Sunday, July 1, 2012

Another Real Story of Bad Trading, of not Owning the Trade

Lesson learned:

From the school of hard knocks, Hawaii Trading style

Had one of my best trading runs the last 14 weeks or so up to June 1, 2012, consistent profits, bagging each of 2 accounts.   A Bag is a 100% gain.   Then went on a trip with some large put positions on, knowing that where I was going I had land line internet and a nice wireless setup too, but on a brand new MacBook that I was just getting familiar with, so I kept my positions open, salivating at my recent success and wanting more.   

Monday came and the market played exactly into my hands although all internet was unavailable and I spent time checking MY systems, assuming that it couldn't be the reliable paid for land line internet.   Missed Monday completely.   No idea what the market did, but did get a hold of the internet company who was going to send someone "that night".

No one came.   Tuesday came and waiting through morning, no one came, called again....going through the same insultingly stupid computer prompted trouble call service, and then got a "someone will call you message only".   Never was able to talk to a human.   No idea what the market did---busy on other projects.

Wednesday came, raised hell and got someone out that night and they found several problems and fixed them with new equipment.     Logged in and found what would have been a windfall on Monday....on a perfect pattern that I would salivate to see, AND I guarantee would have closed the position rather than get greedy.     And by Wednesday close the huge profit had turned to a medium size loss, but it still looked like a Fibo retracement and I "wishfully thought" it should go back down so I could get my profits back.     That was June 4, 5 ,6.    

I got stuck in the position because I wasn’t taking 100% responsibility for the trade…it wasn’t me causing the loss….IT WAS THE INTERNET COMPANY!

I closed my position on June 23, owning up to substantial losses, creating the worst 3 weeks of the year.    And good thing...if I had stayed in they would have become huge losses by today.    They were bad and hurtful but not crippling.

But the reality is that instead of taking decisive action, I was placing blame on the internet company, and that placement of blame led me into a hope that my profits would come back because "it wasn't my fault".   

And that created a deer in the headlights issue.  

OWN YOUR TRADE, all of it, no excuses.   No matter what the market throws at you, no matter what your broker throws at you, no matter what your internet service provider throws at you, no matter what your computer throws at you, no matter what the central bankers and their buddy bankers/brokers throw at you, no matter what the purchased media throws at you, no matter what your other obligations throws at you.   

There are factors beyond our control, no doubt.     None us know what happens next ---the only thing that matters is what you do when what happens next, happens.
No blame, no hindsight, no wishful thinking, and control your greed, especially during the extreme events.    OWN YOUR TRADE, 100% come what may.

Owning your own trade has NOTHING to do with any false pretense that one can control everything or that somehow you are responsible for everything.     It has nothing to do with that.    Owning your own trade is simple, AND ONLY, a state of mind for increasing your trading profits.     That's it, don't over think it.        

Sometimes I swing back to the idea that I just should have closed all positions before going on a vacation, but even that thought, as legitimate as it is, IS ALSO AN EXCUSE to not own the trade.

OWN YOUR TRADE!  And that’s about all I have to say about that.
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