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

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…

How to deal with (trading) heartbreak.

I've had my share of scars. Some of the most memorable moments in my trading life, where positions that went from profitable, to potentially life changing profitable, to painful losses. The "life-changing" part of some trades triggers the type of irrationality that characterizes many life experiences, not least of which the type the junior high … Continue reading How to deal with (trading) heartbreak.

What I wrote after trading for 2 years…

When I first started trading, I was given $100,000 by a very courageous boss to see how I would trade.  It didn't end well.  In total, after a capital injection along the way, I lost close to $150,000.  I was asked soon after to write a summary of what had happened and I learned from. … Continue reading What I wrote after trading for 2 years…

Choose principles that stand the test of time

The only was that you can build a sustainable trading system is to develop principles that stand the test of time.  A simple test for your principles is to ask this simple question, several days/months after the trade is done: Would I take that trade again?  Regardless of the success of a specific trade, the … Continue reading Choose principles that stand the test of time