Monday, March 8, 2010

Picture Your Stop as a German Shepherd

Stops  can really suck when the market makers are whipping the market around, ramping futures overnight like a son-a-gun doing God's work.  

But those things happen.   I just read a guy's blog who blew up 90% of his account with an option position that went against him, not using a stop.  I have certainly lost 100% on some options my March puts on SPY--but also not betting the farm....somehow I think those 80's just ain't gonna pay off....its not actually even worth the trade cost to cash them in.

I keep hearing from people that dogs will not guard property, only people (their pack).   Some people don't know jack, every time you hear a cliche, especially a financial one, think about it as deception.

Check the video

Think about your stop as the object this German Shepherd Dog is protecting, and right behind that is your money.   Visualize this -- the GSD is not easily deceived, just as your stop...picked before you entered the trade, was based on sound judgment...well at least based on a real reason, not the heat of the moment, will also not be deceived.   You can also enter the same trade again, don't sweat it.

Did you make it this far?  That dog's name is Bear, he has earned a Schutzhund 3 ranking, that's like a blackbelt.  He is the father dog of my two German Shepherds.  Pretty cool, eh? 

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Insightful and Useful Comment!