We are at the office going over our trading on this Saturday. Steve, GMan, and I are reviewing some of the work of our new traders. It is a good sign for these new traders who acknowledge that they need some help and are working to get better. I know at the start of my trading career that I should have done more of stuff like this. One of our new traders sent me a few questions this morning and I responded. I thought his comments about some of his trading made perfect sense to him and other new traders. Unfortunately his conclusions were incorrect. Trading is a unique activity, and short-term trading is a niche. There are thousands of little things that you must learn to improve your trading numbers at the end of the month. There are just some things that don’t work and hurt your performance. On their face they may seem counter-intuitive. But again this is a game to which many do not have the appropriate experience. This is a game where sometimes what may make sense on its surface just doesn’t for short-term trading. And as a mentor it’s my job to point out these little things.
Below is an exchange I had with one of our new traders. And I thought it would be instructive to many. I certainly learned more about this trader and perhaps why he was not doing as well as he could. But I liked his fight. And I loved that he was thinking through his trading. My response is in bold.
If my exit price is reached and I know that other SMB’ers are trying to enter the same position as me, should I get out just for the sake of following my exit plan when other profitable traders view the stock as a long and I am already long? One of the advantages of being at SMB is the flow of communication on the desk, and along those line I try never to take the opposite side of someone like yourself in a trade.
You can be better tomorrow than you are today!
No relevant positions