Market sentiment is a fuzzy concept. In its most basic sense, it’s the aggregate beliefs and moods of actors that comprise the total market. It’s tough to measure, gauge and test. And so, it’s often discarded completely or superfluously used to confirm one’s own biases. But learning how to play the player (market sentiment) is vitally important because in the...
The Hagakure: The Book of The Samurai records Yamamoto Tsunetomo’s views on bushido and the warrior code of the samurai. It was written in the early 18th century and explains many principles of the Samurai warrior. Many of these same principles can be used in business, sports, trading, and investing to achieve a warrior mindset and overcome your ego and...
Trading is not all fun and games. We do not make money every day and certainly not on every trade. It is not like other careers or jobs where you work and then get paid. Our pursuit is more like the life of an entrepreneur. Our idea may work or it may not. The stock we just bought may take off or it may fall. After many years of hard work we may have enough...
In trading your belief system will determine whether you win or lose. Your trading method is really determined by your beliefs about the market and how it works. Choose your beliefs carefully. Trading like you are in a cult When you trade like a cult member you believe in your stock or your trade no matter what. You may have brain washed yourself or had a...
Invest for the Long-Term While making your investments, you should always keep the long run in mind. Most investors who are only interested in gaining short-term profits are more exposed to losing their patience, especially when exchange rates fluctuate. That’s not all, as the portfolio’s performance tends to sink every time an investor investing for the...
Warren Buffett has been very vocal about Bitcoin with his opinions, predictions, and what he believes will be the logical outcome of Bitcoin and the cryptocurrency market over the long-term. Let’s look at what Buffett has said about Bitcoin over the past 8 years. Warren Buffett Bitcoin Opinion “It’s ingenious and blockchain is important but Bitcoin has no...
Mastering your emotions and ego are an essential part of profitable trading as the trader is the weakest part of any trading system. The three things needed for profitable trading is a quantified system with an edge, proper risk management for implementing that system, and the right trading psychology for executing the system with discipline and perseverance...