• In 1973 Larry Williams published a book titled “How I
Made One Million Dollars Last Year Trading Commodities”
detailing his trading success that year. The next year he
lost the million dollars.
• Michael Marcus started with $30,000, borrowed another
$20,000 from his mother and then proceeded to lose 84%
of their combined capital (imagine trying explain that to
your Mom) before becoming a successful trader.
• In 1987 several commodity funds managed by Richard
Dennis lost 50% of their capital and were forced to stop
trading.
It is the most competitive field out there, not only we have to fight each other (yes – this is what we do), but we have to oppose enormous computing power of heartless machines turning trades in nanoseconds.
Here is a simple test if you cut to be a trader – if you can stay emotions free when you finish it – try stock betting…just don’t bet your house on it – that was a job of banksters. (Just remember – 99% of you will be better of sticking with just a test and not moving to real trading)
Step 1. Go to your bank on a windy day.
Step 2. Withdraw a minimum of $10,000 in cash.
Step 3. Walk outside and with both hands starting throwing
your money up into the air.
Step 4. After all of the money has blown away, go home
and sit down in your favorite chair and calmly say,
“Gosh that was foolish. I wish I hadn’t done that.”
Step 5. Get on with your life.
Those of you on Disqus today know that I was really jumpy and uncertain of market direction since yesterday night. In spite of thinking that market has not completely corrected I had a feeling it had to go up – and up they moved the futures in after hour during BO speech. Glad I stayed with “bigger picture” and went short /ES overnight. But in the morning my inner “bounce coming” voice made me take only 5.5 points of profit on /ES short (instead of 15) and soon after market open to close my short term long puts positions. Anyhow, you all know that there was no meaningful move up and at one point bottom fell off and QQQQ were down 3% etc…
Missed profits, but shall not be too greedy - - why am I saying what I am saying?
ALWAYS have “bigger picture” in front of you and do not change your opinion unless market proves you wrong.
Have fun now – Keirsten reminded me of that movie – that was really fun time.
Where are my disco years :)
