Trading Psychology #2

Nvidia Technical Chart, Yuan Continues Down, Trackers

Alight, so we want to add a little bit of insight that we think may resonate with some of our readers in regards to the mentality required to be a successful trader or investor. From our experience and this may not be yours, but we seemed to have had a particular understanding of financial markets from the onset, things just seemed to make sense. Now whether or not this had more to do with our absolute interest in markets or our fascination with chaos or even our overall appetite for risk taking, that remains to be seen.

One thing is certain, if your general interest level is high, then one would expect to be more engaged and more open to learning, that is just the natural way of things. So do not force things, do not try to fit that square peg in the round hole, it will not work, one must “know thy self!”

Raw talent, raw instinct for certain areas in life, this is what makes us all unique and its definitely an attribute of successful traders, they seem to have it come naturally. Now this doesn’t mean you cannot take an individual, shape, shift and form them into a better investor or trader. Rather we know that one can gain an excellent understanding of the way of things if they put in the time, the effort and willing to sacrifice what may be their own innate tendencies in order to improve themselves.

Growing up underneath some excellent US Treasury cash traders allowed me to become the best trader I could be. Yes I believe my general interest level and understanding was already an underlying factor, but refinement and maturity goes a very long way if you have excellent tutors and masters. This is the way in any specialty in life and trading and investing is no different. If you want to become better at something, its hard work and often times, the best lessons are ones that are taught not only by practice and involvement, but also by others that know more than you, that have seen more, have been involved longer and its within these masters that can make you improve your skill sets.

We hope that you continue to read our work so that we can help and assist you with what we believe is truly one of the keys to investing and trading, that is thinking outside the box and non-linear.

Taking risks isn’t something humans inherently enjoy, not the majority anyway and whether its fear of the unknown, fear of failure, most humans would rather err on the sides of caution then have to take risk. However in our world, you have to take risk, there are no short cuts and no ways around that fact. So hopefully with each passing day as you progress through your own trading and investing experiences, you start to gain not only a better understanding of the markets, but also and equally or maybe even more importantly, a better understand of oneself, your actual strong suits and weaknesses.

We truly believe you have to know who you are before your can express a positive outcome in the real world, it is often found that trying to be something you are not leads to the worst of consequences and that is something you definitely need to avoid!

Alright let’s get to yesterdays settlements as we continue to see most markets weaker but with players in fixed income buying up some of that weakness in the front end of the US curve: