If I Ruled the World
As 2009 plants the seed for the next decade, time for some soul searching.
Some “Guru’s” will be making predictions, promising this, promising that.
I make no such bold conjecture.
We are educational in nature, having a background in Education and the Humanities.
I believe the strength of America has been built on the backs of entrepreneurs, just like you and me.
While I have studied the markets vigorously for over 15 years, I have gathered ideas from many experts. Among them this year I have added to my cache with the likes of Don Miller, Fari Hamzei, Futures Trader 71.
What I have not done is desert the system that I built for a sexier new model like the current rage Market Profile.
Once you build a system that works, leave it alone.
There is a thin red line between being stubbornly stuck in the past vs choosing a “better system”.
Most students of the market, I have said often, are better off building their own system rather than blindly following a guru.
Authoritarian experts who have a strong military background will perceive the world through the lens of chain-of-command. Orders are delivered top down from “the boss”. The pied piper leads, the subscribers follow…or not.
They hate ambiguity, and often cannot deal with paradox; the ebb and flow that frustrates their goals and need to be “right”. Though they have “rules” that are not open to “intuition”; they will double down, and play martingale, not worried about the “odds”. Black or white.
Democratic schools allow the individuals to participate in the process. Decision is by consensus.
While I love democracy, I don’t believe in this as a model to teach traders how to improve their game. Studies have shown that the “team” gets reduced to it’s weakest link.
I do believe in being a Mentor; describing the events as they unfold, referencing the various tools, projecting potential targets, describing risk to reward, and suggesting aggressive ideas vs conservative ones.
Most of all, the use of a stop loss to prevent one bad trade from taking us out of the game.
Finding and taking those few high odds trades a day makes all the difference.
Some of our students have studied and taken courses with “the best of the best”, and have remarked that this system I offer is as valuable and compelling an approach as any of those courses selling for 8 times as much.
They are students of Market profile et al; and I humbly thank all who have been so kind and thoughtful to tell traders about my unique insights.
“A steal” others have said.
I believe it is, but then again, I must admit my personal bias.
I encourage teamwork and sharing of ideas. “None of us is as smart as all of us” is a phrase that one of my mentors, the late Jim Rohn, used to proclaim.
That is a paradox with “democracy”; but the value lies in benefiting from considering as much data as possible and then each trader applying his own choices and decisions.
Twitter is a perfect example of that process.
The dilemma with twitter of course, is “Are we willing to give up our whole playbook; tell you when, where, how and why we are going to attack the market?”
For those of you who expect us to post every “call” we make in a timely fashion, sorry to disappoint you. Yesterday’s post should give you an idea of the accuracy and potential of what we have to offer.
Over and over this past year we have demonstrated the power of this approach.
Sway is probably the most important book I can recommend for traders to understand how personal arrogance can lead us down a path of self-destruction. We are all prone to that malady, yours truly included.
When we believe so strongly in something; when we invest so much in a singular thesis or idea, we are not quick to abandon it but rather we embrace and defend it at all costs.
Separating “too much information” into a reduced focus on primary metrics that have shown to be valuable, consistent, and reliable a high percentage of the time is what we are all about.
A few books to consider for your trading library:
Master Traders by Fari Hamzei. Reading it and learning from a Master. Highly recommended.
Sway Perfect for all of us who are human
The Black Swan Martingale players and “averaging down” players should consider this
The Next 100 Years Bigger picture view by George Friedman. Military, disciplined types should enjoy this perspective.
The Snowball A seasonal favorite; Why not balance out our short term focus with a man who has built a fortune with position trading
The Hidden Brain I have an advanced reader’s copy of Shankar Vedantam’s treatise on the power of our unconscious mind
My best wishes to all for you to find that which you are seeking; it is also seeking you.