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Eyes Wide Shut

  
  Education
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Why does it take so long for a trader to learn?

eyes wide shut

Like I’ve said before, I’ve seen as much so-called wisdom over the years that I’ve eventually learned to hold as inviolate truth, as that which should be thrown out with yesterday’s garbage. Yet why does the eventual accumulation of pertinent knowledge translate so slowly into one’s trading results? If we are capable of weeding out the good stuff from the bad, why doesn’t the good stuff just take over and guide us directly towards success?

Aside from the fact that I might just be a dumbass, one thing I’ve figured out is that the distance between the brain and the finger might not be so close as you’d think — if you’re not careful. I know I’m not the only trader who has a tendency to repeat the usual mistakes, or variations of same, despite having berated myself 10 times in the previous week to make an effort not to do it again. My contention is that old habits die hard. Real hard. And only if you go out of your way to kill them outright. (more…)

Flexibility in Markets

  
  Education
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Persistence is a key. Always keep looking for new trading ideas.

Knowing when to quit is another key. If you’re wrong, admit it and move on. Managing risk is the name of the game.

But flexibility, in my opinion, is the toughest one. Just because you’re long and get stopped out, doesn’t mean you can’t turn around and go short it if the market tells you it’s a good idea. In fact, my favorite trades are when traditional charting patterns don’t work out the way the book says they should. Turning around and doing the opposite, a lot of times, offers the best risk/reward.

And most importantly, you can’t marry your ideas. If the market proves you wrong, pay attention. No egos remember? I came in a few weeks ago looking to short treasury bonds on a breakdown. And they ripped right in my face. So what?

It’s not about being right, it’s about making money.

Be flexible

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