Have you noticed the least helpful ideas in the market commentary tend to be emotional?
Speculation and banter, kibitzing on line largely for entertainment value is one thing.
Making money out of those thoughts and market gyrations is another.
A few years ago, while reading, I came across one of the best questions about trading I had ever seen. I consider the book one of my most treasured guides.
I mulled it over, and within a minute, next to that question I wrote a three word answer.
While reviewing several books in my library recently, I stumbled on that power question again.
After a few minutes of thought, I added another line or two of text to that answer.
If we are lucky, we continue to grow and evolve as a human being, a father, a husband, a son, a trader, a contributing member of society.
What was the name of the book?
What was the question?
What did I originally write?
What is the text I just added?
Speculate on the first two if you wish. My guess is this book is in your top ten list.
I realize most readers will just wait to hear what I have to say rather than think about this.
Most will not even bother to do that.
Modeling another trader’s ideas is a daunting task. A novice trader seeks answers from gurus. An experienced trader will be able to call on his “street smarts”, his intuition, his tape reading skills, his ability to sense trapped traders.
If he is successful, he also has the ability to withstand some losses and has enough resources to take advantage of opportunity when it presents itself.
Without hesitation, and with appropriate size.
I learned a few things observing a great trader’s thought process.
The most noteworthy:
- He weighed risk more than worrying about reward, but considered both
- He was uninterested in trading a choppy market
- He was unafraid of missing a move
- He was content scaling out of his move
- He was multi lingual, proficient in market profile and old school ideas
- The last tics of his perception of where the move would end didn’t interest him
- He was late entering the move, but when he smelled blood he pounced
- He was all business, and unemotional
- He focused on a few markets of which he is familiar
- He knew that a stop loss was a necessary cost of doing business and accepted the risk
Thanks to Anthony at Emini-Executors.com for a look inside his mind and his machine.
I believe that all of life serves me. The good, the bad, the ugly. I continue to be a humble student, and welcome the opportunity to grow beyond my own limitations.
My goal is to be the dumbest person in the room if I want to learn something.
Often that is all to easy for me.
It’s easier to learn than your abc’s…
[08:14] E: can be any hi again
[08:59] E: thinking rhythm is squeeze charlie
@yeeron @kloutt @gorham11 thanks for posts today on #EMWS
gm all MATD and op ex … 39 achieved … http://t.co/HvrxF5Yu #EMWS
[08:56] E: 20 in play
[14:07] E: 10 min chart has blue 45.75 and rising
[13:10] E: 52.5 is symmetry target
A little bit of rhythm and a lot of soul…