When I was a kid, I would help my mom gardening by plowing the ground, planting the seeds, and watering the plants each summer. We planted all sorts of vegetables and fruits, such as lettuce, strawberries, carrots, melons, radish, tomatoes, eggplants, cucumbers, and many others. We even had a large row of apple trees, which would have provided 100% all natural apple juice if it weren’t for all the bugs getting of them first. It was tough work preparing the ground and helping them survive, but in the end, we all got to enjoy the fruits of our labor.
Trading is a lot like farming (and gardening for suburban folk, but I’ll stick with farming here), especially with my style of swing trading. We are all farmers if you haven’t realized it already. Every stock you buy (or short) is a seed which you are planting in the ground. Now, before you plant anything in ground, you have to make sure the weather and season favors any such plantings. You have to make sure the ground is soft, moist, and fertilized. You also should have a fence around your garden to protect your plants from animals and neighborhood kids.
You toil endlessly, day after day, making sure the ground is prepared to plant your seeds. Every stock that you buy (or short) is the seed of a plant that you are hoping will provide you with sustenance. You make sure the seed is deep enough into the ground, but not too deep, so that it will have the chance to grow. You watch over your garden each day.
As the days go on, you may notice some weeds. You must remove the weeds or they will rob the soil of the nutrients that your germinating seeds require. As your baby plants poke their heads out from the ground, they will require sunlight to activate the process known as photosynthesis. However, if you do not remove these weeds, they will grow tall and block out the sunlight. remove these unwanted weeds from your garden, or they will kill your plants. Some of your plants will not make it, so cut your losses early so the others have a chance.
Now, some people are very impatient and expect their plants to grow up in one day to be harvested. Ridiculous, who taught you that nonsense? Does make any sense to pick a seedling? No. Give your baby plants time to show you what they can become. It might seem really exciting to see them start to grow, but i you pick them now, you will never realize their full potential. You kill your plants the moment you pick them. Some plants need time, so give it to them.
You’ll also notice that not all days are sunny and clear. You’ll have days like this:
But, do not fear. You are the farmer and you are watching over your plants every single day (I hope). If the rain and winds are strong, you can put tarp (not TARP) on top of the garden for protection. Again, some plants will die because nature is not always nice. Cut your losses and give the others a fighting chance.
One day, you may notice a nosy deer walking. He likes what he sees. The deer may look pretty and gentle, but as a farmer, you know what kind of destruction that deer can bring. Good thing you have a fence around your garden, but sometimes, the deer will fight to get into your garden. You’ll just have to scare him off, or if you’re Alpha, just shoot the thing so it never comes back. There will always be creatures trying to kill your garden. It is your job to watch over and protect it. The fence is there to act as your support.
Towards the end of summer, you’re garden is lush with life. It practically looks like a jungle full of colorful vegetables and fruits. It is time to harvest. If you do not harvest now, you will let the bugs eat up everything. You can spray pesticide as often as you’d like, but your veggies and fruits won’t stay on their mature plants forever. They will fall to the ground and rot. It is time to harvest, so do it now. Know when to buy AND when to sell. Too many people buy without knowing when they will exit. You may lose all of your strawberries for no good reason.
A great thing about fruits and veggies is not only are they delicious to enjoy, but they provide you with even more seeds than you previously had. You may even be able to double the size of your garden in time for the next season. If you just eat up all of your fruits and veggies right now, then you will not have any seeds left. You have become greedy and wasteful and the only seeds left are the ones that go through your digestive track, if you know what I mean.
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HA HA HA! Nice pictures! Great analogy!
Awesome post. Loved it.
Mustard seeds, baby.
So since I’m a full-time farmer and I trade stocks a lot, what does that entail? lol Great post! Finally some recognition…….
I erected a 5 foot tall fence around my herb garden by buying SDS towards the close on Friday. Now, I am not ready to harvest for Spring is still young, but I do want to invest some of the fruits of my labor into protection.
Notice my fence is only 5 feet tall, so I am still vulnerable, but less so than before.
My garden, it is square, and I intend to take down 2 of the 4 sections of my fence some time next week to let my garden spill out beyond its current borders. Indeed
A smaller (XOM) short position is my garden’s scarecrow, a smaller long postion in SRS is my trusty Jack Russel Terrier, although he has been under the weather lately.
Nice Post CA, as you can see I like your analogy.
Good post. My grandfather was a farmer for 60 years, through WWI and WWII. I think he would appreciate your analogy.
Nice pics! May I recommend the book “Guns, germs and Steel” for an interesting read on the history of how man developed plants for food and how their surplus lead to the modern society of today.
I’ve often thought of that analogy, however you have taken it to another level.
I’ve never thought of trading as a farm… The middle of the ocean, yes, and a beach as well… But this, this analogy is phenomenal.
Great post CA.
CA,are u growing and smoking your own again?
Nice style, as always.
Speaking of which, something may happen in the global garden soon.
Pluck out the weeds and leave the seedlings to grow.
Great analogy, CA!
decent writing, well done!
Better get some fertilizer ….
lol, I was gonna put up a marijuana farm for the last pic, but refrained, just to keep it “professional”.
To the dickhead who gave me negative karma …. FO!
I was referring to this:
what do you think about the FEED pennant? it’s broken down from (what i see as) support at 3.30, and is down in after-hours. Is that kind of price divergence enough to fail the pattern? I’m out, but interested in the formation. what do you think?
i like to employ the slap-chop on the fruits and veggies rendered from my farm/garden.
Fig appears to have broken down. Confirmation on the hourly close though
Everything depends on end of day today. All long positions.
thinking we might have gap down gap up scenario so still thinking we get to 880 in my mind.
Wow, where you talking about me?