The Hunter

Dear Trading Diary,

You don’t have to be in the market all the time!  You’re not managing millions, much less billions of dollars.  Stop using large portfolio management strategies.  Small size offers you nimbleness, and THAT is your edge.

All trading ideas are not created equally.  Leverage the hell out of the high conviction ideas and simply dip your toes into the low conviction ideas; allow your confidence and position size to grow when your thesis begins to play out.

Learn to sit on the edge of the forest whilst overlooking the hunting grounds.  Wait for the moment when your high conviction setup whispers softly in your ear, “take me”, then ATTACK.  Chase the majestic metaphorical gazelle down and when you bite down into her flesh, go for the kill because being a bloodthirsty beast is in your nature.

Notice however, those sweet moments when you’re feasting on your prize, and your account magically swells in an almost alarming manner.  Notice those blissful moments when you become shocked by the amount of leverage in your positions, more so now that they’ve multiplied in size – since all your trades are working…

Those are the moments to take your prize out of the field, for other hunters are on the prowl and buzzards are now circling overhead.  Cash out in those extreme moments. Get used to your new account size.  Take a day (or week, or month) off while you regroup, rest your mind, reload, and get ready to hunt again.

Happy hunting,

@dyer440

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