A Nostalgic Month
From All Directions
As you age, nostalgia becomes one of the most important words in your vocabulary. The smiles appear, a couple happy tears are shed and if you’re anything like me, you just sit back, thankful for all of your life’s experiences.
As those of you who have followed me are well aware of, it’s “give back” time for me. It’s been a “blast” and in these last couple weeks, it’s all coming into focus. The book is off to the publisher, 300 pages with illustrations, from where I’ll never know but it is done. A section that benefits everyone makes up the bulk of this post. I hope you enjoy it; let me know what you think.
If I were to write anything “prophetic” this week, I’d title it “I Told You So” but that is not the way I “roll”. Everything that’s been talked about since I kicked off this thread is coming to fruition. With that in mind, other than the pages included from the book, if you want to see “what’s next” go back and read “what’s posted”.
I’m A Lucky Man
Over the last month or so, guided by those with more experience than I’ll ever amass in the “social media” world, I turned to LinkedIn to “build a following” for my launch. That’s where the smiles and tears are coming from, my past experiences with people I haven’t talked to for years and others I’ve never met before.
There’s far too many to mention but you know who you are, a “Robber Barrons” editor from my graduate school days in the ‘Burgh, a new “bloke” from the UK who thinks like I do, poor bastard and those who exhibit a desire to learn from my experience. To use the vernacular, “you ain’t seen nothing yet”.
More so I’m thankful to be where I’m at in life and the people who now surround me. If you told my mother that this Jewish boy found true love with an Irish Catholic girl she’d be spinning in her grave. I’ll be visiting next month Mom so spin away, You too Dad; it’s hard to believe it’s coming up on nine years since you passed, think about you every day and always will. That Irish Catholic girl came with a wonderful family, best kids I could ever ask for and they think the same of me; give ‘em time, they will learn. Add in the grandkids and what can I say, I’m just lucky and hope you are too. Enough rambling, the excerpt follows; let me know what you think.
The Rules I Follow
Learning how to invest or trade is a marathon, not a sprint. I follow rules; you should too. Here’s a few of the best “hints'' I can provide that will improve your abilities and performance regardless of your level of expertise.
Everybody has a list of “do’s” and “don’ts”; the problem is that most traders disregard their very own rules. Advice from experience, choose your “trading style”, learn how to use the tools you’ve acquired, then practice, practice and practice some more. If you think learning is going to be easy, then you’re going to be “disappointed”. Again, it’s a marathon not a sprint; the sooner you realize that fact the better off you will be.
To get you started here’s a couple of the “rules” I follow, my fifteen commandments. Take time to think up your own but again if you do come up with your own rules, follow them, please.
Don’t trade when “hope”, “pray”, “wish” or even “think” are associated. There will be plenty more opportunities. As a position trader I don’t trade unless the signals I use align and the probability of success approaches certainty.
Make a plan and learn the basics of investing trading before you start. Unless you want to fall into the category of just being “lucky” (doesn’t last) or blowing yourself out of the market quicker than you’ve ever done before, you are best to start trading a “paper” account.
Follow your plan. Think about it; you’ll be making your first plan. I hope you’re not just doing that for fun. You are creating your plan for you; use it. If you are putting it together as an exercise do something else. Investing or trading is a important, life changing decision so in short, don’t screw it up.
Choose a trading style. While I’m a position trader I still might jump on a solid day, swing or scalp trade that hits my radar screen. Choosing a trading style helps you build your plan; it doesn’t preclude you from trading other styles.
Understand your personal ‘risk and reward” status. Understand what you can afford to lose. Have a goal and depending upon your goal decide the amount of capital you can afford to lose.
Do not overtrade. I don’t trade much. In a prior lifetime I traded a lot more. As I have aged the “reflexes” aren’t there anymore and neither is the interest. It’s best to trade within your own boundaries; wait for opportunities to arise, those that you plan for, the ones that find you versus just shooting “buckshot”.
Cut your losses short. There will be plenty more opportunities. Just how many times have I said this? I’m not doing it for my health; abide by this rule.
Let your profits run but remember greed kills; bulls make money, bears make money and pigs get slaughtered. This rule is a problem for most, not because they aren’t decent investors or traders; it’s because they’re human. People too often look for the “big one”; not me. I’ll take a piece out of several transactions knowing I have the ability to find the next one.You’ll never go broke taking a profit. Not much more to add here as it’s very similar to what’s written above. When coupled with cutting your losses short there’s even more value.
Do not stay too long in a good trade. This is for all of you who call themselves day traders. You are short term by design. Your plan dictates a desire like the hamburger chain, “In & Out”. Follow your plan; if it’s not working reevaluate it and reassess who you are especially if you’re not profitable.
Recognize fear, greed, ignorance, stupidity and impatience; take advantage of them. I’m a “wick” or “candle” trader. I first assess the overall market direction then watch for aberrations; you know the ones that are significantly contrary to the direction markets should head. Take advantage of the opportunities other traders create and give you on a “silver platter” when they arise.
Not owning a position is a position. The best way to teach this is by adding a third moniker to the often-used list of positions I use, “long”, “short” and “flat”. Being out of the market is a position. It’s the position I use most often.
Gamblers and thrill seekers lose. Here’s a good story; I play Roulette. On my “Stats I” final a question about gambling in Monte Carlo was asked. Covering 22 of 37 numbers on the Roulette table was the best answer. Like a casino, if you do not have a game plan, in this case a trading plan you’re just gambling. Clearinghouses, like casinos make money every time you enter a trade. If you trade without a plan, you are making the “house” a winner. Don’t do that.
Don’t trade on rumors. If you are the recipient of insider information how many people before you have already heard and acted to the news? You were not the intended beneficiary of the news. You’re just a victim of a “pump & dump” scheme where, most likely, the actual beneficiaries have already cashed in.
Learn from your losses. Regardless of what you do, learn from your mistakes. If not, you've defined the word “idiot” in its primary form, “doing the same thing over and over again expecting a different result”. Without a doubt most people learn more from losses and mistakes than winners.
Always use stop losses. Let me repeat that; always use stop losses. Let me emphasize; ALWAYS USE STOP LOSSES. This world is always changing; information flows at the speed of the Internet. If you are wrong, there is no guarantee you’ll be able to get out; ALWAYS USE STOP LOSSES.
Not bad, eh? My thanks go out to Mel Brooks for the “fifteen commandments” from his “History of the World Part I” movie, otherwise it’s all me. I’ve used AI for years in every imaginable way possible but not for my thoughts and words; they’re original. If and when I don’t those who wrote the article or thought are quoted. Here’s one I just read by Dr. Arnout ter Schure. Great minds think alike but he’s better with the Elliott Wave Theory than I’ll ever be so click here to read it.
50th high school reunion coming up. Just heard my “best friend” Ross found a dress so all I have to worry about is the corsage. Like I said, I’m a lucky man; I hope it’s Barbie “pink”, I hated the yellow one he wore to the prom, it clashed with my purple tuxedo.
I’m just a “young” 68 years old looking to help you be the best damn investor or trader you can be. Everyone learns at their own pace. If you pick it up the first time, great if not email me at david@thetickeredu.com so I can further help. Let me know what you think about the excerpt, I’m all ears.
Never thought I’d pick a Taylor Swift song but given it’s titled “August” it fits. Great performer, great talent and more. It’s amazing what one can achieve in today’s world. Never sell yourself short; have a new idea for a business thin it through then take the chance and see if it works, that’s what I’ve done my whole life. I’ve been blessed, never worked for anybody; they’re blessed as well. Have a good one and my best to all.