Jimmy Bean’s a long-only positional trader. People think he’s silly because of his long-only bias. Jimmy doesn’t care. He does what works for him.
JB’s nervous system requires periods of recuperation, which it gets when the market is flat, choppy or in a down-trend. JB uses this time to relax, read, go on a holiday or even to analyze his previous market mistakes. He’s balanced, and nice to his family. His trading doesn’t have negative effects on his life.
His material reasoning for the long-only bias is that stocks can only go down to zero, but have an unlimited upside. Makes sense, gotta give him that. Besides, he says that when the general market is in a down-trend, he likes to identify those stocks which show good relative strength and these are the stocks he trades when the trend turns. He’s happy with his world, and it’s working for him. Let’s not be too clever by half, and let’s just let him be, all right?
Then there’s Jackie Daniels. She’s a sharp contrast to Jimmy Bean. She’s a short-only trader. She likes quick returns. She’s nimble and takes her stops. She gets one or two good runs a month, during which she makes enough to cover her bad runs, and then some.
Where she does have problems, though, is with staying out of the market. She’s always trying to anticipate the next short run, because in the world of shorting, events occur very quickly. Delay can make one miss the bus. Thus, she’s almost always playing the market, and hardly gets any rest. She’s snappy, and is rude to her family. She doesn’t have much of an other life. Her nervous system is liable to break down one day. Though she’s making money, she’s not happy.
When Jimmy Bean meets Jackie Daniels, he’s fascinated by her. She’s everything that he’s not, and thus there’s attraction. He calms her down. She learns from him to stay out of the markets after reading the appropriate signals. She finally starts getting more rest. Her trading performance is automatically enhanced, because a rested nervous system enables the brain to think clearly and make good trading decisions. She’s not snappy anymore, and is nice to her family.
Meanwhile, Jimmy Bean has got backbone enough to not take on Jackie Daniel’s former negative traits. His is an already successful trading system which sustains health, and he’s not about to rock his own boat.
They live happily ever after.