An affordable investment opportunity for the masses

stockgraph

 

A good friend and colleague of mine, Dominic is promoting his new UK company, which offers some very appealing returns with better reasonable returns.

It is most appealing to me as a diversification from my usual currency and equity trading strategies. If you are interested in finding out more, I would read the following information Dom sent me:

We are looking for investors to help fund our asset secured stock financing company.

We are basically  a micro finance company providing credit lines to the motor trade secured against the stock the trader holds. We allow traders the ability to buy stock at a level they wouldn’t otherwise be able to achieve.  

Banks and larger financial institutions are becoming more and more limiting in their criteria for providing stock funding for sme’s creating a large  void in the stock financing sector. The second hand car market is estimated to be worth £43billion much of this money is taken through sme’s in the motor trade and with relatively few places providing easy access funding the opportunity here is expansive.

The model has been rolled out as a test on a small scale to a few traders to validate the sustainability of such funding in the smaller trade circles, with profound results each of the traders we used found that the funding created more opportunities than they had first planned gaining credibility and profit by simply increasing the quality or volume of the stock they held. We have a price point that is both affordable for the trader yet still profitable for ourselves and our investors. 

With a list of traders waiting eagerly to start using our stock funding facility we are looking to raise funds through private investment. We are paying between 16% and 20% per year on any capital invested. 

We are running a fantastic referral scheme so if you are not in a position to take advantage of this  know anyone who may be interested get in-touch.

For more information please contact Dominic on (44) 07398122296

Self-sabotaging behaviour, an article by Brett N. Steenbarger Ph.D.

Could you be sabotaging your own success in trading? Here is a great, and short piece that may feel familiar to you- enjoy 🙂

misc-jackie-chan-l

Behavioral Patterns That Sabotage Traders – Part One

Brett N. Steenbarger, Ph.D.

 

Although I do not maintain a private practice of counseling/coaching for traders, it is perhaps inevitable that traders would contact me for assistance after reading my book on The Psychology of Trading. Once in a while I take on a project of working with a group of traders because of the opportunity to push the envelope and use psychology to improve their trading performance. In the past few years, I would guesstimate that I have gathered personality questionnaire data and assisted over one hundred traders.

That’s a decent-sized sample, and provides me with worthwhile insights into the minds of traders and the problem patterns that interfere with their trading. Below I outline a few of the things I have learned from questionnaires and interviews with individuals who are trading for a living.

  • Most trading problems are varieties of performance anxiety. Performance anxiety occurs when a performance that is usually automatic becomes the object of excessive scrutiny. This attention to the performance creates an interference effect, in which the performance can no longer flow naturally. Such performance anxiety frequently interferes with athletic performance, public speaking, sexual performance, and test taking. Whenever fears about the outcome of a performance dominate the performance, outcomes are apt to suffer.
  • Performance anxiety occurs as much during times of market success as during times of market loss. It is not at all unusual to find traders who are good at taking (appropriate) losses, but who become fearful when they book a gain and take profits prematurely (i.e., prior to reaching their profit targets). Interference effects following strings of losses are no more debilitating than interference effects from pressure that traders feel when they are making money.
  • Traders commonly try to replace negative self-talk with positive self-talk during trading. This is a mistake. When traders are immersed in the market and focused on the screen, they are not engaging in self-talk at all.
  • Perfectionism is the most common source of performance anxiety among traders. Traders tend to be achievement-oriented and often set lofty goals for themselves.These performance goals contribute to tension when the goals are not met. In general, it makes sense to replace performance goals with process goals. Instead of setting a goal of making $250,000 a year, a trader should, for example, set a goal of following a trading plan (entries, position sizes, exits) on 90+% of all occasions.
  • Perfectionism leads traders to overtrade. Overtrading is the most common source of losses among the traders I’ve interviewed. Traders overtrade when they feel internal pressures to make money that blind the trader to what is happening in the markets at the time. Trading when volatility is low, trading outside one’s trading plan or strengths, trading to make up a loss, and trading imprudently large size are examples of overtrading.
  • Traders that master performance anxiety at one level of size (e.g., 5 contracts) frequently re-encounter it once they meaningfully increase their size (50 contracts). We generally calibrate our emotions by the dollar amounts we make or lose. This makes a fifty contract trade much more difficult for traders than a five contract trade, even though the setups may be identical.
  • Traders often think they have worse psychological problems than they actually have. When performance anxiety patterns have interfered with trading for a considerable period of time, traders often become convinced that they have deeply-seated emotional problems that need intensive psychotherapy. Often, the self-perception that one is damaged—that one is emotionally unfit—is a larger problem than the performance anxiety itself, which is a very solvable problem.

To be sure, there are problems other than ones related to performance fears that can interfere with trading. Many of these are described in my book. The unique thing about performance anxiety is that it can afflict highly successful traders every bit as much as rookies. This is because the root of much of the anxiety—perfectionism—tends to be present in the most achievement-oriented and successful individuals. It is truly a double-edged sword.

Somewhere between the extremes of performance pressure and complacent laziness is a happy medium where traders can focus on self-improvement without sabotaging their results. Trading is like dating: You want to keep initial expectations reasonable, enjoy it while it’s happening, and learn from it once it’s over. In the second and final article in this series, I will take a look at strategies traders can use to overcome performance

Brett N. Steenbarger, Ph.D. is Associate Professor of Psychiatry and Behavioral Sciences at SUNY Upstate Medical University in Syracuse, NY. He is also an active trader and writes occasional feature articles on market psychology for MSN’s Money site (www.moneycentral.com). The author of The Psychology of Trading (Wiley; January, 2003), Dr. Steenbarger has published over 50 peer-reviewed articles and book chapters on short-term approaches to behavioral change. His new, co-edited book The Art and Science of Brief Therapy (American Psychiatric Press) is due for publication during the first half of 2004.

 

Recommended reading – 6 ways to transform your trading experiences

http://unlimitedwealthtrading.wordpress.com/2013/07/31/coaches-corner-by-adam-harris/

6 WAYS TO TRANSFORM YOUR TRADING EXPERIENCES

In Quantum science, Dark matter, by definition, is unseen, and almost impossible to detect, but its existence is implied by its measurable impacts on visible matter. I like to think of all those little things I don’t see, that effect my trading negatively, as my personal dark matter. The experiences that every seasoned trader has as they learn to trade are universal, they only differ in their individual intensities; Risking too much, chasing trades, greed, punishment, glass ceilings, elation, depression, loss, shock, bulletproof- do these sound familiar?

The truth is, trading successfully is a learnable skill. It really is. However, there are key areas where we all need to be vigilant and forever focusing on improving. Depending on who you are, some of these areas will be easier than others. Below are all the key areas I feel are of primary importance to get right first, in order to change your subsequent trades:

1. Turn your Faith into Belief

This is a combination of several tricks. Understand what conditions your strategy needs in order to succeed first, and then back test this, even manually, in order to watch how it unfolds under those conditions, and in order to prove to yourself that it works- build up a belief by learning that your strategy will succeed if entered under the correct conditions, managed properly, and applied consistently. People have behavioural patterns, don’t they? And trading is really just people, in fact, crowds following each other, right? So, it follows that trading is maybe not as random as it seems- all we do is study and learn those crowd behavioural patterns.

2. Know Thyself

Know YOUR dark matter- what is your relationship with money? I had an unconscious i.e. hidden from my conscious, belief that I would never really make big money- this translated in so many small ways into self-sabotage, not even just in my trading, but in my career selection, lack of money management, and even how much I valued my services and skills. Once I discovered and conquered this, my BELIEF of how much I could earn has changed, and it changed my life in all other areas- it added to my self-confidence.

3. Trade what you see

It is my personal experience and belief that technical analysis is the only way to trade. It is cold, and calculating, and therefore lends itself to trading perfectly and unemotionally, wouldn’t you agree? Fundamental analysis has one fatal flaw- it depends on data collected within a multi-complex financial ecosystem, that is ever-changing, and which produces compounded effects and results. The exact outer-limits of this ecosystem cannot truly be defined, that is, we do not know what we don’t know. What data is missing, that we aren’t aware of? And even if we have it, how do we put it all together correctly?

Instead, let items such as the news go, and replace it with FAITH in the fact that the charts will show you the way, even if you don’t like it. With time, and effort to learn to read and understand what a chart is telling you, your faith will turn to BELIEF. Understand this- the chart is desperately trying to tell you, with every bar, what its intention is and where it is going- the question is, are you listening? Master the skill of technical analysis.

4. Control your risk

We cannot control many things in life, except our risk per trade. So, control it. If you’re nervous, risk less. 1% is considered universally acceptable, and 3% is considered the most aggressive. But, nothing stops you from risking less than 1%. On two of the funds I trade, my average risk per trade is between 0.2 and 0.5% per trade, so that my total risk in open trades doesn’t not exceed 2.5% at any one time. (NB. Have you ever doubled your risk on your next trade, in order to make up for a recent loss? Yeah, don’t do that anymore. Ever again).

5. Protect what you have

Understand this- the stop-loss’s sole purpose for existence is to limit losses to your account. It lives to protect what you already have in the account, so use it to protect what have. Place your stop on the chart where it makes the most sense, in accordance with your proven strategy, not where you would like it to be.

6. Take the money – T.T.M

It isn’t profit until you bank it. How often do you have to watch a trade of yours go into profit, while you do nothing except bathe in the glory of your newfound wealth and how you’re going to spend it (which you haven’t banked yet, by the way), only to watch it get stopped out and your account to take a step backwards instead of forwards??! As a rule of thumb, once you are up more than 0.5% in profit, you need to be vigilant and thinking about that trade. If you have the option of a take-profit solution in your strategy, then you should definitely be considering taking some profit after 0.5% under today’s conditions. Almost certainly after 1%, and definitely after 2%. If you do this, you will see your account grow, and move forwards instead of backwards, and then, imagine how you will feel in the future, compared to the way you feel now when you don’t bank profits?

Strange Trader deaths ongoing 2014

Various stories below:

Trader kills self in finance world’s latest suicide 

Another Trader Commits Suicide, Brings Total Recent Banker Deaths To 10

NYC trader suicide becomes 11th this year in financial community

8th Banker Commits Suicide: JP Morgan Hong Kong & 30 Stories Down!

Banker Found Dead Marks Twelfth Finance Suicide To Date This Year

An NYC-Based Trader Committed Suicide Tuesday Morning

Yet Another Suicide in the Financial Services Industry: Is There Something Going On?

 

 

Strange Trader deaths 2014 cntd.

http://www.zerohedge.com/news/2014-02-18/third-jpmorgan-banker-jumps-his-death-hong-kong-said-be-33-year-old-fx-trader

 

Second JPMorgan Banker Jumps To His Death: Said To Be 33 Year Old Hong Kong FX Trader

 
Tyler Durden's picture

The banker suicide wave that started in late January has now become an epidemic, and it seems to be focusing on one bank: JP Morgan.

After the first suicide that took place in JPM’s London headquarters, ending the life of 39 year old Gabriel Magee, a vice president in the investment bank’s technology department, next it was 37 year old Ryan Crane, an executive director in the firm’s program trading division, who died under still unknown circumstances.

Moments ago a third JPMorgan banker committed suicide, this time at the JPMorgan Charter House Asia headquarters in central Hong Kong, where a 33 year old man who was said to have been an FX trader for JPM, just jumped to his death.

Not much is known yet about the circumstances of the suicide, however according to early reportsthe man was 33-years-old, surnamed Lee, and believed to be a forex trader for JP Morgan.

Commuters noticed the man at the top of Chater House around 2pm to 3pm in the afternoon and called the police but policemen who arrived at the scene failed to convince the man not to jump. The deceased was sent to the hospital immediately but was pronounced dead on arrival. As several lanes on Connaught Road Central were closed because of the incident, traffic in the area were chaotic.

Strange Trader deaths 2014

http://www.reuters.com/article/2014/03/06/us-bitcoin-death-idUSBREA2505120140306

 

Singapore police probe ‘unnatural’ death of American CEO of bitcoin trader

SINGAPORE Wed Mar 5, 2014 9:34pm EST

(Reuters) – Singapore police are investigating what they have called the “unnatural” death of a 28-year-old American woman who ran a small exchange that traded virtual currencies, including bitcoins, from the Asian city state.

Autumn Radtke, chief executive of First Meta Pte Ltd, was found dead at her Singapore home on Feb 26.

“The police are investigating the unnatural death,” a police spokesman said late on Wednesday when asked about media reports Radtke had been found dead last week. He gave no more details.

First Meta said in a statement on its website that its team was shocked and saddened by the tragic loss of its CEO.

“Our deepest condolences go out to her family, friends and loved ones. Autumn was an inspiration to all of us and she will be sorely missed.”

Before heading up First Meta in 2012, Radtke had business development roles at tech start-ups Xfire and Geodelic Systems, according to information on her LinkedIn profile.

First Meta runs an exchange for virtual currencies and assets. It initially functioned as an online trade platform for the currency used in online world Second Life, and then expanded to other games. Last year it allowed users to sell bitcoins for dollars. That feature is not currently available.

(Reporting by Rujun Shen and Saeed Azhar; Editing by Mark Bendeich)

Strange Trader Deaths 2014 cntd.

http://rt.com/business/liechtenstein-bank-chief-dead-341/ 

Fatal finance? Bankers in Netherlands, Liechtenstein found dead

A former executive of the Dutch bank ABN AMRO has committed suicide after killing his wife and daughter, and the head of Liechtenstein’s Bank Frick has been found shot dead in a car park. The suspect in the Frick shooting had a grudge against the bank.

Jan Peter Schmittmann, the 57-year old former head of domestic operations at ABN AMRO was found dead on Saturday in the wealthy Amsterdam commuter town of Laren. He was discovered along with the bodies of his 57-year-old wife, and 22-year-old daughter.

The mother and daughter were killed by the father, after this the father killed himself,” Reuters cites a police statement. Police said that Schmittmann left a suicide note, but did not provide any further detail.

Family members said that Schmittmann had suffered from serious depression.

Schmittmann left the bank in 2008 after nationalization, At the time ABN AMRO was one of the largest banks in the world, a household name and a symbol of Dutch financial strength. As compensation he was promised a $21.99 million pay off. In the end he got only half, as Finance Minister Wouter Bos considered the sum exorbitant.

Since 2010 he was the owner and director of 5 Park Lane, a company that advised private equity investors.

This is the second unusual incident related to ABN AMRO in the past five years. In 2009, former chief financial officer Huibert Boumeester was found dead in woodland near London in an apparent suicide a year after he had left the bank.

In 2007 Royal Bank of Scotland, acquired ABN AMRO at the height of the economic boom for $100 billion. But the financial crisis forced the Dutch state to nationalize its domestic operations, resurrecting the ABN AMRO name.

On Monday, another bank chief executive was found dead in Liechtenstein.

Juergen Frick, the 48-year old head of Liechtenstein-based Bank Frick was found shot dead in a car park. Police believe Juergen Hermann, a former fund manager, shot the banker and then took his own life, according to Swiss media.

Police said they believe Hermann, who escaped from the scene may have taken his own life. They said they found his abandoned car with his passport and a confession that included “parting words”.

On the suspect’s website, he refers to himself as the “Robin Hood of Liechtenstein” and is reported to have spent years acting against Bank Frick and the Liechtenstein authorities over financial matters.

These recent fatalities add to the growing number of suicides and mysterious deaths in the financial world. Three sudden deaths at JP Morgan and 6 in the global financial world happened in just few weeks in February.

Financial jobs are notorious for extra-long hours and huge level of stress.