Countdown to Master Talk

Break out the coffee and diet pills East Coast dwellers...Master Talk starts in less than an hour. I wanted to post this weeks trading quote given by Randy McKay, who is another Market Wizard before we start. He says:

“When the trade is easy, I want to be in, and when it isn't I want to be out. In fact that is part of my general philosophy on trading: I want to catch the easy part. I never try to buy a bottom or sell a top. Even if you manage to pick the bottom, the market can end up sitting there for years and tying up your capital. You don't want to have a position before a move has started. Too many traders try and put their own opinion of what will happen before the market action. When I get hurt in the market, I get the hell out. It doesn't matter at all where the market is trading. I just get out, because I believe that once you're hurt in the market, your decisions are going to be far less objective than they are when you're doing well. If you stick around when the market is severely against you, sooner or later they are going to carry you out. I'll keep reducing my trading size as long as I'm losing... My money management techniques are extremely conservative. I never risk anything approaching the total amount of money in my account, let alone my total funds. You have to be more concerned about the moves you're in than the moves you're not in. You must get out of your losses immediately. It's not merely a matter of how much you can afford to risk on a given trade, but you also have to consider how many potential future winners you might miss because of the effect of the larger loss on your mental attitude and trading size. Nowadays, the breakouts that work look similar to the breakouts that are sucker plays. In fact, the false breakouts probably outnumber the valid signals. Every trader is going to have tons of winners and losers. You need to determine why the winners are winners and the losers are losers. The most important advice I have for traders is to never let a loser get out of hand.”

Tonight's topic will be on Money Management and Trading Activity. Trading Activity is a pretty vauge description. The details focus on controlling fear, greed & stress... how to cope with past, present & future... engaging in positive habits...and incorporating a end of day review.

See you tonight!

Tonights Master Talk was a confidence builder. I have had a tough couple months but I have remained extremely confident and have learned so much. Not only have I learned from my losses but I have learned how to better handle my emotions. Good thing I learned money mngt. I'll be prepared when the market starts trending.
I always look forward to all your classes. Glad I found your blog.

Great job last night on MT. I would appreciate further discussion on the Psychology of trading in further sessions...very helpful.

Your mention of the effect that emotional energy can have on water molecules reminded me of this book I read a few months ago, called 'Biology of Belief'. Seems to complement trading Pyschology very well (applicaple to anything really). I need to reread it since I have been trading for a few months now. Also, just got finished reading "Trading in the Zone", which is excellent, I believe that was one of your top 5.

I am not certain on what kind of compliance you have to follow doing the Master Talk sessions, but it seems the students (myself included) would get a lot more out of the sessions if you didn't have to hold anything back with regards to your Trading Style (aggressive OTM options, etc) as compared to say the investools method. I believe that is why everyone comes to listen to you anyway. After a few sessions with each instructor, it becomes clear that your approach is aggressive, Kelly's is convervative and Alan's is somewhere in between. I just mention that because sometimes I get the feeling that you are holding back (although you may not be), because of the experience level of the attendees of the sessions.

Question: Do you ever make adjustments/repairs on your trades as in rolling out??

Masaru Emoto has a few books out there that explain the power of positive energy on water crystals. Should be a good source to start with!!!

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About me

  • I'm Option Addict
  • From Saratoga Springs, Utah, United States
  • I am a professional trader and an instructor for Investools. I've had relations with the markets for 9 years. Born in Concord, CA, but reside in Saratoga Springs, Utah. Father of THREE, Husband of one.
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