To the worldwide trading community, amidst the current industry turmoil and substantial theft of hundreds of millions in assets that have affected the lives of thousands, I ask that you pause for a few minutes each day and join me in the following prayer for recovery and healing, and that you consider passing this to others throughout the industry.

Oh merciful and powerful God, we thank you for every good thing that you’ve blessed us with. We know that we can’t take even one breath without you, and we thank you for sustaining us each and every day.

We thank you for our families, friends, and a the beautiful gift of a world where we can fully develop into who we are meant to be.

We know that we are all imperfect and fall short of your glory, and too often focus on our needs, wants, and desires … desires that too often turn our true need for daily bread into a selfish persuit of greed.  For that, we ask your forgiveness.

We thank you for a world of second chances where the opportunity to forgive – and to be forgiven – is an immense gift beyond our limited comprehension.

Help us put the events of the past week in their proper perspective.  Help us to remember the far greater priorities of family, friends, health, and love above the concept of worldly asset allocation.

Help us remember that all assets on earth are yours, that we are all merely stewards of them for a finite period of time … until we hand the torch to others.

For those who have taken assets unjustly, we ask for your forgiveness, and for your help in allowing us to forgive them.

For those toiling to locate and return the assets, we ask for your powerful insight and guidance.

For those from whom assets were taken, we ask that you sustain them with love and patience, comfort & heal their wounds, and make them whole.

For those whose assets are returned, we ask for your guidance in deploying them for your good.

Father, help us to see the good amidst the rubble, the smiles among the tears, the rose among the thorns, and the emerging flower amidst the volcanic ash.

Help us reflect your glory and be a beacon during these difficult times, and help us fight through the fog of our own humanity to focus on the one true Light.

We know that when two or more are gathered in Jesus’ name, He is with us, and that through Him ALL things are possible and beautiful.

We ask all of these things in His name.

Amen.

Hi all.

First, the weekly PivotPoint Advisors Briefing has been posted on the PivotPoint site.

Second, contnuing our recent theme of revisiting and reinforcing key posts of the last few years, here’s one from September 16, 2009 reminding us why mistakes are both necessary and critical to our long-term success, as well as the February 8, 2009 one linked in that same post where I got into one of my rants on “accepted mediocrity” which had been prompted by my reaction to a rather sick comment by one Mr. James Cramer … the final sentence of which may still be echoing around the ‘Net.

May we NEVER forget these critical concepts that form the foundation of both successful trading and life in general.

NECESSARY MISTAKES - Originally posted 9-16-09

Many of you know I have several pet peeves about this industry, including lack of transparency, poorly designed trader training by non-traders, and lack of accountability by the likes of Cramer et al. (Lest we forget that memorable “Miller vs. Barrons & Cramer” Post from February.)

Well one pet peeve that stacks right up there on my list is never being able to understand why many traders or educators never speak about that “other” side of this business — or putting it bluntly, their MISTAKES.

Think about it. Never. And some days or portions of days, I flat out suck.

And since mistakes are often the very seeds needed for success … whether it be invention of the light bulb or million dollar trading, shouldn’t we not only talk more about them, but shout them from the rooftops???

I have to.

I’m human.

#   #   #

I hadn’t planned on doing a piece this morning as we’re having a great stay in Boston, but a peek at Barron’s today got my blood boiling.

And just when I make a momentary vow in Friday night’s video to take a hiatus from advisory and guru bashing, Barron’s (the only after-hours market reading I ever do, and even that’s limited to two sections so as not to inject a variable which could mess with my head) leads today’s edition with “Cramer’s Star Outshines His Stock Picks”.

The article provides an extensive analysis of Mr. Hype’s abysmal performance results, includes the quote, “The only regrettable thing about any of this is that CNBC and Cramer won’t meaningfully discuss how his advice pans out”, and goes on to reference various staunch defenses of Mr. Hype’s actions by CNBC which included severely restricting Barron’s access to both the network and the hype machine.

And while I agreed with much of the content, I took significant exception to the following quote: “IT IS RARE THAT ANYONE BEATS (their caps, not mine) the market over time, so there is no disgrace in the underperformance of Mad Money’s stocks. Barron’s then goes on to admit that even their “picks” were wrong.

No disgrace? No disgrace?? [as my wife wonders why my face just turned beet red]

Here we go again.

Here’s my rebuttal.

I remain sick and tired about how “accepting” most in society are of mediocre performance. In schools, we dumb down education to the lowest common denominator such that those with the potential to make a huge difference in this world are encouraged to underperform. We give everyone awards at the end of the year for “participation”, so as not to exclude anyone from “feeling good” about themselves, including below-average Johnnie who skips out of school yet whose parents are head of the PTA.

We then take this concept and continue it in the adult world where everyone continues to believe that “average” — or far worse in this case — is also acceptable. If we were to believe the continual written and visual financial press, we’re to believe that everyone should be making money only if everyone else is. If the market is down, we all should be down … and you’d better not be up for fear of skewing the curve. Sounds just like 9th grade science.

I could write for days on this, as it attacks one of my strongest-held core beliefs that we should neither listen to the screaming hype-machine masses that are only looking out for their own individual interests and pocketbooks, nor accept the strengthening standard of mediocrity in this world. It’s as if we’ve completely lost the ability to think for ourselves which brings us full circle back to “Johnnie” needing self-interest snake oil “gurus” to tell him what to do when he’s an adult — at least in body.

Here’s a novel concept … how about if we all get off our asses, think for ourselves, roll up our sleeves, and take some responsibility for self-improvement so that the bar eventually gets raised for everyone?? My wife is cheering.

Yes, it is a disgrace.

A disgrace that none of us should accept.

We need far more Bamboos and fewer Bonsais.

Sunday 6/19 Update – For all traders over 40, or for those younger who have been told they’re not cut out for this biz, you HAVE to watch this morning’s Parting Shot by Bob Ryan on ESPN’s Sports Reporters discussing Tim Thomas.

Oh, and the weekly PivotPoint Briefing has been posted in the PP Briefing Room tab … and Happy 19th to my daughter Chelsea … and Happy Father’s Day to all Dads!!
Yes, I’m a sports fan.

I’ve supported pretty much every local pro and college team near where I’ve lived which includes the New England, Seattle, Dallas, and Madison, WI (Go Badgers!) areas, but I admit hockey is my first love and I bleed the black and gold of the Boston Bruins.

You see, I have since I was eight years old. 

And I’m far from alone on this … Exhibit A being this absolutely wonderful piece by ESPN’s Bill Simmons.

For you “youngsters”, watching hockey in the late 1960s often consisted of snuggling up to a black and white 14″ TV and trying to find the puck through the snowflakes of UHF (young folks can Google that!) transmission.

It consisted of trips with my Dad to the old Boston Garden (or as I used to say, “Gahden” before I lost my Boston accent in my many years of travel) in obstruction view seats behind a pole or in the nose-bleed seeds of the rafters among the Garden rats.

It consisted of playing street hockey in my driveway where I was goalie and my best friend of Chara-like size would fire shots at me, often breaking every window of the garage and adjacent porch … after which time my parents would simply replace the each window with plexiglass.

It consisted of having Bobby Orr as my hero given his combination of skill, grace, and personal humility.  And yes, he’d drop the gloves and stand his ground when absolutely necessary.

It consisted of sneaking an AM radio under my pillow at midnight when the Bs were playing on the west coast.

And despite two championships in the early 1970s, it often consisted of heartbreak due to some odd team malfunction at the most inopportune times.

So you have to understand where I’m coming from when I say I had a very enjoyable week.

And yes, there are many trading lessons to be learned from the incredible Bruins’ run for what is arguably the most difficult trophy to win given the grueling two-month campaign after a full season … and I’ll use parallels to my own trading to illustrate.

In the finals, the Bs were not the more skillful team … that would go to Vancouver who had the so-called “pedigree” of high scorers, and more than a fistful of “bests” in terms of regular season statistics.  In fact, the comparison wasn’t even close. 

And then Vancouver got out to a two-game lead in the finals, at which time all of the historical probabilities were heavily tilted in the Cannucks’ favor.  After all, the Bruins would have to win four of the next five against the best team in the world who had home-ice advantage on their side.

And then they blinked.

Vancouver thought they could simply “show up” to finish the job, while the Bruins dug deep and found their “heart”.

The Bs won Games 3 & 4 in a lopsided manner on home ice to tie the best of seven series at 2-2, lost a 1-0 nail biter in Game 5 back in Vancouver, and then once again won 4-0 in Game 6 back in Boston to set up a winner-take-all Game 7 back in Vancouver.

Yet the mistake Vancouver made was to simply believe that all they had to do in Game 7 was to show up.  In interview after interview, their mantra of “don’t worry, we’re going back home and will be fine” was repeated over and over again.  You really got the feeling that all they had to do was lace up their pedigree skates, and they’d be hoisting the most famous trophy in all of sports.

But as the Bruins grinded and grinded them into submission in Game 7 minute by minute, it was clear that hard work and “heart” (remember that Annie Duke interview?? … a must read for traders) trumped historical pedigree, overwhelming probabilities, and skill. A 1-0 Boston score after an extremely hard working goal later became 2-0, then 3-0, and finally 4-0.

There are of course stories like this everywhere where the hard-working and resourceful underdog overcomes all odds to win … from David vs. Goliath to the 1980 USA vs. Russia Miracle on Ice to - now, the 2011 Stanley Cup Champion Boston Bruins.

OK, what are my trading lessons from all of this.

First, hard work trumps historical pedigree.  You see, by my definition, I’m not the most “gifted” trader. For I have to earn every penny via sweat and toil, while staying on guard to both protect and grow it. And despite my many market successes, I frankly and completely suck when I think I can “just show up” and sleepwalk through a trading day or week.

Second, despite the statistical odds against trading success due to the constant transfer of wealth from the vast majority of traders who “don’t get it” to the small minority who consistently win, never underestimate your potential to cross that thin line (Remember our Bamboo roots!) or listen to the naysayers.  You simply have to work harder than everyone else … and all the time.

Third, make your trading a self-proclaimed personal competition.  The initial trading journal portion of this blog is full of posts during my 2008-09 $2 Million run where I simply viewed that time as a personal “race” and pretended that I was constantly coming from behind. Remember that fictitious drawdown concept that has since become well-publicized and chronicled in trading journals?

And finally, celebrate and share your successes.

Tooday, there will be a parade in this city of champions (yea, we’re admittedly getting spoiled as the only city to now have a championship in every major sport in the span of seven years) where over a million people who similarly bleed Black and Gold will line the streets.

You see, deep down and like similar cities, Boston is a blue-collar, nose-to-the-grindstone working man’s town.  It’s a city where sweat, toil, and sacrifice once launched a historical revolution for freedom, and where those championships – like the 2011 Stanley Cup – rooted in hard work and humility are rewarded with particularly deserved celebration.

Reaching the pinnacle of your field is no easy task.  In 2008, I was blessed with a similar accomplishment in reaching the top of my field for trading performance among my asset class.  And yes, for one short day and post, I celebrated it … in part to recognize 366 days of extremely hard work and personal sacrifice, yet more so to try to inspire others to do similarly.  (btw, that Fireworks picture from that 12-31-08 Night to Dance post — one of the viewed posts of the blog – was actually a photo of fireworks in, of all places, Vancouver!)

Life is short, but the lessons are long.

Work, compete, and celebrate … but most importantly, Praise God, share the glory, and pay it forward.

For the latter will provide the greatest reward of all.

Congratulations to the 2011 Stanley Cup Champions … the Boston Bruins … and to all who overcome the “meaningless” odds to reach their fullest potential.

And yes, the $250 Jellie Trader Training Webinar discount remains in effect. Just email me at don@donmillereducation.com and I’ll email a special invoice.

And look for the weekly PivotPoint briefing in the Briefing Room tab over the weekend.

On the heels of my second weekend Emmaus walk, and as I make my return to everyday reality and public posting, I was reminded over the weekend of the poem once found hanging above Mother Theresa’s bed in Calcutta – also often attributed to Dr. Kent Keith.

And yes, like life itself, the words relate in spades to trading psychology (especially the lines highlighted in red), as well as this trader’s highly public diary.

People are often unreasonable, illogical and self centered;
Forgive them anyway.

If you are kind, people may accuse you of selfish, ulterior motives;
Be kind anyway.

If you are successful, you will win some false friends and some true enemies;
Succeed anyway.

If you are honest and frank, people may cheat you;
Be honest and frank anyway.

What you spend years building, someone could destroy overnight;
Build anyway.

If you find serenity and happiness, they may be jealous;
Be happy anyway.

The good you do today, people will often forget tomorrow;
Do good anyway.

Give the world the best you have, and it may never be enough;
Give the world the best you’ve got anyway.

You see, in the final analysis, it is between you and your God;
It was never between you and them anyway.

As in life, give it all you have in this business gang … every single bit.

And never let those who give less tell you otherwise.