Just a rehash from Brett the best: Eternal Truths of Trading Success  

Posted by Book Eater

I wanted to share this to all the people I know but I can't simply email things. So for the people who view this blog, I just wanted to share Brett's excellent post.

Below is copy pasted from Brett's blog: Traderfeed.blogspot.com :

happy trading. ok na pinas markets ah haha. :)

A portfolio manager lent me an interesting small book from the late 1800s written by Dickson G. Watts and reprinted by Traders Press. Entitled "Speculation as a Fine Art and Thoughts on Life", the book begins with a description of the "qualities essential to the equipment of a speculator" (p. 8). Here is the author's perspective, written well over a century ago:

* Self-Reliance - "A man must think for himself, must follow his own convictions...Self-trust is the foundation of successful effort."

* Judgment - "...equipoise, that nice adjustment of the faculties one to the other...is an essential to the speculator."

* Courage - "...confidence to act on the decisions of the mind...be bold, still be bold; always be bold."

* Prudence - "The power of measuring the danger, together with a certain alertness and watchfulness, is very important."

* Pliability - "The ability to change an opinion, the power of revision."

I especially like Watts' formulation: "There should be a balance of the two, Prudence and Courage; Prudence in contemplation, Courage in execution."

This very much fits patterns of success I detect among the most profitable traders. They are prudent in contemplating their ideas--they wait for the odds to be in their favor and conserve their capital when the edge is not there--but they are courageous in executing those ideas.

Equally important, they can be courageous without getting their egos tied to their ideas. If markets are not confirming their views, Pliability ensures that they can revise those views and not hang on to losing trades.

"The qualifications named are necessary to the makeup of the speculator," Watts explains, "but they must be in well-balanced combination. A deficiency or an overplus of one quality will destroy the effectiveness of all" (p. 9).

Too much courageousness and too little prudence leads to impulsive risk-taking. Too much pliability and too little self-reliance leads traders to get chopped up, reacting frantically to the last market movements.

Some trading truths never go out of date.

2 takes

Does anyone know what the situation would be for obtaining corporate surety bonds bonds as a sole-trader who has a poor credit history. I have looked into companies who offer bad credit surety bonds but I need to secure the bond against the performance of my business to my clients. To be honest I don't really understand all of the jargon as I am a new business owner who has never had to deal with this kind of thing before - but was informed by a relative that it's something I need to sort out. I don't really want to ask them since my finances are something I like to keep private.

Bruce, sadly I cannot help when it comes to corporate surety bonds. The best thing I guess is to ask the bank who sold you those bonds to help you understand the situation.

I only know trading stocks. I have little knowledge about those nitty gritty details on bonds.


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