Post

@PAVLeader

More from @indrajayanthan

Mind_Science

@indrajayanthan

Nov 17, 2022

1/5 Losses, no matter how minor or large, were horrible when we were kids.

Whether we scored 1 or 10 points below the passing mark, one fails the exam.

As a result, we have all grown to dislike failure and work extremely hard to prevent it.

2/5 Thus it makes sense that we would move the stop loss, average down a losing transaction, etc.

Small and huge losses, however, differ in the market.

In contrast to childhood, one must regularly accept tiny losses in order to survive in markets.

3/5 However, we are responding as though we are still a student in school.

The emotional component of our trading journals enables us

to carefully delve into our interpretations of our feelings and

Read 5 tweets

Mind_Science

@indrajayanthan

Oct 24, 2022

1/6 A couple is pictured here practicing some dance steps.

Please take a moment to carefully examine the image before responding to the following:

Don't look at the picture again, just recollect it.
(to facilitate understanding of a later-explained concept)

Did you see a man?

2/6 Did you see a lady ?
Did you see a hat ?
Did you see a sword?
Did you see a seal?
Did you see a ball?
Did you see a fish?

Now imagine if I told you that the image was of a seal being worked out with a ball.

3/6 You can revisit the image to see if you can spot the ones you initially missed.

You may have encountered countless examples comparable to this one.

The key idea is that our minds are not as adept at objective identification as we may think.

Read 6 tweets

Mind_Science

@indrajayanthan

Sep 9, 2021

(1/7) FOMO / Fear of missing out !

It appears not at bottom nor beginning of a trend but when market is significantly away from bottom.

Frequency - It appears in each and every bull market. Unless you properly learn to handle it, you will keep falling for it in every bull

(2/7) market !

Trend is your friend ie true but not all trends ! Consider all trends as your colleagues. Just like some colleagues becomes friends and others remain colleagues, few trends become our friends and majority needs to be observed for potential friendship opportunities

(3/7) alone !

“ I will get quickly out when trend ends “ is one of the biggest lie that we tell ourselves while falling for FOMO . Unless you have a properly back tested, forward tested with small capital & psychologically suitable trend following system, we wont exit at right

Read 7 tweets

Mind_Science

@indrajayanthan

Oct 18, 2020

#stockmarkets #tradingpsychology #trading

A thread based on Jesse Livermore Quotes and Trading Rules

*Do not average losses.
Even if based on scientifically proven edge most of us cant withstand the pressure of stocks declining as stocks usually decline much faster.

* When you double your capital learn to take some money out of it. You may need it for some rainy days !

*It takes time to make money. Get rich quick adventurers will die poor.

*Money cannot be made consistently trading in stocks every day or every week during the year.

Have a draw down plan. When draw down threshold hits ( eg-6% per month ) Stop trading for 2 weeks to 1 month and then comeback. The current market may not be suitable for your strategy

Read 26 tweets

Mind_Science

@indrajayanthan

Oct 14, 2020

#StockMarket #MutualFundsSahiHai #mutualfunds

Year after year majority of mutual fund managers are fooling innocent retailers.

S&P Dow Jones Indices compiles a report on active fund performance versus benchmarks over various periods, from 1 to 10 years.

The report for December 2019 , the latest available, showed that only 35% of large-cap funds managed to beat their benchmark indices over the last 10 years.

souce- livemint

Their logic is simple

If you made money, we are the reason

If you lose money feel free to chose from our laundry list of excuses for why it was a difficult and why next year will surely be different.

Read 21 tweets

Mind_Science

@indrajayanthan

Oct 13, 2020

#tradingpsychology

A team of psychologists in Berlin studied violin students. Specifically, they studied their practice habits. All the violinists had begun playing at roughly five years of age with similar practice times.

However, at age eight, practice times began to diverge. By age twenty, the elite performers averaged more than 10,000 hours of practice each, while the less able performers had only 4,000 hours of practice.

The psychologists found a direct statistical relationship
between hours of practice and achievement. No shortcuts. The elite had more than double the practice hours of the less capable performers.

Read 4 tweets

Share this page!

Enter URL or ID to Unroll

Mind_Science

Try unrolling a thread yourself!

More from @indrajayanthan

Mind_Science

Mind_Science

Mind_Science

Mind_Science

Mind_Science

Mind_Science

Did Thread Reader help you today?

Don't want to be a Premium member but still want to support us?

Send Email!