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Trader's Interview
********************************************** <Threei> We would like to continue our Trader's interview series today <Threei> Let's talk to Snoop <Threei> to get familiar with both our TA traders. <Threei> Ready, Snoop? <Snoop> ok <Snoop> made it <Threei> :) <Threei> There are different "ponds" - time frames trader works in. You haven't became a scalper or long - term position trader. <Threei> What have led you to your "pond"? Have you tried others or found yours right from the start? <Snoop> Interesting question. <Snoop> I would have to say my style deffinetly evolved over time. <Snoop> When I first started trading I was a "swing trader" holding positions two to five days off of swing set-ups <Snoop> I was marginally successful in a pretty positive market environment <Snoop> I was sit at my computer with no live charting software <Snoop> only a live market minder <Snoop> With time it was only natural that curiosity took a strong hold and forced my hand to dig deeper. <Snoop> I wanted to know what in the heck was causing my stocks to flip back and forth in price over and over. <Snoop> I could have just as easily ended up as an L2 expert but the path of technical analysis for whatever reason exposed itself to me. <Snoop> The rest is history. <Snoop> It's been a long process of trial and error <Snoop> and massive repetition <Threei> Every trader has his own "horror" story. Heavy loss, losing streak, following deadly tip etc. <Threei> Have you had something of this kind that you would want to share? <Snoop> I would have to say if you haven't had a horror story in this bussiness you probably haven't been around long <Snoop> and boy do I have a doozy of a story <Snoop> July 20 2000 is likely a day I will never forget <Snoop> It was on this dreadful day that I had this great misfortune of holding an overnight short position in a company that was acquired by JDSU <Snoop> SDLI used to be an old time favorite of mine. <Snoop> It was a high flying unbelievably volatile stock trading in the $360 range <Snoop> I had about $6 of cushion, had covered partials and took home a half lot as the stock look poised to gap down <Snoop> It closed 1/8 of a point off its lows <Snoop> long story short, it gapped against me $60 the next day due to an after hours news announcement <Snoop> OUCH! <Threei> sheesh <Snoop> I invented new words that morning <Snoop> It was a brutal experience. <Snoop> But when it was all said and done, I managed to shave 20 points off the gap by sticking to my disaster plan and following it to a tee <Snoop> It was not easy as emotions were extreme <Snoop> but the plan saved me 20 points. <Threei> Hard to imagine cold blooded follwing the plan when facing 60 points loss <Snoop> Had I been trading at a size in excess of proper risk management guidelines, I may very well not be here responding to this question. <Snoop> So lesson one, have a disaster plan. <Snoop> Lesson two, always trade within established risk parameters <Threei> I am sure it was extremely painful experience. How long did it take to heal and to return to usual mental state? <Snoop> Believe it or not, new positions that day ended up net positive <Snoop> the experience will be with me forever <Threei> Nice... not many could trade that very day at all, let alone trade successfully <Threei> What is trading for you? War? Fight? Contest? Races? Art form? Does it make you tense or you feel comfortable and relaxed? <Snoop> To me, it's an art form in the highest degree. <Snoop> Constantly forced to shift, change and adapt are style to an ever changing market. <Snoop> Forced to make sujective decisions and act on them on a moment's notice. <Snoop> To me there is nothing more intellectualy stimulating than a picture perfect chart. <Snoop> And having it behave exactly as I expect it to, while simultaneously rewarding me monetarily <Snoop> I love to print them out and keep them on file <Snoop> If I had my way, I'd frame some of them and hang them from the wall. <Snoop> If that's not art I don't know what is. <Snoop> :) <Threei> I can imagine: <Threei> "My JDSU short, Oct of 2000" in gold frame on the wall <Snoop> The second part of this question is a great question. <Snoop> lol <Snoop> There is a pain point or "emotional threshhold" that when exceeded will cause discomfort. <Snoop> Some clues are: a fast beatig heart, ringing in the ears, cold sweats, etc. etc. <Snoop> Let me illustrate an example. <Snoop> If I take a trade with a two point stop, which I know for some of you is beyond comprehension. <Snoop> I will adjust my size, to where ever it needs to be so that I don't feel uncomfortable should I lose the trade. <Snoop> So if losing over $400 makes me feel tense, my trade size in this example would not exceed 200 shares. <Snoop> It's important to trade within your "emotional threshhold." <Snoop> Exceeding it will likely cause you to flub the trade by falling victim to the deadly trap of dollar counting <Snoop> Staying within it, enables you to trade charts and trade your plan more effectively. <Threei> Your dealing with loss is so remarkable that I would like to talk a bit more about it. <Threei> How does loss impact you? Do you feel frustration or it became strictly business with its expenses for you? <Snoop> This question was somewhat answered in the previous question. By trading within the "emotional threshhold" and trading your plan frustration is kept to a minimum. <Threei> Was it always so? What did help to make this transition form painful perception to cold blooded one? <Snoop> No it wasn't always so. <Snoop> The journey of growth that a winning trader goes through can be long and enduring. <Snoop> Success durring this journey is rare or non existent. <Snoop> It is the traders who fail to realize that growth is taking place amidst there painful losses that likely won't survive this frustrating period. <Snoop> By "NOT" losing the same way over and over you will eventualy figure out what keeps the ledger in the black <Snoop> At this point, it's just a matter of proper risk management to help keep your frustrations in check. <Threei> Goal is to exhaust ways to lose, excluding them one by one... interesting concept <Snoop> Yes. Find the demon and destroy it. <Snoop> You will find it in your trading log. <Snoop> The hardest part as a trader, <Snoop> is the process of reviewing a losing day. <Threei> Thank you very much <Threei> I am done <Threei> It was quite educational I believe <Snoop> Ironically, if you don't, your chance are disimal for long term success. <Larisa> great class!! thank you guys :) <Chris> Room is no longer Moderated <Chris> Thanks Snoop...great interview. <JeffC> great lesson snoop thanks <Snoop> hope it sheds some light <Snoop> :) <Bo> Nice interview Partner :-) <Threei> brb <Chris> RealityTrader T/A Service with Bo and Russ - Free Until March 19 - http://www.realitytrader.com/ta <_flyboy117> I want to thank you for sharing your thoughts Snoop. <Snoop> fly boy...happty to do it <_flyboy117> Snoop I have a question. <Snoop> ok <_flyboy117> I repeatedly read about the "process" or evolution of a person's trading - and the tough times to the good times - how long (weeks, mos., years) did this take for you? <Snoop> it took me a solid year of study <Snoop> and i consider myself <Snoop> an endless student of this game <Snoop> its ongoing <Chris> Best to way to approach it Snoop imo <Chris> As soon as you think you know it all, time to go back to the beginning. <Snoop> right...soon as you know it all.....along comes sdli <_flyboy117> I can comprehend the concept of continual evolution - and I thank you for your "initial" time frame Snoop - I suspect it can vary greatly from individual to individual. <Snoop> indeed <Snoop> our whole goal here <Snoop> is to help speed up that process <_flyboy117> I appreciate that and thank you for your efforts in this regard - I have 0 - nadda-never-placed a day trade. I am trying to understand and learn at least something first. I do thank the considerate help - other sites are'nt quite as ___ I'll say - constructive. Thanks again, I'm off to watch tape and read areas on this site. <Chris> let us know if you need anything flyboy <Threei> thank you flyboy, let us know as questions appear <_flyboy117> Will do - as soon as I can formulate a coherent one. Thanks. |