Today was my favorite type of day, trading the markets.
As you may remember, a few days ago we began to turn bullish of our view on risk.
Who cares. That is not what trading is about. Not really. Everyone tends to obsess over directional bias or belief. But in truth, that is a very small segment of what it is to be a trader. Entrances and directional belief you can learn in an afternooon. Literally. And if you can learn it in an afternoon … then why don’t we have more professional traders arising from the ranks of retail?
Because it’s not really what profitably trading the markets are all about.
Days like today teach everyone … myself included …. what the markets are really all about; and that’s why I love these sorts of days.
Days that dish out pain. That is what trading is about.
Last night we rallied eleven points in the Globex. Mid-London, everything reversed and we sank 20 points. Only to reverse yet again at lunch, and rally back up another 15 points.
Days where everyone gets tested of their belief’s on the markets within 24 hours … and pushed to that ‘limit’? That is trading!
Testing everyone to ‘that limit’. What limit?
Doing exactly the wrong thing, at exactly the wrong time
And therein lay learning the skill of trading. We have a ‘Mastering Markets: Short-Term Trading Course‘. It teaches processes. Ideas regarding risk. Ideas regarding portfolio construction.
But as we ourselves say in that course … it is literally impossible to teach anyone the skill of accepting discomfort.
You simply have to build the skill of learning to get used to that sort pain and sit with the hand you are going to play per your processes …