{"id":1152,"date":"2009-06-19T15:32:08","date_gmt":"2009-06-19T20:32:08","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=1152"},"modified":"2023-04-06T14:44:57","modified_gmt":"2023-04-06T18:44:57","slug":"from-the-mailbag-3","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/from-the-mailbag-3","title":{"rendered":"From the Mailbag – Part 3"},"content":{"rendered":"

I received this question the other day and thought we could discuss it. Ok so here goes…<\/p>\n

Rusmin Says:<\/p>\n

Friday, June 19th, 2009 at 3:24 am<\/p>\n

I want to ask you a question. But before I ask you that, I want to tell you something.<\/p>\n

I had a similar day where i took a huge rip. I f**ked up fifteen times in a row. After that I was so depressive, i couldn\u2019t sleep. I lost my self-confidence. The difference between me and you was, that I hadn\u2019t so much experience like you. Things come to my mind like \u201cI will never master the markets\u201d. After I analyze all my trades, I came to the conclusion that I will only trade my best set-ups.<\/p>\n

So my question is: why we can\u2019t stick with the rule only to trade our best set-ups ???<\/p>\n

If we always trade our best set-ups than it is almost impossible to get a huge rip. I know that we are human beings and that we will make mistakes. But to got a huge rip you made a lots of mistakes and didn\u2019t trade your best set-ups!!!<\/p>\n

I don’t know the answer. Perhaps Dr.Steenbarger can help us.<\/p>\n

My personal theory: We have this unconscious instinct or drive always to change things. Without this drive we wouldn’t have this technological development. Boredom is a human killer.<\/p>\n

Bella:<\/p>\n

So why don’t we just trade our best set ups? Well first that would not be a good idea. We do not trade only our best set ups because we make more money trading our best set ups and other setups that are statistically appealing.<\/p>\n

But when our confidence is shaken we should slow down our game. And we can do this by trading only our best set ups.<\/p>\n

I only make trades that I recognize as statistically profitable trades. I have a play book of set ups hat work for me. When I see one, then I pull the trigger. Now all my plays are not as statistically sound.<\/p>\n

Let’s use baseball to help us explain. Let’s say that I know that I hit .380 for fastballs thrown down and in. When I see such a pitch I am hacking. But if I also hit .300 on fastballs high and down the middle, then I should swing at this pitch as well. As long as the trade is statistically profitable for how you trade you should pull the trigger. And you should make as many trades like this during the month that you can find. Hence the birth of the active trader.<\/p>\n

My trading set ups all have a 60 percent plus win rate with a downside of 1 and an upside of 5.<\/p>\n

But if you make a trade because you are bored, without recognizing an edge, this is just bad trading. These are trades you must eliminate. And you should start with visualization exercises to correct this issue. And Dr. Steenbarger, TraderFeed<\/a>. is a great resource to help.<\/p>\n

Last night Roy Davis of SMB Remote Training<\/a> and I went to the Suzy and Jack Welch discussion at the 92nd St Y in NYC. Most interesting comment of the night was when Mr. Welch said, “Employees should constantly over deliver. The best thing you can do is make your boss look smart.” I need to get a transcript of this discussion and slap it on the desk of all of our traders.<\/p>\n

Don’t forget to follow us on Twitter!<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

I received this question the other day and thought we could discuss it. Ok so here goes… Rusmin Says: Friday, June 19th, 2009 at 3:24 am I want to ask you a question. But before I ask you that, I want to tell you something. I had a similar day where i took a huge rip. I f**ked up fifteen … Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,10],"tags":[30,18,301],"class_list":["post-1152","post","type-post","status-publish","format-standard","hentry","category-general-comments-2","category-mike-bellafiore-bellas-blogs","tag-prop-trading","tag-smb-capital","tag-trading-blog","no-post-thumbnail"],"yoast_head":"\nFrom the Mailbag - Part 3 | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/from-the-mailbag-3\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"From the Mailbag - Part 3 | SMB Training\" \/>\n<meta property=\"og:description\" content=\"I received this question the other day and thought we could discuss it. 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