Mar
05

Episode #3: Jack Be Nimble

By Don Miller

Got about 40 minutes?

Sit back and enjoy Episode #3 which continues our recent small stakes theme, this time using a $160K account and maximum trading sequence size of 60 S&P E-Mini contracts (which as you’ll see was never fully deployed for several reasons).

Action occured during Don’s highly-acclaimed 2011 live Jellie trader training effort, and focuses on several elements oulined in his video course including adjusting to a change in expected market direction, using the NYSE Tick to confirm market action, and emphasizing the use of varied trading sizes to effectively manage risk and make up for the lack of human and market perfection.

Look for additional episodes shortly, including the much-anticipated high stakes action!

Technical Note: You may have to select the “Watch on YouTube” button in the lower right to view the full-screen version.

Categories : Low-Stakes Trading

Comments

  1. Amir says:

    Thanks for another richly informative video

  2. JS says:

    I was very pleased to see you show us how you manage losing trades. I found it illuminating and unusual that you reduced your position size as the market moved against you, instead of adding, as I hopelessly do, and puke at the extreme. Nevertheless, I am wondering if it is possible for one to scalp trade with only one contract? In my case, by trading one contract, I feel I always have to get back to even for my sequence and that usually leads to bigger and bigger losses especially during a day which trends in the opposite direction of my position. I am hoping you will continue to show us how you manage losses because that is where the biggest problems occur. Winners take care of themselves. I find websites, books and seminars which show how to manage winning trades useless.

    • Don Miller says:

      Thanks JS.

      As has been the case in the blog over the last few years, in the trader training efforts, and during my public speaking our over the last decade, I purposely try to focus more on discussing the losers and troublesome parts of the biz for the very reasons you mention. Those two days in October ’08 and May ’10 come to mind :-) . ANYTHING else would be complete distortion by me and the rest of the indusry.

      Yes, I’ve been truly blessed with long-term performance and net gains beyond that which I’ll ever need in this lifetime. Yet one can’t gain the reward without the risk, albeit highly managed risk, and there can be no gain without the occasional pain.

      TAD will continue the mission of transparency by providing a balance of EVERYTHING, including low stakes, high stakes, losers, winners, brain cramps, and positive outliers as time permits.

      Don

  3. Zack Sullivan says:

    This was very well done. You presented context, joined the action, and gave commentary as the action unfolded – truly a “Trading After Dark” experience. Well – OK – it was dark somewhere in the world… You’ve found the right production formula.

    On the content: What a difference there is in seeing a professional at work. This was the most revelatory video I’ve seen. I’ve always wondered how someone could survive providing liquidity without infinite pockets or an information edge (like seeing the Goldman pit runner carry in a load of buy orders), and here it was. I cannot watch the markets during the RTH now, but I will keep this video as a reminder of the potential there. Thank you.

    Zack

    • Don Miller says:

      Thanks.

      Obviously there were a few tiny video technical glitches on the picture-in-picture insert when we shifted scenes, but since this is still very much in its infancy and is the tip of the iceberg, I can live with that.

      Sort of like the lack of precision in trading :-) .

  4. Rich says:

    Don…thank you for putting this together. Video with narration is an awesome educational tool. Seeing how you manage a failed premise, seeing how you leverage off supports, and seeing how you manage exits really solidifies the learning experience for me. I cant believe you are doing this for free. Awesome.

    Thanks again!!

    • Don Miller says:

      Hi Rich & thanks.

      A reminder to all however to clearly keep in mind that the TAD efforts are NOT designed to “teach”, and everyone should make sure they first read the introductory 1/28/11 post at http://tinyurl.com/67nrjvv to put this effort in appropriate perspective.

      Some key excerpts from that post include:

      As will be noted at the outset of each episode, TAD is NOT meant to encourage anyone to pursue trading, OR to teach. Frankly, anyone looking to learn how to trade by watching it or exchanging comments or emails on this or other sites (and believe me, there are MANY) will end up like a pilot apprentice trying to learn to fly by watching Top Gun or emailing the pilot after a Seconds From Disaster episode on the National Geographic channel.

      If you’re truly interested in learning the trade, or “how” I trade, there are ample formal programs available that incorporate all of the elements of trading far beyond televised single-sequence management.

      Having said that, TAD IS meant to be enlightening in terms of continuing our mission of the “balanced” transparency … and most of all, FUN!

      # # #

      And so it is that I’ll need to reinforce those words from time to time, lest we get carried away that one can learn how to trade by watching a short clip.

      Don

  5. Don Miller says:

    From Harvey on the main blog site (so we consolidate all comments on the TAD site)

    I thought this was a great T.A.D episode. Thank you for all the work that goes into these episodes. This was the first time I was able to take advantage of the fact that you record your trading in HD and I was able to more easily follow what you’re doing and see how you’re doing it. I felt your explanations were very thorough and I could understand your line of thinking going into and out of your trades. Thank you again for taking your transparency to the next level!

  6. challupa says:

    hi Don – thanks for the continued posting as i feel this is the way to show how its done – am curious if there is a link to the trading platform that you are using – the high low indicator has my interest -thanks again -challupa

  7. Tony says:

    Fantastic work Don. Really, really great episode. I’m getting closer to my goal of trading full time and head to your website any time I find myself in need of some motivation and inspiration. Perhaps a dip in the Jellie tank would help that goal along ;-)

    I found myself biting my fingernails watching this episode that’s how close to the action you bring us!

    I can’t thank you enough for the effort you put into trader education. You’re a champ.

  8. Marshall Jung says:

    Don, thank you so much for continuing these videos!

    I have made such great progress incorporating your techniques. I even use this at a smaller stakes level. I believe it is entirely possible to do this using just one or two lots instead of the 5 or 10 you have in the videos.

    Do some of the new Jellies begin in this fashion as well?

  9. D. Stone says:

    Don,
    Great stuff. Of course, how could it be any other way based on your previous offerings. could you possiblyprint and label a screen shot of what we are seeing on the video. i get confused as to here he tick chart is. esspecially when you state you see ‘tick divergence’

    thx

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