The Sharpe Report: The Best Friend You Will Ever Have in Trading

Posted on May 8 2015 - 2:43pm by Sharpe Trade

(This is the entry the Sharpe Report clients received this afternoon)

We often state that in trading, “emotions” and “feelings” are the worst enemies that you can ever have. “Emotions” and “feelings” can destroy your ability to trade with longevity.

So does this sound contradictory? Me asking how you … how you ‘feel’?

Well, we have also stated that it is not about eliminating emotions in trading. That is absolutely impossible. The limbic system within your brain is built, to process emotion. It is quite literally the way we are wired.

So the trick, becomes learning how to control your emotions. How to objectively examine your emotional state when trading. And one thing you can do to objectively examine your emotional state when trading, is to schedule time to review … yes … your ‘feelings’. But how does one do that, without those emotions getting in the way?

That’s what we are going to talk about today.

Because as you know, we have now gone to straight cash.

So my question again … when you examine everything going on here with the Sharpe Report

How do you feel?

I can tell you how I feel.

I’m frustrated.

Really frustrated!

And there is a time, and a place, to constructively talk about those frustrations.

We will talk about that … today.

In addition?

I am going to make this video public. We are not going to discuss any of my strategies in this video, so I will not be giving away any strategies away to non paying subscribers.

But the thing about it, is that I have joined Sharpe Trade and there is a pay service to see what I am doing, when I do it, and how I do it. Now as I am experiencing draw-down, there is a human tendency to not discuss such time periods. To ‘shy away’ from such discussions in order to pump and sell a service. But Sharpe Trade in no way wants to be categorized or associated with other “pay services” that do not discuss the reality of trading, objectively. We wish the Sharpe Report to demonstrate actual trading. We do not want to be categorized with services that do not demonstrate when they themselves are in periods of draw-down. Such services that do not state that … yes … they are frustrated with one particular small time-frame in their trading.

It is for this reason, that we make this one video … public …


Some things to record in this journal? The date. Briefly summarized, your frustrations or elation that you are experiencing. make it a journal, but make it brief. The method of trading that you are using. You can then reference your spreadsheet and records, and record for that date your performance metrics. Record what moves you have made, and why.

An example of an entry …

May 8, 2015
YTD Portfolio Total – 11.54%
Maximum Draw-down Record Reached

Tried defensive, money flow was in the wrong direction, and I didn’t check it. Should have waited until that went positive. Per the rules, I’ve re-balanced and gone flat straight to cash.

Feel frustrated. Not angry, or worried. Just frustrated that the Sharpe Report launches, and I hit the worst draw-down I’ve had in nearly a decade. Then again, it allows me to demonstrate one of these time periods to clients, and shows them what to do. So just have to fight through this and recoup as I have many times before.

Does make me wonder if larger moves will hit soon. But for now, being patient, and will demonstrate to them on Sunday, timing the flow on the most defensive thing in my tool-belt …

That’s just an example of what can be put in a day’s entry.

Then as we said, every month or so, take some time to go back and review your trading journal.

You may be surprised at how brutally honest your journal can be …

1 Comment so far. Feel free to join this conversation.

  1. David Bradley May 8, 2015 at 11:38 pm - Reply

    These articles and videos are very helpful to us “newbies” That’s all, just wanted you to know that.
    At some point in the future I will be able to afford the $49.95 a month to watch how you navigate the market. I listened and watched Skip Raschke for a while until he went to a pay service. Very intelligent man also. I miss listening to his rationale.

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