In forex, the markets are watching a fixed game with the USD/Chines yuan (USD/CNY), leaving plenty o...
Dave Landry's Trading Notebook: Currency, Deaths, What I'm Thinking
07/11/2018 6:00 am EST
Over the past couple of weeks, I took a stab at some crypto pairs and the Australian dollar/U.S. dollar (AUD/USD) based on hourly bowties off of major lows. All of this failed miserably. That’s okay, writes Dave Landry in his trader’s notebook.
What I’m trading
Sometimes this type of trading takes a few stabs. Writing this reminded me to check my account and it appears that I just triggered into a AUD/USD position again.
In stocks, I haven’t done a whole lot lately. Other than an IPO here and there, I’ve been mostly waiting. Some of the setups that I have found don’t seem to be triggering. And that’s perfectly okay with me, especially when I get to the office and see that the overnight futures are down sharply.
When I first got int this business I craved action. Now I think long and hard before putting my hard-earned cash at risk.
Why I’ve been somewhat AWOL....again
Last November, both of my parents were diagnosed with cancer on the same day. That’s so typical, they did everything together! As previously mentioned, my father fought hard. His will was much stronger than his body. He was gone in a few weeks. For the next six months my mother’s will was also stronger than her body. She passed a few weeks ago. For both I went through the difficult “better off/quality of life” feelings, something that’s not easy to wrap your head around.
As previously mentioned, I have been splitting my time between my home office and my second office that I set up with my sister’s house. I've been back home for a few weeks and other than dealing with some of their affairs, I’m mostly here in front of my screens.
What I’m thinking about
With the market getting questionable at best, I’ve been thinking long and hard about putting capital into harm’s way.
I’ve had a few of you ask me if it’s okay to sit on your hands. Absolutely! If your hairs don’t stand on end on a potential trade, then leave your hands under your buttocks.
What I’m reading
The books I’ve been reading have been split between offices. Now that I’ve gotten them back home, I've actually been able to finish a couple. One of which is “The Master Key System” by Haanel--yet another “Tim Ferris find.”
I’m a big fan of original thought. When you read books like this, you realize where the modern day motivational gurus got a lot of their material. It’s a little on the esoteric side, but it has some tangible truths and realities. Its essence is the Napoleon Hill “you cannot make a thing unless you think that thing” mantra. True, positive thought won’t make all your troubles go away, but at least you'll have a better attitude toward dealing with them.
As I preach, my litmus test for a book worth reading is one good thought or idea. And, I think I found that: “Large ideas have a tendency to eliminate all smaller ideas so that is well to old ideas large enough to counteract and destroy all small or undesirable tendencies.”
In this day and age of click bait and cat versus cucumber videos, it’s often tough to stay focused. Quotes like the above and my countdown clock (keep reading) serve as constant reminders to “keep my eyes on the prize.” It reminds me to be cognizant of the moment. It forces me to constantly ask: is this activity moving me toward or away from my goals?
I also finished “Seeing What Others Don’t” by Gary Klein. This one was also worth reading. I’ll have more to say about it soon.
This week’s content
In re-reading and re-writing Dave Landry's Trading Ground Rules it reminded me that trading isn't nearly as complex as we occasionally try to make it. Note: I’m not saying that it's easy, but sometimes we make it a lot more difficult than it really has to be. So, if you’re getting fleeced by a “guru” who is suggesting that you can print money just like him or, if you're confused if the wave count is a 3rd of a 5th or 5th of a 3rd, read the article.
The Holistic Trader
Lately when writing this column, I’ve been dreading this segment. As mentioned before “holistic” means a combination of psychology, money management, methodology, and as I have learned over the last year or so, you. Take care of you. This isn't an easy business and certainly not without stress. You have to make sure you're operating at peak performance.
I logged 20-30 miles on the Peloton, but didn’t do much else for my physical, mental, and spiritual health. Paraphrasing Ferriss, I’m now learning that you truly cannot out move your mouth, exercise alone won’t do, but hey it’s better than nothing!
May the trend be with you!
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