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The Trader

The symbol of all relationships among such men, the moral symbol of respect for human beings, is the trader.  We, who live by values, not by loot, are traders, both in manner and spirit.  A trader is a man who earns what he gets and does not give or take the undeserved.  A trader does not ask to be paid for his failure, he does not ask to be loved for his flaws.  A trader does not squander his body as fodder, or his soul as alms.  Just as he does not give his work except in trade for material values, so he does not give the values of his spirit -- his love, his friendship, his esteem – except in payment and in trade for human virtue, in payment for his own selfish pleasure, which he receives from men he can respect.  The mystic parasites who have, throughout the ages, reviled the trader and held him in contempt, while honoring beggars and looters, have known the secret motive of their sneers:  a trader is an entity they dread - a man of justice.

--Ayn Rand


Decision making

“Psychologists have known for a long time that people often act in a seemingly irrational manner and make predictable errors when forecasting.  This behavior is harmless when it causes a zest for the home sports team.  Being overly optimistic when rooting for you team is fun.  However, when this behavior affects your investing decisions, it can cause you to make small mistakes that lower your return or make big blunders that devastate your wealth.

John Nofsinger
INVESTMENT BLUNDERS of the Rich and Famous:
…and What You Can Learn from Them


Risk

Masai:  The trader is like a Masai Warrior who each day must “face the knife” and hunt the lion with only spear and bare hands.  His success will come from relying on his own wits and instincts at the moment of truth, embracing risk as his ally to achieve the desired outcome.

Robert Koppel
The Tao of Trading


Technical Trading

 The question for the trader is whether it really is possible to divorce the longer-term goal of profitable trading from the potentially traumatic short-term effects of incurring losses.  The answer lies in the making of two specific commitments.  The first is the commitment to use a technical trading system which provides automatic entry and exit criteria and which incorporates money management principles….The second commitment is the adoption of an attitude toward oneself which is supportive of trading.

Tony Plummer
The Psychology of Technical Analysis

 


The Cedar Creek Trading daily comments, technical indicators, and suggestions are provided for information purposes only.  The information contained herein is obtained from sources believed to be reliable but is not guaranteed to its accuracy or completeness.  Stock and/or commodity trading may not be suitable for readers of these pages.   Readers using the information contained herein are solely responsible for their own actions.  No representation can be made, nor is it made, that recommendations will be profitable in the future, or that they will not result in losses.   This information is neither an offer to sell, nor solicitation to buy, shares or derivative products (options,etc) of any of the stocks mentioned herein.  The writers may or may not be trading in the stocks mentioned. 

Hypothetical or simulated performance results have certain inherent limitations.  Unlike an actual performance record, simulated results do not reflect actual trading.  Since the trades have not actually been executed, the results may be under-or-over compensated for price-'slippage' and other 'real-world' order-fill considerations. In addition, simulated trading programs in general are subject to the fact that they are designed with the benefit of hindsight.  No representation is being made that any account will or is likely to achieve profits or losses. Trading in the financial markets involves FINANCIAL RISK,...LOTS of it!