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
Thanks for the method !! Very solid, very logical entry and exit and genius SRV’s !!Denis DRussia
Great system – couldn’t trade without it !!Frank YDavid, Panama
….very impressed with the whole philosophy – both personal and trading, expressed in the book. I will read and revert !!Richard DUSA
the SRV’s are spot on !!Tom CUSA
“The SRV’s are amazingly accurate”.Tony Texas
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