Considerations when backtesting

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Today I want to talk quickly about backtesting. I have harped on it quite a bit, so I thought I’d do some pros and cons and there are some cons. So when you think about back testing, there’s some simulators out there where you can test one idea at a time, meaning one name over maybe a few years to see what indicators you were using and what your entry and exit criteria were, what your position sizing algorithm is. I think those are the worst of them in that there’s not enough data for you to be able to tell how things would work. Two years is not enough time. Generally speaking, if you speak to those of us in the business you want probably 10 years of data or more so that you can see how the name reacted under different economic scenarios. You might be onto something now, but that market might reflect higher interest rates. Where if you were going back say 10 or 15 years, you were in a low to no interest rate environment, right?

So then you go back even 20 years. And that takes us back to 2002. It’s a post 9/11 environment. How did things work? Especially during this 2007, 2008 subprime morass – emphasis on the second syllable. So when you do that, you give yourself an idea of how the name would’ve performed, not even the name, but especially what your entry and exit, what your rules did. The problem with testing one idea at a time though, is that it doesn’t, it’s not terribly robust. It doesn’t teach you how the whole portfolio would’ve done. And I don’t really advocate trading just one instrument. So for those of you that are sitting at home and you’re just trade, like any of the indices, especially the emini, this episode’s going to be a waste of your time. So if you clicked off I’ll save you three minutes.

Now there are engines that you can use to back test at the portfolio level. And those are Mechanica and Trading Blox, which again are just the engines, the spreadsheet macros if you will, where you can set the parameters and then hit “Go.” Of course you need data. So you have to go to a data provider that will give you clean data in a format that’s compatible with the trading engine and then upload it and run it that way. Now those aren’t necessarily expensive, but they’re not cheap, right? So if you have $5,000 account, you’re not going to do this because the simulators probably run a few hundred to a few thousand. You know, if you want the full versions, they have various levels of service and abilities. I think the lower end ones are like $700.

The higher end ones run you between $2-$3k. And then the data that you want will probably run you anywhere from $50 to a couple hundred dollars a month. So you have to figure out what you want to do there in terms of running your business or what if you want to, especially if you want to run other people’s money, then you have to look at the data itself as the data clean, are there bad prints? How do they fix them? If there are, then you also have to look at the survivors, right? Because if you’re looking at what’s trading and you type in a ticker symbol, that’s a survivor. But what happens if you type in, and I’ve mentioned this before, ENE which was Enron, or BKB, which was Bank of Boston, which didn’t go out of business, but was acquired by Fleet Bank.

You know what happens if you put in BSC for Bear Stearns Corporation, right? Those names aren’t going to be in your normal data feed. So you’d want to put those back in because it’s very valuable to know how your model would’ve worked if it had the opportunity to pick stocks that either got acquired or blew up, right? Otherwise you’re just looking through rose colored glasses. [And if you knew Rose the way I did, you wouldn’t want her eyeglasses anyway.] So that’s the backtesting thing. So be careful on these single name for two year thingies, because it could get you thinking that you’re onto something when you’re actually not now most of the time. If they give you two years of data, you might be looking at five minute bars or one minute bars. And you’re like, “Hey, five minute bars over two years and off a big sample space, I’m still going to argue that you’d want to see five minute bars again during 2007 and 2008 when times were darker.

And the mood and the atmosphere around Wall Street was negative. That’s very important data to see, because if you start losing money, your behavior may change, especially if you don’t have a lot of experience. So having said all that, when you look at the output, you run one of these things and it’ll give you a big report. It’ll give you all kinds of ratios and things that would help a person diagnose the problems and where to make the tweaks, but also what are the financial indicators as to whether or not the system should be followed. So in and around that data, the most important thing is probably the expected value of a trade. Some of you who are into the accuracy game can see what’s the frequency of winning versus losing across all the trades that were taken. What’s the size of the average winner versus the average loser.

What’s the biggest winner. What’s the biggest loser, Sortino and sharp ratios. And then also very, very importantly, what was the biggest draw down and how long did it last? Some of them like Trading Blox will show you all the drawdowns over that period of time. So you can kind of see how it worked and how well the model’s still working, even if you’re in a drawdown. But a lot of people take that as the model not working, there will be times over your trading career where the market is just not amenable to your trading style. And that’s just the way that it works. So the big question is how do you survive those periods of time? Do you cut your position size? Do you trade less frequently or do you try to bull your way through it and double your positions to earn the money back, which is typically not recommended.

So there are some cons in that a lot of those numbers that you get are actually averages. So it’s like the old question in calculus class: “A car starts in Los Angeles and drives to Chicago. And over that period of time, the car averaged 60 miles an hour. What can you say about the trip?” And all you can really say about that is that at one instance in time, the car traveled at 60 miles an hour. So when you look at your trading results from your back testing, what they say would be your compounded annual growth rate is generally an average and you might not actually ever achieve that. You might get more than that. You might get less than that, but that’s true for a lot of those indicators, some of the better engines have a Monte Carlo function where they’ll vary the start date, which you know, helps to understand that there’s a lot of randomness that goes into success.

The one that I use, that’s a striking example. That’s easy for everyone to understand is you sell a house, you had $300k and in the 1980s, and you decided to invest that money in a simple blue chip S&P 500 fund on October 1st, 1987, versus having the sale close and having the funds available on November 1st, 1987. So just by varying the start date by 30 days, you would’ve side stepped, for example, the big crash on black Monday, right?

Random, but that’s important stuff to know, because there’s certain things in actually quite a few of them that are out of your control. That just happened. You know, sometimes people get shot by friendly fire. It’s unfortunate and it sucks, but it is the way it. So then you have to figure out for all the time, money and effort that goes into the back testing. What kind of peace of mind is it have togive you when 80% of trading is psychological and emotional, would it be valuable for you to know ahead of time that your system was robust and it worked across large, small and mid-caps over a 20 year period of time, right?

You also have to think about data mining and curve fitting and all of this and that, which is too much to get into here. But I mean, you have to figure out what’s the benefit to you. When you look at the backtest, does it give you peace of mind or is it a waste of time? Because things are so random. Anyway, it really comes down to the individual. Some people want a little bit more science and other people have a much more, “well I’m going to wing it and learn as I go” which is kind of what I did. And I’m just going to keep my losses small because it’s this experience of the trading. That’s going to give me the education that I need. And although I don’t know my tactics or my trading so well, I will figure it out along the way. You have to have to have a special disposition the way I have it.

I was kind of born with it. So I’m lucky that way, where I don’t look at losses as personal indictments on stuff. I know I have to try. And it’s the trying that you win. It’s not even if you lose money because you did it, you still won. So you have to figure out what’s your temperament. What kind of science do you need? If you’re a wing-it kind of person, you could also find yourself buying some of the dog shit that we talked about yesterday, because you like the words that the people chose to kind of convince you to give them money. I can assure you, there is no easy way out nor is there an easy way in. I think there’s a lot of ways that you could turn this into a way to vaporize a ton of cash, but, and that’s why I say measure eight times and cut once because the money you save is money that you don’t have to earn back.

Two long episodes back to back. I’m sorry about that. I like to be much more brief, but I think these yesterday in today’s issues are very important to me, as I do feel whether it’s right or wrong, a bit of a paternal kind of vibe for the newer folks, because left to your own devices, you could easily step into some very dangerous situations.

And I was in that spot too many decades ago, but, and I didn’t have anybody to help me. So I feel like it’s my knowing what I know. It would be very selfish to not share that information with the community.

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Think twice before you buy the hype

So I was chatting with a consulting client about his experience in a how to training program. And I thought I might summarize it without mentioning any names to give you some examples of what actually happens behind the scenes that never gets really spoken about. So this is a cautionary tale for those of you that might be getting crazy ideas about wanting to trade full time or to do it for a living. I say, follow your heart for sure, but have, and I’m serious about this, and I know you’re not going to do it, but I’m dead serious. Give yourself enough runway where you can pay your bills and give yourself a finite period of time where you say, if I haven’t shown any success at this period of time, call it six months, I’m going to go back to work.

Or I’m going to focus on my main my main business, or you could also say I’ve got $10k I’m going to try to trade this. And I’m going to, I need to show some positive results by again, six months. So make it a thing where if I lose $5k, I’m done. Or if you lose all the $10k you’re done to say like, well, I’m going to do anything to make it. I think that’s foolish. You have to remember when I was coming up, it took me a long time, but I also had a steady revenue stream. And so it’s very different to say, well, I’m just going to quit and throw caution to the wind and I’m going to burn the boats behind me. I appreciate the bravery there, but I don’t necessarily think that that’s necessarily a smart thing to do.

And my colleague, I don’t want to mention his name because you might be able to reverse engineer the thing, but he is terribly horrifyingly, bright guys, an attorney, and um, very well educated went to an Ivy league law school and he’s bright as hell. He really can see things for what they are as far as I’m concerned. And that’s a rare skill to have and he talked about his experience in this group where there were recorded videos on the how to part. And then I think there was a live chat function. I don’t know if they used Slack or Discord or Microsoft teams or what have you, but they would run you through the program, cost several $1,000 for recorded material and they would run the daily thing and give you levels and this and that. And there’s an enormous amount of failure among the people who are trying to endeavor to do this, which is not terribly shocking.

You can imagine that that’s the case. Most traders fail, but was what was interesting here though. And I don’t know if, what the percentage or was of this, but when people would try to trade, according to what they had learned in the videos and then apply it to the daily levels and all of this people were losing a lot of money and blowing up. And then when they would comment in the chat function with other students traders, as well as the leaders of the group, the leaders would come back and say, well, it’s your fault. It’s your trader psychology. You’re not doing it right, this and that. And there was no accountability. Now coming from that school, that’s one of my areas of expertise is behavior of traders and goal setting and the mindset and all that kind of stuff. Probably not a big shock to you if you, if you listen to the show a lot.

And while I think, yes, you can’t necessarily hold people accountable for your actions. This does give you a moment of pause. Give you a moment to really think about stuff. Like if these people are doing everything they possibly can to get you to depart with your money, to be part of their program. And then after the fact, you’d try to do everything that they possibly say, you lose money. And then they say, well, it’s your fault. I do think that there’s some ownership in there by these so-called educators, because if you sell and market the thing as a panacea to help people do the types of things that they were doing. And you’re talking about people who mortgaged borrowed money against the equity of their homes to come up with a grub stake to trade and they lost it.

They lost tens of thousands of dollars. And that’s the reality of the business. So I put this out there to say like, don’t spend thousands of dollars for educational material when you can get it for free on the internet. And I don’t care who the teacher is. I know a lot of them – they’re good people. If you do your homework, there’s a lot of it that’s already for free on the internet. So I’d say save your money and use that money to trade. And I do put my money where my mouth is. I actually don’t put my money where the course is so to speak, play on words, because we don’t really do a lot of the how-to stuff because I think just the sales stuff to people, I’m an expert with the English language. I absolutely could come up with a sales landing page in one of the little tic-tac scroll bars in the right margin and give you long form sales content with an embedded video sales letter and promise you the world and show you testimonials of just the survivors and then real trading results. I know the racket, I know how to put together a marketing platform.

But I think when you’re doing that, the goal is – and they all talk fast and they’re all excited about the opportunity. Because they they’re literally taught “enthusiasm sells.” You’re never going to see a guy come out like what’s his name? Ben Stein [mockingly, lethargically] “Hi everybody. I wanted to tell you about my really exciting trading strategy that might be a good fit for you.” Like these people are always amped and the problem is that sure they might have had success for a year or two. They might even come up with new names for existing chart patterns just to create a sloganeer about the thing. But you really have to measure eight times and cut once. The old saying about the carpenter: the carpenter measures twice and cuts once. You really have to measure like 25 times and I’m not even being facetious your money is hard enough to come up with and just because you want it.

I used to say this to the folks in the wirehouses. They I’d say this “just because you come into a business owner or meet a business owner who has had, has gotten really bad advice is at a relationship at another competing wirehouse that they don’t like is ready to move and is looking for someone like you. It doesn’t necessarily mean that it’s a good fit for you.” You really have to do your due diligence and do your homework. And if you’re thinking about signing up for the academic stuff, remember that you have to have the emotional constitution to pull it off. I find that the majority of people are looking for help are looking for the intellectual solution, thinking that’s going to be a solution for their emotional issues. And you’ve heard me say before that there are no external solutions for your internal emotional situations. And that includes learning more stuff, reading more books, learning more chart patterns. Like if all that stuff work, you wouldn’t have people failing so much. You know, when you think about it from a practical standpoint, there’d be one definitive book, there’d be one definitive way to do it.

You are the enemy at the same time. So you have to find a way to fight that beast. Do your due diligence and be like a detective and an investigator – find out who went through the program and who didn’t, how many people actually succeeded. You can go to social media and ask that question and people might come out and say, yeah, I failed at my, I lost all my money. I turned $500k into $67,000, you know? And we go through all that stuff, but they might DM you privately because you have to ask why wouldn’t the thing work, who wouldn’t it work for?

And those are the tough questions that don’t typically get answered. You’re very rarely going to see a testimonial in one of these things that says, “yeah, this program sucks. All it does is help you get tax loss, carry forwards. So if you need those, because you’re making so much money elsewhere, I would definitely sign up for this course because it’ll teach you to lose money. Like you’re a pro like you don’t even have to try.” So you ought to know both sides of it. You know, when you’re in the public eye like myself and you do a podcast and you write a book, you have objective third party places where they write people, write reviews and you can see those reviews on Amazon for the book. I think you could probably see them on Apple Podcast. I think Spotify has stars. And so there’s nowhere to hide.

When you look at video sales letters and pages, you could say, well look at all the historical results of this trading style, but they don’t show you the people that blew up, they don’t show you. You know why people couldn’t follow the strategy. And it’s true that trading can be taught, but it doesn’t mean you can actually execute it. And traders get paid to execute. They don’t get paid to know stuff. You have to have basic competency. So I’m here today to tell you, be super careful about what you drop your money on. Because if you were like me, it was hard enough to get the grub stake in the first place. And there is no intellectual solution that’s going to make you feel better. If you have self doubt, there is no such thing as an “A-ha” moment on the intellectual side, it’s on the emotional side.

And I get email after email from people who say, “Hey, I wish I found your show XYZ period of time ago‚Ķ” usually months or years ago, because I tried to do this. I signed up for this guy’s program and this and that. And it didn’t work out. And a lot of times it’s because they understood it intellectually. They could see the moving parts, but it wasn’t a good fit. So that’s why I say just go trade, go find some strategies on YouTube, ask what your friends are doing and just try it with one share or one contract, of course only risk what you can afford to lose because then you will at least feel what it feels like to do that trading strategy, which has a lot to do with compatibility. You need to know how you’re going to feel when you’re in that environment or when you’re in that type of strategy of managing risk.

Because until you put real money to risk, nothing really matters. Paper trading is interesting, but it really, to me is only beneficial to show you how the platform works to enter orders. So you don’t fat finger stuff or start hitting the wrong buttons or so that you know how to enter stops and all this and that. And what’s the syntax for the ticker symbols and all that kind of fun stuff tend to want to keep it simple. But even still, I think tomorrow I’ll talk about backtesting because I’ve run a little bit long today, but it’s a thing that I’m pretty passionate about. Because I hate to see people get ripped off because the stuff that I see is just so remarkably, it’s just unbelievable. The boundaries that these marketers will push to get you to give them money and then not necessarily care about the wake of destruction that they leave behind them because they already have your money and they figure like, well, you ought to know better.

You see? So I don’t feel like there’s a lot of integrity in the system to protect the consumer because it’s highly unregulated. It doesn’t matter who’s succeeded. Somebody’s going to win the lottery for sure. But it’s a game of negative expectation and the majority of people never, ever win. And even if they win a $100, it still pales in comparison to the thousands of dollars that they spend on these stupid scratch games or the other pick pick six kind of games. All right. So be careful. Just be careful do your due diligence and ask the hard questions that you might not want answers to because it blows up the fantasy. All right. It’s a very hard business.

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On community and feelings of isolation

Everybody it’s Michael Martin. Thanks for being here. Happy Wednesday. So I’d like to respond to another email that I got from Vladimir. Thank you for writing Vladimir. And the question is “I have one thing to ask about camaraderie and trader expression from trader experiences and process. Everybody in every career has similar like minds to express the ups and downs with their profession. Not too in trading, however, even many of the best say it’s often a lonely endeavor. How would you suggest to remedy the isolation without letting it influence your overall style and process?”

So it is a great question and I wouldn’t look for necessarily a community in the trading space. I would go do something socially outside because you can spend a lot of time commiserating with people. Yes, you can spend time celebrating, but I just never found that hanging out with other traders helped me trade better.

And so if I was looking for good feelings with having camaraderie as you called it or having a community, you can find that in other areas of your life to feel those feelings because trading is a solitary event, a solitary career. And if I had to do it all over again, I would not be seeking audiences or groups or god forbid Discord groups or any of that stuff, because you have to be an independent thinker and the more you can keep your thoughts to yourself and not let other thoughts infiltrate or having armchair quarterbacks, trying to coach you, which would be even worse. You can find friends in other areas of life and go plan social events this way.

There are any number of things that you could do because I don’t know where you live or you know, what your interests are, but there’s enough Meetups and this and that. I know there’s going to be a lot of folks who feel differently because they they’re all into trading. And so the more trading they can have in their life, whether it’s following people on the various social media channels, YouTube, podcasts, certainly books, educational videos, like all that stuff, it gets to be overwhelming. And I kind of believe “less is more” the constant barrage of that stuff can kind of – it reminds me of Steve Martin. He meant he made a comedy album back in the day called Wild and Crazy Guy. And on one side of it’s a life performance at a larger arena, then the smaller, then there’s another side that seems like he’s more of in a club.

And he talked about when he went to college east studied philosophy – Plato, Socrates and this and that. And he said kind of almost seriously. He said “the problem with study and other people’s philosophy is it screws yours up for the rest of your life.” And I don’t think that that’s too far off, off the mark. I know I’ve had episodes where I’ve spoken about the need for you to be a leader and to be decisive and to not have to build consensus consensus, right? You want to be independent because that’ll give you the most liberty. And the most freedom not to me is what leads to the greatest amount of success. It’s not a bad thing to have friends, but having trading friends, I don’t think that’s necessary for you to have trading success, right? So yes, it’s a lonely endeavor, but you know, there’s a million ways to go make friends.

You could go study go take a class at a school. You could take start taking yoga classes, learn a foreign language, go fly fishing. I mean there’s a million ways to go out and meet a community based on your interests, there’s groups that meet, I don’t endorse any of them particularly, but you can find the one that’s best for you. So I guess what I’m saying in a rather long winded way is to don’t remedy the isolation with more trading. You want to be independent and you know I don’t necessarily see the benefit of having a community of traders per se – there was a time that I did, but I don’t feel that way anymore. I feel like it could be a crutch. So I would investigate your feelings and ask yourself what do you really want to out of that?

So if you want to talk about there’s more to the email, he says, let’s be clear. “I’m not referring to a crutch to confirm or unconfirmed a per my bias or my process, but just to talk about trader trade mismanagement or usually about the highs and lows of the business.” So I guess that could be okay too. But the thing is you get what you think about. So you only really want to talk about how you’re going to hit your goals and to quote/paraphrase Napoleon “You don’t see obstacles, just objectives.” So I find that it might feel cathartic to talk about these things, but you don’t need, if you need a clinical psychologist for this business, then find something else to do. You know, I don’t believe that. I don’t believe in that whole thing if the, if you’ve got such trauma, right?

Honestly, life is too short. I know again, many of you are going to feel differently, but I’m not here to please you or to tell you the things that I think you want to hear. I’m independent and I’m a free thinker. So that’s what I think. You might feel differently. So if you want to isolate and start talking about the lows of the business, my take on that is that you get more of what you think about. And usually when someone isn’t succeeding, they don’t need a clinical definition of why they’re not succeeding. They just want a way out. And if you’ve listened to the show, there’s enough free information here for you to build a strong mental and emotional model to learn how to succeed without having to pay a therapist or otherwise it’s kind of the whole point about the show. Anyway, I always appreciate feedback. I don’t have all the answers for sure. I just have my own 3+ decades of experience that I speak from. But it’s still subjective because it’s just unique to me. Nonetheless, I appreciate you all being here and I will see you tomorrow.

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Catching the turn with stops and alerts

I got an email from James and he’s trading part-time trying to day trade. He works nine to five. He’s got two small children in a smaller account that he’s done pretty well with. He’s still up handsomely, although he’s given back some and he said, “it’s proving tough to day trade under these circumstances. So the question is my question for you is how do I gravitate to a longer timeframe mindset? And what does the process for finding swing trades look like?”

So I think those two words are hard to conjugate. I think it’s hard to swing trade. You know, if you’re not in front of the computer what you can do is put in your orders again, I’d be looking at daily timeframes. If you could catch things turning from after they’ve consolidated. They’re in a downtrend and things have pulled back, then they trade sideways.

You know, you can look to capture the upside, move above the breakout above resistance, for example. And if you listen to some episodes previously in the last week or so, I talk about setting alerts where even if you’re working nine to five, you can set an alert, not a Sell Limit above the market that would take you out of a winning trade, but an alert that would ping your smartphone or otherwise so that you could adjust your protective stop and stay in the trade for as long as possible.

That might be the best way to do it. You know, I think you’ve already have the mindset as you’ve recognized that it’s very, very difficult to be in front of the screen and to day trade with your family and work life. So I think your mindset’s already there. Because you’ve already come to that conclusion so you don’t need any convincing. So now that the, now the thing is to go back and listen to last week’s episodes about managing a book of stop orders. You probably want to be very selective in what you’re looking at.

You said here, you know how to run a scanner. So I won’t get into that. But yeah, it could work. You you’re only going to know if you try obviously risk only small amounts of capital at the beginning, just to see if you can develop a feel for it. And I think you’re going to do very well because once you take your eye off the screen and focus on the other things in life that are also important for you, you inadvertently let the market do the work for you and the market will be willing to pay you as long as you put the risk on and then sit on your hands for as long as possible.

If you’re working like a dog, which it sounds like you are, you kinda have to put some self love here. Like, do you love and care for yourself enough to stay out of your own way. Because with your account size, which I won’t get into here, but it’s kind of underfunded.

So you have, you might have a tendency to take smaller gains, but the problem is that that typically doesn’t work for you long run long term, especially if you have long term goals of growing your wealth, it’s hard to grow your wealth substantially by taking lots of small short term gains, go back and listen to the episode that I spoke about in terms of being a breakeven trader.

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Evaluating your emotional portfolio

Thanks for being here. And thanks for all your comments and your suggestions. I appreciate the feedback. I think the show gets a lot better when the audience is engaged. It’s probably true for all forms of entertainment, but it means a lot here, because then at least I know I’m addressing issues that I know you’re thinking about. So for homework today and this weekend, I think a good exercise could be if you took a diet or a time block, for example, of all the things that you do during the day and all the feelings that you get from doing those things, then take a look at all the things that you like to avoid and put right down the emotions that go with those. So then you could start to investigate. Why, why do you want to avoid those feelings?

What would it say to you? What would it mean? For example, if you took risk home overnight or over the weekend and you lost money, what would that say about you? Probably nothing, but you might have some hangups about it. So that this way you can conquer your fears, especially for the crowd that loves to watch Jocko Willink and David Goggins and they’re like, “just do it,” “make this shit happen,” “we’re running shit here.” Like that sounds great from a sloganeering standpoint, but not if you’re going to go home and shy away from your fears. So you have to go towards your fears and see what they’re trying to teach you. Just like you have to go through the hubris that you have after you have a winning trade and you’ve gotta post it on social media or call whatever love interest you’re chasing and this and that.

Like look at all of those feelings, because they’ll teach you a lot about yourself and it’s all good. There’s no judgment here. It’s all good. We’re all human beings. So by definition we’re all emotional beings at that point to say that systems trading and this and that and rules based trading can remove emotion. That’s not the case. If you go back and listen to my interview with Bill Dunn, he’ll say “I had all these emotions running my in through my body.” And this is a guy who was purely systematic, who over the – he’s retired now – but over the course of his whole career, he had one discretionary trade and that’s from 1974 to, I don’t know when he retired I think somewhere between 2010 and 2015. The point being is that you can feel strong feelings, but not subvert your own efforts by acting out on those feelings.

You can just stick to your rules. So that’s typically what happens with most folks who have a rules based methodology is that they feel all the strong feelings. They just don’t let those undermine their activities or what they would consider good trading. Again, if you listen to, or what I had said earlier in the week. You just want to stick to your rules and your powerless over the outcome of any particular trade. The best you can do is just stick to your rules day after day after day in a very monotonous and boring manner.

So this exercise of lookin at your emotional constitution will help you because chances are the feeling of fear. Doesn’t just come up in risk management for you. It could be in other areas of your life and by journal. I don’t want to say journaling, because that could mean a lot of things to a lot of people. But if you just took notice of it and became aware of it, whatever you could eventually become aware of and then measure you can improve upon. Because I think it’s realistic to think that people of all shapes and sizes and ability have moments of fear and greed and everything in between, they have moments of hubris and moments of say lack of confidence. But if you study those things in the situations where they arise, you can really learn a lot about your behavior because it could be your subconscious.

That’s putting you in those situations in the first place. And then by becoming aware of that you’re really off to the races. Anyway, folks, please consider subscribing because I get some really good data. Plus you’ll have every episode at your fingertips. And then two, if you’d like a free copy of the book I wrote in 2011, for The Financial Times / FT Press – The Inner Voice of Trading – you can get the audio book version for free at MartinKronicle top right corner. It’s on me. No strings attached. So thanks for being here. Folks have a great weekend. I’ll see you Monday.

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