Archive for the ‘Mental Stuff’ Category

It’s Just The Tip

What lies beneath is what matters…


Hat tip Barry Ritholtz

NYSE’s Most Iconic Stockbroker Admits He’s “Never Owned A Share Of Stock In My Life”

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Change Your Roles, Change Your Life

“There is no cap to your potential. Your identity is fluid. You get to choose.”

Great article here from Thrive Global’s Benjamin P. Hardy, enjoyHow You Can Literally Anti Age And Become Whoever You Want To Be

Something To Think About

Everyone is better than you are…

(at something). Which makes it imperative that you connect and ask for help.

At the same time that we encounter this humbling idea, we also need to acknowledge that you are better at something than anyone you meet.

Everyone you meet needs something you can do better than they can.

Hat tip Josh Brown/Seth’s Blog

Mental Stops vs. Hard Stops and Discipline

About 75% of the time we use Mental Stops instead of Hard Stops.

Why?  Because Hard Stops (orders placed that are resting orders) become a target.  IOW – traders will run the stops to take investors/traders out of the position only to watch price reverse and go higher.   This is shown in the example below with AAPL today.

A Mental Stop is not a resting order placed into the accounts.  Therefore a Mental Stop (a number in your head or that you are watching) is not triggered.  If breached on a close – you then need to make a decision as to where to exit.

The advantage of a Hard Stop is if price continues to fall, – you were hopefully out at, or near the hard stop price.  In the end – it all boils down to discipline.  Stick with and hold true to the system that works for you.  Learn from what you did right and acknowledge what you did wrong.

A losing trade does not mean you did it wrong and a winning trade does not mean you did it right.   The worst case in when you do something wrong or break your rules – and it’s a winner.  That’s not discipline – that’s closer to luck.



Is there anything real any more? Our entire society is an edit so we don’t offend anyone. I’m all for technology, but what about a hybrid of the past and the new?

read more –

Sage Advice

Great stuff here:

“My main hope is that investors will recognize that the markets have changed enormously over the past 50 years and will want to understand things as they are, not as they were 50 years ago, and to act sensibly in their own interests. My second hope is that as investors index the daily, monthly, annual operations of investing, they will devote time, energy and care to the really important work of defining their real long-term objectives and their ability to stay the course during market ups and downs.

Charley Ellis
Founder, Greenwich Associates

Hat tip Josh Brown


What Mentally Strong People Do


Hat tip Dr. Maryann Hollis


History Lessons And Investing

Here are a few highlights from a great list of historical investment facts put together by Tony Isola:

*Most market corrections don’t turn into bear markets.

*Stocks are six times more likely to be up 20% than down the same amount.

*Uncertainty is always present and it is not a wise choice to use it as an excuse not to invest.

*Most recessions haven’t turned into depressions.

*Stocks are in a bull market 85% of the time.

*Diversification works, just not every year.

Fascinating stuff, well worth the read.  More of the list is here:

Hat tip Josh Brown of


From Paul Tudor Jones…

One of the greatest traders/investors of all time:  CoIfSLOVYAAcC_W

Hat tip Jeff Macke

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As Money Managers and Traders, the mission of our Blog and Radio Show is to go on record and further educate our readers and listeners in technical analysis and proper money management across all asset classes.

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To Your Success,

Doug & Gary