Please follow my combat sports lifestyle blog here. This blog will mostly be inactive other than forex ads. After 20 years on Wall Street I’m able to go back to working with fighters and writing about travel/ food full time. Follow me there as this one won’t have anything
If you want to read my current stuff, make sure and follow my combat sports lifestyle blog. After a health scare last year, I sold off my trading firm so I could enjoy traveling and helping train fighters. I’m as busy as ever now doing motivational speaking and promotions for companies ( I guess people want to hear from an old fighter lol) but it’s a relaxed nkn stress environment which I needed. Yes I’ll always trade a bit and watch things but it’s not the all day and night grind anymore. Make sure and follow my adventures on the other blog. Having a blast!
Everyone of us knows this guy. Whether you work on trading desk at hedge fund, or you are a small home based trader hanging out in a chatroom. There is someone just like this is your world. He is the guy that made the perfect call on the top, bottom or any other big move. The thing is, he only told you all about it later.
It has become far more common in the social media /chatroom/ day trading era. We will discuss why that is and why it can be dangerous at the end. First, a quick look from a humorous/ goofy view.
He is the guy that logs in and screams out he just sold xyz after a huge spike. You can expect that he will add “in size” to his statement. Then he will hang out and wait for the newbies to congratulate him, and to try and grab and rub it in to the older successful guys in the room. Then he will say something like “off to look at new Porsches” or dinner at some impossible to get into restaurant. Then he logs out. He will be back on and off, usually the same way. Eventually he will message people, especially the new or less successful traders. He I’ll pitch his service, fund, trading etc. You know this guy, we all do.
At large firms he exists too. He calls desks at other firms and talks his book. Hints at the big positions he has in space that we all know is currently hot. He will tell you about the great weekend he had with his mistress at an invitation only island resort. Flew down there on the company jet. Like the other guy in the chatroom, he wants something. He is looking for a new job usually. It’s normally because he isn’t doing well at his current firm. He might be under investigation. I’ve seen all kinds of reasons, from the guy that talking big, and actually spent the weekend at home, unclogging the toilet!
I think one of the reasons we see it more now is because of social media and digital communications. There are great things but just like fake dating profiles, its easy for scammers to build this way. In the online trading world, they use it to build a following among the uninitiated traders, and get them to buy there service. Or invest in their scam fund.
Social media and chatrooms can be great tools. They also are the home if super trader that makes 25k a week using $500 capital and he is offering you your shot! Come on, we both know this guy is living in his mom’s basement and demo trades. Don’t be his victim.
Contact me if you have questions. An inexpensive consultation from a twenty year market pro could help you get on the right track and keep you out of the fire.
One of the things that has changed in the time I’ve been working in the market is demo trading. When I started over twenty years ago practice was mostly paper trading. There were a few demo platforms but they just weren’t very solid. If you weren’t with a firm, things were dicey. There are so much better today and seem to have done a good job in preparation of traders. Still it isn’t real trading. Don’t be fooled, things will change for you when it’s real money. You have to be ready.
#1 Are you mentally ready? The fact is that when real money is on the line, stress goes up. When stress rises, mistakes often do as well. You have to be prepared for that. No matter how incredible you have been on the demo desk, you will have losses. When it is your own money, real money, your mental state can change. I’ve seen traders whose personality and ability to process adversely changed in short order. Bad things, very bad things can happen at this point. If you are not mentally ready for this, your career will be short!
#2 Do you have enough capital to trade the same way? If you are gauging your success in the money you have been making in demo, it might be different. If you are taking off partial positions on your exit, the 50k demo account and $500 live account will have different results. Your ability to add and bail on contracts when trading around a position will be vastly different. Make sure your success in not based on a capital amount that you do not have.
#3 Can you afford to lose real money? I know it seems like a silly question but it might be the most important. Trading is risky, that’s why it should be done with risk capital. If you have been practicing on demo so you can use the $1000 dollars you have left in the world to become wealthy, its likely going to go badly. Don’t bring the milk money into the market. It will be a short journey!
If you are struggling or if you are looking to make your move, contact us. A very inexpensive consultation could be the difference in thousands of dollars for you. email@example.com or firstname.lastname@example.org and @tompkinscontent or @combatsportlife on twitter.
You will see books, magazines and software telling you the incredible money you will make in a few minutes a day with their system. Most often the only money made there is what they got from selling it to you. Don’t get me wrong, you need trading education and many of these things, but trading is work. Period.
Over my twenty years on the trading desk, one thing stands out. Run it like a business, treat it like a job. If you showed up at a grocery store you owned for only a few minutes a day and then closed, what would happen? If you didn’t understand products you were selling for your tech company, you would fail. Walking in and pushing random buttons won’t get you very far. You need to understand what you are working with and put in the time it takes to get there.
Set a schedule for yourself just like a normal job. If its just for research, or times that you know you’ll be active set it in stone. Be there. Put in the time. You will not succeed if you don’t. No different than any other career. It’s time consuming and can be hard.
Learn the ins and outs of what you are trading. Know why you are trading it. Dumb luck only lasts so long. It’s often followed by trading account poverty if you overstay your welcome. Most securities are complex both in construction and trading nature. Flying blind on them is a terrible idea. As you go along, stay up to date. Regulation changes, markets change and products change. Know what is going. All true professionals have continuing education requirements, trading should be no different.
I’m sorry if I killed your dreamy view here, but not really. Trading isn’t rainbows and unicorns, better to know that know. If you have questions or need help, contact us. From consultations to reviews, we can help. You can also look at our services page for other things we do outside consultancy. Contact email@example.com or firstname.lastname@example.org
Twitter @tompkinscontent or @combatsportlife
I don’t hears as much these days about keeping a trading diary, paper blotter that is detailed. I’m sure it’s because of everything being very digital these days but I think that is a major mistake. When I started, it was a must and I’ve made every trader I’ve trained or that worked for me keep one. Here are three reasons why you should.
#1 Reason for the trade : Whether the trade turned out good or bad you want to know why you made it in the first place. It is a great way to begin to see what patterns work for you and which ones don’t. As much as we want to be super trader that is good at everything, its rarely true. Just look at how large firms segment after training. They see patterns in traders. Write it down, and begin to see what works for you.
#2 Your mood/ feelings. Yes this is very important! If your head isn’t in the game, the outcome is usually going to be bad. It’s good to look back and review your mood relative to the outcome of various trades. The most important part is seeing for yourself when you start a mental spiral. If you see that your mood is consistently down, it might be time to get off the desk for awhile. Refresh and get back on track.
#3 Timeframe. Just like other signals, certain time frames may work better for you. They also may be killing you. One trader I worked hadn’t noticed that he had the same distraction at the same time everyday. Kept getting smacked around the time. Once that pattern was identified it was easy to alter that pattern and raise his results. It’s usually something simple like that, but if you aren’t looking for it!!!!!!???
Start a blotter/diary today. A detailed one. You will be glad you did. If you don’t have one, go to our services page and order the one there. Twenty years on a trading desk has refined it and I think it will work well for anyone. Inexpensive and complete
We could go through a million questions on this subject, but here are three that you should always ask. Simple but often overlooked, and helps speed up the narrowing process.
#1 What is your intent? Before you just answer ” to make money!” You Need to give this some thought. If you intend to trade full time or be very active then the platform you will need is going to be more robust. The programming and plug in ability has to be there. Ability to run multiple feeds, change models on a whim as well as SPEED! It all has to be there. If you are just looking to trade a little and make a bit of extra money, this all changes. Bells and whistles are great but they are distracting if you don’t need them. You will find some who have a great simple app but their large platform is weak, while the best at the pro system may have a terrible app. If you are trading light, keep it very simple. If you don’t it will cost you before you know it.
#2 What is your style ? Are you a straight systems guy? Advanced modeling? Non automated pure chartist? Maybe you like to scalp news events. Each of these actually have different needs, and not every brokers platform or execution is suited for all of them. The tech styles need programmability. The scalping needs pure execution and ease of news integration. Think about what and who you are, then start researching. Don’t do it the other way around!
#3 Your account relative to the minimum. If you are picking a broker based on the fact they have a low minimum, takes bit and think about it. Don’t just jump because its there. It may be a terrible fit for you. Take a look at what you want and need in a platform. If they don’t have it you might need to wait and save a little more money. If you just go because you can, you will likely end up with me money at all.
Be nimble. Be aware. Check out our services page. If you need help in picking a platform, or you have no idea what kind of trader you are, contact us. An inexpensive consultation could save you tons of money and problems. Twenty years on a trading desk helps us help you.
Order our trader check list. It is at the desk of every Trader’s Bay Partners trader. Detailed check to both start your day and pre trade entry. Just like airline pilots go through a preflight check list,this is the same for traders. Detailed yet easy to understand and quick to do every day. Its also cheap! $1.25 Keep it at your desk and make it a habit. Send an email to email@example.com with the order TB14. We will send a PayPal invoice for $1.25 , when paid we email you the file. Simple , effective and professional. Don’t fly blind.
For many of us in the trading business, NFP is always a big focus each month. Over the years it will have more or less impact at different times, but there is always a bit of juice from it.
As we begin to enter the political season again here, it may likely see more focus. Focus for more traders usually brings more volatility. When more eyes are trying to interpret the data, the reactions will often be stronger,although they likely won’t last long. As a trader that can be a great thing. The downside is that if you aren’t paying attention to risk your losses can be larger than you want or can stand. Time be prepared and focused.
Why do I say the political season brings more focus to NFP? The various candidates look for things to work with, to pick on. As the process rolls along they will hit on NFP, either how great things are or how terrible. You basically have people using it as a bash too or propaganda, that likely don’t know what they are looking at. This in turn brings more trader and investor focus(sadly sometimes not knowing what they are looking at). It by proxy, makes it more important to many.
If you prepare and focus, this can be a great opportunity. Take some time to research and be ready. Be nimble. Be aware. Take a look at our services page for ideas and help with your trading.
Moving from demo trading to live trading is exciting and scary at the same time for many new traders. These are just a few things to keep in mind if you are making that move.
#1 Live Fills. The fills on live can be very different. While often seamless on demo it may not happen that way on live. If you are using a system or a certain set of tight signals , your execution may not be the same. Especially true if your scalping. The great profits you have seen in demo may not be as easy and your result rate can be different. Just be prepared to adjust.
#2. System Glitches. When it’s paper money it isn’t a big deal. When it’s real money your calm robotic manner may change. Being trapped in a live trade because of a crash will feel vastly different. It happens. Be prepared. Be redundant in your systems.
#3. Psychology. Trading is fun and exciting. It can also be grueling and stressful. When you are in drawdown with real money, your attitude is key. It can effect your personal life. How you act may be vastly different and create problems. When this happens it often compounds problems on the desk. Be aware and prepare yourself. Learn the signs. Don’t let the desk control you. It is one of the biggest causes of failure in this business.
Just take some time to go through the way things may change as you make the big leap. Being prepared is a good thing.
Be nimble. Be aware.
Check out our services page for help