I have a very good trading system. When I follow it religiously, I seldom lose much money – and more often than not I will make money on most trades.
The reason is pretty simple – after many years of technical analysis training and many years of honing my trading method I have a system that works for me. The only thing I have to do is follow the system and obey the trading rules. Should be pretty easy to do – after all I created the system and established the trading rules.
However, on occasion – probably thinking that I am really smarter at the moment than when I wrote the rules – I do something really dumb.
If today was my day pre-ordained day to do something really dumb I managed to fulfill the mandate to perfection!
I knew that today was FOMC day at the FED. I have a rule about being out of the markets on such days – waiting for the market to digest the reports and get over its reaction. Well last night I got short the S&P at what I thought was a pretty good entry – set a stop and held the position over night.
Early this morning I awoke to a small profit in the short S\& P trade. What I should have done is take that profit. A doctor’s appointment was scheduled for later that morning and I knew full well that the FOMC announcement was coming at 1:00 pm my time.
So in a moment of arrogant stupidity I decided that I was in the market at a point that had already priced in the best possible report from the FOMC – that the most likely thing would be that the report would disappoint the market and send the S&P down.
I paid dearly for my mistake – and all afternoon I had to perform the mental equivalent of writing on the blackboard 1000 times – “I will not break the rules again!”
I have a great system for short term trading. When I follow it I do very well – and when I do not follow it – I often pay dearly.
A system must be followed to be effective.
If you have a system – follow it. If you do not have a system, set a good one at
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Author & Trader
I trade the US Bond Markets exclusively – amazed at the accuracy of the SRV’s !!George SNew York, NY
Great system – couldn’t trade without it !!Frank YDavid, Panama
the SRV’s are spot on !!Tom CUSA
“The SRV’s are amazingly accurate”.Tony Texas
Thanks for the method !! Very solid, very logical entry and exit and genius SRV’s !!Denis DRussia
….very impressed with the whole philosophy – both personal and trading, expressed in the book. I will read and revert !!Richard DUSA
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