Trading to win using the Secret Code of the Illuminati

Firewalls

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The System

One of the most important lessons I learned from failure is the need for firewalls.

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If you have a toxic asset, separate it from your other assets, so as not to contaminate them.

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I think of people as assets too.

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I am reading the Talent Code, and it is a fascinating book. One of our team proposed it as great reading, and he was absolutely right. I believe Dr Brett was one of the first to highlight the importance of this work. Paying your dues for 10,000 hours is the right of passage.

So much for the get rich quick mentality we often find in trading.

“Struggle is not optional,… its neurologically required to make mistakes and pay attention to those mistakes; you must slowly teach your circuits. Practice makes Myelin, and Myelin makes perfect.”

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Boring, unassuming Myelin as an insulator is a powerful ally in our quest for developing skills.

It allows for the building of “Broadband networks” in our body, facilitating communication at exponential speeds.

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One time I got a little over-extended in real estate. I sure wish I knew about Myelin then. A simple LLC for each subdivision would have contained the venom when I bought the top.

Immaturity.

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I assume you understand the need for several baskets with Myelin for your eggs.

Unless, of course, you prefer them scrambled.

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Have you noticed that many extremely bright people like Doctors and Lawyers have a problem disassociating the skill sets that make them successful in their professional career? Myelin those thoughts, big guys.

Proving you are right is a poor substitute for the use of a well-placed stop loss.

Fingers and Toes.

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It all starts in the mind. If you believe you can that’s a start. If you believe you can’t, you never will, no matter what system or methodology you use.

Ready! Fire ! Aim !

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I needed a firewall today for a trader who criticized me. Not sure why traders love to make fun of others, but so be it. I  certainly am not perfect and freely admit to that. I raised a great pitcher and I told her there is no lonelier place than the mound when you lay a big fat one down the middle. It just comes with the territory.

Thick skin needed, dust yourself off, cleanse the mind, see the sequence.

A reminder we don’t take every trade we call. We try to find the rhythm, direction, and high odds destinations. My advice this afternoon after 92.25 got hit was for conservative traders to go home a winner, keep what they made.

Tough to trade, teach, and post timely on twitter. We do the best we can.

We liked the half gap and gap trade, (no surprise), loved the flip to test 87 /85/82, and thought the challenge today would be the afternoon bounce. Any Day high could be triggered, so the key is how high does it run?

The team in our room knew our trade logic, and my calls. I don’t have a need to compete with the testosterone boys.  Members gain the insights of my analysis and I called 78 as support today when I saw the 120 chart dig in. “If 85 breaks, we can go to any day hi”.

Step by step, targets become the Demon, the 92.25 rain line, then the key trade for closing battle is the 87.5 support.

“If you take the short from 93 PP, don’t ruin a good day; if it comes back at you accept the stop and leave it be. If they jam it, the next level is the 94  to 96, and that makes perfect sense for the 456 trade.”

I didn’t like the late day short because I felt there were trapped shorts, and I felt the pikers were trying to win the Cigar trade by defending the 90.25. The rain line is roughly a three day average, and often holds the first time back to it. Note the 9 bar chop there.

The Hot hand Carl F again had a great feel for the day’s range, and we continue to monitor his thinking for trade ideas.

Be suspicious of the 1 ticker; the 79.75 that gets shorts salivating; it was the perfect trap for unsuspecting bears. When the herd starts running, we need firewalls or we will get trampled as well in the stampede.

From the Criminal Handbook…

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