Thursday Notes - EMail Bag

A few things late on a Thursday night.

E-Mails - Most of the best "conversations" I have with traders come via phone, as well as the dozens of emails I receive weekly.  So from time to time, I'll try to post a few emails and responses of some of the more pertinent ones ... while keeping the names private for obvious confidential reasons.

Question - I'm reading your blog every day, it's a great source of motivation and inspiration.  There's a question I have regarding, as you said, "at the end to not overcomplicate this business".  I came across a "professional" trader (he has been working on several trading desks in prop trading with various institutions), who basically says, that you need to learn and understand market profile, volume delta and order flow to be successful in trading the eminis ... otherwise you are at a serious disadvantage against all the pro traders out there.  I would be very glad to hear your opinion on this.  P.J.

Response - While I respect other traders' opinions, that's totally hogwash. I've never used it, never needed it, and have no desire to change. Don

Follow-Up - As I've often said, there are many ways to essentially "see" the same info.  I simply choose ... well, simplicity, and Market Profile -- while used effectively by many traders -- easily falls into the "TMI" category at this end.  If your trading isn't going well, it most likely isn't the tool or instrument.  A violin is a violin ... some simply play it better than others.

 

Suggestion in response to Wednesday's "Getting Restless" post - (Excerpt from longer email) - First though I feel a reticence because already your blog is the most open and insightful account of the business out there and you do it all for free. So really how can I shame facedly ask for more? Anyway, I have gotten over the past 1500 hrs screen time that there are lots of different ways to trade profitably, and that it takes time to discover what suits ones personality best. For me, this is part of the ongoing learning curve which I recognize has to be managed well or the tools of the trade, the capital, will disappear.

To be able to sit in a trading room for a couple of hours with yourself; see how you composed yourself,, what you looked at and thought, how you managed trades, what you did in the gaps to stay focused, all that sort of stuff. Not to call out trades, or tell traders what to do, or even answer questions, since I expect this would probably cause legal issues and affect your personal trading. Next to making one’s own mistakes and bit by bit learning to stop repeating them (!), that’s how I certainly would benefit. Payment by subscription to “the room” weekly or monthly would be one way to do it, since I’m not really sure what benefit you would get otherwise. A.R.

 

Response - Thanks. What you describe is essentially the live multi-week Jellie effort, which I'll do again in the fall.

 

Follow-Up - First, as I mentioned above, there are many ways to trade. Remember, Rick Barry shot free throws underhanded!  'Nuff said.  Second, with respect to an ongoing room, I still at this time have no interest in a recurring pay chatroom, which is a completely different business plan intended to generate ongoing non-trading revenues for the owners. Not that there's anything wrong with them per se, (yes, there are a few decent ones out there amidst the industry rubble), it's just a very different business plan.  A further complication is that since I believe in teaching self-sufficiency, doing so sort of flies in the face of such an objective.

btw, if you're at all interested in the fall effort, please let me know now via email, as seats will again be limited and I plan on continuing them from time to time only if there's sufficient interest.

Feedback to Tuesday's "Beach Tour" Video (Excerpt) -  Anyway, the bottom line is I felt that your video tonight was one of the most inspirational pieces you’ve ever done. I am sure the background setting of the beaches of Cape Cod were a contributing factor, but you also quietly hit on some key points about trading, goals, life, etc… that really hit home with me. You’ve often said ‘trading is a lonely business’ and when you trade from the cave at home, there are plenty of times when you can easily lose site of the big picture quest that you’ve undertaken. Really – I’ve seen darn near everything you’ve ever put out. And it’s all damn good. But tonight's video, for me, takes the top position.  I plan on watching it a few dozen times, so it sinks in more. And on Wednesday, when I get done trading, I am going to my beach – also about 2 miles away – called the Pacific Ocean. Thanks for the great idea. C.K.

 

Just one of the many surprising (to me) responses to what I thought was simply a "change of pace" post.

Defense Wins Championships - And congrats to the Lakers, who learned this year that it's defense that wins championships against quality teams.  In a game with hundreds of plays and a series with thousands, just two stops would have given the Celtics the championship.  So true it is with trading as well, as for every mega-loss you avoid, that's one less comeback that you'll need to pursue, which can be so energy -- and capital -- draining.

Roosevelt Quote - Lastly, note the new Teddy Roosevelt quote recently added in the upper left hand margin:

Far better is it to dare mighty things, to win glorious triumphs, even though checkered by failure ... than to rank with those poor spirits who neither enjoy nor suffer much, because they live in a gray twilight that knows not victory nor defeat.

Words of wisdom in this business for sure.