April 8, 2011- I need some cash to date new girls

My HK Trading Story

I know that I know how to trade.  I know that I can make money.  I know that I should be patient. I’m human.  I can get tempted.

Think of trading as though you are in a relationship.  I’m sure most traders probably analogize their stocks with their girlfriends anyway.

Here’s what nerves me:

I’ve spotted solid 7-9% gains on one single day of swing trading in Hong kong.  With strongly trending markets and a thousand girlfriends to choose from, the market is offering so much opportunities.  The problem is I cannot know which will have stronger continuations, or which are just pausing for even stronger continuations.

I’m not the best.  Frankly, I know some people making 13% gains lately.  I’m not here to compete with them.  I’m here to trade the best possible way for myself! I’ve found these trades. I’ve charted the whole morning. The setups were there.  The entries were there.  I did my homeworks.  I didn’t make money.  I didn’t lose money either but Why?

I didn’t execute.  It’s not that I don’t have the balls to trigger the buys.  I’m confused if I should move on from my existing holdings.  I’m having a hard time whether I should switch.

Move on?

Assume you were in a club, you are already taken (i.e. you cannot hit on anyone anymore if you’re faithful and ethical), how do you determine then whether to break off with your current girlfriend and switch on to a possible score for the night?  Yeah.  What if you just want to have that one night stand?

Sometimes when your girlfriend or wife becomes dull and unexciting, (read slow-moving stock),  even if you’re still deep in the money, you might be tempted to switch to that new girl.  Your relationship with stock ABC is not going anywhere.  It could just be pausing, but it’s just not going anywhere.  Angels in your head tell you to stick with her unless there’s a real sell signal.  The devil on the other head tells you , that you need to trade on that opportunity.  The hot girl’s in front of you , so why don’t you just take a stab at her now?

This situation is very hard for me.  You see, when the market is so strong, and everything’s going up.  I, who has only limited cash, can only spend my wad on certain girlfriends at a time.

I’m just generally having this problem every single time and it’s not easy to listen to Mr. Brett Steenbarger lecture to me about rule-based trading, because my psychologist Van Tharp typified my personality as a spontaneous trader. I really can’t understand why I can’t make those 7-9% gains that I’ve hard earned myself, just because I’m stuck with lazy old Susy.  Is there a solution?

My question is this: How do I know when to move on?

The good is really the enemy of the best.  When you are riding a good horse, it may not be the most excellent horse but you have to be patient.  They’ll all cross the finish line.

I talked to my mentor, perhaps a little frustrated, telling him my account is unchanged.  I didn’t do anything. I stuck to my rules that I will only sell my stocks if they hit my stop.  If they’re just unchanged, I’ll hold.

Lesson Learned:

I don’t have statistics to back this theory up here, but generally, the traders told me that I shouldn’t mutter or fret about holding a stock that just did nothing.  Normally, their time will come (especially if all the signals for it to move are there).  I guess this just means that sometimes when we trade by the rules, we cannot just get past possibilities of having to go through losses, unchanging- movements despite what we expect them to be.  We need to stick by the system.  Call it mechanic, but when we lack the grounding to follow our rules, we’ll end up with just a gut-feel system.

Sometimes , our system tells us to hold.  Sometimes , due to this system, we fail to make good on the other opportunities that present to us.  What can we do?  We’re limited individuals.  They will come.  As long as there’s a fundamental story, there’s a chart that’s reversing and having a lot of green signals, slowness is not a problem.

So, although I’m sad for not getting the high fliers every single time, I know that rule-based trading and successful trading is not about getting fast horses or winning all the time.  I have to sit through all of the corrections (which are honestly not even correcting but just pausing)… I have to follow the system.

Without the presence of rule governance in our trading, we’re left to the emotional state of functioning using our balls!

So, although this feels a little bit weird… I admit this has to be one of my lousiest posts, since I just ranted.  I held on.

 


In life’s racetrack, bet on the workhorses, not the show horses.  – Brett Steenbarger

@DimsumTrader – I guess at the end of the day, in order for me to be able to buy my hit lists, I should lighten up on some of my holdings so that I have extra cash to buy the stocks I really want. I.E. If you want to date more girlfriends, just have more cash then!

Sorry. really lousy post. I’ll most probably rewrite this.  This post is purely non-educational and just a rant.

What do you do during these times? Just stick with the system.

It’s easy to say, my patience finally paid off with MPI, EDC,FGEN, AP,ALI etc.  Still holding EVERYTHING, though lightened very very little to some of them.

If you notice, most of my bets have skewed to the power sectors.  I admit, I could have loaded up on LR before or GERI now (which frankly, I should have, honestly).  I’d probably re-assess whether I’m taking too little risk.  I should be more aggressive.  I don’t want to talk up trades so people who read this , please trade only your own plans.  I’ll discuss about high betas and low beta stocks.  I’ll check upon the resistances and my trailing stops in the next posts.  Pag malakas market, nahihilo ako.  Gusto ko malaman, which are the strong ones, and which are the ones just being drifted with the whole tail wind.  I’d analyze these in my next posts.

I guess in the long run, as they say, when you trade the system, you just need to trade the system.  No questions asked.  Good thing I held those turtles.  I think they evolved into hares.  Now can my HK horses move now? Please???

Hoping these 1208,1114,773,1818 finally go up!

Enjoy your weekend.

(Cheesy lines below) – The Fionas and the Jennas of the World (Shameless Series Pilot Episode)

Fiona: Yeah, yeah, yeah. It was Jenna’s birthday. So you’re watching her, who’s a lot better looking than me.
Steve: You think so, really?
Fiona: Yeah, so how come you’re not stalking Jenna?
Steve: Because you think like that, and Jenna doesn’t. Jenna dances for an audience, you dance like there’s no one else in the room. Your life’s not simple, Fiona, and you can’t stop it from showing because you’re no fake, you’re not lost, you don’t need finding, this whole city belongs to the Jennas, but I’m sick of them! I swear, Fiona, you’re nothing like anyone I’ve ever met. You make me want to to enjoy my life again!

 

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Comments
16 Responses to “April 8, 2011- I need some cash to date new girls”
  1. spyfrat says:

    in short, indi mo na kailangan e date sila coz sila ang magkakandarapa sa paghabol sa you. 😉

  2. spyfrat says:

    and btw bolero yang si steve haha

  3. Romeo says:

    Strangely, I have the same predicament right now. With so many local stocks looking bullish, I ask myself should I hold the ones correcting that already gave me good returns, or shall I sell them and shift to others? But that thought of when I sell, what if the correcting ones start their next uptrend swing? Decisions, decisions, hahaha! Good luck though on your trades.

  4. frappo says:

    you can ‘hit’ that hot chick in the bar and still go back to your one true love. (i mean in stock context).

    just saying hehe..

  5. hmmmm …. not so fond of this analogy … does it follow as well that monogamy as a trader will not be greatly rewarded? hehehe Happy Weekend Dimsum!

    • Maybe analogy is wrong but diversify dapat. If your life concentrated on one womans love, touch, emotions etc, ur portfolio is whacked or roller coaster ride. Get the right mix for your personality but the all in bet the farm on one is something traders n poker players don’t have in common. Alex elder recommends 2 pct daily portfolio risk. If d gets explain ko, 100k shud move max down na tolerable to 98k so dapat build the positions

      Sent from my iPad

  6. rightchoose says:

    Polygamy has its pleasures, but true LOYALTY is most often rewarded.

    • @Rightchoose and Frappo – I may have used the wrong analogy hehe. Comparing stocks to girls and having 4 stocks at once is a very good thing, because I don’t know which girl will give me a score for the night. I think the proper thing to do is to remember that I’ve given my numbers (i.e. I have my sights on them, I watch/stalk them) and when they’re ready. Frappo’s right. I should hit the girl and score a few points 🙂

      • but still have my other girls’ numbers in my cellphone haha. I.e. Hindi ko kinakalimutan ang mga stocks na binitawan ko. So— lighten siguro sa mabagal..then switch dun sa fast…pero hindi totally out.

      • harry says:

        i’ll rather pick one girl at a time and focus my full attention with her and once i get to take what i intended to have(profits) from her, i’ll then slowly start dumping her and look for a new and better one.

        that being said, i think it’s not cool an analogy at all comparing a girl to a trade….

        hey, that’s just me 😉

  7. Romeo says:

    Yup, I guess that’s the best compromise. Shift portions of the capital to the ones you think will move next while waiting for the original ones to make their second moves.

  8. roy_roger says:

    As said by Julie Stav in his book Get Your Share, “Date your stocks, don’t marry them. Try them out but don’t hesitate to say, “Thanks for a great evening, good night,” to those that don’t cut it. In investing, as in dating, you need to keep your standards high…”

  9. roy_roger says:

    I mean in her book.

  10. spyfrat says:

    lets try hot dude as an analogy. u can hit me anytime dimsum haha

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