How to die a death of 1,000 cuts

Drawdowns, persistent drawdowns are a tough place to be.  They are also the place where traders spent most of their trading life.  Unless you run a Ponzi scheme of course and can keep hitting new highs...Ha!   But drawdowns don't have to kill you.  Here is how to avoid a death of 1,000 cuts. Trade … Continue reading How to die a death of 1,000 cuts

Equity update – 12/7/2017

You may have noticed a slowdown in posts. Second only to setting up a proper trading system, managing emotions is the most important aspect of discretionary trading.  And the system is there in part to manage those emotions. I hate drawdowns and when they happen, it's hard to talk about it and be transparent about … Continue reading Equity update – 12/7/2017

Copper’s falling wedge, 10-to-1 reward-to-risk potential

Potential setup in Copper, March 2018 contract. If it breaks $3.12, depending on the today's low, it can be a 10-to-1 reward-to-risk trade, if it hits $3.28, the next level of significant resistance.   Reward = $4,000/contract. The chart pattern is called a falling wedge and it is typically a bullish continuation pattern, following a strong … Continue reading Copper’s falling wedge, 10-to-1 reward-to-risk potential

Trading is not investing

Stop calling trading "investing".  You can invest in a trading business, but the business of trading is not investing. An investment is expected to go up.  You provide your money to an entity that will use it to produce goods or services that will bring a return.  Return = growth = value of the company … Continue reading Trading is not investing

Don’t fight the trend

I've seen so many traders calling the next reversal and probably loose their shirts over it.  It's especially difficult to resist the temptation to take a counter-trend trade when that particular market had only recently had a massive move in the direction you want to take.  For example, since the 2008 stock market crash, I've … Continue reading Don’t fight the trend

Get used to go short

Shorting a market apparently doesn't come natural.  Maybe is the influence from the investment world, where shorting a stock is perceived almost anti-American (see here, here, and here or my favorite, listen to the lady in this video -- around min 18:00) or evil.  Or maybe if the fact that it evokes a negative expectation for … Continue reading Get used to go short

A win, is not always a win

EQUITY RUN UPDATE:  $15,375 //  + 53.75% since inception (Apr. 2017).   If you want sports at all, among the many cliches that coaches express on a daily basis are the following:  "it's a win and we'll take it," "it wasn't pretty, but a win is a win," "it's tough to get wins in this … Continue reading A win, is not always a win

Good things take time, just like price reversals

One-day trend reversals are memorable.  They happen so fast that you don't have time to react, especially if you wait, as you should, for the end of the day to place your trade.  However, just because they are memorable like plane crashes, it doesn't mean they are the norm.  They are not. The best reversal patterns … Continue reading Good things take time, just like price reversals

Inside the ATR = gambling

EQUITY RUN UPDATE = $14,984  |  +49.86%  |   There are some who have developed good day-trading strategies that are successful.  For the rest of us, trading within a day's price range is the equivalent of gambling, guessing, hoping and finger-crossing. The ATR is the  average trading range which can be measured by averaging the … Continue reading Inside the ATR = gambling

I lost money, and I’m ok

EQUITY RUN UPDATE:  $11,824   I just lost money on two trades.   Yet, everything is ok. Why?  Because I followed my program.   It's my grove.  It's the pitch I swing to.  Sometimes I miss, sometimes I have a base hit.  Sometime I can get a homer out of it. The most critical component … Continue reading I lost money, and I’m ok