Thunderdog, I agree, this thread sounds like a locker room not a trading room. I may of missed it but haven't seen any numbers yet that show the degree of risk anyone takes on. DS
I agree--- in fact I have been dong a lot of suol searching on that topic the past month or so. Ever since the post-bubble markets - I find that the adage which best applies to me is: "you can't lose what you don't put in the pot-- but you can't make very much either..." -Rounders Frankly I'm sick of it! regards, Ice
Offensive/defensive? Agressive/passive? I'll stick to....."See a trade.....trade it!". I don't get emotional about a trade.
That may well be, but I think that there are very few of us here who can transition seamlessly from one to the other. So, although it is quite possibly an accurate observation, it is hardly a model or strategy that lesser mortals can adhere to. I guess that I have not yet risen above the "nuts and bolts" level where I can intuitively shift from the one to the other, so I presently find you comment a bit esoteric. Maybe one day... I think that driving serves as an interesting parallel. Those drivers who are decidedly less than expert should probably focus exclusively on defensive driving. That way, they might live long enough to get better. Of course, the downside is that they will reach their destination later. However, the upside is that they are more likely to actually reach their destination.
I dont think that going from offense to defense is that rare or difficult. I mean, every time you think a stock is going to keep moving in a certain direction and you put some shares on your forecast, your on offense. If you think that is going to hold and go back and you put some shares on it, you're on defense. Simple as that. I take both sides to the equation 100 times every day. Is just a matter of how you approach trading at any given time.
Maybe a good offense would be the "BUSH" way of attacking. Throw "ROSE" petals at the screen when you get filled. Hang a sign from your rooftop proclaiming "MISSION ACCOMPLISHED" from the roof of your house. never take a loss because you are stubborn in the face of defeat, screw it, you are bold you have a mandate, tell the world how you have a plan...but never give away the details...keep em guessing. Bush reminds me of bubble traders that say: Well it is not a loss until you sell it. A good defense is not being afraid of the truth, just the opposite is mandatory....
Perhaps a racecar driving analogy can illustrate my intended point... in order to win, the racecar driver must execute with an optimal balance of speed and control. Too much emphasis on speed and you spin out or hit the wall; too much emphasis on control and you get left behind. The two elements are like a yin and yang that inform and fulfill each other; they must be balanced on a shifting knife edge over an extended period of time. The idea I am trying to communicate is less a "moving" from offense to defense, and more of a constant sense of balance and proportion at all times. In many ways the split is artificial. If you get jammed up and miss out on the biggest trade of the year, is that a failure of offense or defense? Your financial capital may not be depleted, but your mental capital just went into deep drawdown. Offense copout = defense debacle. On the other hand, say you set up an excellent trade, follow through in the face of bone-jarring, teeth-gritting conditions, and are then forced to exit with a small loss because of a fluke reversal. Is that offense or defense? Your financial capital absorbed a small hit, but your mental capital broke out to new highs thanks to strong followthrough in the face of adversity... and your powder was preserved for the next opportunity. Defense coup = bigtime offense dividends. Many of these artificial distinctions (offense / defense) are pure mental construct. Where does the hand end and the wrist begin? At what point in the eating does apple become apple core? All these discussions and debates are simply frames -- attempts to create or facilitate understanding by way of analogy or example or shared experience. Clarity, clarity, clarity. Know the strengths and weaknesses of your approach as intimately as you know your goals and your environment and yourself, and the path will become obvious. On the knife edge, all these things are crystal clear. Intuition is born of clarity. If the reasoning ain't crystal, that's an invitation to dig. I think it was Gurdjieff who said "in order to know a little, we must first know a lot." Or something like that. Learn a lot, learn as much as you can stand, in order to find that small stash of vital truths that will guide you home. Aspiring to greatness is hard. Damned hard. It's like climbing Everest. Those without an iron will and a taste for blood, sweat and tears need not apply. But that's the whole point! See you at the top