Sticking To Logic

Raul3 Thu Jan 29, 2015 4:28pm EST 2 Comments

Emotions are the caveat emptor to mistakes in trading. It is okay to have emotions—they are the passion fuel that drives us through life. The key is astute awareness and childlike curiosity for their nature.

It can be difficult to clear the haze and demonstrate objective judgment, but I find numbers and mathematics help quite a bit. You see, mathematics are the international language of logic. They are cold truth. To ignore them would be at your own peril.

Therefore, when the battle becomes heated, it is my fiduciary duty to lean on the logos of numbers.

Let me share a story with you. Marked on my chart during the Weekly Strategy Session was a certain “naked VPOC” dating back to January 16^th. These areas tend to be revisited. On Monday, when I was presenting auction theory to the After Hours with Option Addict crew my charting computer went BSOD and I had to perform a hard reset. When it came back live my weekend work had been omitted from the charts.

Though I thought I was diligent in marking them back up Monday night, deep into the hours with burning eyeballs, I had failed to note the naked VPOC at 4101.25. It was only through fate, through a query from a learning trader about naked VPOCs that my awareness was brought to this oversight.

You have to take what you get in life. I am eternally grateful for the opportunity to speak to other traders.

Thus when the market was going 0-100 REAL QUICK, and it hit my mark, I was buying. It was my duty, per the code of the SHOMP, and I was merely a vessel of execution.

Logic can be your friend. Logic can help you develop confidence amid the “chaos” and logic can liberate you from suffering.