Trading losses = tuition

One way the fund owner used to talk about losing trades was "tuition." We were all in the same boat, with very limited trading experience.  He was willing to put his money up to see that we learn how to trade. In the first year and half, I lost close to $150,000 trading a small account for … Continue reading Trading losses = tuition

Forgive yourself

Bad trades happen. Especially at the beginning, if you haven't mastered your emotions and your ability to exit when you said you would, a losing trade can turn into a bad trade.  A losing trade isn't a mistake.  A mistake is when you break your own rules. And that's a bad trade.  Again, those happen. … Continue reading Forgive yourself

The perfect trade…

...doesn't exist. Buying at the very bottom of a move and selling at the very top before the next reversal is a matter of pure luck and it doesn't happen very often. Come to terms with the fact that grabbing any portion of a move is good enough.  Create rules not only for entry signals, … Continue reading The perfect trade…

Don’t you dare disagreeing, unless…

EQUITY RUN UPDATE:   $15,196  |  +51.2%   There has been a series of public indictments recently that have killed the old notions of due process, of innocent until proven guilty.  The broader trend seems to be an utter lack of an open exchange of ideas. From egregious crimes, to divergent political opinions, it seems … Continue reading Don’t you dare disagreeing, unless…

Drawdowns suck and they are inevitable

EQUITY RUN:  NO UPDATE.     The vast majority of a trader's lifetime will be spent in a drawdown from peak equity.  The key is to not get greedy, not get fearful and keep your chips together for the next trading day.  You can't do this if you don't trust your system. TRUST IT.  I'm … Continue reading Drawdowns suck and they are inevitable

Did you see that 27% rally? In 3 days!

EQUITY RUN UPDATE:  $11,038.   It happened fast.  It happen strong. It was RBOB Gasoline, September delivery and in the October delivery a bit also. The move was, as it often is the case, a reaction to an "act of God", namely hurricane Harvey, which effectively shut down the refinery industry on the Texas and … Continue reading Did you see that 27% rally? In 3 days!

USD in the next 6-12 months

EQUITY RUN UPDATE : $10,365             A friend asked me where I thought the US Dollar would be next year.  I thought that it would a tough call, as any long-term call can be... But I gave it a shot.  Here is a copy of message to him: 9/24/17, 21:57:56: … Continue reading USD in the next 6-12 months

This is when you should change views

EQUITY RUN UPDATE:  $10,909.             Switching views isn't easy and it should be done with caution.  Flip-flopping at every piece of news or at the turn of a candle is no view at all, it's just blowing with the wind.  Additionally, some of the greatest trades in history were made … Continue reading This is when you should change views

Though stretch? Don’t think you can out-hustle the markets…

Equity run update:  $11,056.             It's football season again.  It's time for coaches' press conferences... When they talk about being "out-played", "out-coached", and "out hustled" by the other team.  When the market beats you up, do not try to "out-hustle" it.  You will only make the losses worse.  It's been … Continue reading Though stretch? Don’t think you can out-hustle the markets…

Why keep a trade blotter?

Equity Run Update:  $12,849   What's a blotter? It's a record of every single trade you take. There are several automated online systems that can track your positions and give you pretty reports, etc. on your performance.  Even my broker, between the trading platform and the statements, does a good job giving me a sense … Continue reading Why keep a trade blotter?