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

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

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

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…

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