Notes I have jotted down from stock trading books and online gambling forums

[Iceman]

Late last winter I went thru my worst stretch betting wise since I started doing this a lot more serious. It wasnt so much I was losing a ton of money (down over a 100 or so day peorid, meaning no profits at all) but basically I wasnt winning anything and looking back i started to think how much of a waste of time this was and how menatlly draining it was for really NOTHING, etc..

I started to second guess a lot of things and I started to look into it a little and it led me to start reading stock trading psychologoy books. Which I think are great. I am not sure any people here read these but I love them. Along the way I started to jot somethings down as I thought it compared heavily to betting sports. Now I have always been one that felt like both investments and the daily struggles that go with them were pretty much the same but I was stunned on how great of literature there was on this subject from daily traders and how they coped with they ups and downs of doing this (and no writing's from sports bettors, who would have thought that, LOL).

Since I started coming to the RX a few years back I have always tried writing down some quality things I have read along the way from here and from time to time at other sites and that is also included. So guys like Fishhead you may recognize some of this, LOL. Some of this is my own stuff I have expiernced also.

This isnt nothing to earth shattering but I read it from time to time to help me straighten out my thoughts and I think it helps out a ton for me. I love to read already but the best way to learn something is to read it over and over then obviosuly go apply it. Like I said most of this is from the stock trading psychologoy books. I have a whole other huge section about gambling that I can post if others like this. Like I said some of this stuff is is really basic but remember this is from as early as the first days I was here. There is no order or rhyme or reason to this, just random thoughts I have acquired from different people. Like I said keep in mind most of this is written by daily stock traders so that is why the refernce "traders" is in here so much but they are doing pretty much the same thing as daily/weekly sports bettors are doing. Remeber this is "pshychology" type stuff also (I have some gambling stuff I will share later).

Hopefully this helps someone else as much as it has helped me. I have so much written down that I will pop in from time to time to, as I cant get in all done in one sitting.

 

[Iceman]

I will change some of the words from trading and traders to betting and bettors to make this easier

- Secret to success in the markets doesnt lie in discovering some invaluable indicator or theroy but rather it lies in the indiviual person.

-to excel at this it takes talent and hard work.

- Cut back bet size when on a losing streak, try to restore confidence.

- Best bettors have commitment, focus commitment to the task at hand, they are always asking themselves as they are working how they are doing. Stay focused.

- Stay focused even when not betting. Focus means thinking more about betting all day long and how to improve it.

- Dont focus so much on making money but more on how to protect it.

- Best traders are totally committed. If you are committed you will win.

- good to anaylze your bets after the day is done, a simple past post review is great.

- Your tradinsg style should suit your personaility. Some bettors maybe more conservative with higher volume, underbetting.

-If you are going to use a system make sure the system is unbelievably good. Try to disprove it and realize that 98% of all systems dont work. If you cant disprove it then maybe you are on to something.

- Most use info that no one else is using to get an edge.

- emotional makeup over intelligence for bettors.

- The game is harder nowadays because of computers and information, lots of people playing on instinct.

- to win you have to be in the minority.

- human nature is people dont operate to maximize gain but more to maximize the chance of gain, meaning when people win they become more conservative, that is the wrong approach.

- losing makes you a strong player and winning makes you a weaker player.

- Focus on what your response will be when the market moves.

- when losing work harder to develop strategies to get out of the slump. research and adjust.

 

[Iceman]

- when you study the market all day you get a feel for which way it going.

- even though you are using somewhat a systematic approach you mustalways have the final say, nothing should be automatic.

- more than 1 way to do win at this. Keep that in mind and work on learning them.

-try to put together a team of winning players, strategies and idea.

- it's a good idea to have a daily risk management. Try not to lose more than X amount of bankroll in one day and x amount to lose ina month.

- bottom line is you need an edge over others to win. Find what your edge is an apply it.

-common used statistics are over used and overvalued by the public.

- the better you are playing then the bigger you should be eventually playing. the worse you are playing then the lower you should play.

-a succsessfull trader is rational, analytical, able to control emotions, practical and profit oreiented.

-learn statistics, how to use a computer, devise systems, use good judgement and learn risk management.

-hard work at this means everything. You must pay the price to win by putting in the time.

-w/out an edge you have no shot. Know what your edge. no matter how good you money skills are without edge you wont win.

-you should be able to clearly define your style/system in less than a minute. Simple can and will win.

-must be quick and decisive.

-must think of trading as a game. you have to forget about the money involved and worry about winning the game for the day.

-people look to short term, need to look long term.

 

[Iceman]

will have more later. Hopefully I am not wasting my time here,:lolBIG:

Either way I have a lot more and I enjoy reading from these from time to time as it has helped my bottom line.

 

[Biggamer3]

Good stuff Ice!

Quality posts like these are what makes theRX king of the jungle

 

[SSI]

i recognized alot of that from the trading world.

You must be like a closer in baseball, alot of the time, Have a very short memory.

SSI

 

[SSI]

ice, i normally find that you (or we) tread water much of the time and the months money is made in just a few days of being Hot. this goes back to the "Protection of the Bankroll", being of utmost importance. i think this is the single biggest cause of failure in both sports wagering and trading. Not protecting your bankroll effeciently.

SSI

 

[DayTraderNation]

will have more later. Hopefully I am not wasting my time here,:lolBIG:

Either way I have a lot more and I enjoy reading from these from time to time as it has helped my bottom line.

one of the best books you will ever read and it will clear up alot for you or anyone who is thinking about trading stocks is, trading in the zone by douglas.

 

[DayTraderNation]

i actually have it on pdf somewhere, maybe someone could take it if i send it to them via email and put it up on a server so everyone can dl and read it. its by far the best i have ever read and if you take to heart what he says and go by it, you are ahead of 99% of the others who have tried and failed....

let me know if you want to do that...

 

[trytrytry]

good read..what are some book titles?

 

[whalewager]

Any notes on how you bagged that trophy on your arm? She could get my entire bankroll.

 

[thesundevil]

what are some of the books you have read?

 

[Iceman]

I have the Mark Douglas books, they are good.

SSI,
I have a quote abot the months I will dig up.

 

[Iceman]

what are some of the books you have read?

Have at least 10 books in a box. will dig up later.

 

[Iceman]

here is more

- It's less risky too have a high volume of bets as the luck factor goes out the window if you have an edge.

- better to buy high and sell high then buy low and sell high. Let me explain, it is too hard to guess when stock will trun around. Easier to be on a hot play then a bottomed out one.

some of these are my own here:

-you must be open minded and flexibile. a good bettor can change his mind.

- you need a core philiospohy. without one you are not going to be able stick it out during difficuly time (and they always happen). You must fully understand and strongly believe in being totally commited to your trading beliefs and philisophies. Everyone goes thru time stretches.

- a philisopoy is something that cannot be transfered from 1 person to another, it is something that you have to acquire yoursefl thru time and effort.

- if you reach high, you might amaze yourself.

- to be a successfull player you must eventually do what is uncomftable to you.

- look for winning trends/systems. Research and study. standard deviation is 2,000 trials and samples to reach 95 reliable (I believe this whole heartedley).

-rehearse losing. Imagine worst case scenairo. that way you are prepared for anything that comes your way. If you have a hard time getting over a loss then you are betting too much.

-bettors lose cause they dont have a winning strategy. Even those who do have a winning strategy, many do not follow it.

- it is better to put together a system/model with your own research/numbers. It needs to be personailized or you wont have the confidence to follow it.

-each trader must find his own solution to the puzzle. devise your rules and follow them.

 

[dochock77]

just bookmarked this post!

thanks Ice!

 

[Iceman]

5 steps to become a better trader:

1) focus on strategies that suit your personaility.
2) reconigize markets (games) are random a lot of the time and you will lose cause of it.
3) absolutley convince yourself that what you found is 100% statistically valid,
4) set up your trading rules
5) follow the rules.
It all comes down to do your own thing (independence) and do the righ thing (discipline).

 

[Iceman]

-Grind out monthly profits. If you get up 30-40% in a month you may want to turn it up a half notch or so. Some believ in going for the homerun ball here in this spot.

- you cant win if you need to win.

- a violatale market is a better marker as it creates more oppurtunities for one.

- key to betting is emotional discipline, you must be able to admit your mistakes. If you can do that then you will win.

- you cant train people to trade by importing knowledge. It has nothing to do with intelligence.

- in betting you cant hide your failures. Your equity provides a daily reflection of your performance, Dont blame your losses on anything else as you wont learn from your mistakes.

- emotional discipline is the ability to keep your decisions removed from your trading decisions.

- you must approach this as a business which requires dedication and desire.

-as long as you learn something from a loss, it is not a loss. View losses as oppurtunities, oppurtunities to imrove at this.

- think of each bet of just one bet of tens of thousands you are going to make in your lifetime. You will most likely be betting for 20+ years an will see devasting losses and spectacular advances so no reason to overreatc over 1 day/game. It is just one day.

- keeping our emotions in balance makes betting a lot more fun.

- be confident and comfortable in the approach you are using

 

[Iceman]

I know a lot of these are sort of the same thing bein said over and over but they are trying to get the point across. Also some statements hit home differently for different people.

 

[Iceman]

I will dig up these books this afternoon and post them later.