One trader's two-year trading and life journal designed to motivate and encourage others
Monday, May 31, 2010
Memorial Day Notes - Learning By Remembering
On a day where remembering those who have made great sacrifices for our country is paramount, here are a few trading nuggets that come to mind.
Lessons from a SEAL - Many know that years ago, I had the wonderful pleasure of working with Larry Connors, having written a daily column for him over an extended period and co-producing several educational courses, simulations, and other trader tools in the early 2000s.
Larry has made a ton of significant contributions to this industry in terms of strategies, statistics, and publishing -- including having co-written Street Smarts with Linda Raschke.
And as I was undergoing a major office and psychological "cleansing" this weekend (more to come on that topic over coming days), I came across some outstanding materials from Richard Machowicz, who is a former Navy SEAL and the host of the Discovery Channel and Military Channel show Future Weapons -- and who Larry introduced me to many years ago.
These materials have helped me identify two significant hitches in my current trading "swing" ... hitches that I'll call "comfortable traps" which are always lurking around every corner, and which I must avoid on a moment by moment basis at all costs.
Coindentally, as I was rumaging through ten years of office materials (you should see the full trash barrels as I separated the absolutely critical from the completely irrlevant ... and there's no in-between), Larry's interview with Richard from a few years ago also resurfaced. It's great reading.
So thanks to all of the Navy SEALs -- and all branches of the service -- who fight daily for our freedom.
Risky Stops - And speaking of Larry, here's another relevant post he did on why stops hurt those who focus on reversion to the mean strategies -- including those caught in the May 6 "Flash Crash" -- which includes a link to a Wall Street Journal article on the same topic.
As the Jellies know, risk management can often better be managed via size than stops ... which is my personal preference when trading reversion to the mean sequences.
Personal Remembrance - Finally, I'd like to remember Dr. Firouz Amirparviz, who was a friend and trading peer who we lost in 2004.
Firouz was a renowned cardiologist in the Midwest who once welcomed me into his home -- as he did hundreds of others.
He and his wife Cheryl will always be in our thoughts, and my wife Debra still wears and cherishes the beautiful silk scarf that Cheryl purchased -- without ever having met her.
It was a small token ... yet one that spoke volumes about their willingness to give.
Let's hope we learn from all such sacrifices -- no matter how large or small.
Don is an intraday S&P E-Mini Trader and Member of the CME who has educated traders and advocated for industry transparency since 1999. Long-term performance of his privately traded fund ranks among the industry's best at over +800% from its 2004 inception to 2010. His 2008 performance of +214% +$1.6 Million bested the industry's top CTAs.