M retweeted
Yes, spot on.
Money is a measure of stored value, and the market pays based on how difficult you are to replace and how much unique value you create.
A roofer working in the blazing sun arguably expends tremendous effort, but their skill set is relatively replaceable—limiting their value creation capacity.
Trading at its essence means identifying and capturing market inefficiencies that others miss—creating value through unique insight and decision making that few can replicate.
Your compensation isn’t tied to your effort, but to how irreplaceable your judgment and execution are.
M retweeted
Do not use a single trade result right in front of you as feedback for whether your strategy is working.
If you followed the rules, both wins and losses mean “the strategy is working.”
What you should use as feedback is whether or not you followed the rules.
You need to have already understood and been confident in what happens when you continue following those rules, and that is the core of your confidence.
M retweeted
Every trading day is a battle. I am not battling the markets, market info is neutral. I am not battling other traders-not in the pit now. I don't battle the algos, l've learned to let em do the work. I m battling myself. I have to overcome myself daily. I stay out of my own way!
M retweeted
I haven't traded much since the end of September.
In terms of work/life balance, trading for me is a process of being out of balance and then needing to counter balance.
It has to be that way because the energy and focus that trading requires is unsustainable, for me, for long periods of time without risking burn out.
When I'm in the zone, there is nothing but me and the markets. They are the first thing I look at when I wake up. They are all I look at during the day and they often keep me up at night.
When I need to counter balance, I do nothing. I rarely even glance at a chart. I spend entire days walking, reading, enjoying my hobbies. These periods are an absolute necessity, allowing me to come back and perform at my best.
The length of time between imbalance and counter balance is determined partly by the market and partly by my frame of mind.
My aim has always been to work out when I have clear edge and when I'm able to play my A game. Both are vital for success.
Sometimes I feel there is edge but I don't feel like trading. I might be tired and feel my execution could suffer. I might have other things in life occupying my mind. And sometimes, I simply don't feel like trading at all.
Perhaps that is strange for some people to read. Trading has always been a job to me - a job I enjoy but a job nonetheless. And sometimes, like anyone who has a job, I feel like a few days off. So, I don't trade.
At other times, I am keen to engage but I believe the market isn't conducive to my edge. Again, at such times, I don't trade.
When both my edge and my state of mind are in sync, then it's a question of making hay while the sun shines - however long that may be. Sometimes it's weeks at a time. Sometimes it's months. But the key, for me, is taking a break as soon as I feel one or the other is dissipating.
That is my process.
And many traders I have known along this journey find it hard to follow because their whole life has become nothing but trading: they are wrapped up in it from morning through until night - they wear their lifestyle of this relentless grind like a badge of honour and slowly, almost imperceptibly, they find their entire self worth is linked to their performance.
Not only is this not healthy but, in my opinion, it's not conducive to long term success and happiness.
Right now, I am enjoying the lull.
M retweeted
If you are right at the wrong time-you are wrong.
I see many wasting time and energy trying to predict what the market will do based on who wins the election. The harsh reality is, even if we know the winner, we can't predict how the market will react.
Even if we guess correctly on the winner and predict the market reaction accurately, executing it is a whole different ball game.
Just because you're right doesn't guarantee making money; chances are you could be right and still lose. It's best to wait and let the dust settle.
M retweeted
No, I have never seen that and no doubt, never will.
Trading profitably with large sums of money takes extreme focus, concentration and discipline - you need to consistently bring your A game.
You can’t afford to make serious mistakes or even multiple small mistakes that can compound to have a detrimental impact on your account.
The longer the time horizon, the harder this becomes to achieve.
This is why you see lots of traders with incredible short term track records ranging from a couple of weeks, to a few months but those showcasing track records spanning years are few and far between
A three month track record over the span of a career (say 25 years) is like planning on spending 12 hours in a casino but only showing you have beaten the dealer for around 7 minutes.
It works for marketing because people assume if you can beat the dealer for 7 minutes, you can beat them for next 11 hours, 53 minutes.
In reality, we know very, very few will.