Ok, so my flight was interesting. At the last second the departure gate was changed from gate D11 to C7 and my seat was changed from 13E to 7E. I swear that number is intrinsically woven into my life. I'm not superstitious, so to me it's really just a number, but I've had so many directly awesome things revolve around it.
So, later on in the evening after landing and getting the rental car, there was an error in google searching the hotel address. It routed me all the way out of the city and then I realized the hotel was actually very close to the rental car place. By the time I got back the Odometer was 3,777 miles LOL.
Anyways, I found myself later that night at a local bar sitting across the table from a guy who had already had way too much to drink and we had started talking about trading. The conversation started off interestingly enough, but at one point things turned and He straight up declared that it's mandatory that I know what the black sholes model is if I'm going to be trading.
A little back story though, when I told him I was getting into algorithmic trading he said he used to be a day trader, and that He "had a good run", but is now doing some "real estate thing". I have met several people in my years who have "Been" a trader at one point or another and I could tell by the way he spoke about his "Good run" that he more than likely got his ass handed to him like most people. The way he was so bitter in the conversation about trading was just more evidence. If you are actually successful in the worlds most amazing business, you don't just walk away from it after being one of the 5% that actually make a good profit. You don't go from the fully liquid equities market, to illiquid assets like real estate. And furthermore, you don't refer to trading as "Gambling" in a bitter demeanor, that really doesn't make your former success believable. (Although yes, I do consider trading a form of gambling, that doesn't mean there aren't self controlled professional gamblers that make a comfortable living at it.)
Anyways, when I told him I had heard of the Black Sholes model before but didn't ever take the time to learn what it was, his drunk eyes turned black (like that shark in Finding Nemo) and he hunched over the table and told me (As if I'd just spit on his mother's grave) "You have to know what the Black Sholes model is if you're going to trade. Period"
And that's when the conversation really turned sour on the inside, but I could tell he was trying hard not to let it spill over to the outside. I asked him what the Black Sholes model was, because I was partly pandering to his insistence and partly deeply curious about it. All he could say was basically "It's a formula for analyzing options to arrive at a stocks true value" and I knew right then and there it didn't apply to me. Why? Because he was talking specifically about stock options, and I don't have anything to do with that. I found it hilarious that he insisted I needed to know this, yet didn't actually explain to me what it was... He tried to explain what options were to me, because he must not have believed me when I told him I knew, and yet somehow I ended up finishing his sentences ;)
I am a pretty clear speaking man, so I told him what I truly thought. I told him that I think people that don't truly grasp trading tend to think religiously about a method; like there is only one way to make money and that if you aren't doing it their way you're going to fail, or that it just doesn't work. I told him that the age old CTFC warning of "Past results are not indicative of future performance" is total bullshit, and that all we have to go by in this world is past performance to mold our expectancy around. I told him I don't give a shit about the method, over the data, and that to me data is all that matters. He even tried to tell me that trading is a "Zero-Sum" game (Meaning that for every loser there is an equal winner) and I'm pretty sure I stepped on his feelings when I corrected him that it was a "Minus-Sum" game because of slippage and commissions, to which he laughed as if that somehow doesn't make it what it is. And yet one of peoples biggest concerns is trading costs...
Anyways, after a heated discussion about trading he ended with the usual "Well I wish you the best of luck" Which is really meant as "I can't wait to hear that you failed, because if I couldn't do it, I know you can't do it!"
Well... I don't need luck. I need a winning strategy backed up by loads of viable data, and the discipline to enact that strategy with immovable belief even in the face of inevitable draw down.
I'm not for one moment claiming I'm going to make it, but hell, in the six months I have been home I've already out-traded 95% of people simply by still having almost 100% of my capital. I've done leaps and bounds better than I have in the past. I've had the discipline to not tamper with my trading robot, and I've not taken any giant losses in my discretionary account like I have in the past.
I still have room to improve and always will. I don't think I'll ever permanently get "There" because growth is a constant battle and the road is circular. Habits are constantly in the making. And if at the end of the day I can't get profitable, I'll have to come to accept that. But for now, it's still too early to call it, and too early to give up, no matter who thinks I can't make it.
How can I honestly take someone's negativity personally when I know they are part of the masses who often never hold any disciplines that require the true hard work of inner development? Of course they are going to be negative, it's the easiest thing in the world to do. Especially when the best examples they get of human triumph are from the movies instead of their own lives? And when the truths they get about trading are from the twisted media and stories of failure from a "Friend of a friend who knew a guy".
Showing posts with label trading. Show all posts
Showing posts with label trading. Show all posts
Monday, December 21, 2015
Monday, November 24, 2014
You against the World...
You know what I am tired of hearing?
In pretty much any documentary, video or article about trading, someone always says that a trader is "pitting themselves against the very best in the world".
Boy, that sounds really challenging doesn't it? It sounds fucking epic, like the lone Frodo and his journey to destroy the ring... But the reality is, for pretty much everyone, that statement is total bullshit. You are not against the best in the world... You are not even against the worst in the world... you are only against your own character. You are only trading against your own preparation, or lack thereof.
It wouldn't matter if Albert Einstein were on the other end of your trade, because trading is about risk management and probabilities over a long period of time. If you enter a trade and it moves against you, it doesn't matter why it moved against you at all. The only thing there is to trade, is price. Sure, there are giant banks that can place trades that move the market, but that still has nothing to do at all with the challenge you face internally and whether or not you have a plan to follow with a long term edge. Price is price is price, and you must take full responsibility for your actions as a trader.
Are there really smart people out there who also happen have the power to manipulate the markets in their favor? Yes. Does that mean you are "Pitted against them"? No. If they move the market against you, then your risk management will protect you and make you profitable in the long run. If they move the market in your favor, then your risk management will tell you when to exit your trade at a profit. And you will be profitable in the long run.
There are no enemies in the market. Period. No one is out to get you, and even if they feel like they are out to get you, they can't because you are alone. The anthropomorphizing of the market into this evil genius monster out to get you is just bullshit. You alone decide when to enter, and you alone decide when to exit. And no one is responsible for your success or failure but you. Just because traders like to talk about taking the "Dumb money" out of the accounts of other traders when we take profits doesn't mean there is any real validity to it. We are all going to win some and lose some. The only real difference is that the "Dumb money" has no plan and no risk management in place to survive a losing streak, sometimes not even their first trade. That is what makes it dumb money to begin with, not because we are taking profits.
Think of it this way; Casinos have a long term edge. They deal strictly with quantifiable risk models and know exactly how much of an edge each of their games has over the long run. They can tolerate handing out jackpots because they know it is literally the cost of doing business. If no one ever won a jackpot at their casino, [Trading] volume would dry up and they would be out of business. When someone wins a jackpot, it's the best advertising event for them, because the allure of winning will attract other patrons. In the casino where the odds are fixed and predetermined, does it matter who sits down at the table? Does it really matter who owns the casino or who is dealing? No, because the numbers are the numbers. It's you versus the numbers, not the monsters or the geniuses or the clichés.
However, as easy as it might seem to make a profit as a Casino because of the long term edge, it is still very important to assess risk. Lets take a simple game of roulette for example. One type of bet you can place on the board is a simple black or red bet. The wheel itself has 36 alternating red and black number slots and 1 extra green zero. If you were to consistently bet that the ball will land in a black number slot your odds of success are 48.65%. That's an almost 50% chance of winning with each spin of the wheel.
One who had the capital to trade a Martingale risk profile, (Where each loss that is incurred causes the player double their risk) would eventually see the ball land in a black number slot on the wheel. If your pockets are big enough, you will never lose at this game. The problem is, the casinos know this and can mitigate this risk by instituting one or both of the following: A minimum bet size that is pretty large, requiring ridiculous capital to constantly double the bet size, and a Maximum bet size, which is far more protective. The player could no longer double his risk at a certain point.
Risk assessment, and management are the key things to surviving and thriving. The beautiful news is that you can be the casino when it comes to trading, but it starts with thinking long term. You can determine the maximum bet size and limit your drawdown in any one particular game. You can even lower the bet size when the odds are not in your favor or close your table for the time being altogether. You don't have to payout a giant jackpot to attract participants to stay in business either, there are and will continue to be plenty of poorly managed home based casinos that can't help but do it.
In pretty much any documentary, video or article about trading, someone always says that a trader is "pitting themselves against the very best in the world".
Boy, that sounds really challenging doesn't it? It sounds fucking epic, like the lone Frodo and his journey to destroy the ring... But the reality is, for pretty much everyone, that statement is total bullshit. You are not against the best in the world... You are not even against the worst in the world... you are only against your own character. You are only trading against your own preparation, or lack thereof.
It wouldn't matter if Albert Einstein were on the other end of your trade, because trading is about risk management and probabilities over a long period of time. If you enter a trade and it moves against you, it doesn't matter why it moved against you at all. The only thing there is to trade, is price. Sure, there are giant banks that can place trades that move the market, but that still has nothing to do at all with the challenge you face internally and whether or not you have a plan to follow with a long term edge. Price is price is price, and you must take full responsibility for your actions as a trader.
Are there really smart people out there who also happen have the power to manipulate the markets in their favor? Yes. Does that mean you are "Pitted against them"? No. If they move the market against you, then your risk management will protect you and make you profitable in the long run. If they move the market in your favor, then your risk management will tell you when to exit your trade at a profit. And you will be profitable in the long run.
There are no enemies in the market. Period. No one is out to get you, and even if they feel like they are out to get you, they can't because you are alone. The anthropomorphizing of the market into this evil genius monster out to get you is just bullshit. You alone decide when to enter, and you alone decide when to exit. And no one is responsible for your success or failure but you. Just because traders like to talk about taking the "Dumb money" out of the accounts of other traders when we take profits doesn't mean there is any real validity to it. We are all going to win some and lose some. The only real difference is that the "Dumb money" has no plan and no risk management in place to survive a losing streak, sometimes not even their first trade. That is what makes it dumb money to begin with, not because we are taking profits.
Think of it this way; Casinos have a long term edge. They deal strictly with quantifiable risk models and know exactly how much of an edge each of their games has over the long run. They can tolerate handing out jackpots because they know it is literally the cost of doing business. If no one ever won a jackpot at their casino, [Trading] volume would dry up and they would be out of business. When someone wins a jackpot, it's the best advertising event for them, because the allure of winning will attract other patrons. In the casino where the odds are fixed and predetermined, does it matter who sits down at the table? Does it really matter who owns the casino or who is dealing? No, because the numbers are the numbers. It's you versus the numbers, not the monsters or the geniuses or the clichés.
However, as easy as it might seem to make a profit as a Casino because of the long term edge, it is still very important to assess risk. Lets take a simple game of roulette for example. One type of bet you can place on the board is a simple black or red bet. The wheel itself has 36 alternating red and black number slots and 1 extra green zero. If you were to consistently bet that the ball will land in a black number slot your odds of success are 48.65%. That's an almost 50% chance of winning with each spin of the wheel.
One who had the capital to trade a Martingale risk profile, (Where each loss that is incurred causes the player double their risk) would eventually see the ball land in a black number slot on the wheel. If your pockets are big enough, you will never lose at this game. The problem is, the casinos know this and can mitigate this risk by instituting one or both of the following: A minimum bet size that is pretty large, requiring ridiculous capital to constantly double the bet size, and a Maximum bet size, which is far more protective. The player could no longer double his risk at a certain point.
Risk assessment, and management are the key things to surviving and thriving. The beautiful news is that you can be the casino when it comes to trading, but it starts with thinking long term. You can determine the maximum bet size and limit your drawdown in any one particular game. You can even lower the bet size when the odds are not in your favor or close your table for the time being altogether. You don't have to payout a giant jackpot to attract participants to stay in business either, there are and will continue to be plenty of poorly managed home based casinos that can't help but do it.
Tuesday, November 11, 2014
You don't have to hit home runs all the time.
Heading back out today, so I won't have access to my laptop/Robot.
My whole point of trading this robot right now is to see how it works and gather data. I don't know if it will be successful long term or not, so although lately it has looked like a walk in the part to make money with it, only a small sample of time has passed. It takes a long time to be a part of every market condition, and even then, the market is still dynamic and can do anything at any time.
Here is what has developed since I reset the placement of the robot last night. Not a whole lot, but two losses so far, so I doubled the risk factor.
Last time, I mentioned that it took a profit ratio of 10:1, but my goal this time is to simply leave the robot open while i am out of town just to see if the market can move a good distance away and rack up a serious winner. Why? simply out of curiosity.
There really is no need to rack up a home run winner if I every time I reset the robot I can pull consistent tiny profits out of the market that keep me profitable. I think it is unrealistic and counter productive to always be looking for home runs.
It filters common sense out of your mind and keeps you from taking decent profits when they are there, letting them often turn into losers and digging your hole deeper and deeper because you didn't close it with the profit the market made available to you.
My whole point of trading this robot right now is to see how it works and gather data. I don't know if it will be successful long term or not, so although lately it has looked like a walk in the part to make money with it, only a small sample of time has passed. It takes a long time to be a part of every market condition, and even then, the market is still dynamic and can do anything at any time.
Here is what has developed since I reset the placement of the robot last night. Not a whole lot, but two losses so far, so I doubled the risk factor.
Last time, I mentioned that it took a profit ratio of 10:1, but my goal this time is to simply leave the robot open while i am out of town just to see if the market can move a good distance away and rack up a serious winner. Why? simply out of curiosity.
There really is no need to rack up a home run winner if I every time I reset the robot I can pull consistent tiny profits out of the market that keep me profitable. I think it is unrealistic and counter productive to always be looking for home runs.
It filters common sense out of your mind and keeps you from taking decent profits when they are there, letting them often turn into losers and digging your hole deeper and deeper because you didn't close it with the profit the market made available to you.
Wednesday, November 5, 2014
Last night was a little too fun
Well, last night was fun and therapeutic. I got to express a story I hate all but forgotten, and in the middle of it tied into trading. yay :)
woke up about 3 times in the middle of the night / morning with a hangover. filled my tummy with some solids and drank some water, went back to bed. I'm currently feeling way better, that was the first hangover I've had in a long long time. I suppose a whole bottle of wine to yourself is not the greatest idea.
this is that trade I was telling you the other day that I thought would continue going down and it looks like it might be starting to do that now. I actually added a third position for 2,000 more units of currency later today.
and this trade which is the euro dollar, I just might have to take a loss on this one but I'm very curious to see what it does. as you can see the loss is larger because the size of the trade is three times larger.
So, now my night is over and I was like, "You know what? I'm going to get the graphics card I'll eventually need for my trading when I stay home and trade". (For an extra monitor) So I walk into "WorstBuy" and take a look at the card I have been thinking about for months now. I have held off getting it simply because I am a cheapskate and even when I do spend money on myself I feel buyers remorse usually... Games and things that last, like graphics cards, not so much. Here is the card I've been interested in for months now..
So I paid 200 bucks and walked back to my truck smiling :) Opened up the box, opened up my computer, and my smile slowly turned to a confused look as there were no power pins coming out of my power supply to hook it up! I spent 20 minutes on my phone in the store comparing and double checking shit and when I finally crack open the box there's no power hook ups!
So, I get on the net and realize I'll have to not only buy a brand new power supply, because the mother board on my gateway uses a freaking proprietary 12 pin connector instead of the 24 pin like most, I'd have to buy random parts and make the connection manually... so fuck that. I then googled the best performing card that doesn't need external power and found this card:
I recall that it was in the store for $159.99 so now I have to wait till 10am when they open to exchange them. Apparently it supports up to 4 displays and its not terribly worse in performance compared to the other card. I mean, in the end its basically $100 cheaper considering the extra cost of a power supply and wiring kits to get the other one to work... I think if I get another computer I'm just going to build it myself.
Take care and I'll update you tomorrow!
-Francisco
woke up about 3 times in the middle of the night / morning with a hangover. filled my tummy with some solids and drank some water, went back to bed. I'm currently feeling way better, that was the first hangover I've had in a long long time. I suppose a whole bottle of wine to yourself is not the greatest idea.
this is that trade I was telling you the other day that I thought would continue going down and it looks like it might be starting to do that now. I actually added a third position for 2,000 more units of currency later today.
and this trade which is the euro dollar, I just might have to take a loss on this one but I'm very curious to see what it does. as you can see the loss is larger because the size of the trade is three times larger.
So, now my night is over and I was like, "You know what? I'm going to get the graphics card I'll eventually need for my trading when I stay home and trade". (For an extra monitor) So I walk into "WorstBuy" and take a look at the card I have been thinking about for months now. I have held off getting it simply because I am a cheapskate and even when I do spend money on myself I feel buyers remorse usually... Games and things that last, like graphics cards, not so much. Here is the card I've been interested in for months now..
So I paid 200 bucks and walked back to my truck smiling :) Opened up the box, opened up my computer, and my smile slowly turned to a confused look as there were no power pins coming out of my power supply to hook it up! I spent 20 minutes on my phone in the store comparing and double checking shit and when I finally crack open the box there's no power hook ups!
So, I get on the net and realize I'll have to not only buy a brand new power supply, because the mother board on my gateway uses a freaking proprietary 12 pin connector instead of the 24 pin like most, I'd have to buy random parts and make the connection manually... so fuck that. I then googled the best performing card that doesn't need external power and found this card:
I recall that it was in the store for $159.99 so now I have to wait till 10am when they open to exchange them. Apparently it supports up to 4 displays and its not terribly worse in performance compared to the other card. I mean, in the end its basically $100 cheaper considering the extra cost of a power supply and wiring kits to get the other one to work... I think if I get another computer I'm just going to build it myself.
Take care and I'll update you tomorrow!
-Francisco
Monday, November 3, 2014
Rules VS Principles
Ah, Monday. The crackle of life springs into the business world and many smiling people head off to work, eager to enjoy the ever slower movement of the vehicles in front of them :)...
Wait, wait... no. It's the people like me that enjoy Monday mornings, at least this one because I got to wake up, be super tired, and go right back to sleep again :) Now here it is 12:58 in the afternoon in New York (state) and I am just chilling. I just treated myself to some Arby's and yes, that is a treat for me. Usually it's free because I fuel enough to get free food, but I shelled out my own cash today just because. And like usual, I swiped the card without even paying attention to the total.
On the one hand that is an irresponsible mentality, yet on the other, it is a freedom and I love not even for a moment considering the cost in a situation like that. That reminds me of another thing I love NOT doing, considering the time. Years ago I read a book called "Something you should know" by Clement Watt. In the book he urges one to forget about time altogether, as it enslaves the mind of the person watching the clock. So, I took his advice and have since then been more and more free to simply enjoy the moment. I have taken it a step further and usually don't know or care what day it is, day or number wise... It's pretty fucking awesome.
On to the next thought now. I figured today I would talk a little about some trading shit. Not sure exactly what but I have some charts I want to show you and some things I want to say about them. To the average person who knows nothing about trading and thinks its all confusing magic and super smart people on wall street... its really not that at all. You don't have to be "Smart" to trade, but something different. You'll see as I will explain a lot over time. For now just don't concern yourself with any other thought besides this: Trading is simple swapping the value of something for the value of another thing. It's that simple and need not be a more complex thought in your mind right now. So, as you look at these charts, don't worry about what the chart is for, just look at is as a history of the change in the value of something.
These images are from my phone so... yeah, but anyhow this chart shows 2 red triangle/arrow things pointing down. Those are the points Canadian dollar.
Wow... I already feel pretty irresponsible for sharing a chart without covering some things first haha! I think the reason I feel this way is because I was on a trading Forum last night reading in the "Newbies" section and it was so filled with garbage it literally started to piss me off...
A few things have really upset me lately.
#1 Taxes. How much you have to pay, and you don't even decide where the hell they go... but lets not get into the government and politics.
#2 I ride a streetbike and have been shifting without the clutch for about 50k miles. I have been hearing total idiots on YouTube talk about how shifting without the clutch will screw up your transmission... It has become a seriously aggravating thing to me because these people obviously don't know what they are talking about. It's gotten to the point that I am pretty sure I am going to produce a very in depth video explaining it for all the myth spreading egg heads out there.
#3... seeing just how many people want the quick way to riches in trading... it just doesn't exist except for the few who get lucky in a spectacular way by being part of a huge move they are uneducated enough to even understand. people just want a sure-fire, "Never lose" approach to the markets and trading, but it doesn't exist for the average person.
For example this post Post your mistake here These people don't even realize that the "Mistake" that they are making, is entirely how they are approaching the market to begin with. I think I'd like to take some time eventually and work on a post or several posts explaining each persons line of thinking and how it is the thinking itself that is the problem rather than specifically the action they think is the problem.
Back to charts.
Wait, wait... no. It's the people like me that enjoy Monday mornings, at least this one because I got to wake up, be super tired, and go right back to sleep again :) Now here it is 12:58 in the afternoon in New York (state) and I am just chilling. I just treated myself to some Arby's and yes, that is a treat for me. Usually it's free because I fuel enough to get free food, but I shelled out my own cash today just because. And like usual, I swiped the card without even paying attention to the total.
On the one hand that is an irresponsible mentality, yet on the other, it is a freedom and I love not even for a moment considering the cost in a situation like that. That reminds me of another thing I love NOT doing, considering the time. Years ago I read a book called "Something you should know" by Clement Watt. In the book he urges one to forget about time altogether, as it enslaves the mind of the person watching the clock. So, I took his advice and have since then been more and more free to simply enjoy the moment. I have taken it a step further and usually don't know or care what day it is, day or number wise... It's pretty fucking awesome.
On to the next thought now. I figured today I would talk a little about some trading shit. Not sure exactly what but I have some charts I want to show you and some things I want to say about them. To the average person who knows nothing about trading and thinks its all confusing magic and super smart people on wall street... its really not that at all. You don't have to be "Smart" to trade, but something different. You'll see as I will explain a lot over time. For now just don't concern yourself with any other thought besides this: Trading is simple swapping the value of something for the value of another thing. It's that simple and need not be a more complex thought in your mind right now. So, as you look at these charts, don't worry about what the chart is for, just look at is as a history of the change in the value of something.
These images are from my phone so... yeah, but anyhow this chart shows 2 red triangle/arrow things pointing down. Those are the points Canadian dollar.
Wow... I already feel pretty irresponsible for sharing a chart without covering some things first haha! I think the reason I feel this way is because I was on a trading Forum last night reading in the "Newbies" section and it was so filled with garbage it literally started to piss me off...
A few things have really upset me lately.
#1 Taxes. How much you have to pay, and you don't even decide where the hell they go... but lets not get into the government and politics.
#2 I ride a streetbike and have been shifting without the clutch for about 50k miles. I have been hearing total idiots on YouTube talk about how shifting without the clutch will screw up your transmission... It has become a seriously aggravating thing to me because these people obviously don't know what they are talking about. It's gotten to the point that I am pretty sure I am going to produce a very in depth video explaining it for all the myth spreading egg heads out there.
 |
| My Bike |
#3... seeing just how many people want the quick way to riches in trading... it just doesn't exist except for the few who get lucky in a spectacular way by being part of a huge move they are uneducated enough to even understand. people just want a sure-fire, "Never lose" approach to the markets and trading, but it doesn't exist for the average person.
For example this post Post your mistake here These people don't even realize that the "Mistake" that they are making, is entirely how they are approaching the market to begin with. I think I'd like to take some time eventually and work on a post or several posts explaining each persons line of thinking and how it is the thinking itself that is the problem rather than specifically the action they think is the problem.
Back to charts.
As you can see both I took 2 positions on this trade and on this screenshot both of them happen to be at a profit. This particular method of trading is what beginners tend to do, which most of the experienced people tend to shun. Adding to a losing position is basically breaking one of the cardinal rules to profitability, however, there are so many ways to trade profitably.
There is a stark difference between principles and rules. Principles exist for the guidance towards what is "Right" or "best" and we often create rules out of the desire to have the path strictly adhered to. The problem is, rules do not often allow for flexibility in a dynamic world. For instance, a stop sign is a rule that says "You must stop here before proceeding". The very existence of the stop sign came from the principle of safety at intersections. In a crowded city intersection, it makes a lot of sense to stop at that stop sign each time, because the chances are higher that a car will be coming from the adjacent street into the intersection.
Now lets imagine a deserted intersection out in the middle of nowhere. You are approaching that intersection and even from a mile away can see in all directions that there is no traffic at all. It''s just you, approaching a stop sign. Now the entire reason that stop sign is in place is for the principle of avoiding a collision, but the rule that says you MUST stop at every stop sign, provides for no flexibility even in this case where you can clearly see it would be harmless and completely safe to roll through the stop sign.
There are basically two types of people in this world when it comes to a situation like this. There are those who will follow the rule, because the rule is the rule, and there are those who will break the rule because they understand the basis of that rules creation. For example, as a truck driver I see a lot of signs that say "No trucks allowed in left lane". These are almost always right before a mountain climb. Now, the rule is "No trucks in left lane", but what do you think the principle behind that rule is?
The principle behind having no trucks in the left lane while climbing a mountain at least partly involves the fact that a loaded truck weighing 80,000 lbs will not be able to maintain a safe minimum speed and will thus block the flow of traffic. Some climbs will easily slow a truck down to 25 mph, and being stuck in the left lane when the flow of traffic should be moving at 65 mph is a pretty annoying and unnecessary. Now, once again we are faced with two different types of people. Those who give more respect to the rule than the principle and those who do not.
If I am empty, and I know I can maintain my speed through a climb, I will pass slower trucks in the left lane because I am not violating the principle behind the rule. Make sense?
The problem with most people in life and in trading, is that they want a set of rules to follow that will lead to success, but they fail to realize that stiff rules are often not robust enough to take them to what they want in a dynamic world. College doesn't equal a great paying job and a trading system that works for someone else doesn't mean it will work for you. Becoming a person who sees and understands the principle of things is what sets many struggling people apart from the successful ones.
So, even though its heresy to add to your losing positions in the religion of trading, if done under the right principles it can lead to overall profitability. I'll get into how you can manage that later.
Here is that same trade from earlier now at a loss because I have not yet exited. My conviction is that it will go lower. I will keep you updated on how that is going.
The is a trade from awhile ago that is quite unprofitable and I may let it go.
As I stated before, there are many ways to trade the markets. I did say that right??? I don't use nor have an interest in using them all, but I think it would be good fun to explain some of the ways I am aware of so that you can see the beauty in the Art of trading. These charts show only one way and I will explain that at a later time :) Enjoy your Monday and I will see you tomorrow hopefully!
-Francisco
Newburgh, NY
Sunday, November 2, 2014
Living quarters and the porn brain training
Good evening!
Man, lots and lots of thoughts go through my mind throughout the day and I just don't get them down to share here...
The funny thing going on inside me right now, is that I am excited to post charts and details of my actual progress, but I am not really all that excited to cover the basics because they are so old to me. But, at the same time I want to approach this as if you don't really know a damn thing about trading, just that you think you want to do it, so you need the gritty details right? Hell, even if you just want to watch me fail miserably, it will help you to laugh harder if you understand it maybe ;P
That means I need to be a nice guy and battle through my desire to not explain all of that, so I'll give it a shot.
I was thinking today that I'd like to include as much visual information in this blog as possible. Words are alright, but pictures really add a whole new element. I recently went to dinner with a friend for sushi and when I looked at the menu I was like "Oh no, it's only words! I need pictures!"
Little tidbit about me, I think I browse enough porn that I have trained my brain to know in a fraction of a second what I like in an image or a gallery. And to be clear, when I use the word porn, it generally means galleries of lingerie type images. But whatever...
Back to the point I was making, I think that over time, my mind has become so visual based that I look at the words on a menu and cannot get my brain to make sense out of them. I mean, I see the words, but the ingredients just don't produce a visual in my mind or any type of thing I can relate to at all to make a decision. It has become something I really have to put a lot of effort into. So, I tried reading the menu and eventually put enough focus into it to comprehend and build a visual of what it was telling me.
How pathetic does that sound?! But it is true. It's like I trained my brain to be so good visually that I lost my abilities textually in a certain sense. (on a side note, if our husband is having trouble with word menus, its time to check his browsing history)
So, I might just mix it all up. A little graphical explanation of shit you don't understand, then later on explain it. It's all way freaking simple anyways, but it's the not knowing that allows for a lot of the complication.
Here are a few pictures I just took for you! My dinner. soup because I just recently had bone graft surgimus in my mouf.
Damn, I have taken for evers just to write this post! I'll do my best to be back tomorrow and continue on :)
Man, lots and lots of thoughts go through my mind throughout the day and I just don't get them down to share here...
The funny thing going on inside me right now, is that I am excited to post charts and details of my actual progress, but I am not really all that excited to cover the basics because they are so old to me. But, at the same time I want to approach this as if you don't really know a damn thing about trading, just that you think you want to do it, so you need the gritty details right? Hell, even if you just want to watch me fail miserably, it will help you to laugh harder if you understand it maybe ;P
That means I need to be a nice guy and battle through my desire to not explain all of that, so I'll give it a shot.
I was thinking today that I'd like to include as much visual information in this blog as possible. Words are alright, but pictures really add a whole new element. I recently went to dinner with a friend for sushi and when I looked at the menu I was like "Oh no, it's only words! I need pictures!"
Little tidbit about me, I think I browse enough porn that I have trained my brain to know in a fraction of a second what I like in an image or a gallery. And to be clear, when I use the word porn, it generally means galleries of lingerie type images. But whatever...
Back to the point I was making, I think that over time, my mind has become so visual based that I look at the words on a menu and cannot get my brain to make sense out of them. I mean, I see the words, but the ingredients just don't produce a visual in my mind or any type of thing I can relate to at all to make a decision. It has become something I really have to put a lot of effort into. So, I tried reading the menu and eventually put enough focus into it to comprehend and build a visual of what it was telling me.
How pathetic does that sound?! But it is true. It's like I trained my brain to be so good visually that I lost my abilities textually in a certain sense. (on a side note, if our husband is having trouble with word menus, its time to check his browsing history)
So, I might just mix it all up. A little graphical explanation of shit you don't understand, then later on explain it. It's all way freaking simple anyways, but it's the not knowing that allows for a lot of the complication.
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| soups |
 |
| Where I lay my head. this bed is actually mega comfy! |
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| My 73 inch tv and XBOX |
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| Mess of cords and a banana that is ripe for the mushing in my mouth! |
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