Archive for July, 2009

How to Deal With the Yoyo Effect

Monday, July 27th, 2009

Do you know people who have made lots of money and then they go into losing streaks?

Do you know them intimately?

What happens is that you start making money and you are happy and confident. Then you believe you can do it your way and start changing things and throwing away your rules that helped you to make money consistently.

You try to take one shortcut after another. After all, you have made the money. So you don’t need to follow your own rules. Then you start losing money, and before you know it, you are in the hole…

Does this sound familiar?

I have heard versions of this story over and over again. The reasons vary. One reason is that people get bored and they want more excitement. Another is that they want to beat the system. No matter what, the results are the same.

What can you do about it? 

  1. If you want to change things around, change ONLY one thing at a time and test it. 
  2. Don’t ignore your rules.
  3. Ask yourself is it more important to make money or be right?

 Here is to making success your habit….

4 Steps to Maintain Discipline

Tuesday, July 21st, 2009

Have you told yourself, “I know exactly what is wrong and how to fix it, but I can’t?”

Have you ever blamed yourself for not having enough discipline to follow your plans?

 If so, you are not alone. People think that if you don’t have self-discipline, you don’t have control. They forget about the fear that creeps in.

What differentiates the traders who make money in the volatile markets from the other traders? The difference is that they recognize their fears and are willing to do what most traders won’t.

You might have heard that Courage is not the lack of fear. It is acting in spite of it.

So what can you do to prevent this? 

  1. Realize that it is not about you.
  2. Take your emotions out of your trading.
  3. Look at your portfolio objectively.
  4. Do not fight the market and work with it.

Here is to making success your habit….

How to Motivate Yourself & Stay Motivated

Monday, July 6th, 2009

Have you ever been excited to start something and then after a while you stopped?

Have you had problem motivating yourself after some obstacles?

It is normal to feel disappointed when we face challenges. How we react to the disappointments determines our successes and failures.

Jim Rohn has a saying: “Motivation is what gets you started. Habit is what keeps you going.”

What are habits? They are the behaviors that we do over and over. For instance, have you ever noticed that when you are driving somewhere, you don’t know how you got there?

How can you develop better habits?

Notice your daily routines and ask yourself, are they supporting you or hindering your success?

If they are not contributing to your success, change them with the ones that do.

Here is to making success your habit….