Here’s the thing about trading at scale.
Larger p&l is a byproduct of larger risks.
Some traders inherently have a ceiling with what they’re comfortable with.
The senior traders I talk to, who have desks, prefer to bring someone onboard who is a gunslinger.. because it’s easier to dial back their risk.
It’s much harder to get someone who is risk averse, to trade bigger.
There’s nothing wrong with making a decent living from trading and living below your means.. it should be the goal of any trader.
You don’t need to have all the riches in the world to be happy.
The ultimate goal of trading is freedom, not money.
The majority of social media is torn between sides over good and evil. I'd like to gently remind you that you have opportunity before you.
You can have a better existence and find blessing by the works of your own hands, with sincere effort and focus.
Don't allow the temporary discomcomfort, you may be feeling today, make you feel like it will last forever.
Stir yourself up and get excited about what is coming.
Be habitual about it.
It is that time again...
When you reflect on what you did and didn't do this past week.
It is important to view it consistently as a means of measuring your ongoing progress as an Analyst and Trader.
If you reduce it to only harsh negative self-talk, you impede your growth and development.
If you elevate it to arrogance and ego-driven measurement against others, you are making your single ownership of your corporation a limiting partnership with toxic competition.
Everyone who views their efforts against anyone or everyone, is unknowingly causing their trading to be more difficult.
This is why the loudest or most judgemental have the hardest time holding winners, and losses undo them emotionally... as they seek public coddling and attention to soothe themselves.
Focus.
You are not in a competition with anyone. You are pursuing excellence and it is not merely an act... but rather a habit.
Have a great day.
M.
It is a Good Morning...
As an educator with a large community, I get a tremendous number of questions, comments, and emails that aim at finding the way to consistency.
The difference between a Trader who is in control of him or herself and those who aren't is the measure of experience.
None of us can escape the hard work of being patient and allowing the natural process of gaining personal experience with doing it wrong a lot in the beginning but never quitting.
Elite Traders simply know themselves better than the rest of traders, and they know their unique trading model like the back of their hand.
Elite Traders don't guess, gamble on nonsense or consider the opinions of others or rely on the experience of another Trader.
Luck holds no part or is due any credit.
Now, get back to work collecting your experience.
IPDA Data Ranges are 60 - 40 - 20
That was taught to provide you life-cycle for my PD Arrays.
60 days look back Position setups.
40 days look back Swing setups
20 days look back Short Term setups
Day trades use all of them.
My biggest component to my development was to finally put down the task of impressing people who didn't care to see me succeed back then.
My Ex-Wife was the central driving force, in my pursuit, to impress her and win her back. Then it was my family members who mocked me then, saying I would work like did until I died. They worked until they died or retired with not much to speak for.
I can tell you, now, none of that matters. These people didn't congratulate me, say well done or show any signs of interest.
So I wasted years and held myself back by placing the measurement of success through the lens of people who don't really matter in the end.
When I wanted it for me... and I gave myself permission to require more time to figure it all out... then I was more comfortable in my skin and small speedbumps along the way were no longer painful failures but amazing new opportunities to improve.
How To Trade Your Way Out Of A Wet Paper Bag
I have used this expression many times, over my life in and out of the markets. It was recently used by @TomHougaard in one of his livestreamed events he hosts graciously and for free.
He mentioned that there are some in this industry which hold a "conspiracy" bias, of sorts, in Price. If he were more forthcoming, as he has been in the past, he would no doubt lump me at the top of that list... a position I hold in high regard, I may add!
The expression I titled this piece with, is to mean in some ways, that someone cannot do something despite the conditions being made easier. As in the case of a wet paper bag being easy to tear.
I would like to suggest how one might go about trading themselves out of a wet paper bag...
The "Why" -
Why are you pursuing a journey in trading?
Are you feeling peer pressure from a friend or online associate?
Feeling the fear of missing out on all this "easy money"?
If you are one who nods or thought to yourself... yes that's me... you need to adjust your motives. It is not as easy as I or others who share our craft make it out to be.
Not for the difficulty of trading, in and of itself, but rather the personal wrestling matches everyone is forced to endure. The struggle to get ourselves out of our own way!
This is why my compendium in YouTube is so large. There is a lot of things you will wrestle with. The short road to profitable trading with a small list of does and don'ts for making money in trading is going to take you more time than you first thought.
So the "Why" you are going to consider it at all, must be significant and open-ended, on the basis of time. You and I certainly don't know how long it will take for you to overcome the initial concerns you are grasping at. Or what it will take for you to become patient.
What would be a good "Why"? A potential stream of secondary income to help pay monthly living expenses... while working at your job or your own business; that is a realistic one. Certainly not to get rich fast or to rush to influencer living with cars, trips and the latest toys.
Your reason 'why' must be grounded and obtainable for you. Making enough to buy an exotic sports car is not a realistic 'why'. You will require income to pay for the exotic upkeep and insurance premiums too.
The "What" -
'What' are you going to trade? What model are you going to work on refining for your unique personality?
Trying to force your trading into another Trader's model, even if it is profitable in their hands, is not a wise pursuit.
Your 'what' is the roadmap you will follow to get where you aimed with your "Why".
Many want to find a winning Trader's Cookie Cutter or Trading Model and copy it. When they do not realize the time and effort that Trader put into trusting that model.
They know it is not going to deliver 100% successful trades. This does not discourage them, and they accept it. You would not have this same mindset without putting in the time and effort yourself.
What is a good example of a solid 'What'? Trading a simple time-based Silver Bullet setup, on one market you track daily.
Being a Minimalist is an advantage to a Trader. You do not, dare I say should not, try to trade everything I teach or a collection of models.
Finding one that fits you personally, despite imperfection... which is absolutely normal, is crucial for success.
When Tiger Woods set out to become a Professional Golfer, I know I hate golf and I'm trying to reach a broader audience, he didn't include the task of being a Professional High Diver and Quarterback for the Baltimore Ravens!
Tiger would likely not do so well off the Golf course, in those other pursuits. However, on the green, he excelled as one, if not the best Golfers ever.
Tiger like all professionals, narrowed his focus to refine one pursuit and master himself. His swing had to be perfected... his understanding of the best club to use for which condition.
All manner of knowledge was important to him, as it relates to Golf as he played it. He didn't try to copy another Golfer... but many hoped they could copy his approach and skill!
The "How" -
'How' you will trade your model is unique to you. Back testing models and setups will be your best chance at discovering your unique model.
A Silver Bullet can form multiple times in a 24 hour period. Not all of them are going to be ideal for your timezone and day to day life.
How will you enter your Silver Bullet trades? Will you use Limit Orders or Market Orders and accept the slippage they bring?
How will you set your targets, be they partials or otherwise?
See why a lot of effort is required to determine all of this for your personality to match your model's logic?
By doing the hard part and yes the long boring part in the beginning, it will allow yourself to be comfortable employing that model.
This might seem like a bloated post, that most won't bother to read... but it is essentially the recipe for most starting out.
When you have these things worked out for your personal unique model and adhere to very low risk on trades... you will be well on your way to build more complex or alternative models in the future.
For now... do the least in terms of system or model hopping and the most in back testing your model of choice.
I trust this was helpful.
GLGT,
M.
It is far easier to give up when you are aiming for a million dollars versus making your utility bill costs each month.
Don't be afraid of being modest at the beginning.
The majority of people that don't hold to modesty in the start... fail by trying to do more than they are presently equipped to handle.
Toodles.
One of the BIGGEST mistakes I see repeated, in many prop company customers, is that when they have a deadline or consistency rule to meet... they rush or impulsively execute and lose all that they worked for.
Take a bit of a break... use more time sitting still. Those rules are there to make you lose... not win the lion's portion of the demo profits you built up.
Ironically, users end up trying to rush across the finish line in attempt to escape the pain of impatience and thurst to peacock on social media about it.
Sadly, most only trip and fall on their face and the prop companies smile and await your reset fee to be paid instead.
Go slow and light when the money is in your reach... they expect you to get greedy and blow it.
The stats prove it... so deny them... and take all of it on your timing.