Hey there! I hope you are having a fantastic weekend. WEEK 45 is in the Books! This has been an absolute amazing Journey to this point. It's not the destination that counts...it's the Journey. NOT FOR ONE FUCKING DAY DID I DOUBT MYSELF. I know that Trading is a long life pursuit. Every day is a mere reflection of my level of development. This upcoming week I am getting Stock To Trade back. It's been a while without this powerful tool, but I can't hold off any longer. I can't be a coupon clipper. I can't cheap out on my education. The money I spend on Education is negligible compared in the Long Run. The Market is a far superior force. I need to have all of the odds on my sidelines.
This past week there were numerous plays where gifts from the Markets. Human nature never changes. Shorts were primarily the cause of a few of the run-ups. For instance, $LJPC was another classic Friday Short Squeeze. Make sure you check out the full Analysis of $LJPC in the Link above. There is a lot on Scan for this week, but I will discuss each Ticker. I have my eye on a few. For Example, $PRED is an OTC that has become overextended. I'm aiming for a momentum reverse, which I'll discuss in the video recap.
Once again the links can be found above. Have a Great Week Ahead!
Below are Two excerpts from "The Market Wizards" by Jack Schwager. Both are from two Different Traders, but both have a similar Mind-Set. This book has drastically been close too heart since I began this Journey. Surprisingly this was the Second Book I read, which perhaps was a great thing. As it shifted my Perspectives about the Market ever since. Ed Seykota perhaps one of the greatest traders of all time, unknown by the mass media. Seykota mentioned in Schwager that "Everybody gets what they want out of the market." At first, I was confused, but as my Trading journey progressed I understood Seykota's comment. Secondly, Marty Schwartz, a Champion Trader had great insights about the idea of loosing which I will share today. In my Opinion "The Market Wizards" collection is must-read for any Serious Trader. It's a Gem. Enjoy
Schwager: What are the elements of good trading?
Seykota: The elements of good trading are: (1) cutting losses,(2) cutting losses, and (3) cutting losses. If you can follow these rules, you may have a chance.
Schwager: Why do most traders lose Money?
Schwartz: Because they would rather lose money than admit they're wrong. What is the ultimate rationalization of a trader in a losing position? "I'll get out when I'm break even." Why is getting out even so important? Because it protects the ego. I became a winning trader when I was able to say, "To hell with my ego, making money is more important."
Schwager: What is the best advice you can give to the ordinary guy trying to become a better trader?
Schwartz: Learn to take losses. The most important thing is making money is not letting your losses get out of hand. Also, don't increase your position size until you have doubled or tripled your capital. Most people make the mistake of increasing their bets as soon as they start making money. That is a quick way to get wiped out.
Schwager, Jack D. Market Wizards: Interviews with Top Traders. John Wiley & Sons, 2013.
Update: This past week has been amazing. I'm looking forward to yet another amazing week. As this week I will be getting my old Friend back. It has been too long, but I've waited long enough. I can't be a coupon clipper. I can't cheap out on my education. In the long run, it will matter. Today I went to the river with Family, had an interesting conversation. I won't tell but just ask later on. I just can't stop. I'm Obsessed with the Markets. I've come this far.I can taste it. One day at a time.