A Trader’s Second Most Important Virtue

by OptionPundit on December 11, 2014

Stay Hungry, Stay Foolish

In the first part, we reviewed VIRTUE OF PREPARATION i.e. that the very first quality to succeed in financial markets is PREPARATION which includes everything e.g. know-how, practice, patience and continuous improvement process for increasing your odds of success.

Once your are well prepared, the next quality that will shape a trader’s success is PERSEVERANCE.

So lets understand what perseverance is and then I will explain how it is linked with succeeding in trading the markets.
noun \ˌpər-sə-ˈvir-ən(t)s\

Perseverance is the quality that allows someone to continue trying to do something even though it is difficult …or saying differently steady persistence in a course of action, a purpose, a state, etc., especially in spite of difficulties, obstacles, or discouragement.

At times, many people confuse persistence with perseverance. While both persistence and perseverance require discipline, focus and determination, Perseverance is much more than just persistence. Yes, you would need persistent desire to succeed, to stick to your preparation and to follow through your plan! Mr Market will toss your trading around. One day up, another day down and you will most likely see losses first before seeing consistent profits. You have to have that burning desire to succeed. And thus you have to have persistence.

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However, wrong persistence will lead to frustrations. Sticking to your unproductive actions and doing the same thing over and over again without learning from your mistakes will turn out to be a recipe of disaster.

Persistence is a skill whereas perseverance is a virtue.

So how do you PERSEVERE? Let’s take it step by step.

It all starts with the PURPOSE.

Your purpose for trading and goals will provide you with a strong desire to achieve. As I like to say “Discovering WHY will lead you to HOW“. That purpose driven, persistent desire to achieve your goals will allow you to persevere.

OP Income NewsletterNo matter what others would like you to believe, the fact is Mr Market is brutal and doesn’t care for anyone. There will be ups and down. There will be irrational days questioning even the best systems or strategies you had in your toolbox. You might see Murphy smiling at you. Times when nothing seems right. During such moments, it is that PERSISTENT DESIRE to succeed that will keep you going. Trading/ Investing or Financial Freedom is a long journey and one needs to persevere through this tough journey by continuously working on what’s working and removing what’s not. I would like to quote Dev for one of the best definition of PERSEVERANCE

Perseverance is persistence applied towards positive outcomes.

I have done my share of mistakes, plenty in fact and it is still an on-going journey. It is the persistent desire, to continuously upgrade my skills to deliver best ideas for OP subscribers or train new traders so they can see success they never saw before, which keeps me going. It’s not easy but it’s not impossible either.

Your positive feedback adds motivational fuel to my desire too taking it to the next level.

PREPARATION and PERSEVERANCE are the basic building blocks that are going to determine your trading success. Well not just trading, but almost any business you are going to get into. The third virtue is specially true for trading or investing business. Without this 3rd virtue, both preparation and perseverance will dry out after sometime.

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What do you think? Share your thoughts or your personal experiences where you found these virtues to be of utmost importance. What else did you find to be very useful to be a successful trader?

Profitable Trading, OP


3 Things You Need To Be A Successful Trader

by OptionPundit on November 10, 2014

So you think you can trade? Many traders, especially the beginners tend to think that trading is easy.


Attracted by glitzy returns promised by various marketing campaigns, new traders tend to think that investing or trading is going to be an easy money making machine. And I am often asked why is it so?

One of the key reasons is that contrary to traditional business, it is much easy to start a trading business. Have extra cash, open a discount brokerage online account and voila, you are all set. Money rolling in!!

The reality is much different. Ask any experienced trader and he is going to tell you that trading is probably the toughest thing you will do for an easy life. There is no doubt that many traders have made a lot of money, much beyond what one could do from day-to-day job, but this also a fact that even professionals find it difficult to trade market. Ever heard of Warren Buffett’s famous bet where he says that majority of the professionals can’t beat simple S&P500.

I personally think that one needs to experience at least one full market cycle before concluding that trading business is yours. In current market cycle term, it means having at least about 7 years of experience i.e. Bear market of 2007-09 and then bull market from 2009 onwards. While some may say this market is different from XYZ times, yes it maybe but just like any other business trading and investing also boil down to some common attributes.

It goes without saying that in order to operate a business successfully you need to understand it well i.e. all inputs, all the levers that control the output. Be it things like why should you trade, which market, long-term or short-term, which strategy and why, which broker, which system and the list goes on.

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I have been searching to find what makes a good trader, what allows some people to excel, while others continue to languish? In this quest I have been talking to many successful traders and based on my research and conversation, I have summarized into three human qualities. The good news is that all three can be learnt. The bad news is that you have to TAKE ACTION.

So lets get started.

[click to continue reading…]


30 Year Bonds, Which Way Forward?

by Ethan on September 18, 2014

Scottish Poll Results #ScotlandDecides will be available tomorrow. The GBP condor trade idea can now be closed for +50% collection of profit in just two day. If you followed it, please close the trade and book your profits.

Now over to the the 30 Year bonds.

The 30 Years Bonds futures are trading at 136.06 (as of this writing), testing an important support level at 135 which has been very well respected as both support and resistance multiple times since 2010 very obvious if you look at the attached weekly chart.

Bonds, Which way Forward?

Right now, I am bearish bonds. There are 2 reasons for my bias:

  1. One, recent weeks’ price action has been very weak
  2. Two, I am not seeing strong commitment from bulls even though price is testing a strong level.

Should price close below 135 at the end of the week, I would look for a setup to go short and update to IFO subscribers. NO action, unless price confirms.

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