| |
| |
|
|
Stocks and Mutual Funds |
|
What Can Model Airplanes Teach You About Trading?
I was devastated! I just couldn't believe it. I was 10 years old and my dreams were shattered. I never wanted to look at another model airplane again! But I'm getting ahead of myself. Let me start at the beginning. When I was about 8 years old my older brother got interested in model airplanes. He had one that was connected to a control handle by fine wires. It flew around in circles whilst he stood in the middle controlling it. [This was just before radio-controlled planes became popular -that's showing my age!] And occasionally he would let me fly it. The first time I flew his plane I was hooked! I can still smell the fuel and hear the high pitched wine of the engine as I caused it to rise and dip as this fast moving object tried to pull my arm off! I wanted one for myself. But I guess my parents thought I was too young. So it was some time later and after saving my pocket money for what seemed an eternity that I finally got to buy my own model aircraft kit. I can remember going into the hobby shop and choosing which one to buy. And then rushing home to get started on putting it together. I was so excited as I opened the box. And I got all the balsa wood and other materials out on the kitchen table and studied the plans. The first task was to cut the sides of the body of the plane out of balsa wood. It was a big plane and so the body was quite long. The first time I did this I was doing it freehand. So I borrowed my Dad's big metal ruler. And I carefully cut along the line that I had marked on the wood. But it was still crooked! I tried once more and then I gave up. And I never made a model airplane again! You see I wanted my first model plane to be perfect. But I realized that I couldn't achieve that. And so I gave up. Years later I can still remember the frustration and disappointment that I felt at that moment. Now what is the point of my telling you about my childhood traumas? Novice traders often fall into the trap of wanting everything to be perfect before they place a trade. They want all their indicators to line up and they demand a perfect candlestick setup pattern. Perfectionism has no place in the stock market. Now, I'm not saying that you shouldn't try and be the best trader you can be. But accept that you will never know all there is to know. And that you will have to make your trading decisions based on imperfect information. And despite that realize that you don't need to be perfect to be successful. Misguided perfectionism robbed me of pleasure as a 10 year old. Don't let it rob you of trading success. David Chandler Ordinary People Making Extraordinary Profits! For free mini-course on stock and options trading click the following link: http://www.StockMarketGenie.com Or visit our blog at: http://stockmarketgenie.blogspot.com/ The above comments are offered for educational purposes only. We are not providing you with financial advice. We are simply sharing with you what has and hasn't worked for us personally. If you wish to trade or invest in the stock market you should obtain advice from a registered licensed advisor.
MORE RESOURCES:
Stocks-Mutual-Funds - Google News |
|
|
|
RELATED ARTICLES
Bull or Bear? Cat or dog? Maybe Zebra. Shucks, I don't know, but my broker keeps telling me it is a bull and to buy this and that. VIX No, this is not a symbol for some Latin number. The Wall Street mavens talk about this market timing device as if they knew how to use it to determine which way the stock market is going - up or down. Enron Cure Let's hope you did not have any of the Enron stock. Maybe you know someone who did and lost everything, but you certainly might know several people who owned stock that lost almost everything. Seecrets on Investment: Tired of Making Huge Losses in the Stock Market - Part 2 Fundamental analysis.Fundamentals analysis says the best way to predict the future trends of a stock is to understand the financial figures of the underlying company. Choosing An Investment Stock Broker If you want one.And I don't recommend any broker with whom to trade who will be giving you advice on what to buy and sell. Price Targets Every day in any financial publication you will find the Wall Street mavens giving their predictions on many stocks. It was issued here and should go there. Struggling Stocks, Booming Commodities 04/28/2005NASDAQ dropped -12.5% year to date in 2005. Dividend Reinvestment Plans: Investing on Automatic Pilot If you're like many investors who squander those small dividend checks from your stock portfolio, a Dividend Reinvestment Plan (DRP) might be just what you need. Just as its name implies, a Dividend Reinvestment Plan allows you to reinvest some or all of those dividends into more stock of the issuing company. Investing in the Stock Market From the book 'The Stockopoly Plan' by the author Charles M. O'MeliaThere are several factors an investor in the stock market should consider:1. Its A Bull, Its A Bear, Its Suptertrader! The higher the market goes the more confusing are the "experts". In the September 14 issue of Investor's Business Daily newspaper we find the great prognosticators such as:Sheldon Jacobs, editor of No-Load Fund Investor newsletter quoted that he is recommending having more cash in your portfolio. Social Insecurity Just about everything you have been told about Social Security is an obfuscation. That is a big word for convoluted truth or lie. Stock Trading Diversification This is the continuing story of our two imaginary traders, Peter and Paul.Peter is a professional trader, Paul is not. Investment Clubs Because you don't feel too sure about which stock or mutual fund to buy you decide to become a member of an investment club. Each of the members contribute a certain amount of money each month and then meet to decide what to buy or sell. Traders, Defend Against the Dreaded Death Spiral. It has often been said that there is only two ways to get hurt really bad on a stock trade, getting caught in a "death spiral" by not using DTM: Decisive Trade Management in the way of stop loses and having a stock halted on you. Halts you have zero control over. Evaluation I An insane person cannot evaluate an insane evaluation system.As you know I have been trying to restore sanity to the insane premises Wall Street has been teaching its brokers and you for all these years. Adding Funds Someday you may want to retire and continue to live in the life style to which you have become accustomed. According to conventional wisdom you will need less money because you will have fewer expenses than when you had to go to the office every day. Dividend Paying Stocks I would like to share with the reader an article printed in the financial section of U.S. Series 7 Exam What is the Series 7 Exam? If you are looking to become a licensed Stockbroker, you need to know about the Series 7. The Series 7 is a 250 question exam that when passed, licenses you to act as a Registered Representative. A Funny Thing Happened on the Way to the Stock Market On the 40 year journey through the turmoil of a volatile stock market I've noticed "P/E Ratios," "Consensus Estimates," " Bull and Bear Markets," stock ratings of 1, 2, 3, 4, 5, star ratings of 1, 2, 3, 4, 5. Also, stock ratings of "buy," "strong buy," "sell," "hold;" stock rankings of "market perform," "market outperform," "market underperform," "market underweight," "market overweight," "market equalweight," and "market neutral. Swing Trading Strategies Using Swing Trading Strategies and Technical Analysis when Trading Stocks to Make Consistent Trading Profits.This article is one small part of a series of lessons using Swing Trading Strategies and Technical Analysis developed by WD Gann which are designed to show how anyone can build a profitable Stock or Commodity trading business from scratch.
|
||||||||||||||