Trading in a Brave New World

I have a tremendous gift of self-awareness but only most of the time.  Self-awareness may not be a virtue yet I can assure you it helps a trader.  Every time, and I MEAN EVERY time, I think I have this game all figured out I get a shovel to the face and teeth.  Whenever I find myself having these thoughts I throw on the caution lights and pull to the roadside.

These accounts I trade have swollen well this year.  I like to think it is all my hard work and dedication paying off.  And it’s likely that’s a part of it.  But the market has been bountiful.  This is my first time trading stocks in an environment where correlations have tanked.  I remember holding correlations sacred when I first started.

Treasuries up, equities down

Dollar up, metals down

Index up, stocks up

…and so on

Now I have a 90% long book, and it goes sideways/up while the market corrects.  Absurd I tell you!

I suppose I will keep on dancing until the music stops.  This is my first full year of blogging for you, the finest folks of the interwebs.   If you think my pen is dull today, you should read my archives for a cringe.  I am getting better.  I come to this site every business day and most weekends for the same reason as you—to learn from the outliers, the outlandish, and grow as a trader.

It is working because the team assembled here is incredible and helpful to boot.  I intend to be no less than 5x better a trader in 2014 then I am today.

Chess and I talked through why selling TWTR yesterday made sense.  These conversations are as valuable as an annual membership. Get inside the pay wall and check it out before they increase the rates!

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