Archive for May, 2016
This week’s edition focuses on the incredible danger related to the over-complexity of this business and almost comical aspect of many aspects of this business which generate a great deal of discussion, yet often do a tremendous disservice to the true business of trading.
Focus on the traffic light, have your foot ready for the accelerator and brake, and execute.
THAT my friends is trading.
Everything else is noise.
P.S. I know I started off by saying I’d keep this brief … yet felt the full 20 minutes was important.
As the 2016 Jellie Tank winds down today, I awoke to this note from one of our players summarizing his Top 10 Light Bulb moments, which he’s graciously allowed me to share in the hope it may help others:
I wanted to thank you a million. This experience has really opened my eyes and it was a priceless experience. There are many light bulb moments that will completely change the way I trade and I know it will put my results and performance on fast forward, saving me years of frustration.
Here are my top 10 light bulbs. These will always be close by my trading desk.
1. Always think about the other trader. Recognize what every player at the table has to do.
2. Average up. If you average down and don’t average up you will always have your greatest size on losers and smallest size on winners (This happens to me).
3. Create outliers. Never cap any time period p/l because doing so will mean you will never have an outlier.
4. Have confidence and be confident in your own work. Be like Steph Curry. Push it and push it hard and press it when hot. “Find your grip and rip it!”
5. Focus on execution. Stalk trades most of the time and maximize execution. If scalping, realize the baloney vs. the filet and that you only have so much mental capacity (this does happen to me where bigger ideas were missed trading smaller ideas)
6. All bets should not be equally weighted. If everything is equally weighted it gives equal importance to scalps and PJOs. If your account size doesn’t permit varying size based on opportunity, stick to only PJOs.
7. Always be ready for your next shot. If you were playing basketball you wouldn’t just walk off the court after taking your first shot. (This will be a big thing for me as I sometimes get distracted and think the next trade is far away)
8. Buying on the bid and selling on the ask means you are always going against the immediate market action. You want to be the aggressor.
9. KISS. If there is a problem, it is not the indicator, it is you.
10. Always be thinking, where does the market have to go to tell me I am wrong. Stop should be based on this and I should be out as soon as the premise changes. I can always get right back in (see #7 – always be ready for your next shot). (This will be huge for me as there are times where I lose focus, get sloppy and what should be small loses turn into big losses).
Thank you, thank you, thank you.
Today’s video discusses the need to always make oneself available to opportunity no matter when it may occur.
Also, a heartfelt warm welcome to incoming Jellie Trading Team #13.
Have a peaceful weekend.
Love, uplift, and inspire.