by: Jonathan van Clute |
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9 Deadly Mistakes of the Stock Trader: |
by: Mark Crisp
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| The following are a list of nine things you want to avoid at all costs. Anyone of them can literally destroy your financial dreams and goals! 1. Trading with money you can't afford to lose. One of the greatest obstacles to successful trading is using money that you really can’t afford to lose. Examples of this would be money that is supposed to be used to pay the mortgage, bills or your child’s college tuition. This is sometimes referred to as “trading with scared money” and there is a very good reason for that. Ultimately what happens is that when someone knows in the back of their mind that they are risking the rent money, they trade out of fear and emotion versus logic and no emotion. If you are in this situation I highly recommend that you stop trading until you earn enough to put into an account that you truly can afford to lose without causing major financial setbacks. You can start with as little as $2000 and trade stocks under $30. 2. The need to be "certain". We all have the need to make sure that the trade we want to make is going to be a good one. Therefore we look for signs that will give us a confirmation to enter. This can come in several forms, for example… Tuning into CNBC or the Wall Street Journal to give us news that our stock is on the move or waiting for a couple of extra days to make sure that the stock is really flying and just not on a false breakout. Other traders will get opinions from friends, family or broker. Others will wait for ten technical indicators to line up and give the “green light”. All of these are okay to a point, however the big mistake to avoid is taking so much time that you let the trade take off without you. Interestingly, what ends up happening as a result of waiting too long is that you actually increase your risk. This is because as a stock moves higher and higher there are fewer buyers left in the market and it can come tumbling down until more buyers step in. It is like a game of musical chairs; eventually someone gets caught without a chair. Traders who wait and wait and wait to make extra sure are usually the ones buying the top tick just before the stocks sells off. They then beat themselves up thinking they picked the wrong stock. Odds are it had nothing to do with their selection, just bad timing. The thing to keep in mind is that there can be no absolute certainty in any given trade. All we ever can do is take a very educated risk along with a leap of faith! 3. Spending profits before you make them. Nothing is more exciting then getting into a trade that blasts off and puts you into a highly profitable situation. This can cause major problems however, because this type of trade puts you in a highly euphoric state and leads to daydreaming about the huge profits still to come. You say “Wow I’m already up 15% in two days; I’ll be up 50% in a week and probably double my money in no time!” Then the next thing that happens is you are deciding on the great new car you are going to buy or perhaps telling your boss that he can stick it… Well you get the idea! The real problem occurs as you get caught up in the daydream and expectations. This causes you to not be prepared to get out as the market sells off and eats up your profits because you have convinced yourself of the eventual outcome and will deny the reality of the situation. The simple remedy for this is to know where and how you will take profits once you enter the trade. Also, realize that the market will only go up as long as it wants and not how high you think it should go. 4. Forming an opinion. I’m here to tell you that the market does not give a damn about you or your opinions. Even if they are based on painstaking research or from a “Wall Street Guru”, it doesn’t matter! 5. Three 4-letter words that will kill you! HOPE---WISH---PRAY If you ever find yourself doing one or more of the above while in a trade then you are in big trouble! As I have already said, the market doesn’t give a damn. All the hoping, wishing and praying in the world is not going to turn a losing trade into a winning one. When you are wrong just use a simple 4-letter word to correct the situation-SELL! 6. Not sticking to your plan A big source of trouble arises when a trader starts to deviate from their strategy. Maybe for a week they will trade according to one set of rules and the next use something entirely different. This flying by the seat of the pants always ends up backfiring. This is because the trader can never be certain what is working and what is not. You must never deviate from your methodology once you start. As long as it is a good one statistically there is absolutely no reason to change it. The way to make money from it is to trade it over and over again to exploit the edge it gives you. One thing to also be aware of is that a trader is most vulnerable to switching approaches after a few loses. So, pay special attention at these times. 7. Not knowing how to get out of a losing trade. It’s amazing how many people I have talked to who don’t have any clear escape plan for getting out of a bad trade. Once again they hope, pray wish and rationalize their position. As I keep saying the market does not care what you think. It does what it does and when you are wrong you are wrong! The easiest way to keep a bad trade from going really bad is to determine before you get in, where you will get out. You can use a dollar amount or at some target point such as the low of the previous 15-minute bar. ***Make sure you don’t get the “stunned deer in the headlights syndrome”. This is where you see the stock fall to your stop loss point, but you are unable to take action. Maybe this is due to fear or disbelief that you are wrong, but unless you get out ASAP you could end up I major financial trouble! 8. Having an ego. I have seen a number of individuals enter the trading game that were extremely successful in other business ventures. Because of this they had a fairly big ego and thought they couldn’t fail. Their egos became their downfall because they couldn’t except that they were wrong and refused to bail out of bad trades. Once again, whoever or wherever you came from does not concern the markets. All the charm, powers of persuasion, number of diplomas on the wall or business savvy will not budge the market when you are wrong. 9. Falling in love with a stock or trade. Let me give you an example of what I mean. Back in the spring of 1999 EFAX was a really hot stock. I waited to buy it on a dip and did so at $19/share. It started to move up strongly and life was great! After a while though, it started to come back to my entry point and then below it. Here’s the problem. For some reason I really liked EFAX and sort of became attached to it. Ultimately I couldn’t let go of it even though I knew I should. I justified and rationalized why my dear friend should bounce back, but it never did. I finally had to break off my love affair when the stock hit $9. (Ouch!) The moral of this story is never fall in love, let alone get married to any stock. It can cost you dearly! About the author: Mark Crisp The Momentum Stock Trader |
by: Raul Lopez
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| When it comes to trading, one of the most neglected subjects are those dealing with trading psychology. Most traders spend days, months and even years trying to find the right system. But having a system is just part of the game. Don’t get us wrong, it is very important to have a system that perfectly suits the trader, but it is as important as having a money management plan, or to understand all psychology barriers that may affect the trader decisions and other issues. In order to succeed in this business, there must be equilibrium between all important aspects of trading. In the trading environment, when you lose a trade, what is the first idea that pops up in your mind? It would probably be, “There must be something wrong with my system”, or “I knew it, I shouldn’t have taken this trade” (even when your system signaled it). But sometimes we need to dig a little deeper in order to see the nature of our mistake, and then work on it accordingly. When it comes to trading the Forex market as well as other markets, only 5% of traders achieve the ultimate goal: to be consistent in profits. What is interesting though is that there is just a tiny difference between this 5% of traders and the rest of them. The top 5% grow from mistakes; mistakes are a learning experience, they learn an invaluable lesson on every single mistake made. Deep in their minds, a mistake is one more chance to try it harder and do it better the next time, because they know they might not get a chance the next time. And at the end, this tiny difference becomes THE big difference. Mistakes in the trading environment Most of us relate a trading mistake to the outcome (in terms of money) of any given trade. The truth is, a mistake has nothing to do with it, mistakes are made when certain guidelines are not followed. When the rules you trade by are violated. Take for instance the following scenarios: First scenario: The system signals a trade. 1. Signal taken and trade turns out to be a profitable trade. Outcome of the trade: Positive, made money. Experience gained: Its good to follow the system, if I do this consistently the odds will turn in my favor. Confidence is gained in both the trader and the system. Mistake made: None. 2. Signal taken and trade turns out to be a loosing trade. Outcome of the trade: Negative, lost money. Experience gained: It is impossible to win every single trade, a loosing trade is just part of the business; our raw material, we know we can’t get them all right. Even with this lost trade, the trader is proud about himself for following the system. Confidence in the trader is gained. Mistake made: None. 3. Signal not taken and trade turns out to be a profitable trade. Outcome of the trade: Neutral. Experience gained: Frustration, the trader always seems to get in trades that turned out to be loosing trades and let the profitable trades go away. Confidence is lost in the trader self. Mistake made: Not taking a trade when the system signaled it. 4. Signal not taken and trade turns out to be a loosing trade. Outcome of the trade: Neutral. Experience gained: The trader will start to think “hey, I’m better than my system”. Even if the trader doesn't think on it consciously, the trader will rationalize on every signal given by the system because deep in his or her mind, his or her “feeling” is more intelligent than the system itself. From this point on, the trader will try to outguess the system. This mistake has catastrophic effects on our confidence to the system. The confidence on the trader turns into overconfidence. Mistake made: Not taking a trade when system signaled it Second Scenario: System does not signal a trade. 1. No trade is taken Outcome of the trade: Neutral Experience gained: Good discipline, we only need to take trades when the odds are in our favor, just when the system signals it. Confidence gained in both the trader self and the system. Mistake made: None 2. A trade is taken, turns out to be a profitable trade. Outcome of the trade: Positive, made money. Experience gained: This mistake has the most catastrophic effects in the trader self, the system and most importantly in the trader’s trading career. You will start to think you need no system, you know better from them all. From this point on, you will start to trade based on what you think. Confidence in the system is totally lost. Confidence in the trader self turns into overconfidence. Mistake made: Take a trade when there was no signal from the system. 3. A trade is taken, turned out to be a loosing trade. Outcome of the trade: negative, lost money. Experience gained: The trader will rethink his strategy. The next time, the trader will think it twice before getting in a trade when the system does not signal it. The trader will go “Ok, it is better to get in the market when my system signals it, only those trade have a higher probability of success”. Confidence is gained in the system. Mistake made: Take a trade when there was no signal from the system As you can see, there is absolutely no correlation between the outcome of the trade and a mistake. The most catastrophic mistake even has a positive trade outcome, made money, but this could be the beginning of the end of the trader’s career. As we have already stated, mistakes must only be related to the violation of rules a trader trades by. All these mistakes were directly related to the signals given by a system, but the same is applied when getting out of a trade. There are also mistakes related to following a trading plan. For example, risking more money on a given trade than the amount the trader should have risked and many more. Most mistakes can be avoided by first having a trading plan. A trading plan includes the system: the criteria we use to get in and out the market, the money management plan: how much we will risk on any given trade, and many other points. Secondly, and most important, we need to have the discipline to follow strictly our plan. We created our plan when no trade was placed on, thus no psychology barriers were up front. So, the only thing we are certain about is that if we follow our plan, the decision taken is on our best interests, and in the long run, these decisions will help us have better results. We don’t have to worry about isolated events, or trades that could had give us better results at first, but then they could have catastrophic results in our trading career. How to deal with mistakes There are many possible ways to properly manage mistakes. We will suggest the one that works better for us. Step one: Belief change. Every mistake is a learning experience. They all have something valuable to offer. Try to counteract the natural tendency of feeling frustrated and approach mistakes in a positive manner. Instead of yelling to everyone around and feeling disappointed, say to yourself “ok, I did something wrong, what happened? What is it? Step two: Identify the mistake made. Define the mistake, find out what caused the mistake, and try as hard as you can to effectively see the nature of that mistake. Finding the mistake nature will prevent you from making the same mistake again. More than often you will find the answer where you less expected. Take for instance a trader that doesn’t follow the system. The reason behind this could be that the trader is afraid of loosing. But then, why is he or she afraid? It could be that the trader is using a system that does not fit him or her, and finds difficult to follow every signal. In this case, as you can see, the nature of the mistake is not in the surface. You need to try as hard as you can to find the real reason of the given mistake. Step three: Measure the consequences of the mistake. List the consequences of making that particular mistake, both good and bad. Good consequences are those that make us better traders after dealing with the mistake. Think on all possible reasons you can learn from what happened. For the same example above, what are the consequences of making that mistake? Well, if you don’t follow the system, you will gradually loose confidence in it, and this at the end will put you into trades you don’t really want to be, and out of trades you should be in. Step four: Take action. Taking proper action is the last and most important step. In order to learn, you need to change your behavior. Make sure that whatever you do, you become “this-mistake-proof”. By taking action we turn every single mistake into a small part of success in our trading career. Continuing with the same example, redefining the system would be the trader’s final step. The trader would put a system that perfectly fits him or her, so the trader doesn’t find any trouble following it in future signals. Understanding the fact that the outcome of any trade has nothing to do with a mistake will open your mind to other possibilities, where you will be able to understand the nature of every mistake made. This at the same time will open the doors for your trading career as you work and take proper action on every mistake made. The process of success is slow, and plenty of times it is attributed to repeated mistakes made and the constant struggle to get past these mistakes, working on them accordingly. How we deal with them will shape our future as a trader, and most importantly as a person. About the author: Raul Lopez is the founder of www.straightforex.comA site dedicated to provide high quality Forex training. |
How to recognize and Overcome the "Don't Fears"
By Leanne Hoagland-Smith
When we hear the word “conditioning,” many of us are reminded of Pavlov and his work with dogs. Over 100 years ago, Ivan Pavlov published his efforts on what he termed “conditioned reflex.” Through conditioning of repeated external actions, he was able to get a dog to drool without feeding the dog.
Pavlov demonstrated that external responses can condition animals and this is true of human beings. Think back to your earliest school days when you sat in your classrooms. You learned that sitting up front near the teacher’s desk resulted in you receiving more attention (external action). Students in the back of the room appeared not to be called upon as much and were not under the “eye” of the teacher. Within a few years, you were conditioned that sitting in the front was not as desirable as sitting in the back. This “classical conditioning” stayed with you even as an adult. Have you ever attended a conference, seminar or large meeting where very few adults sat in the front and the majority of adults sat between the middle and back of the room?
Another prime example of early conditioning centers around the parent/child relationship. Since parents are concerned about their children’s health and welfare, the word “No” is quite prevalent in the early childhood years. We all have heard some, if not all, of the following expressions: “Don’t write on the walls,” “Don’t run into the street,” “Don’t speak to strangers” and “Don’t go to where you are not wanted or ask.” As we become a little older, we are conditioned to receive a consequence for our failure to obey the “Don’ts”. Many of us can remember that consequence as “Wait until your father gets home.” This early conditioning turns us from “Don’t” children into “Can’t adults.”
Again as adults, we carry this negative conditioning into our daily lives. For example, what is the number one fear for over 50% of all salespeople including budding entrepreneurs and small business owners? Cold calling or talking to strangers. Picking up the phone and dialing a complete stranger activates two of our earliest childhood “Don’ts.” Don’t talk to strangers and Don’t go where you are not wanted.
Another example of conditioning is taking tests. During the last 5 years, I have surveyed hundreds of adults where 80% or more believe that they are poor test takers. This belief started in school where they probably didn’t do well on tests (external) action. As the years progress, this external stimulus created stress and anxiety. Mention the word test and some adults respond physically through increased heart beats to perspiration. Until the adults recognize that part of the reason, not necessarily all of the reason, for poor testing resides in their belief through conditioning that they are poor test takers, they will continue to be poor test takers.
For me, conditioning is very apparent specific to “medical shots.” As a child, I was very sickly and had monthly, if not weekly, shots from our doctor who had that time made house calls. I remember one Christmas Eve that my mother and the doctor chased me around the house to give me another shot. To this day, fifty years later, I have a very difficult time around taking shots. Overcoming those early years of conditioning, is still a challenge. However, I recognize the reason for this fear and, thank heavens, no longer have to be chased around the room.
The examples of conditioning are too many for just one article. However, understanding that conditioning still continues in our lives is the first step to overcome what I call the “Don’t Fears of Misery and Scarcity” By looking as to why we fear something, we may discover that the fear was created years ago from our early childhood experiences. Now as adults, we can then take the appropriate actions to overcome those “Don’t Fears of Misery and Scarcity” and embrace “Joy and Abundance.”
One of the best actions is to change those conditioned behaviors is to adopt the following belief: I will receive what I believe. By believing that I will receive the joy and abundance, I will receive what I believe. Today, I use this positive self-talk statement or affirmation to continue to overcome the affects of childhood conditioning and thereby improving my performance. You, too, can defeat your own “Don’t Fears” and create a life filled with joy and abundance. The choice is yours.
About the author:
Leanne Hoagland-Smith helps individuals and organizations to double results usually within 2 to 12 weeks. She secures lifelong change through proven processes. If at least doubling your revenue, improving your organizational culture or finding balance interests you, visit www.processspecialist.comor ask to subscribe to complimentary copy of Power Choices a monthly newsletter at www.processspecialist.com
How to turn Failures into Unstoppable Success
By Saravanan Sivagnanam
Failure, the moment we hear this word, we get the feeling of dejection and disappointment. Not many of us can take failure as a learning experience. If we want to live through failures and emerge successful, we need to know the meaning of failure, the reasons for failure and how to handle them.
Failure in simple terms is “Not meeting the Expectations”, be it the expectation set by others for you or the expectations you have set for yourself. Either way when you are not able to achieve the set expectations, you are said to have failed. This means you have failed in one particular activity and please do not assume that you are a total failure. And this is the first step towards overcoming failure. Now let’s look at the reasons for failure and how to handle them.
1. LACK OF EFFORT:
This is very common when you are forced to do something. When you are forced to do some activity, you lose interest in the activity and eventually you don’t give your 100% effort. The best solution for this problem is to talk to the concerned person about your dislike for the activity. This is just an issue of either convincing or getting convinced. If you are convincing enough you get to do the activity that interests you. On the other hand if you are getting convinced it means that you are interested in the activity you are engaged with, but you are either lazy or bored.
Now to avoid boredom and laziness, promise yourself a reward for completing the task on hand successfully. This will help you roll up your sleeves and get into action. Now in rewarding yourself follow the method adopted to train dolphins. First the dolphin is shown a fish to make it jump and it gets that. The second time you make it jump a little higher and only then it gets the fish. Now the third, fourth and fifth time it gets the fish, but the sixth and seventh it doesn’t get the fish and the eighth time it gets the fish and so on. So you create the uncertainty and the dolphin gets the message that if it jumps it has a fifty-fifty chance of getting the fish. If it jumps it might get the fish, if not it has to jump higher the next time to get the fish. The same principle applies to human beings as well.
2. LACK OF CONFIDENCE:
You might have given your 100% effort, but still may not succeed if you lack confidence. To get confident you need to believe in yourself; you need to develop positive thinking; you need to replace your negative thoughts with positive ones. This is called the Auto-Suggestion technique. Whenever you get the feeling that you are not confident, all you have to do is just tell yourself “I am Confident”, “I am full of enthusiasm”, “I am the right person to do this” and some more positive affirmations like what have been mentioned above. Anything you do over and again becomes a habit.
3. FIRST TIME SYNDROME:
Most of us have this, but in a varying degree. It’s inherent in human nature not to accept new things easily. So it’s quite normal that we get tensed and stressed when we are going to do something for the first time. The solution for this problem is to follow the simple technique called Visualization. Visualization means rehearsing in your mind, the activity that you are going to do for the first time, a number of times. So when you are actually doing the activity it wouldn’t be the first time.
4. UNREALISTIC EXPECTATIONS:
This may also be termed as over-confidence. You may not realize how big your goal is or how long it takes to achieve your goal. So halfway through you might feel you are not fit or cannot achieve the goal and you might even go to the extent of changing your goals. Please don’t do that.
There are two things you need to understand, the end goal and the process goals.
The end goal is the ultimate thing that you want to achieve. The process goals are those, which help you, reach your end goal. Remember, always keep your end goal fixed and be flexible with regards to your process goals. Take a second look at your goals, break them into small parts and get into action. It shows how SMART you are, because being smart means setting goals that are Specific, Manageable, Attainable, Result oriented and Time bound.
Many a time we may not be able to change the way things happen, but surely we can change the way we react to the happenings. We came into this world not to just whine about things and pass away. Every one of our lives has a greater meaning and purpose. Whatever be it, we are here to succeed. And failure isn’t all that bad. So let’s take failure as a learning experience and become an unstoppable success.
About the author:
Saravanan Sivagnanam runs http://www.successdojo.com,the free success training center where he helps you achieve whatever you want to achieve. Copyright 2005 – www.successdojo.com
Investing is about Discipline
By Kevin Bauer
If you don't have discipline then walk away from
the idea of being rich. You see, getting rich
without discipline is relying on the lottery or
your favorite pony ambling past the finish
line in front. And how likely is that...?
The idea of wealth retention is what you have to
consider and grasp firmly. That must be the goal
of any strategy. Get it and keep it. Sounds simple
but the average Joe gets it and spends it - on stuff,
dreams, hopes, scams, bum ideas, and so on.
Those guys who get the idea of "get it and keep it"
are the ones who gain wealth. Even a person of modest
means can do this. Consider this - most people who
have aspirations of gaining wealth have an income.
If they don't have an income I'm going to suggest
that food and shelter are probably foremost in
their minds.
So let's assume that the guy who aspires to be wealthy
has an income. If he stuffs some cash in a box every time
he gets paid his salary, and keeps it there he is already
gaining wealth. He has accumulated an asset he never had
before. Average Joe says - "lets put cash in the box next
week - we'll buy take out this week".
Sounds crazy huh - but it's true.
The second step in being wealthy is discipline. The second step .... what happened to the first?
The first step ..... You have to choose to be wealthy -
or have stuff. More on that another day. Think about it.
About the author:
Kevin Bauer is an entrepreneur sharing his ideas about building wealth. You can find more at
http://www.grow-your-wealth.com
You may reprint this article provided no changes are made and all links are included.
Optimism: The Tremendous Benefits of a Positive Attitude
By Anna White
How many times have you heard someone say, “Hey, cheer up!” or “Turn that frown upside-down!”? Unconsciously we all seem to know that optimism is a virtue and that a negative outlook is something to be concerned about. And did you know that there are actually a host of concrete reasons why this is so?
Medically speaking, anxiety, anger and stress can all do a lot of damage to the body. Too much stress has been shown in research to shorten a person’s life span; in the shorter term it can wreak havoc on the skin as well as on the internal systems, including the immune system and other vital organs. Holding negative feelings inside can even throw the digestive functions of your body out of whack, too. So you see that a bad attitude isn’t just something to be waved off or taken lightly—it can have a significant impact on your health.
On the other hand, people who consistently exhibit a positive attitude are more likely to stay healthier, look fitter, and recover faster from any illnesses they do undergo. You may have heard stories about cancer patients who, seemingly because they managed to keep up their hope and spirits, somehow survived and beat their disease. There is certainly something about optimism that goes far beyond merely being “upbeat” or “perky”—it’s a way of thinking and a way of living that actually improves your overall sense of wellbeing.
Unfortunately, many of us are brought up only too familiar with the negative side of things. We live in a world full of upsetting events and everyday stresses. The key is to remind yourself not to let it dictate your emotional state. No matter what is happening around you, if you can develop your positive attitude at the core of your being, you will equip yourself to survive any challenge, any disappointment, any crisis, and any source of upset.
Make a conscious effort to replace your negative thoughts and actions with positive ones. Instead of looking at a task and saying, “It’s impossible,” just commit to doing it and enjoying the challenge of a job well done. Instead of viewing an illness as “proof” of how hopeless your life is, look at it as your body’s way of telling you that something needs to change, and then work on changing it.
Every hardship, every seemingly impossible thing is actually a brilliant opportunity for you to show just how far you can push yourself to accomplish your goals. Expect some curveballs along the way and accept that they are an inevitable part of life. Whatever comes your way, exude positive energies to those around you, and it will be reflected back to you!
About the author:
Anna White is chief-editor and researcher in charge of SelfHelpCorner.com, a website dedicated to providing you with 100% free self-help information that's practical, cutting edge and immediately useable in your life.To read part two of Anna's article visit: http://www.SelfHelpCorner.com/
The 80/20 Success Secret
By Rasheed Ali
Have you ever wondered if there was a way to apply the Pareto Principle or 80/20 Principle to success or rather becoming successful?
If you’re a reader of the Conquer Your Adversity Newsletter, then you should be familiar with this principle from my article Achievement & Happiness The 80/20 Way – www.rasheedali.com/8020.htm
In the past what I’ve found is that most people don’t hesitate to point fingers at whom or what they think is responsible for their failures or lack of success in life. The problem is that they never look in the mirror and see that the main problem is them! At that time I believed that there were two groups of people, successful and unsuccessful.
Recently however I came across another group of people who all want to be successful and realize that they must change. When they ask me how they can achieve success, I give them all the same answer. I’ll get to that in a minute, because first I want to tell you why.
When I was a baby about two months old, my parents sent me from New York to the island of Trinidad to live with my Grandparents. During those early years, I was given love, attention and I was taught the importance of hard work. You see, my Grandfather and all of his brothers for that matter were entrepreneurs. My Grandpa was a poultry farmer. He raised chickens! Not just any chickens, but the best tasting, natural chickens around. Not just a few chickens, but anywhere from 20,000 to 40,000 at a time. Not only that but, he still worked at his job as the Pay Master at the Texaco oil refinery.
To little me, Grandpa was the strongest man in the world and he knew more than anyone!
Over the course of the years I would be taken away from my Grandparents many times by my parents, only to be sent back again. Each time I would learn something new. I learned how to run a poultry farm and business, how to handle money, how to deal with customers, how to give a quality product, the importance of learning by doing and most of all what I tell my clients and people wanting success.
No, I’m not going to tell you yet! ;-P
Fast forward to 1990-91 and I’m homeless on the streets of New York. Of course my Grandparents had no control over these events. It was my parents that left me no choice.
There I was a skinny 15 year old with big glasses, no money and nowhere to live. I had lived in fear for so long in the past that I looked like an owl on crack!
I had no clue what to do and I had already been on the streets a couple of weeks. I was hungry, cold (it was winter) and tired.
As events unfolded a severe beating by four 22 year olds, put me in the hospital near death and I would later end back up on the streets. This time I had learned of other options by listening to other peoples’ conversations. I had heard about a place called Covenant House in Manhattan. It took another week or two before I ended up there because I didn’t trust that anyone would help me.
The people at Covenant House took me in one cold night and gave me a place to stay, warm food and counseling.
There I met a 17 year old guy who would become a big brother to me for a short while. His name was Tony. He as it turned out was in New York because he was running from some very dangerous people in Florida who killed his friend. Tony was a “metal-head,” head-banger type but was a good natured person and took a liking to me. He protected me from the other kids who were in gangs and were too rough and dangerous for me to handle at the time. He taught me how to fight, how to think on the streets, and the same thing my Grandpa taught me.
No, I won’t tell yet.
That wasn’t the end of my street life but, that’s where we’ll fast forward into my twenties.
My mind had been made up since I was a child that deep down I really wanted my own business. So I went out and did what any normal kid would do. Go to college right!
Well after a few semesters, I realized that I was really in for long frustrating hours of studying things that I did not want to know. So while still in school and working full time, I started to self educate myself with self improvement books and business books.
Needless to say, I got hooked! Paycheck after paycheck I would buy and read these books, online and offline. Wow I really knew my stuff I would think. Then I would look at successful businesses and say, “Wow I still have a lot of learning to do.”
So I started out on my quest to conquer the internet. Or so I thought.
Again, I purchased and read many e-books, reports, software and services and began to build a small income online.
Thousands of dollars and some successful clients later, I had very little to show for it other than all of the money I made others and the vast library of knowledge in my head. (I do have a pretty big head -- ;-D )
Then one day through world famous internet marketer Jo Han Mok, I met Mike Litman, then Dave Lakhani & Steve Watts. Mike and Dave showed me what I was doing wrong, what I needed to know and how to apply it. Most importantly they showed me what they had learned so that I didn’t have to make the same mistakes.
If you fast forward to today you will see that I’m now helping change the lives of thousands of people around the world through my newsletter and coaching system and I’m well on my way to creating millions in revenue!
So what’s the 80/20 Success Secret?
It is….
Finding Mentors or Coaches and learning everything you can from them.
Instead of investing tons of money in books and programs, invest in a mentor and you WILL get the most results!
Remember very few actions generate the most results. Instead of taking 1,000 steps and many years to achieve your desired results, you’re only taking one step and very little time to get your results this way. You’re paying them to learn from their mistakes and successes.
No book or program can offer you that!
So when you’re ready to leap towards success and break through your obstacles, seek out your mentor(s) and be ready for anything!
About the author:
* Rasheed Ali was once homeless and penniless on the streets of New York and is now helping to change the lives of THOUSANDS of people around the world with his innovative coaching, mentoring and newsletters. You can learn more about him and his newsletters at http://www.RasheedAli.com
Mandi Pour Rafsendjani
Batchelor of Business, Diploma in Financial Services, Accredited Life Coach, Master NLP Results Coach / Trainer specialised in Share Trading Psychology.
Remember when you wanted to conquer the world, when nothing could stop you from becoming a Top Trader? With a passion for success you studied your system, attended the focus groups, read the trading books, listened to the cds and dreamed of making consistent comfortable returns. You imagined having a supportive family whose wishes you can fulfill, living in your dream home, a fancy car or two and a trip around the world. And then - what happened? No happy family members, no dream home, no dream car, no freedom.
If you have not yet lost the dream of being a Top Trader, you might wonder what it takes to be one. After all, you have worked very hard to get this far. Wouldn't it be great to break through whatever it is that is holding you back? The difference between a Top Trader and an under performing Trader is very small indeed. I have worked closely with quite a number of Top Traders and I can tell you that to be a Top Trader, you don't have to be extremely intelligent, well educated, lucky or good looking.
This week I would like to share with you about trading business plans …or the lack of it. Winning traders are disciplined so they say. Rather than trading by the seat of their pants, they formulate a very detailed trading plan and most importantly they follow it.
However, my experience is that only 60% of traders have some kind of a trading plan and 90% of those don’t have what it takes to stick with it. It shows again that everybody wants to make profits in trading, but only a few extraordinary traders are willing to prepare to profit in trading. Are you one of them?
So, why don’t most traders follow their plans?
Usually it is the kind of trader who is at the mercy of their emotions and when the emotion gets too strong, s/he gives in to immediate gratification. Often the market moves further and that rapidly saps up psychological resources because it leaves the trader permanently unfulfilled. Traders, who can show patience and discipline on the other hand, clearly have an advantage. Interestingly enough, all seasoned traders display those traits.
Trading isn't the only arena where discipline is rewarded. The ability to control impulses in all areas of life is omnipresent and predictive of success. People who could not show self-restraint in daily life tend to have the same challenge in trading. Yet, like in trading rewards are given to those who develop the ability to delay instant gratification for a later greater reward.
Being able to delay gratification is a personality trait. One's ability to show self-control develops over time and is consistent across situations and all areas of life. In other words, if you don't show self-discipline in your everyday life, you probably will have trouble showing self-discipline when it comes time to execute your trading plan.
If you are a pleasure seeker, you might want to keep a close eye on your ability to maintain discipline. Does it mean that you are doomed to mediocrity? Probably not, but you should not underestimate the difficulty of maintaining discipline if you have trouble with self-control.
So, what can you do if you lack self-control?
Practice self-control in your everyday life. Your ability to show self-control is similar to a muscle. If you don't use a muscle, it becomes weak and you’ll have difficulty maintaining self-control.
Set yourself up for success by creating and practicing self-control strategies. Similar to if you want to lose weight, don’t walk past your favourite fast food place, tell all your friends not to offer you chocolates or cakes or other fatty foods, ask your environment for support.
Try some simple self-control "exercises." See how much you can control your eating, for example. You might also make a practice trade with a small amount of money that you can afford to throw away, and see how long you can stay in that trade before closing it out. This test of self-control can be difficult for some traders. Looking at your screen during a trade can be as tempting as standing in front of a slot machine and trying not to put in a dollar and pull the handle.
Maintaining discipline will help you to think rationally and decisively, increasing your chances of success.
Don't underestimate the difficulty of maintaining self-control. Many novice traders have great difficulty sticking with a trading plan. It's a common malady, but one that can be conquered with practice.
Trading is a lifestyle and therefore all areas of life must be incorporated into the trading business plan. Traders like professional athletes have to ensure that they sit in front of the computer in peak performance properly fed, watered and mentally prepared. They have to consider the area of health (nutrition and physical activities), family and social relationships (what to do if your partner hates your passion for trading with a passion, or the children want your attention the moment you want to put on a trade), financial management and foremost your personal development. Yet, most traders only have one section, the trading system in their business plan. It proves again that everyone wants to win, but only a few selected are willing to prepare to win. Are you one of them?
Mandi Pour Rafsendjani
Batchelor of Business, Diploma in Financial Services, Accredited Life Coach, Master NLP Results Coach /Trainer specialised in Share Trading Psychology.
www.thesupertradercoach.com.au/