Where The Magic Happens
- Posted by chicagosean
- on June 18th, 2013
On StockTwits, we encourage users not only to share for the sake of sharing, but also to use the platform as a tool for micro-journaling your thoughts. It is a great way to jot down your market ideas and get feedback on them from a community of engaged and helpful users.
One newer member who is excellent at using StockTwits to journal his development and growth is aspiring market-maven Michael Zoitas who uses the handle @yobronomics.
This morning, YoBro shared a link to his blog (another recommended journaling tool), where he discussed some recent trading errors he made. Here’s a excerpt (emphasis mine):
The stupid trade that I did came after taking that loss. I took a long trade in Gold $GC_F based on a volume alert. It was a spontaneous trade with no real plan other than to make back monies lost in the crude trade. Gold is a very choppy futures contract for scalp trading. I knew this but wasn’t thinking. I compounded my stupidity by leaving my computer because of my migraine. I had an opportunity to take a slight gain but for some reason I was being stubborn. As I was laying in bed I was able to relax and my headache was subsiding. I was able to think more clear. I asked myself: Do I want to be a gambler and ruin everything I have been building by developing bad habits? Or do I want to be a great trader?
As somebody who has been through the emotional market grinder more times than I can count over the past 15 years, I immediately empathized with YoBro’s plight which led me to leave a comment on his blog and this very similar message to him on StockTwits:
This message to YoBro sprang out of my deep subconscious, a dark corner of my soul that has been battered and bruised by the Heavyweight Prize Fighter Mr. Market, but never defeated.
It’s taken me 15 years – and I’m not there yet – but each week and each month I know I’m getting closer to where I want to be. These days, I don’t trade often. But when I do, I’m focused on trades with built-in edges that compound over time. As an options trader, this means executing trades that have positive expectancy within a framework of defined risk. I have frequent losers, but I know that if I keep executing on my plan, the positive edges I’m exploiting will compound over time. But to stick to this (or any) plan requires me to develop and maintain positive habits and attitudes that will surely be tested from time to time. The discipline to not waver during these times is what separates the professional from the hobbyist.
It takes work, but make it your goal to get to the zone where you’re disciplined in maintaining good habits and a positive attitude, while trusting yourself and your plan. Only then will you be allowing your edges to compound. This is where the magic happens. It’s beginning to happen for me, and it’s a wonderful feeling.
Good luck, YoBro. It’s a long journey and you’re doing all the right things. All the things I didn’t do when I was starting out and regret every day now. Keep it up. You’ll get there.
Follow @yobronomics on StockTwits, and his Trading Journal here: http://yobronomics.com/
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Sean McLaughlin - Editorial, Curation, & Investor Relations Solutions at StockTwits. Also, former Member of the Chicago Board of Trade who trades his own account in Boulder, Colorado. More »