Sunday, 31 December 2017

How to Stop Worrying and Start Living

I decided to revisit this book as one of my family members are having trouble to stop worrying. As such, here I am with one of the book that shaped my life in the past.

Ended up... this is still one of the best books I had ever read even though my last read was 20 years ago! Those days when I was young, I might not be able to appreciate so much even though I realize it was an amazing book. Now, in my early 40's I think this book will reshape my life once again!!!

The best part about this book is... it is helpful in all aspects of life from career, marriage, family, etc. Dale Carnegie guides us on how to control ourselves and acts in a way of service to others. The various examples given in the book will help readers to understand the concepts and apply it in their life. This book is essential beneficial to everyone, even for those without the problems of controlling emotional qualities.

I have so many good things to say about this book. As such, I have no hesitation to rate this book at 10/10! In fact, I made up my mind to revisit this book every several years. I think this book will benefit each individual personally and professionally. I highly recommend this book!

Last but not least... such a great book... of course tons of nice quotes as below:

Take thoughts for the tomorrow, yes, careful thought and planning and preparation. But, have no anxiety.

You and I are like hourglass. When we start in the morning, there are hundreds of tasks which we feel that we must accomplish that day, but if we do not take them one at a time and let them pass through the day slowly and evenly, as do the ground of sand passing through the narrow neck of the hourglass, then we are bound to break our own physical or mental structure.

Life is a ceaseless change. The only certainty is today. Why mar the beauty of living today by trying to solve the problems of a future that is shrouded in ceaseless change and uncertainty- a future that no one can possibly foretell?

You do not get stomach ulcers from what you eat. You get ulcers from what is eating you. Ulcers frequently flare up or subside according to the hills and valleys of emotional stress.

Plato said that "the greatest mistake physicians make is that they attempt to cure the body without attempting to cure the mind; yet the mind and body are one should be treated separately!"

Dr Alexis Carrel: "Business men who do not know how to fight worry die young."

If you want to avoid worry, do what Sir William Osier did: Live in "day-tight" compartments." Don't stew about the future. Just live each day until bedtime.

Half the worry in the world is caused by people trying to make decisions before they have sufficient knowledge on which to base a decision. Once a decision is carefully reached act! Get busy carrying out your decision - and dismiss all anxiety about the outcome.

It is difficult to worry while you are busy doing something that requires planning and thinking.

Why does such a simple thing as keeping busy help to drive out anxiety? Because of a law- one of the most fundamental laws ever revealed by psychology. And that law is: it is utterly impossible for any human mind, no matter how brilliant, to think of more than one thing at any given time.

General George Crook- probably the greatest Indian fighter in American history says that nearly all the worries and unhappiness of the Indian came from their imagination, not from reality.

Let's examine the record. Let's ask ourselves: "what are the chances, according to the law of average, that this event I am worrying about will ever occur?"

We are going to meet a lot of unpleasant situations that are so. They cannot be otherwise. We have our choice. We can either accept them as inevitable and adjust ourselves to them, or we ca ruin our lives with rebellion and maybe end up with a nervous breakdown.

President of Chrysler: "When I am up against tough situation, if I can do anything about it, I do it. If I can't, I just forget it. I never worry about the future, because I know no man living can possibly figure out what is going to happen in the future. So, why worry about them?"

One of the reasons was their burning desire to impress you and me. Yes, we are the posterity whose opinion they were worried about! Do we give a hoot? No, we are too concerned with our own problems to waste a minute thinking about them.

Whenever we are tempted to throw good money after bad in terms of human living, let's stop and ask these questions:
1. How much does this thing I am worrying about really matter to me?
2. At what point shall I set a stop loss order on this worry and forget it?
3. Exactly how much shall I pay for this whistle? Have I already paid more than it is worth?

There is only one way on God's green footstool that the past can be constructive' and that is by calmly analysing our past mistakes and profiting by them- and forgetting them.

We need to be concerned about our problems, but not worried. Concern means realising what the problems are and calmly taking steps to meet them. Worrying means going around in maddening, futile circles.

You will quickly discover what William James was talking about- that it is physically impossible to remain blue or depressed while you are acting out the symptoms of being radiantly happy!

Happiness is from within; it is not a matter of externals.

When we hate our enemies, we are giving them power over us; power over our sleep, our appetites, our blood pressure, our health and our happiness. Our enemies will dance with joy if only they knew how they were worrying us, lacerating us and getting even with us! Our hate is not hurting them, but our hate is turning our own days and nights into a hellish turmoil.

If selfish people try to take advantage of you, cross them off your list, but don't try to get even. When you try to get even, you hurt yourself more than you hurt the other fellow.

Even if we can't love our enemies, let's at least love ourselves. Let's love ourselves so much that we won't permit our enemies to control our happiness, our health and our looks.

"To be wronged or robbed," said Confucius, "is nothing unless you continue to remember it."

No one can humiliate or disturb you- unless we let him. Sticks and stones may break my bones, but words can never hurt me.

Let's never waste a minute thinking about peoples we don't like.

Let's not expect gratitude. Then, if we get some occasionally, it will come as a delightful surprise. If we don't get it, we won't be disturbed.

The most important thing in life is not to capitalize on your gains. Any fool can do that. The really important thing is to profit from your losses. That requires intelligence, and it makes the difference between a man of sense and a fool.

You can be cured in 14 days if you follow this prescription. Try to think every day how you can please someone.

Why will doing a good deed everyday produce such astounding efforts on the doer? Because trying to please others will cause us to stop thinking of ourselves: the very thing that produces worry and fear and melancholia.

If you want to banish worry and cultivate peace and happiness, here is Rule 7: Forget yourself by becoming interested in others. Do every day a good deed that will put a smile of joy on someone's face.

Man is not made to understand life, but to live it.


If we are tempted to be worried about unjust criticism here is Rule 1: Remember that unjust criticism is often a disguised compliment Remember that no one ever kicks a dead dog.

When you and I are unjustly criticized, let's remember Rule 2: Do the very best you can: and then put your old umbrella and keep the rain of criticism from running down the back of your neck. 

So, to prevent fatigue and worry, the first rule is: Rest often. Rest before you get tired.

Dr Edmund Jacobson of the University of Chicago has gone so far as to say that if you can completely relax the muscles of the eyes, you can forget all your troubles.

You can relax in odd moments, almost anywhere you are. Only don't make an effort to relax. Relaxation is the absence of all tension and effort. Think ease and relaxation.

"I measure my accomplishments," says Daniel W. Josselyn, "not by how tired I am at the end of the day, but how tired I am not." He says: "When I feel particularly tired at the end of the day, or when irritability proves that my nerves are tired, I know beyond questions that it has been an inefficient day both as to quantity and quality."

A person with his desk pilled high with papers on various matters will find his work much easier and more accurate if he clears that desk of all but the immediate problem on hand. I call this good housekeeping and it is the number-one step towards efficiency.

Keep reminding yourself that getting interested in your job will take your mind off your worries, and in the long run, will probably bring promotion and increased pay. Even if it doesn't do that, it will reduce fatigue to a minimum and help you enjoy your hours of leisure. 

Worrying about insomnia will hurt you far more than insomnia. 

No man ever committed suicide by refusing to sleep and no one ever will. Nature would force a man to sleep in spite of all his will power. Nature will let us go without food or water far longer than she will let us go without sleep.

More money is not the answer to most people's financial worries. In fact, I have often seen it happen that an increase in income accomplished nothing but an increase in spending- and an increase in headaches. What cause most people to worry is not that they haven't enough money, but that they don't know how to spend the money they have!

I try to see my troubles in their proper perspective. I say to myself: "Two months from now I shall not be worrying about this bad break, so why worry about it now? Why not assume now the same attitude that I will have two months from now?" 

Monday, 18 December 2017

Stop Orders: A practical guide to using stop orders for traders and investors

This title of this book is very attractive. After all, "stop" is the most important part in trading. Besides, with the font size and total number of pages, I think I can easily finish this book within a couple of days. So, here I am with the most basic stuff in trading.

Ended up, I spend less than two days to finish the whole book. Why? Is it too good or is it too bad? Well, the answer is no for both. This book is an introduction for the "stop". For beginners, it is a very good book to start with. For intermediate or advance players, this book really too simple and does not offer anything. Hence, although I am not the expert; but, being in this industry for more than 15 years, this book does not meet my requirement to have further thoughts on it.

Having said that, I can only rate this book at 0/10. Perhaps this is a book towards someone who intend to use brokers who might guarantee their stop! (guaranteed?) Well, this sums up the whole thing about this book. Not my cup of tea for sure. 

Thursday, 14 December 2017

Super Trader, Expanded Edition: Make Consistent Profits in Good and Bad Markets

This is my 3rd visit on this book. First of all, I never read the expanded edition before. Secondly, I think time is just right to revise some of the great ideas generated from this book. Thirdly, my last two read on this book inspired me a lot. Hence, it is time to see whether there is any improvement in my trading.

This time around, it inspired me again. Not only this book inspired me into further thoughts, it also helps to revisit tons of wisdom that I almost forget these days. The best part about this book is... it applies to any market condition regardless of time and products. End of the day, the author want us to believe that we are trading our belief rather than trading the market... which is very true!

On the expanded part, honestly, nothing much and nothing special. End of the day, it is still back to the theory as presented by the author. Well, it is adequate to become a super trader even without the expanded part, ha...

After so many years, this "old" book remains one of the best trading books in the market. After all there is really nothing new under the sun. As such, I have no hesitation to rate this book at 10/10. If I am not mistaken, my last rating was not that high. But, this time around, I think I appreciate more after went through all the ups and downs. As usual, with a rating of 10, this book certainly has a lot of nice quotes as below. Last but not least, this is a must read book for beginners, amateurs and even experts. I highly recommend this book. Thumbs up!

Entry into the market is one of the least important aspects of good trading. The keys to a moneymaking system are elements such as determining your objectives and the way you exit your positions.

Many traders have what I call the perfectionism complexity complex. In other words, what you have is never quite enough. There is always another exit or another entry that will make it better. What this means is that you always will be struggling with new ideas. Consequently, you never will get to the real issue of trading and just being a trader, doing trading.

To a committed person, the most important thing  is the destination. When you are committed to becoming a good trader, you do whatever it takes and little things don't throw you off track. When distractions arise, you go around them and focus on your goal. That's the power of commitment and commitment is essential to trading success. 

It's fairly difficult dealing with the markets if you are not willing to lose. It's like walking but wanting to use only your left foot, avoiding your right foot.

Instead of giving up on the market after a string of losses just in time to miss the really big move, they avoid their system until it is doing really well. When it is showing tremendous profits, they jump on board, only to be blown away by the market.

Everything you think about and everything you worry about are in the past. When u release them and concentrate on the now, you'll find that everything is beautiful. It's only our thoughts, based on our interpretations of what happened in the past, that cause upset and struggle. 

Occasionally, I might have a thought about the problem, but then I realize, "You just gave this to god. Are u now taking it back?" The answer is usually no, and I automatically drop it.

Instead of looking for issues, I spent the same amount of time writing down the blessings in my life and give thanks for those blessings. Quite often the blessings are the same ones, but that's ok. It is a wonderful vitamin.

If you find yourself worrying about anything, write it down on a piece of paper and give it to God. Put it in your own God box but remember that you have to be totally willing to turn it over to God and release it. If you don't give it willingly, you'll find that God is quite willing to let you keep it.

If my body reflects feelings of tension, anger and irritation, I am acting out of fear. If my body reflects feeling of relaxation, well-being or harmony, I am acting out of love. I am trying to increase my attention to this before the decision is implemented.

You cannot trade the market. You can only trade your beliefs about the market. 

When under stress, you revert to primitive behavior, but with more energy. This is fine if you must run away from a predator, but it is disastrous if you have to think quickly about a market situation. The trick to dealing with such a situation is to rehearse it in your mind before it happens. When you've done that, your unconscious mind will know exactly what to do and stress won't be a factor. 

Remember that employee traders work for systems; they don't necessarily understand the systems. I believe this is the key to why they are not necessarily good traders. 

Stockbrokers are really employees (to the extend that they receive a salary) who are paid to sell stocks. They are self-employed to the extend that they depend on commissions. When employee traders approach trading, they usually bring the employee mentality into play. They want to be told what stocks to buy or what the market is going to do. They are used to being told what to do, and they abhor making mistakes. That's the employee mentality, and it doesn't fit into good trading.

They treat their trading business as a group of systems. They make those systems as automatic as possible and then train other people to run them. You cannot be a perfectionist and develop automatic systems. However, you can develop such systems and free yourself.

Traders become investors when they invest in systems that give them a good return on their capital without requiring additional work.

 Remember that your real goal in designing a trading system is to develop one that works well in one or two market types. The mistake most people make is to try to fit one system to multiple market types.

Key ways to grow your business:
1. Develop new, improved trading systems- Some of your systems may stop working in certain market conditions, and so it's always good to have more systems in pipeline.
2. Find more markets in which to apply each system.
3. Add Traders.
4. Make your traders more effective at what they are doing - measure the effectiveness by the number of mistakes that trader makes.
5. Optimize your position sizing.