Thursday, February 28, 2013
Valid Trading Methodology
1) Integrity is a concept of consistency of actions, values, methods, measures, principles, expectations, and outcomes. In ethics, integrity is regarded as the honesty and truthfulness or accuracy of one's actions. Integrity can be regarded as the opposite of hypocrisy, in that integrity regards internal consistency as a virtue, and suggests that parties holding apparently conflicting values should account for the discrepancy or alter their beliefs.
2) Persistence is the ability to maintain action regardless of your feelings. You press on even when you feel like quitting. When you work for any big goal, your motivation will wax and wane like waves hitting the shore. Sometimes you’ll feel motivated; sometimes you won’t. But it’s not your motivation that will produce results — it’s your action. Persistence allows you to keep taking action even when you don’t feel motivated to do so, and therefore you keep accumulating results.
Persistence will ultimately provide its own motivation. If you simply keep taking action, you’ll eventually get results, and results can be very motivating.
3) Intuition is the ability to acquire knowledge without inference and/or the use of reason.
4) Discipline is the assertion of willpower over more base desires, and is usually understood to be synonymous with self control. Self-discipline is to some extent a substitute for motivation, when one uses reason to determine the best course of action that opposes one's desires. Virtuous behavior is when one's motivations are aligned with one's reasoned aims: to do what one knows is best and to do it gladly. Continent behavior, on the other hand, is when one does what one knows is best, but must do it by opposing one's motivations. Moving from continent to virtuous behavior requires training and some self-discipline.
5) Confidence is generally described as a state of being certain either that a hypothesis or prediction is correct or that a chosen course of action is the best or most effective. Self-confidence is having confidence in oneself.
6) Faith is confidence or trust in a person or thing, or a deity or in the doctrines or teachings of a religion. It may also be belief that is not based on proof.
Then you may be able to get consistent - (of a person, behavior, or process) Unchanging in achievement or effect over a period of time.
But consistent never being able to get from the Invalid Trading Methodology
Invalid Trading Methodology Comes From
1) Fear is a vital response to physical and emotional danger.
2)Doubt is a status between belief and disbelief, involves uncertainty or distrust or lack of sureness of an alleged fact, an action, a motive, or a decision. Doubt brings into question some notion of a perceived "reality", and may involve delaying or rejecting relevant action out of concerns for mistakes or faults or appropriateness.
3) Anger is an emotion related to one's psychological interpretation of having been offended, wronged, or denied and a tendency to react through retaliation.
4) Indecision The inability to make a decision.
If most of your time trading, you always feel like this. That show you have an invalid Trading Methodology. It is time to change your Trading Methodolodgy.
I have got my own Trading Methodology that I put into every Trading System that I have been creating.
- Risk to Reward Ratio.
- The number of trading opportunities.
- The size of trading capital.
- Position sizing strategies.
- Trading System base Short Term Trend, Long Term Trend and Turning Point.