Post feedLast Night's Set-Up's
I received a lot of e-mails this morning. Most were very complimentary about the choice of topic for last night. Even though we discussed a few general ideas, anytime we can start with a few ideas of how to create a positive attitude and discuss trading psychology, not only will it impact your trading approach, but will also help you in other areas. Professional, personal, etc. When I talked for a few moments on quantum-physics and the water molecules experiment I should have expressed more clearly that I am no chemist or biologist. It was an interesting story I heard while dining with a good friend of mine. For those that were offended, no ill-intentions were meant.
We followed up on last weeks trades...PXK, ATI, OIS, and BUCY. BUCY was the only trade that generated a signal. BTW- I met someone in our three day class today, and no sooner than I shook his hand, he pointed out I was wrong about this one. I appreciated that, since it helps me to check my emotions and take opinions with a grain of salt. In the past when I felt accused or blamed, I would become defensive and instinctively throw people through walls. (My psychologist has done wonders for me!) Just remember not every trade will make money, right? Just make sure when you take a trade from another persons research, and it fails, try and feel equally responsible for overlooking it's weaknesses before jumping in. Each time one of my guys here gives me a reco and it results in a loss, I blame myself for not seeing the weakness before jumping in. I stopped blaming others for my misfortunes long ago, and worried about what I could be doing differently, and my perspectives in life have taken a 180.
Anyway, Here is the short list of set-up's we looked at. All bearish babies...
These were all short term, going with October options, one strike in or one strike out depending on how aggressive or conservative you are. What is funny is that I believe they all went up today. Such is life. That's ok. I DARE YOU TO SEND ME AN E- MAIL BLAMING ME!!! I might need to give a certain "button" on my keyboard a rigorous workout!
We followed up on last weeks trades...PXK, ATI, OIS, and BUCY. BUCY was the only trade that generated a signal. BTW- I met someone in our three day class today, and no sooner than I shook his hand, he pointed out I was wrong about this one. I appreciated that, since it helps me to check my emotions and take opinions with a grain of salt. In the past when I felt accused or blamed, I would become defensive and instinctively throw people through walls. (My psychologist has done wonders for me!) Just remember not every trade will make money, right? Just make sure when you take a trade from another persons research, and it fails, try and feel equally responsible for overlooking it's weaknesses before jumping in. Each time one of my guys here gives me a reco and it results in a loss, I blame myself for not seeing the weakness before jumping in. I stopped blaming others for my misfortunes long ago, and worried about what I could be doing differently, and my perspectives in life have taken a 180.
Anyway, Here is the short list of set-up's we looked at. All bearish babies...
These were all short term, going with October options, one strike in or one strike out depending on how aggressive or conservative you are. What is funny is that I believe they all went up today. Such is life. That's ok. I DARE YOU TO SEND ME AN E- MAIL BLAMING ME!!! I might need to give a certain "button" on my keyboard a rigorous workout!
Just kidding!!! You all know I read each and every e-mail, and care about everything that is on your mind. Since I discussed where to place blame, I thought it was funny. I promise I won't delete any e-mails.
I will get a decent post going after I finish my deadline for today.
Jeff; I really need to focus on the psycology and the positive thinking. What do you do consciously to put yourself into a proper trading mindset? I am finding that it is better not to look at the intraday activity as it is addictive and mostly non productive to sit there and wach numbers reel off in the opposite direction I anticpated my trades to go.
Dan
Posted by
Anonymous |
8/24/2006 03:12:00 PM
I suppose it's a matter of opinion whether BUCY has failed or not. That all depends on your entry, your exit and your risk tolerance. The stock broke out of the triangle on MASSIVE volume, and has since returned to the 30-day MA (a line it has reacted to many, many times in the past). True, it's back inside the triangle but it's been on comparatively small volume in a market that's taken a breather for the last week or so. I am still holding my October calls on this one and I fully expect it to show more strength in the upcoming weeks.
Then again, if that lower trendline is broken, i'm gone, as it signals a much larger problem.
Posted by
Anonymous |
8/24/2006 03:15:00 PM
Brett,
AWESOME POST!
Posted by
Option Addict |
8/24/2006 03:18:00 PM
Jeff,
Last month I hosted a trader's retreat in NH, just a bit of time for me and some other traders I've met through Investools to get together to trade and learn.
On a quick trip to the local apple cider donut store, we found a plaque that became our motto for the entire week. It said, "If you follow the advice of others, you'll make their mistakes." I love it, and I took it to heart immediately. I only follow my own advice. I can take it if I'm wrong!
Posted by
Anonymous |
8/24/2006 03:58:00 PM
I missed the breakout for BUCY so I patiently waited for a retest at what is now (I believe) the last support line. It's there now so I am ready if it confirms. It's fun to watch a trade develop. I have had a hard time with "patience". I'm learning to wait for the market to tell me what it is going to do and not anticipate. Who ever said "patience is a virtue"?
Posted by
Anonymous |
8/24/2006 06:46:00 PM
Excellent comment lisa and a very good quote. I also like the idea of traders retreat. I am trying to set one here in Omaha, Nebraska. I read all posts and comments on this excellent blog site. Jeff good stuff.
Posted by
Anonymous |
8/24/2006 06:58:00 PM
Mahmood, i'm here in Omaha as well, so keep me in mind.
Posted by
Anonymous |
8/24/2006 07:39:00 PM
Hi Jeff,
Read your comments (and others!) every night. Keep up the great work. I was in BUCY but bailed out (based on my exit rules). Stuff happens. The technicals looked great but the stock broke down and I got out. Such is life...just keep going and get the next one...
Posted by
Anonymous |
8/24/2006 08:19:00 PM
Certainly would be pretty arrogant to take another person's set-up and not do any of the research and trade it based on "opinion" and then gripe if it bails. Do own analysis based on your own rules and if it fits then trade.
Jeff, any anger management technique in those "confrontational moments" would be appropriate if it involved spontaneous laughter masking the need to grab someone by the shirt collar and boot them in the butt.
I personally like to see a master talk presenter have a set up fail. Not because I like to see a failure, but because it helps me see that all trades are not going to be winners and actually builds my confidence that they can pick 'em wrong....JUST LIKE ME...ahahahahah. Kidding aside, we are moving forward and KNOW the next one WILL work.
Great post.
Travis Roy
travis.roy@insightbb.com
Posted by
Anonymous |
8/24/2006 09:21:00 PM