Hey Mom, I’m Gonna Be A Commodity Trader !!
It was as if, when I told my Mom my career intentions, she heard, “Hey Mom, I’m gonna sling heroin and crack to Junior High kids down the block. I got a great network of guys to supply me, no chance of trouble of course, and everything is gonna be great!”
Ladies, Meet My Son The RICH Commodity Trader
Fast forward 1 year, 3 months, 6 days, 12 hours and 23 minutes and I’m buying dinner for my parents, where my Mom is telling everybody who will listen what a great guy I am, and ohhh by the way, he’s single and is a RICH trader.
“Of course he’ll BUY your dinners ladies. DUHHHHHH. Honey, please come over here and sit and chat with some new friends I found for you !!”
Now, you know I can’t let this pass. The sheer hypocrisy here is like the size of the iceberg the Titanic hit. So, on the way home I quiz me MOM.
“Don’t you remember how you felt when I told you last year I was going to trade for a living?”
“Of course I do dear.”
“Well, now you’ve flipped 180 degrees. A little hypocritical isn’t it?”
“Of course NOT honey. Besides, just deal with it, OK? Deal with it!!”
Me Mum. Whaddaya say to that?
Now that I’ve explained the family side of trading, let’s move on to relationships, shall we?
Wife Mistress Girlfriend Woman When You Don’t Make Money
At least they are honest about it. Your job is to make it, and their job is to spend it. There’s a philosophical simplicity to it that can’t be ignored. They’re gonna say to you, “Well, why get up if you aren’t going to make money?” or, “Get back in there and don’t come out ‘till your up money”.
You Made Money Today? Good Job!! Now, Fork It Over
“Honey, that was great.” You may now resume normal life. So it goes.
You are going to have to make money in up markets, down markets, sideways markets, markets that are totally nuts, markets that are napping, technical markets, rumor-driven markets, etc., etc. If you are a one-trick-pony you aren’t going to make it.
Go ask all those people, in the last couple of years, who have thrown money at “EA’s” [Expert Advisors - computer trading programs], that trade their account via a predetermined computer program sitting on the brokerage house’s computer system.
Pay $799, or maybe $1599, install and go sit on a beach drinking a cocktail and do nothing! It's free money don't-cha-know?
EA Customer Service Center
Here is the truth. EA’s are crap. The banks run the stops and the slippage in fills are aweful. Trade 1600 times in a day, and the money you lose adds up quickly. All the promises were based on hypothetical trades done on demo servers.
Want your $1599 back? Just call the Customer Service Center at 1-800-ohh-nooo. I’m sure they will answer the phone.
Your trading plan should incorporate an algorithm that consistently allows you to be in a position to make money. It should be thoroughly vetted for weakness and losses, and you should have a very good idea what is at risk. It should let profits run when appropriate, instead of always going for a predetermined profit. It should be easy to implement and follow, and not need a PhD in Math to understand. Hopefully, trading can be visualized so that you can easily know what to do.
Most importantly, it was created with a trading philosophy backed by logic and NOT OPTIMIZED WITH PAST MARKET DATA TO FIT A PROFIT OBJECTIVE.
AND, it has been traded with real money, with real verifiable trading results. While hypothetical results are interesting, they don’t mean squat.
Now, where does such an algorithm exist? [Don’t make me answer this.]
Today’s Action & Weekly Wrap
Buy, No Sell Wait Sell, No Buy, Oh Crap!!
It never pays to think when trading. Gold was on a roller coaster today, putting in the dreaded “round-tripper”, with new lows, new highs, and then new lows again. What’s a trader to do?
First sell signal came at 5:15 AM [Chicago time] at around 1727, with a stop at 1730.50. Within the hour, we got stopped out for a loss of $ 3.50 / oz. Market raced higher on Euro rumors that caused equity prices to spike. Gold followed suit and made new highs.
Second sell signal came at 6:20 AM [Chicago time] at around 1730. A while later, we got a confirmation of a bottom [liquidate short position] at 1723. This signal bottom I talk about in the algorithm manual. Our gain was $ 7.50 / oz.
Our net gain on the day was $ 4.00 / oz. [It’s Friday, meaning I’ll take it and run as fast as I can away from the computer.]
Let’s recap for the week:
Monday + $ 3.00 /oz.,
Tuesday + $ 18.00 /oz.,
Wednesday + $ 12.00 /oz.,
Thursday + $ 12.00 /oz.,
Friday + $ 4.00 /oz.
NET GAIN FOR THE WEEK + $ 49.00 /OZ.
JUST ANOTHER 49% FOR THE WEEK !!
And yes, I'm going to say it again: if you aren't trading "The Vegas BFSG Algorithm", what are you waiting for?
Have a good weekend everybody.