Emo-check

Gauge…

…the impulse…

…before…

…acting.

Market behaviour evokes an impulse within us. 

Markets are such. 

They tease…

…at a spot…

…which has History with you.

They manage to find the spot.

And then they burn matches at it,…

…towards causing max-pain.

It can be a support level.

A resistance level.

Your stop-loss.

Exit level.

Entry-level

Break-even point.

What have you. 

Use your imagination. 

Whichever point holds value for you is open for needling. 

Meaning, please take it for granted that this point will probably be pricked again and again.

Why?

Ensembles…

…want you to act. 

Your action, if you succumb to the impulse, will then probably benefit these ensembles. 

Example. 

You enter an underlying. 

An ensemble takes it up 20% after your entry, on huge volume. 

Price then falls for twelve sessions, on low volume, such that more than 50% of your notional profit evaporates.

What just happened?

You’re feeling that impulse to preserve that other 50% of your profit, right?

It could be the right decision. 

Or not.

Depends on your outlook. 

Ensemble probably wishes to purchase another tranche, and is driving the price low enough to then act upon this relatively lower price. 

How will you feel, if you exit now, and then price shoots another 25%, immediately after your exit?

Hmmm, that’s another way of looking at it. 

What’s right?

What’s wrong?

Nobody knows before-hand. 

What is in your hand, though, is the ability to gauge your impulse, and to synchronise it with your objectives upon initial entry. 

When, then, one fine day, the impulse to act is so strong that no amount of rationalising can hold you back,…

…,well,…

…that’s the time when you…

…act,…

…and it’s the right decision for you, irrespective of market outcome. 

Why?

Such an “uncontrollable” impulse to act, even after study and attenuation, is better implemented rather than swallowed (leading to future indigestion). 

Finding your Groove

Form matters.

Form as in – shape.

What’s the implementable shape of your strategy?

You might have identified your market strategy after a lot of effort.

However, you are still not succeeding with it.

You know it’s the right strategy for you.

What’s off?

Why is your strategy not making you money?

It’s probably not being implemeted in sync with your character-, time- and risk-profile(s).

Your strategy is not in sync with YOU.

Bring it in sync, and then implement it.

You will see the difference.

Tone it down. Tone it up. You know yourself. By now, you’ve also recognized your risk-profile. Play with time. Which time-frame are you most comfortable with?

Make your strategy an extension of yourself.

Sleepless nights means you are doing it wrong.

Keep fitting-fitting-fitting till there’s total synchronization.

If you are not able to totally fit the strategy even after solid tweaking, look for a new strategy.

When a strategy has an edge, and is successfully fitted to oneself, it can be implemented with success.

Find your groove.

What does that mean?

It means the creation of circumstances for yourself where you are able to implement the succesful strategy again and again and again.

The strategy should make you feel like going for it repeatedly.

Nothing in your environment should distract you enough to make you fail to implement the successful strategy. Try and bring it on auto-pilot as much as you can. If something manual remains, try and create a life for yourself where that manual step can be repeated with ease.

There will be many disturbances.

You’ll need to attenuate these enough to put the manual steps in motion.

That is the toughest part.

Constraints keep cropping up, and we are not able to implement because of them.

Yes, the most difficult part is for your groove to keep churning despite constraints.

Finding your groove is the precursor to maintaining your groove.

Decoupling One o Two

Trade on.

Market forces.

You.

Connection.

Attenuation.

Life normal.

This is the real decoupling.

What was the other decoupling?

The myth one?

Myth?

I mean, Switzerland is kinda financially decoupled. The CHF just keeps its own despite anything.

Israel is also sort of decoupled. Despite everything. Functions on its own tangent. Matter of opinion.

These are exceptions. They prove the norm.

There are remote chances these exceptions won’t exist tomorrow. Having said that, let’s hope nothing like that ever happens.

However, permanent decoupling is mostly a myth. We’ll be better off not incorporating it into our investment or trading strategy.

Decoupling one o two is a different matter.

It is very welcome.

It gives longevity and harmony to a trader’s market- and normal-life.

Happy trading!

🙂