psychology of trading

I like to take a good punt “once in a while” just like the next guy.

When you’ve got your potential losses accounted for ( with a stop in place ) or if you’ve got that “little extra” in a secret trade account somewhere fine. You know what you’re doing. It’s fun. It keeps this from being entirely about “strategy and math” – and for many it also provides a “lil adrenaline” where possibly a “lil adrenaline” is needed.

You know you are gambling. No two ways about it. It’s a 100% complete gamble with such a macro “risk event” on the horizon.

Have fun with it. If you can afford to.

Now the question of the potential outcome “should” the U.S Government ( with absolutely no one else on the planet to blame other than themselves) actually push this “past” the deadline of Oct 17th ( which actually isn’t a deadline at all – but works for the purpose of this completely “self engineered stunt”) and actually default?

Even better question – what if they wait til the last-minute and then “don’t” make complete jack asses of themselves (only to do it a couple of weeks later), save the day, only to dig themselves a couple trillion deeper into the hole?

Either way – it’s a no win. Ooops…I digress – the post was about gambling.

It’s a joke. It’s an embarrassment. It’s 100% completely ridiculous ON TOP of ridiculous as…….potencial “global war” couldn’t do it……but single handedly the U.S Government will essentially “take itself” down. Unreal. And “not at all by design” eh? Gimme a break.

Oooops….

Regardless……if you think you’ve got a handle on markets these days ( which I seriously doubt) and have a couple extra dollars burning a hole in your pocket – go for it. Gamble away.

Question is  – What’s your angle then? You buying or selling on the news?

People say to me……. ” Ya ya Kong… you with all your “macro mumbo jumbo” ( yada, yada, yada ).

Damn it Kong! Just gimme a break, and tell me how to make some money today! I want to get rich today Kong! Today!

Well…..

Short term traders need to learn a little more patience, while long-term investors need to get “a little more involved” with the day-to-day action no? The age-old sayings “you can’t have everything” or perhaps “the grass is always greener” certainly come to mind.

The entire concept / principals of “trading like a gorilla” wedges us “in between”, taking advantage of “all opportunities” regardless of what markets do cuz……(guess what??) MARKETS ARE GOING TO DO WHAT THEY ARE GOING TO DO NO MATTER WHAT!

We certainly can’t control that.

So let’s take a quick look at today…..and consider that U.S equities rallied I dunno…..like “to the moon” in a single afternoon! To the moon Kong! The moon you ass! Everything is going up ! Up! Up! Damn you Kong! I just want to get rich and go live on a beach! What the hell is going on down there? I need to get rich! Now!

He he he……Everyone needs to just calm down, take a deep breath, understand that it’s just another day and take it for what it is.

Start looking “ahead” as opposed to “dealing with the present” and things will get a lot easier.

For some it might be interesting to note – I sold out this morning well early and in advance of this “massive run up in risk assets” missing what some might imagine as “an incredible opportunity to make money” though oddly…….every single thing I track / monitor suggests that I didn’t miss a thing.

If you where fortunate enough to “pick a stock” and take advantage of this short covering rally I commend you although – we all know what really happened today.

Bulls and bears both got taken to the cleaners.

While “penning” the previous post I looked to my girlfriend for a bit of advice.

On occasion it’s been suggested here at the blog that I try to “lighten up a bit” and perhaps try to stay “a bit more positive”. With this in mind, I feel that several months have gone by where my writing in general has been at least “moderately up beat”, and that I’ve done a “reasonable job” as to not get “too down” on any one thing in particular.

I don’t think it’s a secret for anyone reading here, that I struggle with the situation in the United States. I got involved with Forex as to my interests in “all things global” and in this case how “money” plays a role. The fact that the United States holds the world’s “current” reserve currency presents me with a bit of a conundrum as I’m not particularly interested in “American culture”.

Not to say it’s not great, only that – for me…….I would far rather “Bolivia” had reserve status as I could at least “learn something new ” here day to day.

I find the day-to-day situation in the U.S as the number one element in trading forex, that I would much rather “do without”. It’s not interesting and it’s certainly not “fun”. It can’t be ignored mind you – but it’s certainly a drag.

My girlfriend suggested that I “go easy” and of course  – respect the valued readers that take the time to show their support here at the blog and…….yes of course, I truly DO value the readership and by no means want to “get down” on the U.S.

Then it occurred to me….perhaps I should introduce readers to one of the few “other people” I actually take the time to read. I showed Laura. She changed her tune.

Ladies and gentleman I am proud to introduce the critically acclaimed Dr. Paul Roberts.

http://www.paulcraigroberts.org/pages/about-paul-craig-roberts/

If you think I might consider biting my tongue on occasion ( likely never gonna happen) I encourage you to not only read but BOOKMARK Dr. Roberts home page, as President Reagan appointed Dr. Roberts Assistant Secretary of the Treasury for Economic Policy, not to mention his time as associate editor and columnist for The Wall Street Journal.

Dr Roberts “has” the credibility to back such strong opinions.

Me I’m just a gorilla.

It absolutely pains me to no end,  but (as the planet’s financial blog space  is currently “a fire with debate”) I guess I should at least “weigh in” on the debt ceiling issue – and the consideration of a U.S default.

This most certainly IS NOT GOING TO HAPPEN!

These bozos have sunk “gazillions of dollars” into this “pseudo recovery” driving their currency into the ground. They’ve attempted to start wars , cleaned out retirement savings accounts and spent more time in bed with the “boys on wall street” than the average Ukrainian hooker living in NY.

There is not a single chance in hell they would jeopardize “what’s already hanging by a thread” over some little “tug of war” over a couple more 1’s and 0’s. Impossible.

Of all things they can ( and will ) continue to screw up – any “further knock to the credibility of the U.S” and it’s currency / ability to pay its bills IS NOT ONE OF THEM.

You see – as sad a state of affairs it is in the U.S ( domestically speaking ) the “global situation” has deteriorated far worse. The bond auction hall is empty (short of Ben and his “magic suit case”) and countries “planet wide” have been diversifying “out” of US Dollar reserves on a scale not seen before in the history of man.

The “Petro Dollar” at risk , the East growing stronger by the day…….now’s not the time for something so “meaningless” to make any larger a fool of the U.S.

Wasn’t Syria enough?

The entire planet stands to benefit from the continuation of the “American Ponzi Scheme” , so be assured –  those so close to the action won’t be letting it slide any time soon.