Sunday, March 28, 2010

Knowing Versus Acting THE PAYOFF

In the Matrix, Morpheus says to Neo, "There's a difference between knowing the path and walking the path."

There are plenty of things that I thought I knew about but changing habitual behavior is huge and knowing about changing or even how to change or why to change habitual behavior is important, but it surely is nothing near the actual change.

What you don't see here in this blog because I have left it out, is my blow up on Friday, March 19, and Monday, March 22. That's because I have been trying to make sense of it and find the meaning before just putting it out there looking very stupid.

Ok, so the point to all of this directly regarding trading is to not trade trend strategies in the absence of a trend. Sounds very simple. Many things are. However, when dealing with changing habitual behavior, nothing is simple. The simplest rule could be the hardest thing to change. Try to tell an addicted smoker to stop. Some do, but those who have a problem with that find it difficult. Habits are hard to break.

I also knew about the part that is missing from what I know about the Pristine method, and that is fading moves.

On my own, after having things that triggered my frustration, I have faded trending moves, as well as taken trend method setups in the absence of a trend. These two things are what made up most of my losses.

Fading the extremes in a range is the answer, and the opposite to taking the trend-style setups in a range. *** This is where George Costanza Does the Opposite came into play a while ago.

There are those times where I am out there on my own, not having a rule to follow for the action I am seeing real time, that gives me the chance to use my intuition, but not having an expert trader's intuition or 'instinct,' leaves me with nothing but my trend method trading techniques in the range. That is why GCOPP worked the few times that I tried it two weeks ago, because I was taking opposite trades to my trend trading style and there was no trend. So this is the big, gigantic, revelation that I have assembled from all of these posts.

***THE PAYOFF for you all to read these semi-dramatic posts. They actually lead somewhere. Somewhere is something that I can use, but I think that the process might be valuable to observe. That is doing, analyzing, searching, introspecting, analyzing, observing, and eventually, coming to a conclusion that is a lesson.

In this case, a lesson that I "knew" about forever, but never deeply knew enough to feel and be able to walk it until in desperation, and after being unable to trade because of desperate trading in deep frustration, blowing out my account and then being forced to be analytical and process it all. The result is that I will be sim trading this new revelation of missing the lesson, until I see real results, then reload and carry on. I don't give up easily this is not over for me.


  1. Blowing up is a very painful experience but I've found it can be worth it, if one can learn everything they can from it.

    I don't give up easily this is not over for me.

    That's the spirit!

  2. Also, my blown account is extremely limited damage because I only keep a couple of hundred over the minimum margin, where broker halts my trading.

    I just wish that I did that much earlier before I went thru the bulk of my capital.

    I'm looking forward to working again and reloading and sim trading until then.

    Thanks for the comment!