Thank You Mr. Market For Being Open
My trading biz doesn’t have any employees or special plant and equipment. I have my funds “offshore”, outside the reach of regulators who think they know what is best for me. I deal in cash, and have no inventory. Nor do I worry about leasing rates or borrowing money for payroll. I have no business rent and can literally do everything from the beach if I wish. I could go on but I’m hoping you get the point.
“But vegas, markets are random and I can lose money. How is that a business?”
“Does a McDonald’s know the names of the people who walk into any given restaurant on any given day? How do they know if anybody will show up tomorrow?
[Psst – they don’t]
Consummate American Success Story
It will cost you over $1 million just to get in the door and own a Mickey D’s. You get to work 80 hours a week and run a group of teenagers who will do there best to steal you blind. Every time you turn around there will be corporate suits in your face and running your life. Congrats on buying yourself a job! If you’re lucky you’ll make 60K – 80K a year.
I, on the other hand, can trade a lousy 1 lot, make $1.50 / oz. per day, work on average less than 25 hours per week, and make more than 100K per year. You have more than $1 million invested in hamburgers. I got 10K in an account and make more than you, all the while I have 1 / 10,000th the problems you have. Yea, please convince me you got the better deal.
Are You In The Right Biz Model?
Trading is a business. When I trade the algo, it’s like McDonald’s putting ketchup on a hamburger: it’s the same way, the same amount, from Maine to California. No deviation, it’s the same every single time.
In other words, it’s the algorithm stupid. It’s how business’s are run so they can be profitable. Trading is no different, when you treat it as a business.
Today’s Action & Wrap Up
We came into the day in “buy mode”, with the Asian session drifting higher. There never was a clear buy signal all night. Some of you may have taken a buy signal at 12:20 AM [Chicago time] at 1599. This signal was right at the “DIP’s”. A few cents separates a buy signal from sitting on your hands. At 2:10 AM [Chicago time] we got a confirmation top [discussed in the manual and Appendix III] at 1603.50 [actually it was a little higher than this price, but again I love giving lower result numbers for the algo just because I can.] Gain on this first trade was $ 4.50 / oz. [if you caught it].
The first clear buy signal came at 6:40 AM [Chicago time] at 1606 with a stop at 1602.90. Market settled in with some initial chop-chop that threatened stop but never went below recent low of 1603.15. We then saw a move higher that pushed into buy stops above 1608. At 8:00 AM [Chicago time] we had confirmation top [discussed in manual and Appendix III] at 1611. Gain on the second trade was $ 5.00 / oz.
Total gain on the day was $ 9.50 / oz. However, since a number of algo traders missed the first gain, I’m going to report the algo’s performance today as just the second trade, skipping the first trade and showing once again that the results I post are at or below what you should be doing!! [Skeptic Cat just hurled a fur ball !! Skeptic Dog is asleep and can’t be bothered.]
Now, I realize there are plenty of you aggressive beavers out there who think $ 5.00 / oz per day is chump change, and you want to get in there and trade, trade, and trade some more. I have seen this type of trader behavior many times, and all I can say is that you are falling prey to the hype of markets.
Remember, $1.50 / oz. per day makes you filthy rich over time, using proper leverage. Once you make $5.00 / oz. per day, or more, you have to have the guts to move on and walk away from trading for the day.
“The Vegas BFSG Algorithm” is designed to catch the PRIMARY move for the day as the market decides which way it wants to trade. If volatility is normal, or above normal, there are very few scenarios that can play out in which the algo loses money. There are some, and occasionally we will hit them, but once good money is made from that primary move, it’s time to put the trading cards away and go do something else. It doesn’t matter if you then missed another move for the day.
Being a professional trader doesn’t mean “trading like a maniac”. It means making money FROM trading.
So, net gain on the day is $ 5.00 / oz.
Ka-Chinggggggggg [Again]
Have a good day everyone.
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