Serious Cat IS Seriously Serious
We all come to trading with different backgrounds, trading ideas, etc. What we shouldn’t argue is the math.
I’m specifically talking about people [traders] that trade short term. I’ll leave to the “guru’s” the job of figuring out where a market goes and trying to profit from their guesses [that’s right, guesses].
All of the things that bring people to trading, none is as important as making money for the day. I didn’t say making money on every trade. Nobody is going to make money on every trade, no matter how good their algorithm in theory or in practice.
I’m going to go way out on a limb here and predict that most of you reading my posts would loveeeeeeeeee to be a full-time professional trader making enough money to be financially free. Well, you can sign up here, and class starts right NOW.
I’m not presumptuous enough to think “my way” is the only way: far from it, as there are enough trading professionals around the world who employ their own algorithms either for themselves or for firms like Vampire Squid.
The problem you have is that NONE of these other people are about to “bring you into the fold” and teach you what it takes to get you where you want to go. I’m not talking about the EA hucksters and those that want to reach into your wallet.
Q: What is the most important element of trading?
A: Not losing significant sums of money.
Q: What is the second most important element of trading?
A: Being UP money at the end of the day.
The “ART” of trading is being able to 1) dodge cannonballs and avoid landmines [see previous post “Professional Cannonball Dodger”, 1/24/2012], 2) be disciplined enough to implement and follow my algorithm, and 3) learning how and when to walk away from trading and come back the next day.
For those of you who are relatively new to my posts, I ask you to please read “The Power of $1.50” [12/14/2011 post] about 700 times and “get” what I am saying. For many of you, trying to make money isn’t the only reason you trade; when in fact it should be the only reason.
What you need to come to grips with is that when you have a great day [more than $5.00 / oz in profit], your profit potential, and by extension your earnings, will forever increase exponentially! This mi amigos is the POWER behind trading.
Sure, we have plenty of days that are mediocre. We also have plenty of days that are downright awesome. Every single time we have an awesome day, your projections for financial independence is many steps closer.
What starts out as chump change [maybe $10 - $20 per day], quickly becomes more important [$50 - $100 per day], highly important [$250 - $500 per day], and then downright mind blowing [$1,000 + per day]. Six months after you start, you’re making more in one day than you made in total for the first 2 months when you started
The objective of my algorithm is to put you in a position of first NOT losing money, and then positioning you at the right juncture of price and time to catch the move of the day. It is a cumulative process, maybe making one trade or several, to accomplish our objective of making money for the day. Having done that, it’s time to walk away!
I know what some of you are thinking because I live rent free in your head.
“Oh c’mon vegas, $1.50 or $2.00 don’t mean diddly squat. Get me in there with the big boys and let’s do some tradin’ man!”
“OK, great! I’ll see you in a couple of weeks when I’m ordering a double cheeseburger. And yes, I want fries with that.”
Have a great day everyone! Read my comments on today’s trading at http://vegaspamm.blogspot.com