I know some people really freak out when things are not going their way and they see a sea of red everywhere on their screen. Mike Norman has talked about this EXTENSIVELY! I truly think that is the most valuable service he gives to people and it’s FREE! But unfortunately I don’t think people actually get just how valuable that is. Everyone is stuck on this stop loss craze. Little lesson here if you allow me.
Stop loss was designed by people who wrote books seeking to appeal to the masses. That includes the most mentally challenged among us. Believe me Goldman Sachs traders don’t read this schitt! Anyway bad to the mentally challenged, you know the guy who made a couple of dollars doing construction, the doctor, Restaurant owner or lawyer. Why are they mentally challenged? Because they are good at one thing THEREFORE THEY ARE GOOD AT EVERYTHING! So they go out buy a few trading books, study hard, balance sheets all over the place, start putting up charts left right and center, start piling up indicator, after indicator, after indicator, study them hard but something is missing. Than they go pay some loser a subscription plan to get buy and sell signals. That fails cause they just didn’t buy at the right time or didn’t stop out fast enough or got too greedy or not greedy enough OR the guy was wrong and they were right, but listened to the guy anyway and lost OR they went back to doing what they did before with some of the buy and sell signals from the guy and before you know it, they have no less than 35 positions on. With 10 shares each and 500 shares in their biggest loser. At some point they says Fuck it!
Now they are back on their on again. They thinks to themselves, if only I had a computer to automate the 65 indicators on my chart and when they all agree and hit these perimeters the PC will buy and sell while at work and sleeping. God! They could be RICH!
Off they go to start learning scripting, after they got bored and frustrated, they pay some guy to do the scripting, do this, that and this. Refine it a bit, back tests the schitt out of it and BAM! Good to go! they turn the thing on it makes one or two good trades one for $11.52 and the other for $9.73 after spending thousands of dollars and countless man hours. They are pumped and think to themselves if we can do 20 of these trades per day I will be good to go! In fact, after some time, I will pump it up and it will be hundreds of dollars per trade. Walk out of the room like the roosters that they are!
A week later market has turned and everything is a loss! Stop losses everywhere. Back testing out the window! LOL! Fuck this! Trading is rigged! “THEY” are thieves! I am buying Gold and real estate! Fuck this schitt!
Sound familiar? It should! We all go through this schitt one way or another. So what is my point? That we are all mentally challenged losers? NO!
The point is that we must evolve or give it up. There are a billion angles we can keep on trying to evolve to. But there is only one way to make money in actual trading. That is understanding MMT, put on small positions knowing full well you will be wrong every time, you will see red far longer than you will see green, understand the mechanics of trading and be patient as FUCK! In other words Mike’s mental game. Buffet did not become Buffet cause he panicked! Or listened to some Technical analyst, or put on stop losses, or bought the lowest PE company with the highest PEG OR bought 62 companies running a mutual fund. Now I am not telling you MMT, Mike or I are Buffet. LOL! Don’t get stupid on me. 🙂 It comes down to Occam’s razor. Keep it simple, know what you are doing and why, and respect and use TIME! If everyone wanted what you just bought, you are almost certainly paying too much.
I don’t want to blow my own horn here but I will to give you a few examples. Gold as I mentioned before I had to wait one and half YEARS to get paid. Oil, another fucken year of my life! IBB, CPA, LFL on and on.
On January 10 2015 I posted this video. I doubt any of you saw it since it only has 200 views or something. I basically said Rubble is over sold.
Do you know what kind of an ASS whopping I took buying the Rubble for almost 2 years? FUCK ME! But you know what? I GOT PAID! I got paid on interest waiting and I got paid by price. I will continue to get paid! I didn’t panic, I didn’t say aaaww FUCK this indicator and that news article said I am basically fucked. Why? Because I was right! I knew I was right. Just like I know it about the GBP, and Oil. Stay chilled, you know you are right, you know you will get paid BIG! Be Buffet! Listen to what mike says and take it to heart! It’s the only way to make money. HUGE MONEY! 😉
Hope you found this a bit informative and helps you in some way.
Author Jim Boukis