Same Old Same Old

by Olivier on January 13, 2011

Perfect description of what trading should be all about. As you might have heard from lots of great and successful traders, trading should be boring. Don’t get me wrong. You need to be passionate about trading in order to succeed. That applies to all things in life. For me, the research I do, all the stuff I read in order to improve my trading, increase my knowledge and my technical skills is what I am passionate about. The process of putting on trades and doing what the charts tell me to do is what is boring.

My trading philosophy is really simple. If I had to put it in one sentence it would be the following: ‘There is no way I am going to argue with price.’ The gist of it really is that opinions do not matter. I do have very strong opinions but when the charts tell me otherwise I change my mind. No hard feelings. A great quote dealing with the subject is the following:

When the facts change, I change my mind. What do you do Sir? – Lord Maynard Keynes

So why the ‘same old, same old’ title? Because today was one of those days where I did what I have to do. My job as a trader is to be objective in my analysis of what is going on. The most important part is looking at my portfolio positions and sort them in descending order. The first one on the list is the one with the highest profit. The last one is the worst performer. I change the order in the streaming watch list of my broker whenever the ranking changes. Doing this manually is a ‘conscious and active’ process, as it literally forces me to ignore my opinions and therefore forces me to acknowledge the strength or weakness of  a stock. Remember:

There are no good or bad stocks. There are only stocks that make you money and stocks that don’t.

That being said my biggest winner is DNN – Denison Mines. My worst performer is CNL.TO – Continental Gold. So I simply did what I do on a regular basis. I reduced my position in my weakest stock and added to my strongest position. I like the prospects of both but to put it bluntly, these are really only ticker symbols. I couldn’t care less which one ends up being a big winner and which one doesn’t. In this case CNL.TO can hardly be considered a loser. It simply happens to be the stock displaying the least profits. As you have heard me saying over and over again: Kill your losers.

No matter how much you know and how long you study, you will be wrong all the time. Small losers and big winners solves all that. – Dan Zanger

My public list with all my charts can be viewed here:

Buenas noches!

{ 1 trackback }

Comments on this entry are closed.

Previous post:

Next post: