So the boss is now asleep.
OK, back to the art of losing.
Tell me you never had a bad losing streak and I will tell you you're a liar (to paraphrase the late great Jim Morrison).
We all have them. It is just endemic to what we do. The very best traders seem to actually have the very worst losing streaks. But only dollar wise. This is a function of size alone. Not duration. It is the duration that will kill you. So it is so critical to cut the streak short.
We talk about goals. We talk about them as positives as they should always be. But cutting a losing streak is also a goal. One that seldom gets acknowledged.
Two great traders I know are on sabbatical (three if you count Darkhorse). One I have talked about before. He's the guy that trades from his yacht with a satellite dish. He's also the guy I talked about that shorted 40k shares of AOL on the close when he saw a huge buy imbalance and made 8 pts. or so on the trade.
The other guy I have not mentioned. This guy is the king of all short traders. I mean he made so much money when we were all losing when the bubble burst. We all thought for too long it was just another short term correction. He, on the other hand cleaned up. He knew what we didn't. He knew what % of holdings were on margin in what stocks and when the calls would go out. And when the stocks would be liquidated. This was an instance of what 30 years of trading and making connections can be about.
But after Sept. 11, he stayed short as the market rebounded. He lost a bundle and is still on vacation. He can afford it.
But as usual, I digress. My whole point of this thread is to get across that when we talk about cutting losses and letting winners run, it means more than just in a particular trade. It should apply to trading itself. If you cut yourself back or even out it is just as important (if not more so) than cutting a specific loss. After all, the trading game never ceases. So when you are not going well, consider yourself....your entire plan....everything, to be a "bad trade" and exercise your "stop". For that is the BIG picture definition of "stop loss".
Another very crucial issue.....MrSubliminal's parents seem to exude a bit of animosity. Let me say here and now that this is not the proper venue for this kind of domestic discord. Please, MrS., see what you can do to restrain the old folks from treading on our very serious business. I implore you!!!
Peace and Small Losses,
rs7
