Two months are now in the books for 2015. Thus far it’s been a been an ok stretch, but I still feel a little out of sorts to be honest. A little apprehensive, a little depressed, a little anxious, impatient, nervous, etc. The market is right for what I had forecasted last year, but my actions are still hit or miss. I let the market get to me last year, and I haven’t quite gotten past it.
Confidence in trading is hard to come by. I’ve always had it and I let that get clouded last year with some of the difficult stretches I went through. The drawdowns I’m always able to repair, but the toll it takes on your mental game is a little more difficult to patch.
For those of you that read my stuff back in 06, I went through a similar situation. From 03-06 I went wild. Went on an incredible run. I got into 06 and every bias I had and every approach I followed went bad during the summer and I took a big hit. I repaired the drawdown in about 3 months, but my mind was rattled. Another trader I was close to had a mental coach (read: therapist) that he recommended and I actually paid her a few visits. I was that desperate.
The opportunities are improving out there, but the mood is shot. I’m in the same boat. The emotional toll that this takes on you is incredibly difficult to manage. You have to try hard not to let this shit have a lasting impact on you. You can’t take it home to see your wife. You can’t let it linger when you go out to play with the kids. You can’t let it take the emotions on the inside and wear them on the outside. Otherwise, this business can literally ruin your life.
I don’t know why I opted to write this today, other than just putting it out there to identify the emotion and work towards repairing it. Once that happens, said emotions won’t get in the way of getting into rhythm with the market.
Looking forward to a nice weekend to clear the mind. See you guys on Monday.
OA
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sit in silence, meditate, embrace the thoughts, forgive yourself. and then…
motivational speeches, epic movie soundtracks, and lots of time at the gym. work the pain out of you. has always and will always work for me.
this always gets me ready to FSU: http://youtu.be/qJdMjRHRLfg
That’s the best advice I’ve had in awhile. Ever get to the point where it kills your motivation to get in the gym?
Gym, definitely. Been struggling for the last 4-5 months.
Never. The gym is what saves me.
OA, I have those moments when you need addnl motivation just to get to gym. Take a shot of espresso/banana and ShroomTech Sport supplement 30 mts before gym. Not affiliated to ShroomTech. I just find it incredibly useful to boost my energy without crashes before and during training. Also I hope you carry some solid headphones to pipe epic music in your ears as you warm up 🙂
(p.s. Always appreciate your honesty in your blogs! Keep it up. 2015 got nothing on us :-))
If motivation does not create discipline – you have wasted the motivation. Once it becomes discipline, there’s no worrying about working up the motivation to do the work – you just do.
Refreshing, humbling and honest post. Love it. Been there and suffered there for more than once in the last 20 years in this damn business. Still would not swap it for anything else. The purity of accountability to yourself can’t be found anywhere else. Nobody else to blame, no corporate crap talk, no excuses. JUST YOU! Only strongest minds survive. I’m sure you belong to them, so fucking breathe dawg and be grateful for this job! Trade on.
I thought it was just me. Thanks for sharing.
yeah, strange market. I did well last year but started slowly this year and trying to find my rhythm. This business will grind down even the best at some point but the highs are so good it keeps you involved. It’s an addiction for me and one I can’t shake which is why I have to work my ass off or I’ll be broke!
The weird part about this market right now is everyone was looking for a break of the range and now it’s happened no one knows what to do. I’m taking on a few longs at the close as I think we rip but I also thought we would break down a few weeks ago so take it for what it’s worth.
Hear hear!
In regards to getting your mind right, a really great read tweeted by @I_BlackBetty_I earlier this month: https://hbr.org/2015/02/pronouns-matter-when-psyching-yourself-up
That’s cool!
I’ve been watching this action from afar, OA, but mad respect to you about the way you’ve helped us handle a really tough year. Last options trades for me were shorting bear wedges late last year. Been primarily getting into stock this year.
Been doing business plans, consultant work and more on the side to build liquidity until risk assets get back into vogue.
Yeah no joke that was a tough round last year, I went to 100% cash for multiple weeks and it was the right decision but also caused me plenty of self doubt, defeat, Ill never figure this out, etc. etc., Heck if anything knowing so many of you guys who are full time or nearly so and have bounced through stuff like this has made me think it is possible to make it through. That thought has made me review the fundamentals I’ve learned around here and it’s putting me on track. I head for the outdoors for recharge, run and exercise ( dude a lot of stock traders around here seem to exercise! it’s some kind of cultural theme), check out constellations in the night sky, find new reading material and exercise new “medical” licenses available in my state. Hope you bounce ok man! Good luck everyone!
Best post I’ve ever read from you, OA. I think at this point, we’re all anxious for the rug to be pulled because that was THE trade for all of 2014. Once the first dip gets bought, we’ll probably all feel better.
This has got to be one the most honest and transparent posts that I have read. I know where you are coming from as I lie in the rubble of BABA. I really respect and honor your honesty and the way you dont blow smoke up anyones , well you know. Thanks and hang tough. You will get it back,
OA, thank you for sharing. I grew up watching my father and brother (both broker whole life) going/went through process. I’ve seen some of their co-workers commited suicide. It’s not just making/losing money, but eat up mental health/life. At least you have a great wife who understands the business and phychology. Please have a joyfull weekend with your wife and kids. As long as you know what is the most important thing to you/your life, you will not lose sight. Trading is just your work and addiction, rain or shine. Whatever the condition you are in, you have so many followers and their respect. All come from your great personality and talent. I am very lucky to find you at ibc.
Life is short, enjoy it ! ( since I am much older than you, I mean it. )
Awesome post Jeff. I unfortunately haven’t always learned to leave the stuff at the trading desk. My wife hates me some days and tell me to “leave the trading stuff alone” for a while. It’s a business I love, even when I’m not doing well. Fly once wrote, “It’s hard to give up the pipe man. Real hard. But I want one more hit, one more parade down the canyon of heroes, then I’m done. I’m all done.” I’ve always remembered that for some reason.
I look forward to learning more from you as long as you do this mentoring. No matter how your trading is going personally, you are a damn great teacher.
Have a great weekend.
He who is not every day conquering some fear has not learned the secret of life.
— Ralph Waldo Emerson
Been there, done that myself. What you say is very true. Trying to claw my mojo back after a good trading career followed by two bad/lackluster years. Doesn’t take long to mess up the head game.
It happens, you will get better, soon you will be back to your usual confidence, enjoy the time with your family!
Great post.. one that every trader can identify with. It’s tough making a living in an industry where skill often isn’t enough. How many times has a perfect setup fallen prey to a stupefying analyst comment or other unforeseeable outside force. When the smartest guys in the room can’t consistently beat a dart throwing monkey one has to question the rationality of our profession. I step in and out of professional trading because the thought of supporting my family solely with trading is terrifying.
You know what would be an interesting poll… How many on this site do this for their sole income / living. I’d be really interested to see that.
Markets is at new highs,euphoria reigns,lifting all boats,my stock just spiked,yess!,I’m a trading God,holy shit now it’s down 10 percent,WTF!. Totally with ya. At least I’ve learned some trading discipline from you and tech analysis and not loading the boat to go along with my preconceived notions.Thanks and here’s to a less schizo market if that has ever existed.
HLF puts instead of call this morning would have been amazing
go HLFuck yourself
LOL. Thanks man, needed that.
picked up JRJC WUBA KNDI NAT for shits and giggles.
I love WUBA. Top 5 favorite stocks out there right now.
https://www.youtube.com/watch?v=06wGR1oOoC8
https://www.youtube.com/watch?v=KleseAAmUKw
Here’s how I think about my stock trading: gambling. To me it’s nothing but gambling. Am I trying to find an edge? Definitely. Do I play blackjack? Yes. Do I play with an edge? Yes. Do I win at blackjack? Yes. Do I win at stock market speculation? Yes. Are they the same? Yes.
My advice, learn how to count cards. Rape a casino for $20-30K. Deposit it in brokerage account. Rape the stock market. Buy shit with said winnings.
I like this.
Furthermore, since all we’re really talking about is gambling just remember that variance is a bitch, but in the long run you’re going to win because you’re playing with an edge. You’re an Advantage Player OA, and don’t ever forget it. There are very few stock market APs out there and the great thing is you’ll never be 86ed for winning too much.
bullshit.
Spock died today. Dammit. This day can’t get much worse.
Tell me this isn’t a great example of the battle bulls and bears have had over last year, with bulls being Phil Ivey. It’s time to make the bears fold for the meltup.
https://www.youtube.com/watch?v=vTx5_L7yCaE
This is a great year for making money. Traders need to take advantage of this while it lasts.
Did you buy any blood today per your recent comments?
GPRO has too many problems, listed on RC blog. The Hero 5 looks like it will sell, but is delayed.
This is a wait and see buy, not in a hurry.
But you have the unenviable position of having to trade just to keep the subs happy. I would trade differently myself given the same circumstances.
I hope it doesn’t come to that. As a sub I would rather him step aside if it looks like conditions warrant it. As private players that HAS to be part of the game. #Cashisaposition
Tough%20year%20last%20year.%20%20Index%20goes%20up%20and%20I%20did%20well%20Q1%20but%20lost%20all%205%20figures…well%2C%20I%20still%20have%20%24200.%20%20As%20much%20fun%20as%20I%20have%20doing%20it%2C%20not%20going%20to%20reload%20the%20account.
Real Talk. This is why I keep coming back. I’m getting the expensive education to hopefully completely exploit the easier environments come along to recoup all that lost capital and opportunities the last year and a half has been. This shit is getting old.
Holding ITM March puts on NFLX AAPL AMZN QQQ IWM
Holding March calls on DDD CROX ECYT LOCO MBLY SSYS TSLA YOKU
Holding April calls on JMEI WB
OA, You’ve taught me patience you’ve taught me set ups, you taught me to manage my wrist and you’ve taught me to let my Winners Run, though you’ve yet to teach me anything on the basketball court I look forward to that day but since that day is not today I remind you to trade the way you trade not be pressured by the other subscribers it’s your money you are the master so keep leading, and a if leading means you hold a lot of cash Until a great set up comes, I for one will be grateful when you lead us to the next retirement event like Bear Stearns now quit putting so much pressure on yourself… Amen
Only remaining thing for OA to teach you is punctuation.
Thanks for the honesty, Jeff. Great demonstration of why I’m in AHWOA and 12631 (big ups to RC, as well). I really appreciate your willingness to share your frustrations, as I’m sure we all do, because everyone goes through this – I’m relatively new, but it just seems to be part of the sport. Incidentally, you’ve been killing it lately, so stay confident and keep on keeping on.
+1
buy NUGT fools
you wrote this because you watched some house of cards
Haven’t seen it yet.
Aww come on we can’t poke some fun at a little 2 hour trade gone bad? Lighten up halloweenpleb.
Nice post Jeff
Freebie…man…it was a stinker.
Have a good weekend.
Full disclosure: awesome honest post.
Rare.