The Day Trading Authority Podcast Episode 4: Trade While You Travel Transcript Part 3
To listen to The Day Trading Authority Podcast and learn how you can transform from
an average trader to a day trading authority, visit us at http://thedaytradingauthoritypodcast.comThere is a really high temptation to prematurely stop because we booked a really good profit, but we really havent finished our trade plan. Were like, well we stopped another trade to go on a Russell, another trade to go on a DAX. You know, we know the odds are on our favor that that trade will work, but its not guaranteed. So unfortunately, what happens is you start to look at your profit and you to start to like, Hey, what happens if I lose the next two trade on each one? Holy crap. My profit could end up being lost and boy, that would kind of ruin my day.
So Ive noticed something that we havent even done recently. I havent even done is Ive exited or stopped and then Ive checked later in the day and like, Oh man, I see those two trades would have worked if I would have just finished the plan. So I think theres a place for quitting early. I think Fridays are sometimes a good time when youve got a good game, maybe not to finish your full plan because, you know, its hard to go into the weekend with a loss especially when youre up a lot and then you blew it in the last few trades. I have no problem with that because psychologically, that matters. I mean intellectually, its actually smarter to keep going. But I get the whole psychological thing. Its like when you -- you know, you hear financial people talk about paying off a house. They might be like, Well, geez, your mortgage interest rate. You can make more money in your investments but theres something psychological by just having it done no matter how low the interest is. Its the same thing, you know, with trading. So thats something that I think, you know, is something that Ive done that I got to get away from. Because the reverse is when its a bad day, we go to the distance. I mean were gonna keep going and going and going finishing the plan because were trying to recover. So you dont wanna cut yourself short. Dont be premature. Try to finish the plan, resist the urge to stop because you just wanna feel good about your profits. So Brian, thats mine and how about for you?
Brian Short: Yes, mine comes hot off the press from todays trading session. Mark as you can attest, and I guess what I would say is focus, focus, focus. And thats something thats easier said than done. Your goal as a trader is to take what is on the chart and execute that in your trading account. And you just have to remain focused on the trade set ups and your trade plan a hundred percent of the time. If you simply move away from that focus for a split second, it can literally cost you profits. And so my story from today is this. I have traded thousands of times and placed thousands of trades through the interface that we use. And for whatever reason today, I didnt have my domes set properly. And I went to place the trade and it went into the wrong price. I went to adjust that trade and in that adjustment, I ended up getting in twice the position size that I wanted to. Well, needless to say, it was a downhill spiral from there. And by the time I corrected that issue, it basically cost me the profit of one full winning trade which is pretty substantial.
And so point there that I want to make is you got to be diligent in maintaining that focus throughout the session. You know, one of the things we talk about here at NetPicks is trying to, you know, trade us a time frame for a certain period of time, a couple of hours, and that seems like a very small amount of time, but really, thats a long time to sit there in front of your chart, staring at that chart and remaining diligent and focused. So I guess I would say, Dont let distractions get in the way. And Im talking about split-second distractions. Thats all it was for me. The market actually had picked up and I had to make a very quick decision and, you know, one straight click today cost me pretty big. And so again thats my tale from the crypt or stupid, as wed like to call it.
Mark Soberman: Well, the good part of the story was, you actually invented new profanity that actually I had never heard before. I actually had to Google some of the words that you use while that was happening, and I can tell you right now, some of those words dont even exist. So, you know, if theres any upside, theres that. Yes.
Brian Short: So there you go. New words were created.
Mark Soberman: So maybe thats your genius for the day, but hopefully not. So, lets kind of move into our next section, which is our genius because we already confessed our stupidity, so lets off set this a little bit.
All right, so for me something that I do, were in the education business. We train traders. We work with traders. We develop systems. Weve been doing this for 17 years now. The one thing that sometimes happens is well go ahead and tweak or update or change a system, and without fail well get some complaints from people because theyre like how can you change your system? That means it doesnt work or its not effective if youre changing it.
And it kind of always drives me crazy because Im like, Theres no market thats ever gonna stay static for us. If were stubborn and we dont ever want to adjust or tweak or update our system, were not going to maintain our performance. I mean, its just one of those things that whatever we did a few years ago is not guaranteed to work in todays environment, so I kind of consider if Im gonna say, the genius is dont be inflexible that way. Dont be stubborn. Dont feel its actually a positive that you never update and change your trading system. Because if you dont, my guess is, you probably do not have good or consistent results. And Im somebody whos kind of obsessed in a way with always trying to fine-tune. I never rest on the laurels of what Im doing because I dont trade a hundred percent profitable. I have a definite cut of losing trades. Situations come up day to day. New things Ive never seen. So Im the kind of person whos always looking to discover and explore, and I would say for a trader to be successful, you really have to be that way or youre gonna have to work with whether its people like NetPicks like us or somebody else thats gonna do that for you.
So if youre not stubborn and you tweak and you test, its not a sign of weakness. Its actually a sign of strength, but there is of course a limit where you can overdo that. You dont wanna be testing and back testing every single day and changing all your parameters everyday, but there is a time and place to make moves and just not to feel like its a sign of weakness when you trade. So for me, Brian thats, you know, what stands out, and its something Ive been working on a lot in our current systems and its really been making a difference, so Ill pass on to you.
Brian Short: All right, thanks Mark. My genius is, well first of all, let me give you a little background. I come from the computer background. I own a computer consulting firm for many years, for 20 years. And one of the things we did in that capacity, in that business was contingency planning. And so thats my genius for today. And one of the things that I always recommend traders have is the ability to manage their trades if something happens to their primary connection. So that happened to me today in a session. In fact Mark, you had stepped aside for a little bit, and I didnt even tell you this. My internet went down for 60 seconds roughly, and I had to then switch my internet over. Its a simple move of my CAT-5 cable to another internet provider and it was up within 20 seconds. And I think thats important because the last thing you wanna do as a trader is lose control of your trade when youre in it.
And so along with that, let me say two. We always recommend that you place OCO orders when youre trading. Never be in the market without a target and a stop, because if you lose control like it happened to me today and you cant reconnect very quickly. Then at least that trade cannot get any worse than those parameters that you set. And so -- and then also I would recommend, you know, Ive never had to do this, but having a broker on speed dial. Be ready in case we need to take that manual action to call your broker and affect your trade that you have that capability also. So thats my genius for today. Contingency plan, make sure you have the ability to connect to the internet if your primary internet connection goes down.
Mark Soberman: You know, its almost like you should trade like a pit crew, like a NASCAR pit crew and consider actually timing yourself from the time that that internet goes down, you know, do you actually know the steps you have to take to bring up another internet whether its, you know, that external card that I was talking about -- thats a great thing about trading when traveling. If you have that card -- thats one of my main backups Brians got, you know, cable modem and its got DSL. I rely on two different cell Wi-Fi connections as well as of course, you know, cable modem so I feel I have backups, but I had something to think through. How long would it take me to get this thing up and running, and geez, my computer even connect with a wireless. What if doesnt have a wireless card? It seems kind of dumb, but its amazing until it happens and youre panicking.
You need to be able to do that, I would say, you know, 60 seconds, 90 seconds make that change because, you know, these markets are just not gonna wait for us. Thats for sure. They could care less. Theyre just gonna take our money, you know, whether were having problems or not, and your broker is certainly, hes not gonna go ahead and refund those losses because you had a technical problem, you know, including if they have a problem as well. So, definitely really have good points on that.
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