psychology of trading

It’s not for everyone…I understand.

I assume that some (if not most) of you…… likely have a number of other responsibilities that far outweigh your interest here…….your interest in trading and investing. Interest in the flow of money ’round this silly little planet……interest in gold, china, space exploration, nano technology, conotoxins, robotics, ancient cultures, nitrifying bacteria, the particle zoo etc…..

I do understand….and I digress.

The volatility circling ´round this “historic eve” has provided opportunity for the nimble – those of us with little responsibility……other than the occasional glance at our computer screens, on the way to the fridge to grab another cold beer.

I will look to re enter the exact same trades I went to cash with earlier today in that….fundamentally…nothin has changed. Just the usual “zigs n zags” – for those willing and able – to keep things nimble.

As of 6:03 a.m this morning, I am sitting here listening to the jungle come to life. The sounds of insects buzzing, and birds chirping away – coupled with the occasional hoot/yip from my girlfriend – apparently quite thrilled with what she sees here on the computer screen. 600+ pips and 4% additional profit –  is nothing to shake a stick at – and indeed does warrant some excitement.

Now… this provides a fairly substancial “pillow” if a trader was to consider “letting it ride” and let’s say….spend the day snorkling with the sea turtles… or perhaps a long  hike out along the beach. Keeping in mind of course, that within minutes this entire “paper profit” could be cut in half or even completely erased/vanish considering the current volatility and market environment ( I read last night that perhaps because of Florida – the election results may not be completed/counted for several weeks should some “discrepancy” arise…..what?..are you kidding me?) leaving one feeling….lets just say  “not so happy”  about taking that chance.

Or….responsibly…one could choose to “move your stops” into profit and allow the trades to keep working – understanding that you may arrive home later with “less” than you see  now – but all in all still a good trade.

Or lastly – one could choose to “BANK EVERY FREAKIN PENNY” – and go about his business with a much larger smile than the day before, an extra 4% in the bank , and every opportunity to “jump back in” knowing full well – the usual “zigs n zags” will always provide another shot.

Subsequently a new pack of street dogs has taken up residence across the street…..perhaps I’ll wander over and buy them breakfast.

6:37 Kong takes profits.

Full time trading is hard.

There is no question about that. Pretty much everything you’ve ever heard about the psychological strains, the isolation, the pressure, the stress – is true. Not to mention the time invested, the knowledge needed, the discipline required, and the hard cold fact that each and every day – you are essentially “going to war” against the worlds fastest computers, and some of the highest paid, and most intelligent people on earth.

Oh ya….and all you’ve got is a handful of your own money, a cheap laptop, and if you’re lucky – an internet connection that won’t crap out on you while you’re watching the market crash on CNN Español.

So…….when things go in your favor – and your hard efforts have been rewarded with your trades safely “deep in green” I guess its ok to just…..sit on your hands.

Markets look poised to move higher.