Before you say it is impossible to be perfect; hear me out first.
Let’s start with premises we already know:
1) Trading is tough because the market is volatile.
“Wow! what a big run up yesterday! The market is going up! Yeah! Wait a minute! FUCK! The market is dropping like a rock now! What’s the FUCK going on here???”
2) There is no perfect trading system
“I paid %(#$)#@ for this trading system and I had FUCKING four losses in a row! What’s the FUCK!”
3) Taking loss is inevitable; it is as certain as death and taxes
“I don’t wanna take my losses! The price will go back up! I’m sure of it!”
The above three items pretty much define the “imperfection of trading in the chaotic market”.
So, let’s talk about the perfection, shall we?
The only thing YOU can control during trading is your execution. Buy, sell, hold, or neutral, you have total control to decide which action to execute. YET, while simple in principle it is not easy to execute, failure to execute means you are GIVING UP control. And with no control whatsoever while you are trading, you are DOOMED.
Don’t waste your time justifying that you are in control by simply making a decision to hold a losing position beyond your original stop point. You lost control because you could not execute to close your position to take your loss. Thus, your short-term trade now become a long-term hold (aka bagholder).
Perfection in trading is simply being perfect in executing your trade the way you plan it. Whether you make money or not is irrelevant as a single trade; but in the long run, your being “perfect” in executing your trades will guide you to profitable trading.
Some of you who read my blog know that I usually trade the same group of stocks over and over again. The reason is because I’m familiar with them. While I don’t know every nuance about them; I know enough about them to execute my trades according to my plan. This is all that matter.
While I strive to be “perfect’ in executing my trades, I may not be perfect in “timing” my trades. Sometimes I’ve taken profit too soon or losses too quickly; but that is ok. You know why? It is because I don’t have a crystal ball. Hence, without a crystal ball, I’m allowed to be “imperfect” in my timing. As long as I can jump back in after I get out. albeit at a higher price if not at a lower price; I’m not complaining. Isn’t this is what trading is all about? Jumping in and out with the object of taking a piece of the pie without losing your shirt?
Perfection in your execution doesn’t have to be difficult; all it takes is that you keep this simple rule in the forefront of your head- cut your losses fast according to your plan at all times when you are trading.
Regarding my interest in becoming a tabbed blogger, I’m actually quite ambivalent about it. If you vote for me and I’m elected, I will continue to post my 2 cents as well as my daily trades as I make them. But it really doesn’t matter if I become a tabbed blogger or not; I will still post the way I’ve been posting. There are a few bloggers at Blogger Network who also deserve to be a tabbed blogger; so I won’t be doing “shitting” on anyone. My REAL goal is to make a boat load of money while posting my trades here.
IF I become a tabbed blogger, I may have to increase the creative factor in my posting so that it will be more fun than just posting my daily journal. The way I look at it, being a tabbed blogger means that imperfection in your trades will become even more highlighted for more eyeballs to see. Thus, in some way, being a tabbed blogger will force me to achieve perfection in the execution of my trades.
Tabbed or not, making good trades will always be my ultimate goal.
Trade well.
If you enjoy the content at iBankCoin, please follow us on Twitter
Reduced position size on DDD by 1/3 to lower risk.
Sold the rest of my DDD position to cut losses and to re-balance my portfolio.
Now holding only AMRN LRAD USU EMAN PCS & 57% cash
Bought starter position on RIMM. This morning gap down actually “filled the gap” created 3 days ago.
The strong bounce back afterward is encouraging for going long.
Added more RIMM. Now half-size position.
Put protective stop on RIMM below Friday low in case of a sudden change of heart.
Decided to dump my RIMM position for tiny losses (close to breakeven) since DOW has turned negative.
Sold PCS for losses (ouch!) Hey, that’s the way it is; I’ve nothing to hide here; all my trades are out for all to see.
Bought starter position on RIMM. I like the morning action. It shows upward potential.
bought starter position on DDD. A possible turn-around after three red down bar.
Also bought back 2/3 of PCS due to sign of support on PCS. Because I re-entered at this gap-down price, it is a brand new trade with its own win/loss calculation.
Added more DDD.
Move PCS stop to intra-day low. No, this is not a revenge trade; it is only a trade for a possible over-sold bounce. I like the fact that PCS (T-Mobile) is now offering iPhone.
Reduced DDD position size back to starter position to lower risk. Move stop to intra-day low.
Reduced position size on RIMM as well. Move stop to intra-day low.
Stopped out on both RIMM and PCS for small losses. Remember, I took the big losses on PCS in the morning already. Relatively speaking, PCS losses this morning was not big since it was a starter position; but it was big as a single trade. I normally prefer to take my losses much smaller than what I took in PCS this morning; but sometimes, market doesn’t give you that option. So, you just have to roll with it. It’s all part of the deal.
Currently holding AMRN LRAD USU EMAN DDD & 59% cash