6/30/2009
Happy Day
Yes I would like to super size that.
1 Minute Soybean Chart
So what did I learn in June?
Trading is simple. Humans are stupid. The two have difficulty mixing well.
Speaking of McDonalds (if you got that joke) how did Ray Kroc build a multi billion dollar franchise that can be run by high school kids?
He built systems, tested the systems, revamped the systems, and documented the systems. Then he handed the system, for a small fee, over to someone else and let them run the system. If they did not follow the system he fired them.
Systems, run by high school kids, sounds simple enough. The system and the kids produced net income of 4.3 billion dollars in 2008.
Maybe I should go on holidays and pay some kid $10.00 an hour to trade my system.
Hmmmm.
McDonalds 5 Year Net Income (dollars in millions)
2008: 4,313
2007: 2,395
2006: 3,544
2005: 2,602
2004: 2,279
1 Minute Soybean Chart
So what did I learn in June?
Trading is simple. Humans are stupid. The two have difficulty mixing well.
Speaking of McDonalds (if you got that joke) how did Ray Kroc build a multi billion dollar franchise that can be run by high school kids?
He built systems, tested the systems, revamped the systems, and documented the systems. Then he handed the system, for a small fee, over to someone else and let them run the system. If they did not follow the system he fired them.
Systems, run by high school kids, sounds simple enough. The system and the kids produced net income of 4.3 billion dollars in 2008.
Maybe I should go on holidays and pay some kid $10.00 an hour to trade my system.
Hmmmm.
McDonalds 5 Year Net Income (dollars in millions)
2008: 4,313
2007: 2,395
2006: 3,544
2005: 2,602
2004: 2,279
6/26/2009
Patience
"Patience (pā-shəns) is the state of endurance under difficult circumstances, which can mean persevering in the face of delay or provocation without becoming annoyed or upset; or exhibiting forbearance when under strain, especially when faced with longer-term difficulties. It is also used to refer to the character trait of being steadfast.
In evolutionary psychology and in cognitive neuroscience, patience is studied as a decision-making problem, involving the choice of either a small reward in a short span of time, or a more valuable reward after a long period of time. All animals, humans included, discount future rewards—the present value of delayed rewards is viewed as less than the value of immediate rewards.
In a 2005 study involving common marmosets and cottontop tamarins, both species faced a self-control paradigm in which individuals chose between taking an immediate small reward and waiting a variable amount of time for a large reward. Under these conditions, marmosets waited significantly longer for food than tamarins. This difference cannot be explained by life history, social behaviour or brain size. It can, however, be explained by feeding ecology: marmosets rely on gum, a food product acquired by waiting for exudate to flow from trees, whereas tamarins feed on insects, a food product requiring impulsive action. Foraging ecology, therefore, may provide a selective pressure for the evolution of self-control.
Patience is often described as a core virtue in religion or spiritual practices. For example, Job is a figure that appears in the Hebrew Bible, Christian Bible and the Qur'an; his story is considered a profound religious work. At its core, the theme is the co-existence of evil and God and the application of patience is highlighted as the antidote to the earthly struggles caused by that co-existence. The plot of the book is that Job endures near-apocalyptic calamities without losing his patience or reproaching Divine Providence. In the Qur'an, the person of Job is actually known as Ayyūb (Arabic: أيوب ), which is a name that is symbolic of the virtue of patience (although it does not mean patience in itself)." Source Wikipedia
Hmmmmm.
Charts with no trades. Or should I say no signals.
Hmmmmm.
Crude Oil
Soybeans
In evolutionary psychology and in cognitive neuroscience, patience is studied as a decision-making problem, involving the choice of either a small reward in a short span of time, or a more valuable reward after a long period of time. All animals, humans included, discount future rewards—the present value of delayed rewards is viewed as less than the value of immediate rewards.
In a 2005 study involving common marmosets and cottontop tamarins, both species faced a self-control paradigm in which individuals chose between taking an immediate small reward and waiting a variable amount of time for a large reward. Under these conditions, marmosets waited significantly longer for food than tamarins. This difference cannot be explained by life history, social behaviour or brain size. It can, however, be explained by feeding ecology: marmosets rely on gum, a food product acquired by waiting for exudate to flow from trees, whereas tamarins feed on insects, a food product requiring impulsive action. Foraging ecology, therefore, may provide a selective pressure for the evolution of self-control.
Patience is often described as a core virtue in religion or spiritual practices. For example, Job is a figure that appears in the Hebrew Bible, Christian Bible and the Qur'an; his story is considered a profound religious work. At its core, the theme is the co-existence of evil and God and the application of patience is highlighted as the antidote to the earthly struggles caused by that co-existence. The plot of the book is that Job endures near-apocalyptic calamities without losing his patience or reproaching Divine Providence. In the Qur'an, the person of Job is actually known as Ayyūb (Arabic: أيوب ), which is a name that is symbolic of the virtue of patience (although it does not mean patience in itself)." Source Wikipedia
Hmmmmm.
Charts with no trades. Or should I say no signals.
Hmmmmm.
Crude Oil
Soybeans
6/24/2009
6/23/2009
Floored
I've been waiting a long time for this documentary. It's not here yet but I thought I would bring it up again so you could wait with me.
The only other documentary on trading that I know of is Open Outcry. I own it and it's pretty good. If you trade for a living or are at all interested in this business these two films are a must see.
Open Outcry
I wonder how many more years the floor trading will last?
The only other documentary on trading that I know of is Open Outcry. I own it and it's pretty good. If you trade for a living or are at all interested in this business these two films are a must see.
Open Outcry
I wonder how many more years the floor trading will last?
6/22/2009
Sigh
1 Minute Soybean Chart
One signal, four trades.
One winner for full target, one break even, and two losers. The signal trade was the winner.
Of course.
If only there were a trading blog dedicated to trading your plan with proper risk and money management. If there were such a thing I would read it every day. I would offer to send the owner of such a blog all my money to mentor me on a daily basis. I would wash his car and mow his lawn on weekends.
If only.
One signal, four trades.
One winner for full target, one break even, and two losers. The signal trade was the winner.
Of course.
If only there were a trading blog dedicated to trading your plan with proper risk and money management. If there were such a thing I would read it every day. I would offer to send the owner of such a blog all my money to mentor me on a daily basis. I would wash his car and mow his lawn on weekends.
If only.
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