Hi Geo, having watching your trades, I see your strength being very open minded and very fluid on your ideas and trades. You don’t get married to an idea or a trade, like any good trader. You can switch sides just in a few days. But how do you balance between “being fluid” vs. “being too fluid”? Thank you.
Very good question…being open minded to changing my mind makes me prone to not sticking with a trade or an idea and often getting out too early. Even though I often have the intention of holding a trade for a certain time period or towards a target, things can happen in the market that can change my mind and take me out of a position. Its a trade off that I’m aware of and trying to work on.
Thanks for the reply, but I guess it’s something hard to have a definite answer. We are discretionary traders, so it is… discretionary. But if you feel like this is an interesting topic, would appreciate if you can write an article or just sharing some anecdotal stories. Thanks.
My decision to prematurely take profit in TU today was a perfect example of this. I had a strong compulsion today to derisk my portfolio due to the strong gains I've had this month, and also have been forming a view in my mind that the US economy would perform stronger than I originally expected. By exiting my long, I overrode my original thesis of being long TU, which was that the upside risk and sensitivity for the market would be greater than the downside risk for the contract. In this case, I was too fluid in managing the position, as my mood for the day and the views I was developing based on my research swayed me from my original trade idea.
Hi Geo, having watching your trades, I see your strength being very open minded and very fluid on your ideas and trades. You don’t get married to an idea or a trade, like any good trader. You can switch sides just in a few days. But how do you balance between “being fluid” vs. “being too fluid”? Thank you.
Very good question…being open minded to changing my mind makes me prone to not sticking with a trade or an idea and often getting out too early. Even though I often have the intention of holding a trade for a certain time period or towards a target, things can happen in the market that can change my mind and take me out of a position. Its a trade off that I’m aware of and trying to work on.
Thanks for the reply, but I guess it’s something hard to have a definite answer. We are discretionary traders, so it is… discretionary. But if you feel like this is an interesting topic, would appreciate if you can write an article or just sharing some anecdotal stories. Thanks.
My decision to prematurely take profit in TU today was a perfect example of this. I had a strong compulsion today to derisk my portfolio due to the strong gains I've had this month, and also have been forming a view in my mind that the US economy would perform stronger than I originally expected. By exiting my long, I overrode my original thesis of being long TU, which was that the upside risk and sensitivity for the market would be greater than the downside risk for the contract. In this case, I was too fluid in managing the position, as my mood for the day and the views I was developing based on my research swayed me from my original trade idea.
Agree, and it’s comforting to know that even experienced trader got “swayed” occasionally. Your honesty and transparency is highly appreciated!