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

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

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

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

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…