Learning from Reminisces Of A Stock Operator

P.51
Mr. Partridge say: "Well, you know this is a Bull market!".

The big money was not in the individual fluctuations but in the main movements that is, not in reading the tape but in sizing up the entire market and it's Trend.

Lesson after making and losing millions of dollars in trading:
It always in sitting. Sitting tight! It is no trick at all to be right on the market. We always find lots of early bulls in bull markets and early bears in bear markets. Many men who were right at exactly the right time, and began buying or selling stocks when prices were at the very level, which should show the greatest profit. But they made no real money out of it.
Men who can both be right and sit tight are uncommon. It is one of the hardest to learn. But it is only after a stock operator has firmly grasped this that he can make big money. It is literally true that millions come easier to a trader after he knows how to trade than hundreds  did in the days of his ignorance.
The reason is that a man may see straight and clearly and yet become impatient or doubtful when the market takes its time about doing as he figured it must do.
Dis regarding the big swing and trying to jump in and out was fatal in trading. Nobody can catch all the fluctuations. In a bull market you game is to buy and hold until you believe that the bull market is near its end. To do this you must study general conditions and not tips or special factors affecting individual stocks.  You have to use your brains and your vision to do this; otherwise my advice would be as idiotic as to tell to buy cheap and sell dear.

Without faith in his own judgement no man can go very far in the game of trading.

It is the big swing that makes the big money in trading.

 

HOW WINNING TRADERS THINK

1. DON'T OVER SIZE YOUR TRADE, LIMIT MAX OPEN POSITION. EVALUATE NET RESULT TO 3 CONSECUTIVE MONTHS. UNTIL GENERATE REVENUE.
2. DON'T BE SO QUICK TO ADD POSITION. "EARN WHILE YOU LEARN".
3. DON'T TRADE ANYTHING WITHOUT PLANNING AT LEAST 2 HOURS DAILY. PLANNING THE TRADE OF THE DAY.
4. IF DAILY GOAL PROFIT WAS HIT. "STOP TRADING ON THAT DAY". IF PROFIT CONTINUE FLOWING, PLACE THE STOP AT THE GOAL PROFIT.
5. ADMIT WHERE YOU ARE AND BROADLY ASSESS ALL TRADES SO YOU NEVER TRADE THE WTH (WHAT THE HICK) TRADES.
6. DON'T RUSH TO CLICK TO OPEN TRADE POSITION. WAIT FOR THE CANDLE TO CLOSE, SO YOU CAN EVALUATE RISK.
7. LEARN TO ACCEPT THE UNCERTAINTY OF EACH TRADE AND BE OK WITH THE FACT THAT ANYTHING CAN HAPPEN.

- IF I HAD A BAD DAY, I IMMEDIATELY DETERMINE 1 OR 3 THINGS:

1. WAS I TRADING NOT SMART?
2. WAS IT A TOP CHOPPY VOLATILITY VOLUME DAY AND GOOD IDEA DID NOT SIMPLY FOLLOW THRU?
3. DID I TRADE GOOD IDEAS THAT SIMPLY DID SOMETHING NOT NORMAL?

BEST STOCK'S COMPANY FUNDAMENTAL

PRICE/EARNING(P/E) SHOULD BE:
BELOW 15 OR SINGLE DIGIT POSSIBLE

PRICE TO BOOK RATIO SHOULD BE:
1.5 OR UNDER

TOTAL CASH SHOULD BE:
1 BILLION OR MORE

TOTAL DEBT SHOULD BE:
LESS THAN 33% OF COMPANY'S ....TOTAL MARKET CAPITALIZATION.

DIVIDEND YIELD(%) SHOULD BE:
HIGHER

CORRELATION BETWEEN CURRENCY PAIRS

I LIKE THIS Q&A:

Much is done studying correlation, relationships of things like the USDCHF and the EURUSD and there effect on the  EURCHF, and in even intramarket relationships (i.e., Stocks and the dollar, commodities and the dollar, one bond vs another bond, etc.).
You are right that USDCHF went up, EURUSD went down… TODAY. The USDCHF impact was greater which caused the EURCHF to move higher. That is math as you can be sure there are arbitrage traders who will take the spread out “if the pieces get out of whack”. Today, one went higher, the other went lower and overall, the dollar went higher against both in that window after the headline came out.
Having said that, the EURCHF can go higher by having the USDCHF move higher, the EURUSD staying unchanged or even going higher at a slower pace.
Someone asked me the other day “What happened when the EURCHF moved 1000 pips from 1.1000 to 1.2000 three years ago?”
So I looked it up, and found that the USDCHF moved up by around 750-800 pips, and the EURUSD moved lower by 100 pips.... PLEASE READ MORE AT SOURCE: forexlive.com