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My basic trading philosophy can be summed up by one simple quote:

"Trade the ticker, not the company" - Nate Michaud


Monday, November 30, 2015

November Trading Recap

Before I launch into my recap of November, let me take a moment to thank all of you that took the time to reach out to me with words of encouragement following my last post. I truly appreciate all of the support and suggestions!

We're going to go ahead and do a video recap! It just comes across way better than text in my opinion, but if anyone would prefer I go to written recaps let me know!

Here is the link to my loss journal



20 comments:

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  2. Awesome Video man! Thanks for sharing your downs/struggles, lets us know your human as well and everyone makes mistakes!!! Keep up the good work with the rebounding looks like your doing great as always i know you'll get back on track everyone gets in Slumps with anything.Your one of my favorite traders,with some of the best strategies, working to be in your shoes someday! Thanks again Tim!

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  3. Thanks for the video Tim, really cool how you are keeping track and improving yourself. Best of luck in December!

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  4. I have a ton of respect for the transparency and humility you convey in everything you put out. After watching the entire FOUS4 series, HTMM, and now working through Nate's two DVD's, I'm certain your DVD will be next I go through. I've been putting a ton into my education before trading again, and as with this blog, I'm sure there will be tons of lessons for me to learn in it. Best of luck to you in your trading, application of disciplines and growth. You're a solid inspiration for all of us.

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  6. Hi Tim, I'm a fan of yours and would like to share a personal discovery that might compliment your efforts in self improvement. As most successful people know, focusing on what you want until you achieve it is a key ingredient to that success. And to focus on your losing trades to learn from them is commendable; it takes great integrity to look at your shortcomings and ardently strive to correct them. I see something--though--that maybe you have or haven't yet. And after reading your November loss journal, this is what I am reminded of, and I quote, "No problem can be solved from the same level of consciousness that created it." - Albert Einstein
    You know you're being compulsive when you are. You also know when you're breaking your rules in the moment that it's happening: most likely a subtle uncomfortable feeling in your stomach or slight anxiety, impatience or irritability. I'm guessing that you know it because you display a perspicuity--a keen awareness--of self. And here is what I've found about my similar troubles, and I share this in all sincerity as to be helpful, not to pontificate.
    The following is a recent log entry from my journal.

    1. Being in a rush to trade/make money, means you are coming from a state of lack of prosperity ( I need to make this PDT trade count, make up for my earlier loss, grow my account more quickly). All of these can be subtle, but they are negative and will eventually lead to big losses or account blow up).

    In reality there will always be good opportunities for the prepared. Trading within your means (smart position sizing) and paying attention to when you start to get caught up in negative psychological patterns and cutting those patterns short—just like losses—will support your quest of profitable trading.

    Side note: the state of prosperity or trust has some of the following attributes: a natural confidence, clarity, calmness, and a general feeling of well-being.

    Okay, that's the end of the journal entry.
    So my take away is this, and it aligns a little bit with Einstein's quote.
    When we get emotional we are acting out thoughts in our minds that aren't quite clear to us. Some call it the subconscious or subliminal, but I like to define those terms as the thoughts just happen too fast and in too large a quantity for us to internalize them all. And how you feel at any given moment is the net sum of those thoughts, especially the ones you believe or believed whether you realized it in the moment or not.
    So I believe the level at which you engage in your troubled trades is not quite in the logical reasons you are finding in your loss journal. Since your journal is filled with, " I need to do this, not do that" and it repeats (no disrespect, I recognize it because these are/were my patterns too). You might be chasing your tail in a downward spiral. Here is where your focus might be a hindrance. If you focus enough on finding the problem, it will appear because you are looking for it. If you focus on the solution, or expect that the solution will appear, it eventually will. The difference is one is negative and will lead to more negativity and the other is positive and will lead to positivity. In short ( ha ha I know this was super long !) Maybe focus and dedicate the majority of your time on what you did on your winning trades, and with that focus will bring about a more winning mentality and positively etc... The negative stuff shouldn't come up as much, because your too busy studying success.
    Okay, I'm done with the free, unsolicited advice. By the way, a lot of these concepts are not my own, I just incorporate them when I'm conscious enough to do so. Also, in case I come off as knowledgeable, I'm a beginning trader, so I'm digging in for a long journey of refinement. You continually help me. I hope this was at least a modicum of reciprocity.

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  7. Hey Tim,im learning a lot from your blog and best from your DVD I got.Hope I can go as far as you on this trading life that I'm starting to love.The best thing I see in you is that your smarter then your emotions couse you say and know when your wrong.Keep it up and listen more to yourself that people like me still need you ;-)

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  10. Hey man! Just wanted to say thanks for being so real and informative. I'm learning a ton via this blog and watching your videos. Keep it up brother!

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  11. Well Tim your back feeling good :) A couple of comments 1. looks like Nov 19th was a bit of a revenge trade day? sort of coincidental that after that big loss you had such a big win. Looks a little fishy to me are you sure your being honest with yourself.? 2. You did the absolute best thing you could ever do and that was cut size during a down streak. So congrats on that. 3. Focusing on your loses to learn from them is excellent and again congratulations on the way your journaling and tracking that. 4. You have taken responsibility for your own psychology so congrats on that as well. 5. That all being said the markets have changed though still and they are about to change more over the next several years and you have some big challenges ahead of you for sure. I still hold out my offer to you anytime you like to learn how to trade big names feel free to skype me. ssptrader I'm 35 years and counting in this business ... been there done that ;)

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    1. Hey Steven,

      Thanks for your offer to help - perhaps that's something I'll take you up on one of these days! You're certainly right that the markets are constantly changing and eventually my focus will probably have to shift a bit - just like it did when I had to transition away from otcs. For now - I'm going to keep my focus where it is though and continue to try and work through my discipline issues and better myself in my current niche. To answer your question about November 19, it actually was just an incredibly volatile day and I was fortunate enough to take advantage of a few of those opportunities. I know my biggest win was on a KBIO short, I believe about 10k of my day came from that. But I was VERY careful with my risk management, a big part of the reason that win was so big was because I built into a winner as I moved my risk level down, I never had more than my max risk on that play and was fortunate enough to get a large fade from the $15 area down to $9 that morning.

      Again, thanks for reaching out, and I'm sure we'll be speaking one of these days once I'm ready to branch my focus out a bit!

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    2. Tim,

      Your humility is very commendable and admirable. We never stop learning as we go through this crazy world of trading. Even an old wolf like me learns from young smart people like you all the time, thats why I read your blog and many others to stay current with the latest things traders are doing. 95% is crap but you are one of the real deals and I sincerely hope you reach out to me at some point. A smart guy like you in the world of large caps has a really bright future and if you think 2 million is a good income for a trader the great traders in the world of large caps make 10x that amount.

      As far as your search for self discipline is concerned your definitely on the right track with the steps and you've taken and if I can add one other piece of advise on the psychology that will help you tremendously. All the theory behind the psyc books is wonderful and Brett S knows his stuff so that was a good place to look but when your live in the action you need something more powerful then theory ! The real secret to staying cool and being able to not tilt is controlling the chemicals and endorfines that flood your body causing your brain to Freeze, Fight or Flight. This is a primal response that your brain does for survival. Once your in Fear mode all the books in the world wont help you because its too late your brain is basically on drugs lol. So the only answer is to stop the chemicals before they flood your blood stream. The best way to do that is through breathing exercises through the day as well as when you initiate a trade and are manging it. The basics are just large slow breathes while you are managing a trade if you do that before during and after (a bad trade) you will stop the chemicals from ever forcing you into tilt. I hope that helps and again if you ever want to talk feel free to reach out anytime on skype = ssptrader

      btw congrats on your marriage ! wish you and your family a wonderful holidays

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