how to react to circumstances.” Say it everyday. Nothing is more true than that statement.

You can, and need, to start actively controlling your thoughts and emotions. Learn to control your rage when you are angry. When a negative thought slips in, push it right back out. This takes practice because we have been programmed by our environment to behave and think in certain ways. Fight to change your negativity, or you will remain a bitter and miserable person. Use your aggression in a positive way by working out, or put it into your work.

2. Give and receive love and forgiveness

“Learn how to fill your day with POSITIVITY. Think of how your ideas CAN work, not how it won’t work.” -Steve Harvey

Once you harness your inner power of controlling your thoughts and emotions, it is time to start focusing on positivity. The best way to start is by accepting others and forgiving the people who have caused you pain. Giving love and forgiveness really isn’t about giving at all. It is about you healing by letting go of negative relationships. If these people really love and care about you, they will fight for you. If you walk away and never hear from them again, you know they never cared, so why should you? Your grudges make you focus on people who do not deserve your time or attention. Anger leaves you feeling irrational, depressed, deceived, sad, regretful, and lonely. Learning to truly forgive those who hurt you will lift a thousand pounds of burden off your shoulders. You will free your mind and be able to start working on your dream.

3. Accept yourself

“No one can make you feel inferior without your consent.” -Eleanor Roosevelt

Now that you are focusing on living a positive life, it is time to look in the mirror and love what you see. Physically and mentally. No one is perfect. It is time to accept that you will never be what society expects you to be. Follow your intuitions. Do not let someone else dictate your life. That only leads to a boring, predictable, miserable, and mediocre life. Do what makes you happy instead of just dreaming about it. Love yourself flaws and all.

4. Choose who you surround yourself with wisely

“We met for a reason, either you’re a blessing or a lesson.” 

This journey will end many relationships in your life. The people who are not supportive, who are negative, and who use you, need to go! At first you may feel lonely and insecure. If you focus on you instead of them, these feelings will go away. It is time to move on. It is time to let go. The ones who truly care about you, respect you, and accept you for who you really are will stay. They will support you throughout your journey. These relationships will become more valuable to you than ever before. If you have given your all to a relationship, and they do not give back, stop chasing after them the next time they leave. You will thank yourself in the long run.

5. Learn to ignore the negativity from others

“I don’t know what the key to success is, but the key to failure is trying to please everyone.” -Bill Cosby

Now that you are starting on your journey, you will have people who will try their best to pull you down. That’s why the steps above are necessary to complete before starting. If you have prepared yourself for the haters, you will be able to rise above. It is easier to criticize others than work on yourself. Knowing this gives you peace about where you are in life and where they are. You are obviously ahead, even if it doesn’t look like it to others. Keep moving on and let them talk.

6. Carefully layout your plans

“Failure is not the opposite of success, inaction is.” -Rois Liano

Freeing your mind from your emotional baggage gives you room to focus on your dreams. Now that you have a clear picture, it is time to take action. To be a doer, you need a game plan. Write your end goal at the top of a sheet of paper. Below, write out the steps you plan to take to get there in an organized, realistic fashion. Say your goal is to become a nurse.  Your first step should probably be volunteering at your local hospital to see if you would really enjoy it. Next maybe list the schools you are interested in applying to. The third step could be to gather your necessary paperwork to apply to colleges. See what I am doing here? The sum of all the little tasks you do equals your goal. Lay it out in daily, weekly, monthly tasks that will get you closer to your dream.

7. Do SOMETHING, ANYTHING

“Success usually comes to those who are too busy to be looking for it.” -Henry David Thoreau

Many people will get to step 6 and stop. Your plan does not come to fruition magically. You have to now take action to get yourself there. So start researching, traveling, volunteering, writing, calling, interviewing, working out, or whatever opportunity you can find to get you moving forward. You may have to take on many different hats to get you there. Start where you can, do whatever you can, this is where the physical work begins.

8. Embrace failures and detours along the way

“I have not failed. I’ve just found 10,000 ways that won’t work.” -Thomas Edison

We all have epic failures in life. It is time to stop viewing these failures as an end all. Failure is an inevitable part of success. Ask any highly successful person if they’ve ever failed, and they will tell you they have 100 times. Failure only means to try a different way. Start viewing failures as a positive experience. How can we learn without failing? Failures result from trying. People who avoid failures at all costs are content with a mediocre life. We are not these people. We want true happiness and inner peace. I remember going to work in a past career and absolutely dreading it. I now think about work and feel peaceful and happy. It’s still hard work, it’s just work that I am passionate about.

As you begin the journey of pursuing your dream, it may change a little, or a lot, along the way. Your passion is already programmed inside you. Uncover your God-given gift through this process and keep moving forward no matter what may come.

9. Network and use resources to your advantage

“Opportunities don’t happen. You create them.” -Chris Grosser

You will realize, eventually, that you need others to help you get to your goal. Whether it is in absorbing information and experience from them, or getting recognized for your talent. Look online for good informative websites, look for classes or lectures where you can learn and connect with others. Drop the pride and shamelessly promote yourself with your work and/or knowledge. Whatever you can find, whoever will help, take it seriously. Opening one door can lead to many more opportunities.

Start at step one. Do not pass go and do not collect $200. If you commit to these 9 steps to stop dreaming and start doing, you are facing your fears head on and taking a leap of faith. Congratulations, your life will now truly begin. Please note this will be hard and sometimes not fun. Stay focused, but don’t forget to take time to clear your mind and relax along the way. I hope you now feel inspired to step out of your comfort zone, and risk being happy.

“Dreams are like floating down a lazy river. The path to success is like riding a roller coaster. Find the courage to get on the roller coaster, and stay on the ride until you puke.” -Margaux Daughtry

Sunday, January 04, 2015

HOW TO THINK LIKE A WINNING DAY TRADER

What makes the best traders successful?  
Are they "lucky"?  Have they discovered some "secret" indicator?  
No.  
They've learned the truth about trading.  Trading success is a simple as 1-2-3.  
Step 1 - Understand what trading is really about;
Step 2- Learn what a winning day trader does;
Step 3 - Then do it.  Continually.

1. The Essence Of Successful Trading

Trading is all about percentages.  
You enter a trade because you believe that it's more likely to succeed than fail.  
The job of finding favourable trades goes to your trading system.  There are numerous books and courses about trading systems.   The actual trading system you use is beyond the scope of this article, but please, please, understand this:
If you're searching for the perfect trading system - you know, the one that delivers profits on demand - you'll be searching until the end of time.
Successful trading is simply a game of probabilities.  Does that disappoint you?  Were you hoping for something a little more intellectual?  Do you know how many academics - doctors and lawyers particularly - lose fortunes in the market each year?
The positive bias comes from your trading system.  Our advice is keep it simple.  Find a system you're comfortable with.  Know the setups.  Understand why and when you enter and exit.  Then stick to it.
Sure, some trading systems offer a higher profitability than others.  But don't get hung up on it.  Just don't get too caught up on it.  The real determining factor is your ability to follow it.

2.  What Makes A Successful Day Trader

A successful day trader is someone who follows a trading plan.
Your trading plan tells you when to enter a trade, and when to exit.  An entry point.  An exit point - either a target or just to get stopped out.  Parabolic SAR, lower bollinger, natural support and resistance, volatility stop.  Whatever.
Any trader must understand the timeless law of probability.  That with a positive bias and a sensible approach to money-management (cutting your losses and letting your profits run), eventually you'll come out ahead.  
What makes day trading so challenging is the speed.  You simply execute trades faster, and compound your profits faster - which is why we do it.
That's why a day trader is NOT a stressed-out, valium-swallowing, adrenaline junkie who lives from one minute to the next.  
A good (i.e. profitable) day trader knows that it's just another trade.  It's all just statistics in action.
The important point here is consistency.  Like the heads / tails example, the one time you don't take a trade is when the market takes off and never looks back.  
Day trading is boring.  Keep it that way.  

3.  How To Develop The Day Trading Mind

Every time you sit down at your trading screen, remind yourself that "trading is statistics in action".  
Nobody knows what the market is going to do next.  It's a law unto itself.  You follow what works "most of the time".  
When you understand that trading is about probabilities, that any trading system is designed to provide a positive bias over the long term, then all you have to do is execute the plan.  So what is it that prevents you from being successful?  
You.  
Or rather, the emotional you.  
You need to work on developing the mindset of a professional trader.  Try this routine for 30 days and see how you go:

BEFORE: (At the start of trading day)
Step 1 - close your eyes, and remind yourself of the truths of trading:  "Trading is all about probabilities".  Write this on a yellow Post-It note and stick it to your monitor.  Permanently.
Step 2 - Mentally see yourself following your trading plan.  Entering a trade on signal.  Exiting at the right time.  Trading the right size for your account.
Step 3 - Visualize each trade as a tiny part of a big picture. You might want to visualize it as a matrix, with 100 boxes.  Each trade is unimportant compared to the overall scheme.  Create your own image for this.  (Your own is best.)  Trading is a visual process.  The point is you need a visual metaphor to distance yourself from the immediacy of real-time trading.  Anything.  

DURING: (When in a trade)
Step 1 - Physically relax.  Remember the definition of emotion?  "A physical disturbance."  You need to reduce emotional power as much as possible.  Prevent it from creeping up on you, and doing something silly.  So you don't feed it.  Relax.
Be aware of your whole body.  Remember the last time you got stressed.  What did it feel like?  Tense shoulders?  Stomach muscles tightening?  Relax those areas now. Know thyself.
Note - none of this suggests that you should be slow about entering or executing trades. Quite the opposite!   In real-time trading you must be fast.  But you are operating from your rational, thinking mind... and not the panic-induced animal mind fighting for survival!
Step 2 - Breathe!  Some traders stop breathing completely in a trade!  Breathe in slowly for a count of four, hold it for four, and breathe out for four.  
Step 3 - Focus on yourself.  Following a trading plan is a "no brainer".  You enter.  You trail a stop.  You exit.  Self-talk helps stay in the state.  Remember that when you're watching the price in real-time, there's a tremendous danger of adding emotional fuel to a simple situation.  Watch how you're feeling.  Observe any tension and let it go.  
Step 4 - Watch your language!  Words affect us profoundly.  Ever had someone scream at you?  Stirred up lots of emotion, didn't it?  So don't scream at the market.  Speak calmly.
Commentate on what the market's doing.  Speak out loud.  "The current trade began at hh:mm, the system gave a buy signal at price level, the target is with a stop at.. Stop loss was moved to break even at as per the plan...  The market is currently in trading range between x and y..."
All this helps you to stay objective.  
Also, avoid "what if" thinking.  Creativity has no place in trading!  Be mechanical .  Be objective.  
Step 5 - Continually remind yourself of what successful trading is.  See the current trade as just another trade. on just another day.  Your job is to follow the system - professionally and without emotion.  With practice, you truly won't care whether the current trade turns a profit or a loss.  
AFTER:
Review.  How did you do?  Were you trading rationally, or emotionally?  How much?  This isn't black and white.  It's about balance.  Think of it as 2 bar charts.  The higher the rational level, and the lower the emotional level, the more successful you'll become.  
Master yourself.  And the money will follow.

BY : MARK MCRAE

10 STEPS TO BUILDING A WINNING TRADING PLAN

There is an old saying in business: "Fail to plan and you plan to fail." It may sound glib, but those who are serious about being successful, including traders, should follow these eight words as if they were written in stone. Ask any trader who makes money on a consistent basis and they will tell you, "You have two choices: you can either methodically follow a written plan, or fail."

If you have a written trading or investment plan, congratulations! You are in the minority. While it is still no absolute guarantee of success, you have eliminated one major roadblock. If your plan uses flawed techniques or lacks preparation, your success won't come immediately, but at least you are in a position to chart and modify your course. By documenting the process, you learn what works and how to avoid repeating costly mistakes. 
Whether or not you have a plan now, here are some ideas to help with the process. 

Disaster Avoidance 101Trading is a business, so you have to treat it as such if you want to succeed. Reading some books, buying a charting program, opening a brokerage account and starting to trade are not a business plan - it is a recipe for disaster. "If you don't follow a written trading plan, you court disaster every time you enter the market," says John Novak, an experienced trader and developer of the T-3 Fibs Protrader Program. 

Once a trader knows where the market has the potential to pause or reverse, they must then determine which one it will be and act accordingly. A plan should be written in stone while you are trading, but subject to re-evaluation once the market has closed. It changes with market conditions and adjusts as the trader's skill level improves. Each trader should write their own plan, taking into account personal trading styles and goals. Using someone else's plan does not reflect your trading characteristics.
Building the Perfect Master Plan
What are the components of a good trading plan? Here are 10 essentials that every plan should include: 

Skill Assessment
Are you ready to trade? Have you tested your system by paper trading it and do you have confidence that it works? Can you follow your signals without hesitation? Trading in the markets is a battle of give and take. The real pros are prepared and they take their profits from the rest of the crowd who, lacking a plan, give their money away through costly mistakes. 

Mental Preparation
How do you feel? Did you get a good night's sleep? Do you feel up to the challenge ahead? If you are not emotionally and psychologically ready to do battle in the markets, it is better to take the day off - otherwise, you risk losing your shirt. This is guaranteed to happen if you are angry, hungover, preoccupied or otherwise distracted from the task at hand. Many traders have a market mantra they repeat before the day begins to get them ready. Create one that puts you in the trading zone. 

Set Risk Level
How much of your portfolio should you risk on any one trade? It can range anywhere from around 1% to as much as 5% of your portfolio on a given trading day. That means if you lose that amount at any point in the day, you get out and stay out. This will depend on your trading style and risk tolerance. Better to keep powder dry to fight another day if things aren't going your way. 

Set Goals
Before you enter a trade, set realistic profit targets and risk/reward ratios. What is the minimum risk/reward you will accept? Many traders will not take a trade unless the potential profit is at least three times greater than the risk. For example, if your stop loss is a dollar loss per share, your goal should be a $3 profit. Set weekly, monthly and annual profit goals in dollars or as a percentage of your portfolio, and re-assess them regularly. 
Do Your Homework
Before the market opens, what is going on around the world? Are overseas markets up or down? Areindex futures such as the S&P 500 or Nasdaq 100 exchange-traded funds up or down in pre-market? Index futures are a good way of gauging market mood before the market opens. What economic or earnings data is due out and when? Post a list on the wall in front of you and decide whether you want to trade ahead of an important economic report. For most traders, it is better to wait until the report is released than take unnecessary risk. Pros trade based on probabilities. They don't gamble. 

Trade Preparation
Before the trading day, reboot your computer(s) to clear the resident memory (RAM). Whatever trading system and program you use, label major and minor support and resistance levels, set alerts for entry and exit signals and make sure all signals can be easily seen or detected with a clear visual or auditory signal. Your trading area should not offer distractions. Remember, this is a business, and distractions can be costly. 

Set Exit Rules
Most traders make the mistake of concentrating 90% or more of their efforts in looking for buy signals, but pay very little attention to when and where to exit. Many traders cannot sell if they are down because they don't want to take a loss. Get over it or you will not make it as a trader. If your stop gets hit, it means you were wrong. Don't take it personally. Professional traders lose more trades than they win, but by managing money and limiting losses, they still end up making profits.

Before you enter a trade, you should know where your exits are. There are at least two for every trade. First, what is your stop loss if the trade goes against you? It must be written down. Mental stops don't count. Second, each trade should have a profit target. Once you get there, sell a portion of your position and you can move your stop loss on the rest of your position to break even if you wish. As discussed above, never risk more than a set percentage of your portfolio on any trade. 

Set Entry Rules
This comes after the tips for exit rules for a reason: exits are far more important than entries. A typical entry rule could be worded like this: "If signal A fires and there is a minimum target at least three times as great as my stop loss and we are at support, then buy X contracts or shares here." Your system should be complicated enough to be effective, but simple enough to facilitate snap decisions. If you have 20 conditions that must be met and many are subjective, you will find it difficult if not impossible to actually make trades. Computers often make better traders than people, which may explain why nearly 50% of all trades that now occur on the New York Stock Exchange are computer-program generated. Computers don't have to think or feel good to make a trade. If conditions are met, they enter. When the trade goes the wrong way or hits a profit target, they exit. They don't get angry at the market or feel invincible after making a few good trades. Each decision is based on probabilities. 

Keep Excellent Records
All good traders are also good record keepers. If they win a trade, they want to know exactly why and how. More importantly, they want to know the same when they lose, so they don't repeat unnecessary mistakes. Write down details such as targets, the entry and exit of each trade, the time, support and resistance levels, daily opening range, market open and close for the day and record comments about why you made the trade and lessons learned. Also, you should save your trading records so that you can go back and analyze the profit or loss for a particular system, draw-downs (which are amounts lost per trade using a trading system), average time per trade (which is necessary to calculate trade efficiency) and other important factors, and also compare them to a buy-and-hold strategy. Remember, this is a business and you are the accountant. 

Perform a Post-Mortem
After each trading day, adding up the profit or loss is secondary to knowing the why and how. Write down your conclusions in your trading journal so that you can reference them again later. 

The Bottom LineSuccessful paper trading does not guarantee that you will have success when you begin trading real money and emotions come into play. But successful paper trading does give the trader confidence that the system they are going to use actually works. Deciding on a system is less important than gaining enough skill so that you are able to make trades without second guessing or doubting the decision. 

There is no way to guarantee that a trade will make money. The trader's chances are based on their skill and system of winning and losing. There is no such thing as winning without losing. Professional traders know before they enter a trade that the odds are in their favor or they wouldn't be there. By letting their profits ride and cutting losses short, a trader may lose some battles, but they will win the war. Most traders and investors do the opposite, which is why they never make money. 

Traders who win consistently treat trading as a business. While it's not a guarantee that you will make money, having a plan is crucial if you want to become consistently successful and survive in the trading game.