The Great Underwater Bear Massacre of 2010
Today’s market is exactly what I like/expected/build effigies for. Dips being bought, horseless FAZ carriages being driven unbridled into the sea, namely, it’s glorious.
And to top it off, a fresh “your dead” breakout in the S&P, Gold, Silver, all with my market indicator remaining firmly bullish, guiding us all towards the light.
I will end this brevity with a question — if you didn’t trade or understand the market well during this recent cycle, which has been one of the most painless rallies ever if you were set up for it, then what measurable steps have you taken to review your trades, and figure out where your biases and assertions led you astray?
If you don’t do this, you’ll have no idea where you went wrong and it will be much harder to learn and become a better trader.
12 Responses to The Great Underwater Bear Massacre of 2010
I am fully willing to help you guys regaurding[sic] the question I posed.
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Love the graphic! Working on a reply to your ‘where did I go wrong’ but will take me a bit. Thanks for the offer
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It should, because you have to retrace your steps, forensic style. But it’s worth it, bec there is NO OTHER WAY to learn to trade well than to trade and make mistakes.
I recently read on SMB blog this analogy:
I love golf. I drove to the range to shoot some balls, got a bucket, and teed up. I hit one ball, then I left.
What are the odds that with that methodology, I will get better at golf? Laughable, right? Same with trading.
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note it doesnt mean overtrade it means you have to be active in your participation.
You’re just reviewing films after your most recent games, if that analogy adds to it
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Still have 2008 in my brain and am too quick to jump in on what I perceive to be the start of a downtrend.
Need help on that.
in the same boat as you. i still consider every run-up as a short lived (even though they’ve proven different). still getting it through my brain that 2008 no longer exists nor matters. the issues from then are long dead.
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the issues are the same which is sad but you need to realize that the market has little bearing to reality.
Pretend every GS robot was coded personally by Gary Busey. Then everything begins to make sense.
More than that though, what steps do you take identify trades? What is the logic or rational behind those setups? Finally, what tools do you use to guide your deciison making process?
Improving these things, like Ive been saying, is not easy but it can be done and it’s not hard to take first steps to improve your trading. That’s why I posed the question, so I hope that those that really want to learn will think hard about it
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you don’t want march of 2009 or fall or 2008 on the brain. You want nothing.
Remember.
A trade is a test of your assertion that price is too high/low.
It sounds like you made a lot of wrong assertions. This is no big deal. Really.
The problem is people spend so much time thinking about these things that they end up wrapping up a lot of self worth and ego in their decisions.
If you could predict the future, we wouldnt be talking. You cant, I can’t. So forget about things on your brain. Think about how you would structure an elevator pitch for a given trade. Stick to that. And don’t worry about being right or wrong.
What you’ll find is that just that small amount of consistency adds a lot. Then it helps you objectively look at your setups and see if they are good or not.
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I nailed this baby in every way. The Power Dip, The TA’s and the PM’s. And I owe a lot of it to Fly’s Ibankcoin team.
Hat tip to Danny, Wood, Jake, and Chess!
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yeah Hawaii, you have improved a LOT since I first noticed you commenting on the blog, it’s totally awesome, you should be proud, andI hope you keep up the great (and probably inspirational to others) work.
by the way, I’m sorry for that egregiously split infinitive.
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dead on headline and graphic (as DJIA crosses 200+)
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haha thanks.
I was searching for “gummy bear massacre” and that one was titled gummy bear torture, and needless to say I was sold.
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