Sunday, April 18, 2010

Growing Wealth

All wealth is acquired through wisdom. A genius may not become a rich man if he does not know how to use his bare hands. But a hard-working and dedicated man can harvest the fruits of future economic prosperity for all time to come.

Please check out my new blog on the wisdom of creating wealth at:

http://money-mart-income.blogspot.com/

Our biggest fear in life is time. because we are constantly pressed for time we always tend to rush things and make mistakes. Growing wealth is like planting a seed in the ground. You have to be patient and allow nature to apply its forces at its own time and pace. Many people jump into forex and property investments without even thinking of market timing or rationalizing their very own actions which can often boomerang in their faces!

Growing wealth requires mental equanimity; the combination of left-sided mental analysis and right-sided emotion. You must have a deep stirring passion for your object of desire bu at the same time you must go through reason crunching excercises to determine the right path to your dream.

He or She who becomes 'Master of Time' becomes 'master of the Universe.'

Grow your universe with unlimited self-confidence and correct understanding.


Yours sincerely

TraderSynergyBrain

Saturday, April 17, 2010

The Beauty of Mathematics

I just thought I would share this beautiful mathematical symmetry with you because I would like to show you that the mind can perceive order from chaos.

1 x 8 + 1 = 9
12 x 8 + 2 = 98
123 x 8 + 3 = 987
1234 x 8 + 4 = 9876
12345 x 8 + 5 = 98765
123456 x 8 + 6 = 987654
1234567 x 8 + 7 = 9876543
12345678 x 8 + 8 = 98765432
123456789 x 8 + 9 = 987654321


Whoever said there was no symmetry in the universe?

1 x 9 + 2 = 11
12 x 9 + 3 = 111
123 x 9 + 4 = 1111
1234 x 9 + 5 = 11111
12345 x 9 + 6 = 111111
123456 x 9 + 7 = 1111111
1234567 x 9 + 8 = 11111111
12345678 x 9 + 9 = 111111111
123456789 x 9 +10= 1111111111


And whoever could realize that the 'perceived' and the 'abstract'
could reflect each other?

9 x 9 + 7 = 88
98 x 9 + 6 = 888
987 x 9 + 5 = 8888
9876 x 9 + 4 = 88888
98765 x 9 + 3 = 888888
987654 x 9 + 2 = 8888888
9876543 x 9 + 1 = 88888888
98765432 x 9 + 0 = 888888888


The universe in all its dimensions always reflects 'order' beneath the seeming 'chaos'

1 x 1 = 1
11 x 11 = 121
111 x 111 = 12321
1111 x 1111 = 1234321
11111 x 11111 = 123454321
111111 x 111111 = 12345654321
1111111 x 1111111 = 1234567654321
11111111 x 11111111 = 123456787654321
111111111 x 111111111 = 12345678987654321


When the mind is bombarded with a riot of information is it any wonder that
an individual could perceive order at even the first grasp? But the human brain is a remarkable processing center. Once you are able to stand still as if within the eye of a hurricane, you may just be able to see the startling order of all events as they transpire in your life. As with any phenomenon in the known universe, there is a reason for anything that happens in your life. The laws of change, cause and effect, being and infinity are absolutely immutable. There is a reason you are struggling and there is a reason you are successful. Moreover, in a dynamic flow of events where the 'Prime Will' of your synergetic brain becomes paramount, you are able to initiate your own sequence of causal events that can make subtle differences to your life equation and change the flow of failures into successes. The answer to all things lie within the deepest recesses of your own mind. Be still, be calm and as silent as a serene pool of water, amidst a sea of turmoil. Meditate calmly upon your state of being within a landscape of peace and quiet, and reflect that larger universal order all around you within your smaller microscopic mind. The shall you grasp the order all around your and be able to process such information efficiently to reflect order in your own life.

The world can only be as beautiful or ugly as you make it to be.

Yours sincerely

TraderSynergyBrain

Monday, April 5, 2010

The Long Or Short Of It



If people were meant to fly then I guess God would have given us wings. Ever since the ill-fated Icarius man has dreamed of soaring into the heavens and launching into the unknown. Nature bestowed upon human kind two feet to keep him firmly entrenched on the ground. Perhaps that is why the concept of flying for most of us is still not without its inhibitions and fears.

Most investors are used to the concept of accumulation, we observe nature around us and watch a seed become a sapling and that sapling become a tree. Therefore the concept of physical growth is abundant all around us. Thus a trader is used to buying low and selling high or going long over time wherever he finds a good bet for long term price accumulation. This is the norm; in an investor’s mind there is no inhibition or friction at the concept of watching a price rise as much as watching a seed become a tree. However when it comes to watching prices fall …….. the mind just cannot come to terms with leaping off a cliff and soaring through the heavens because we all know what happened to the hapless Icarius.

In 1929 New Yorkers, and in fact most Americans, detested the name Jesse Livermore. No one trader in the history of modern financial markets had accumulated such ill-repute for so little reason other than going against the trend and selling when everybody else was buying. And when the whole Wall Street buy mindset began to slow down and a few people like Jesse Livermore started selling, the ensuing avalanche that brought the whole US financial machinery to a collapse ensured an odious reputation for little more than going against the trend.

People still have trouble in their minds with those that try to buck the trend. Jesse Livermore in the 1920’s had built such a career betting against the herd of sheep and in doing so earned himself the curious nickname “the boy plunger.” Why? Because man is supposed to keep his two feet planted firmly on the ground and cast his eyes up to heaven and watch his stock prices soar rather than to glide through the air and plunge back down to earth!

Perhaps it is an in-built trait that the mind struggles to grapple with in understanding that money can b made by shorting a market rather than to go long because things tend to grow upwards in nature. It is not easy to retrain the mind; it takes a lot of determination to separate oneself from one’s deterministic social conditioning since childhood. The formative years of youth have a powerful bearing on adulthood. So it is hard to imagine looking down from the heavens when all our childhood we spend running around in parks amidst the tall trees of walking through city centers with our parents gazing up at the majestic peaks of skyscrapers. That’s why most of us start to feel a little giddy when ascending some buildings and then take a peek back down to earth from several levels above. In similar fashion the majority of investors cannot cope with the concept of shorting a market because of an inability to surpass childhood experiences and mental blocks which arouse all kinds of fears in the mind when it comes to looking down from heights.

Successful traders are able to evolve their minds and grow beyond the early defined parameters of childhood experiences and concepts of natural growth. And certainly the more early successes in shorting a market then the faster the break-down of natural inhibitions about making money on a bungee jump! So this is why it is important as an investors to come to see a market from a new perspective that allows for opportunity on the down side as well as the upside. We watch trees grow and then decay. It is the nature of things for seasons to be cyclical. Therefore it is already a concept well ingrained within the mind that a tree should rise majestically and then wither in time. However the concept of ‘withering’ decay and death becomes abhorrent and therefore assists in early formative mental blocks that can present stumbling blocks to the new trader in the markets. But the sooner one is able to take the plunge into the markets and swim with the fishes one would soon see that money can be made in all directions whether you swim with a school of fish or whether you swim in the opposite direction once in a while.

The successful trader always keeps an open mind synergizing his left and right hemisphere brains to combine logic with emotion to interpret the sights and sounds of the market chaos around him. The mind has evolved past the concept of rise and fall to detach from any inhibitions about growth directions and values. The truth of the matter is that a trader can make good money on both the long and the short of it. The only stumbling block to grappling with the concept of the short of it though, appears to rest in the mind.

Yours sincerely

TraderSynergyBrain

Sunday, April 4, 2010

A Trader's Mindset



In a nutshell any investor that whishes to acquire an asset and dispense with that asset over time can be called a ‘trader.’ Whether you are investing your time and money in stocks, forex, commodities, bonds, houses, apples or oranges, any investment decision over time involves the aspect an art of trading.
Essentially there are 2 types of trader: the technical analyst who will chart price action over time with representations in diagram of the past and present, and then there are the fundamentalists who look for key economic and environmental data such as monthly housing starts, current production capacities and weather reports. Within the framework of technical and fundamental information there are traders who combine both aspects in order to provide the best form of synergetic analysis of price action.

In this investment context there are traders that have a short and a long term investment horizon. There are those traders that have a quick temperament and are best suited for fast moving situations and there are those investors that like to take a few steps back from the market chaos to get a clear long-distance perspective and hear themselves think over a longer time frame. Neither mindset possesses any distinct advantage over the other. Really it is all about you and your character as to whether you are able to digest an process information very quickly or whether you require a little longer time.

In the long run the short term trader, usually day trader is at more of a disadvantage than the short term trader. A few years back I worked as a day trader in the forex and swaps market and the stress of working 2 time zones for perhaps 10 hours a day gradually mounted so high that it began to affect my quality weekend time for recuperation. Stress may come in all forms and usually appears most under duress. Certainly day traders face the emotional pressure on top of the market pressure and even if one’s temperament is suited for fast action, in the long run, it does take a toll on the mind and eventually the body.

When I was first recruited in London I was 20 years old. To my amazement I found out that most of the young traders I was working with were 20 year old East End London boys recruited from the early morning fish and veg markets! For all my education I was quite shocked to discover that education meant nothing at all. That was out of the window from day 1! But what really counted was ability to think fast and scrap for your life; and that’s exactly what the East End London boys could do; fast talking, fast thinking, without much qualifications to their name, they could take on risk and in a blink of an eye book that risk! So if you are not under25 years old then honestly the forex markets are no place to be because you can get bruised everyday. That’s just the facts of life about the markets for a day trader. Good traders that survive over the long run can book 4 out of every 10 trades as a scrap and maybe 2 out of 10 trades as a home run. There are no geniuses in the markets. Otherwise the Bears and Lehmans will still be around.

Mental synergies in the markets are built through years of experience. There is no glamorous fashion parade here. It is a daily grind. There are no quick term solutions to wealth building in the financial markets. For anyone fresh thinking he has a distinct advantage a humbling experience awaits him. Having traded through complicated OTC money markets as well as exchange traded products I think I am well-positioned to say that the best form of trading for anyone that has not worked in the institutional financial arena is as a long term investor looking for position entries and trades that can hold over weeks until price objectives are met. The futures and stock markets are well suited for the non-institutional trader because access to information is fast and execution has improved with new Internet technology.

Above all what makes a trader take a synergetic decision fast depends on the years of data accumulated that helps the brain to build layers of neurons upon neurons of powerhouses of information. Good traders are not born but they mellow through the years and become better with age. The best traders are able to combine years of familiarity with intuition that can only come as more trades are executed. Therefore in my conclusion I must fairly say that in the financial markets at least mental genius is not a gift from heaven but a grade of accumulation in one of the most stressful schools of life: the school and art of making money.

Yours sincerely

TraderSynergyBrain

Friday, April 2, 2010

Candlestick Trading

Candlestick charting is a unique method for displaying the flow of price action over time. The system was first used by Japanese rice traders who wanted to sell their crops in advance to rice dealers in 16th Century Japan. For those of you that would like to gain this market wisdom then please see Lesson # 1.


Please tune in to:

http://www.youtube.com/user/TraderSynergyBrain

We are all responsible for growing our own stories of wealth and success. we make our fates and our luck as we go along in life... and a little nugget of wisdom here and a small morsel of learning there all adds up in time to a mountain of wisdom.

Thank you,

Yours sincerely

TraderSynergyBrain

Thursday, April 1, 2010

Mental Creativity



Albert Einstein once said that creativity was the ability to “raise new questions, new possibilities, to regards old problems from a new angle …..”
Now here is a simple test for you try out on your own. Grab a piece of paper and a pen and now set your stop watch for 1 minute.

Answer the following question with as many examples as you can possibly think.

Q. What can you do with a coat hanger?

A. ……………………………………………………………

The question posed has been designed to evaluate the mental creativity of your responses. Most people will generate responses according to traditional lines of thoughts based upon familiar experiences and mental data that are drawn from real-life experiences. This is the most basic foundation of mental response drawn from first hand experiences such as “II would hang my coat in the closet” … “I would place my shirt inside” However what we want to analyze is the ability to respond to the question from the perspective of looking outside the box. This means looking for original unique strains of thought that do not originate from the traditional norm of experiences that surround the problem. So let us pose the question all over again with a view to looking for different and original answers: Q. What can you do with a coat hanger? A. Cut it into shreds and use it as a tooth-pick! …. Twist it into a tree shape and stick it in a plant pot for my vine … bend it into a u-shape and use I to scratch my back … stand it upright and stick my post-it memos for a reminder display … and so on and so forth … Essentially every problem we face will generate automatic responses drawn from our own experiences in life …. However, where the creative mind comes into play is where we can take those usual automatic responses and go one step beyond and out of the box to ask a whole new set of questions and answers that stretches the known parameters of experience into the unknown and infinite world of limitless possibilities.

So how can I start applying my new brainstorming techniques and apply them to the questions that surround my world?

Here are 3 important steps that you can take to change your mindset from the ingrained traditional mental response to the new brainstorming technique that can create new ideas out of the stale and old questions.

1. Challenge the factual problem in front of you. Don’t be satisfied with what answers you already have in your hands.
2. Open your mind and expand your searches for new ideas and solutions to the existing problem by tearing down any preconception in your mind.
3. Reach out to infinity and expand your consciousness into a new realm of infinite understanding.

No longer is a spade a spade in understanding the nature of the world around you and the trading arena where price action can move in any direction with the slightest breeze of information as much as the flapping of the wings of a butterfly in Tokyo can cause a tsunami in San Francisco. Open your minds.

Yours sincerely

TraderSynergyBrain