L & M are definitely Smart and Talented in trading but the sad truth is not all can be a good trader like L & M. Some people no matter how hard they tried to learn ...no matter how long even after many years, they still can't trade-well and they're just wasting their time and hard-earned $$$ away...
I also met a guy who in my eye is greater than the legend WD Gann. he only has a BS. more academic education is often detrimental in the trading field.
Can't recall if you've mentioned this or not... but, how do you determine the size you'll take in a position? I know you piece in and out but I imagine there's a limit to size at some point. What determines that limit? Also, what "things" were you doing to help increase that size? ie what situations allowed that process to improve and grow. Thx B
So lescor, how is the house building going. I am in the business, so I know how time consuming and how much stress it can cause. I see people all the time that are trying to pick out selections for their new house and by the time they get half done they need a vacation, and most of them take one. I assume it is pulling a lot of your time away from this journal. Is the low volatility killing you or just giving you less profits?
It varies by strategy but I basically determine position size by how much maximum heat I am willing to take. It's a guess and I err heavily on the conservative side. Having a lot of stats on past trades helps though. I increase size slowly. It's necessary to size up slower than the rate at which your comfort level in p/l swings grows.
Actually it's been going amazingly smooth to this point. We have 10 acres on the edge of the city. We're living in the original house and building the new one 50' away, so we're on top of things right away and always know what's going on. We have the best custom builder in the city and they're very well organized. My wife is stressed over colors, floor samples, etc, but I am only in charge of the man garage, the workout room and the office, so no worries for me! They're putting on the roof right now and we'll have it closed up with windows and doors in about three weeks. Move in still towards the end of the year though. Here's what it should look like when done. It's a douglas fir timber frame.
Am I seeing double or there is going to be 4 car garages? I guess that R8 is still totally not out of the picture. Since I have already started writing, let me ask a quick question: You have mentioned that often the extra $$$$ you generate stays in the broker's account. Do you think you do that intentionally (perhaps subconsciously) to have that extra buffer zone before you get into semi panic territory? Do you find trading with that extra $$$ parked in the same account calming? The reason I am asking is that when I first broke on the "trading stage" like many had the symbolic amount of 5K and that minuscule amount made me do tings I would not have done had the account been fatter. Basically, it seems that the more one has in the account, the calmer one trades and therefore the propensity to commit errors is not as pronounced. Wouldn't you agree?
Yes. I actually don't like withdrawing cash, I like the cushion. It's psychological because I know I have the cash elsewhere if I did withdraw it. I like having it there if something big happens, either good or bad. Lots of opportunity or a big drawdown. I'm not worried about the financial stability of the brokers I have the money with. Btw the single garage on the right is my garage, which I will probably never park a car in. Just a workshop to work on my bikes and motorcycles and tinker on whatever I want. Even going to put a female-repelling urinal in it. And a beer fridge. And a dart board. You get the picture...