I’ve been doing this long enough, dealing with the public and ‘professional advisors’, who are nothing more than telephone salesmen shilling for money, to see patterns in behavior. Having a hard core group of traders in Exodus and an extensive membership base, I always touch base with people who cancel — because I want to know how to make the product better and see what happened to that person to make him/her cancel. For the life of me, I cannot think of a single reason why anyone would cancel — if they’re serious about managing money.
And that’s the topic I am going to discuss now, crudely and straightforward.
STOP LISTENING TO FUCKHEADS WHO HAVE AN AGENDA. Their investment plan might not ebb with yours. And if you’re listening to professionals, understand that they literally suck the market’s dick each and every day, falsely claim to know what they’re doing, and simply raise assets for a living in order to charge fees. I know — because I used to be one of those guys.
Every single trade that I do, no matter how fucked up, I telegraph and report the percentage gain or loss. There are times when I look like a complete fucking imbecile, cold, missing call after call. I go short when I should go long — go long when I should go short. I chase stocks topping out, forced to stop out. I buy inverse ETFs when the market is about to turn higher. And you know what? I still crush the market every year. This isn’t a game of perfection. Losing on trades is part of the business. The difference between a winning trader and a loser is the scale of the trades and the size of the drawdowns.
I don’t drawdown. Period, end of discussion.
Right now my trading account, which is 25% of my overall account, is 20% cash, with another 20% in treasuries and gold. Let’s say, worst case scenario markets nose dive and I get stopped out of all my positions, which is -10%. The maximum I will lose, providing my treasuries and gold do nothing (which is highly unlikely), I will drawdown 6% from the highs.
BIG FUCKING DEAL.
If that happens do you really think I’ll just sit there like a fucking idiot and not make money on the downside — in a trend so easy even a StockTwits trader could do it? I don’t mean to be a dick — but I can already see it now — fuckheads held their stocks too long and were too overweight in aggressive as fuck stocks and got wiped out. During the the last big drawdown, I must’ve received 20 emails from readers who got wiped out — asshole options, futures, and tech stocks were to blame.
No, asshole, you are to blame. And it’s not because you’re dumb or a bad trader — but because you let your inner savage take control of your emotions and bet big for no reason whatso-fucking-ever.
In a giant rush? Gonna die soon and want to hit pay dirt? Want to get rich quick? It doesn’t work like that fucked face. Put in the time and structure your shit to win and get back to me in 25 years to thank me.
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Good information!! Traders are almost guaranteed to lose money in the beginning. Plus not letting winners run is another problem. And as you said putting all your eggs in one basket is a fatal mistake. Good stuff Fly, hope you are feeling better.
This was a good post, especially the last few paragraphs.
yo Fly, i just created an account specifically to let you know that’s the realest post i’ve ever read.
for those in doubt… your wake up call awaits.
good rant, brah
Fly youre my most favorite fucked face of them all!!! xoxo love this shit
Nice. Get in their faces. Most losses are avoidable.
You’re the real thing Fly.
“Their” faces?? Ah hem …I believe he’s talking to folks who buy (not sell) puts and calls on the same instrument into a choppy/directionless market.
My only problem is NUGT.
Glad your epic drawdowns are in the past.
“Losing on trades is part of the business. The difference between a winning trader and a loser is the scale of the trades and the size of the drawdowns. ”
Yup. Sometimes I forget that lesson myself: I’ve lost a lot more in NFLX than I should have. It’s not because NFLX longs are sheeps (although they are) led by a bunch of a-hole analysts who overestimate future NFLX profits (although they do – read the old reports). It’s because its a big flocking flock, and poor risk managment on my part (ie, pride).