As A Stock Trader, Be Like Mr. Spock! By Gregory Mannarino

2 months ago

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Let me start off with saying this, trying to stay ahead of this market could even make Mr. Spock become unglued.

If you are the type of person who believes that putting in an almost ridiculous amount of hours analyzing charts, trying to understand the fundamental factors behind this market along with Geo-political events, and then having it all go south on you in the blink of an eye sounds like fun well, then being a trader might just be for you!

Seriously, this business can really get into your head!

Over the years I personally found that trading is "streaky," that is you will enjoy a few weeks of profitable trades followed by a few weeks of unprofitable ones, and that's just the way it is. However just knowing that trading can be "streaky" puts the ball further in your court, and you can profit from this streakiness.

When you get yourself on a good streak you can feel like you're on top of the world however, keep in mind that even for the best of traders you will run into streaks of frankly bad trades.

As I have been saying for quite a long time publicly, the key to being a successful trader overtime comes down to some very basic money management skills.
It would seem "logical," (thanks Mr. Spock), that when you are running good you should be maximizing those profits.

Whenever I enter a trade I tend to limit my initial exposure by opening a half position. That is for example let's say I have $10,000 I would like to allocate into a particular trade, I will never put the whole $10,000 in when opening the trade. Instead of simply dumping $10,000 into a trade, I will open it with half of my proposed total investment, which in this case would be $5000. My reasoning behind opening a position in this manner is also quite "logical." In the event that the trade goes against me, trading in this manner, I will close the trade as soon as I recognize that it has gone against me with a minimal loss.
In the event that that a trade I opened with a half position begins to move in my expected direction, I will allocate the second half of the total funds into the trade. By trading in this manner over time I will keep my losses to a minimum while maximizing my gains. Trading in this manner, that is using proper money management skills, is absolutely essential to trading successfully over time.

It is important to remember especially after a run of several unsuccessful trades, that this is a business which cannot measure it's success on a daily, weekly, or sometimes even monthly basis, you measure your success as a trader over time.

So when you find yourself running bad, do like Mr. Spock does and stay calm, cool, and collected.

Live long and prosper. (Check out my publications page!) Click here: http://www.lulu.com/spotlight/thegameisrigged

Gregory Mannarino @marketreport
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Great advice Greg. It all boils down to probability. I liken it to poker. If you make the right mathematical play, over time you will be a long term winner. Short term variance can really test your metal some times and cause some violent fluctuations in your bank roll, but over time if you stick to making the right play you will make money.

Live Long and Prosper.......My Vulcan Salute to you Greg !

Vulcans have copper based (green) blood, as opposed to human's iron base. Silver based blood is only a myth.

Great direction for a trade and the perfect way to play it safe should the your anticipation of the trade movement change. I do this with all my Cryptos. As always Gregory, fantastic advice for "tearing the face of the market"

Face off scream.gif

I've been on my own streak, lately - I always trade my paper FIAT money for physical, Silver Bullion Rounds. Silver keeps on going up and up - and it keeps on getting slammed back down again by paper-dumps. But, even so, they can't beat the shiny out of my silver because, at the very least, my bank is ALWAYS OPEN. No ATM withdrawal limits, no bank holidays, no weekend closures, no fees, no insufficient funds messages, etc. Being my own bank is where it's at!

Upvoted & Resteemed.

Money management and patience is key to success in any business.

We must boldly go where no man has gone before!

Great advice! I'm not a trader by any means but I've been playing around with the cryptos in a very limited capacity. Thank goodness I've watched so many of your videos, it's really given me a leg up as I've been making pretty good returns on all of my small scale flips! 'Be like Spock' will be my new mantra! Thanks for sharing 👍

Completely agree. It takes a certain kind of person to trade these markets...especially day trading!
Thanks for the post

Nice guide. How do you prepare your mental to deal with a consecutive loss and unpleasant market movement?

Haha. Thanks Greg (LIONKING) 😉 I tagged you in my last post btw.👍🏻 Resteemed! Cheers again.

Here is a nugget. I have been buying large sums of shares in BITCF and BTSC. They parallel the HF, daily gains. Yes, it is streaky crazy biz! I'm thinking of starting a shady hedge fund that runs on cryptos not participating with the SEC - everyone makes money and I make LOTS of money. And when I die, my kids inherit smart deeds from EOS to the investors' homes. I only have to overcome my morals and ethics. Sigh. Really, been making 30 percent, 44 percent, 28 percent on some average weeks in ROI. I also hold POT because grain prices in some commodities are the cheapest since the civil war weighted for inflation. I hate the system. But I'm using it to make money and be home raising kids.

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Defending our fortress on so many levels. Why can't the really big crash just hurry it up?! When all else fails, they take you to war (Gerald Celente😒)

Great post as usual!

thank you for sharing
upvote

Really enjoyed the tips! What platform do you use to trade on? Always looking to expand.

Check out my profile for what I use :P.

Good advice Greg! I liked your post. Thanks @marketreport

"In critical moments, men sometimes see exactly what they wish to see." - Spock

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You forgot to add >>> "....or worse yet, try and force their own will upon the markets." Greg Mannarino :-)

Nice blog..upvoted and followed

Live long and prosper in great financial greed!

It's pretty hard to resist the urge to trade on emotion. There should be a Chrome extension that flips charts upside down and inverts green and red to help with buying low and selling high.

a stock tread best

“When you eliminate the impossible, whatever remains, however improbable, must be the truth.” - Star Trek VI: The Undiscovered Country, 1991
My Spock Quote for you Greg. Upvoted. :C)

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To be pedantic, Sherlocke Holmes (A.C. Doyle), actually.

Thank you for sharing one of your strategies marketreport. I guess you back it up with stop losses as well, right?
@ronni

thanks for share this topic

However, this way increases risk and, at same time, diminshes reward (a double whammy), which violates one of the cardinal rules of money management.

Rule Nr 1.

Mr Spock is cool.

@marketreport Really enjoyed the tips!!!!!!!

nice mindset for traders! upvote and resteemed:)

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There is always steemit to fall back on. ha ha

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Eggzackly! Anyone who has been tracking Greg's trades for awhile knows that he is consistantly losing money with the trades he posts on his TradersChoice site. The big problem he is going to run into is that when bitcoin goes into "crash and burn" mode here soon, the support all of you provide will not provide the steady income he currently enjoys. I hope Greg can turn his trading around but for him to be as "wildly" bullish as he was right at the moment this selloff began is not a good sign. Hard to believe he didn't see it coming.

Live wrong and perspire.....