Yesterday felt bored so went down to takashimaya to browse free books again. There is a japanese books store there that sell many books on trading and property investment, but the bad part is they don't provide arm chairs like Borders. So it is back to the 70s for me where you'll find gangster squatting down in the streets smoking or eating. I always like to squat down and read there and some ang mohs will give me a kind of weird look when they see me doing so. I don't felt angry at all because squatting down will not dirty my bermudas in the very least.
Alright, so I happened to pick up ''market wizard'' and read about Ed Seykota. He is a commodities trader like me and his fund had multiply by 250000% in about 20 yrs. One of his client had 5000 in it and after 20 yrs, it become 10million, great fellow. He started from scratch and worked in a commodities firm with very little income doing menial chores like reading news. His story is very similar to mine but the difference is I don't not like to manage fund.
He used a phrase in the book: everyone will get what he wants out of the markets. This phrase to me means:
1) If you aim to make small profits, you'll become a small fry scalper/day trader.
2) If you are looking for big profits like himself or Richard Dennis. you'll become a mega trend trader. Why? Because the big money is in big markets with big trends.
3) If you're looking for speed and thrills (like those arcade gambling follies) you're going to be in deep trouble!
EUR/USD
sold 1.4631 closed on 13 jun at 1.4343
profit: +288 pips
Bund
bot 124.97 closed 125.23
profit: +25 ticks
Sugar #11
bot 24.85 closed 24.93
profit: +7 ticks
Corn
sold 762 784 (adding on to loser is not recommended for arcade players )
I agree that the big money comes from the big trends bro =)
ReplyDeleteBut using Richard Dennis as an example is rather inappropriate considering he lost so much money that his fund went bust and he retired from fund management! =p
More than anything else, I believe in profiting from the markets, but we can only take what the market gives.
So it pays to be versatile, scalp if we need to, but swing like hell when we can! =)
I'm really sorry, I do not know Richard Dennis went bust. Sometimes, as a trader we need to adapt to market changes also. However, I read on Bloomberg market magazine that some of his turtles are still managing mega funds.
ReplyDeleteYes, being versatile really does help in profiting from the markets.