Tuesday, 30 March 2010

Why I Trade and Nick Update

There is only one reason I trade - for the MONEY. 

If I could, I'd go live on the Barrier Reef in Australia, go diving every day and eat coral trout, and just get them to send me the cheques (checks). But reality rules, and that's just not going to happen. (Mrs. EL says that I would live that for about two weeks, like every other time I tried, and then start complaining that I had too much time on my hands or I didn't have enough "brain" work).

So I'll keep working till I die, slowing down a bit as I enter old farthood and trading longer term through my option program. 

But for the foreseeable next 5 years it's the ES, Euro, ET and Bund for me. All liquid markets. I'll use the FloBot to take the load off a bit.

Traders make it hard for themselves. I just try and keep it simple, the simplier the better. My trading plan is sound and I don't care about losing trades. I understand my trading profile and what to expect. I know when I have losses due to lost focus and I try not to trade when my head is not in the game. I would rather lose a day of trading than lose money due to my lack of focus.

This aspect of isolation and focus is very important for me. I am continually fighting to keep it. I sometimes get tempted to look at something on the web, start reading that new book or something else not directly related to the trade. If I do, I'll miss a trade or miss an exit. But that's my trading disposition, yours might be different, but it pays in spades to find out what "yours" is.  The better you know yourself the better trader you will become.

Nick will be starting treatment for his Hodgkins this week. He is in very good hands - a team that specializes in Hodgkins. We spent the last two weeks doing tests and scans of every kind so the team know what they are up against. He has a 6 month treatment schedule ahead of him and I won't be posting about him again until I can say that Nick has been cured which is what the doctors are aiming at. Thanks again everybody who is thinking of him and has wished him well.

Trades from Monday 29th March in the Euro FX future show that sometimes a late entry is not a disadvantage. Also, using range bars, the methodology is quite forgiving and allows you to exit potential losing trades at a small profit or break even.

Click to enlarge


  1. I'll keep my fingers crossed for Nick and hope he gets well soon!

  2. Best wishes to Nick with treatment.

    El please post your winning and loosing exits as often as you can, 'cause it is 80 percent of the whole game here...in the meantime, getting warm up to momdots...

  3. Hi Tom,

    That is great news regarding Nick. Our thoughts and prayers will remain top of mind until we hear you report back that he is indeed cured.

    Looking forward to hearing from you once you have returned home, and things have settled back down a bit for you.

    Take care, travel safely, and thank you.


  4. EL,

    It's good that the doctors are shooting for him to be cured. You guys caught the cancer early!

    I love range bars too. Have you and Kiki looked at change bars? What do you think of them? They're similar to range bars except that the open and close are used instead of the high and low. I've only seen them in Investor R/t.

  5. Hi Tom

    All the best for Nick - we keep praying for him and are looking forward to his complete recovery.

    Thanks for posting the most recent EURO FX trades. Your blog is absolutely amazing and helps me sooo much on my way to CP.

    Just a minor question:
    I am currently on Multicharts. When using your VB indicator it comes up with two histograms overlaying each other. Is there something I am missing in the 'format study' window??

    Thanks again for all your effort and I wish you a nice journey back to Europe!