Not so long ago, I traded alongside a young man who was exceptionally good at calling the market and exceptionally poor at trading it.
This phenomena is nothing new. I have seen and wrote about many traders who are the same.
But I sat with this particular gentleman on several occasions and he was always vocal about what he was doing which made his behaviour all the more interesting.
One day, in the twilight of a fairly long career full of promise on the one hand and unprofitability on the other, I watched him short the market, put his stop just beyond the nearest swing high and then exclaim: “now watch it take the swing high, stop me out to the tick and tank”.
I laughed.
Until I saw it happen and then I shrugged.
Moments after price collapsed as he’d anticipated, he rejoined it short again - far lower than his first entry and with seemingly less thought.
He entered a stop once more beyond an intraday high and said with a grim smile: “now watch it grind back up and take me out again before it goes”.
A short time later, he had indeed stopped out, almost to the tick, only to watch it plunge once more.
Hardly anytime went by before he clicked and entered the market for a third time, stop characteristically in a vulnerable position and said, in growing frustration: “here we go - watch it fuck me three times in a row”.
At this point I leaned over and loath to accuse a fellow trader of being on the dreaded tilt, suggested: “if you think it’s going to your stop before it heads back down, why not enter up there?”
Without missing a beat, he said: “to prove what a stupid waste of time this all is and how the market will almost always find your stops even if you’re right on the idea.”
This was one of the most bizarre exchanges I’ve ever had with a trader.
He seemed intent on losing to prove to himself he shouldn’t waste time trading - all whilst calling the market moves
perfectly.
I never did know whether this young man really did deliberately self sabotage or he believed in those trades and called for the opposite to happen to save face.
But I do know he didn’t really believe in trading as a viable means to make a living, he no longer enjoyed it and he was looking for any excuse to get out of the game and do something he did.
And as far as I am aware, after this exchange, he never traded again.
But sometimes, when I’m sitting here at my desk, I find myself thinking of him.
I’ll never forget, when that third short stopped out and the market once again moved lower, he sat there staring at it.
There was a look on his face like his head had just decided what his heart couldn’t.
He no longer looked frustrated.
For a second he almost looked at peace.
Remember:
1. Sit on your hands when you don't see edge. Don't force setups. Patience.
2. Step up when you do see edge. No fear. No hesitation. Follow your process. Expect nothing. Expectations create emotions.
3. Trade the market, not your P&L.
4. Always seek improvement.
True story - one that introduced me to one of the nuances of corporate politics!
Post-NYSC, I interned with this edutech & was in a science team of 3 interns, all first class grads.
We all studied "unrelated" first° disciplines & like with all internships, it was probationary.
When you are making moves. Sit with it. Keep quiet.
When your wins come. Most times, sit with it. Keep quiet.
Choose when to share, why to share. With whom to share.
Not everyone is worth sharing with.
The art of seeking validation can open portals of unexpected failure.
Today I paid 2.9% tuition to the market trading completely out of plan, cause of the loss I couldn't take my main set-up because I'm down over some shitty trades leaving my account at overall DD of 6.13%. same shit has cost my account, I only have 3.8% from blowing this account.