I trade primarily futures and primarily from the short side.  Here’s the equity curve YTD:

YTD the above represents a 13.4% cash return (backing out all commissions, data charges, etc.).  The S&P 500 is up 12.6% on a cash basis and 14.9% including dividends so I’m hanging right in there with the index which, while nice, isn’t what I’m shooting for (obviously).

Couple Things I’ve Learned

1. To trade successfully you have to develop some way to extract $’s from the market.  Everyone does this differently and no one will really share things that are working until they don’t work consistently anymore.  So, you are largely on your own.  There are some books that can help a bit, but making money is up to you and the ideas you can bring to the table.  Make your rules and stick to them, they will save you from yourself.
2. You can’t give up, otherwise you’ll never get profitable.  But, you have to know when to stop and get out of a losing trade otherwise you’ll destroy yourself (mentally, physically and financially).  Its the ultimate irony – you have to have the ‘never give up’ personality type to actually win the game, but you have to learn to ‘give up’, change horses, ‘sell the loser’, or change course when you have to, otherwise you end up with – literally – nothing.  Trading is mostly about mastering yourself and in that, I think, there are some very interesting life lessons for everyone.

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