This isn’t show friends it is show business.

It is easy to get caught up in the emotions of the market.  It is easy to take it personal. It is easy to think that the market has it out for you.

Do not take the easy way out.

The truth is, with the exception of a few big players, the market does not care about you.  That is a good thing.  It means you can keep taking dollars away from them and they will hardly notice.  The downside is that the market does not care if you exist. It is your responsibility to make sure you can execute the next trade in an optimal situation, whenever that is.

The quicker that realization comes the quicker you can start trading. We have all gotten out on the worst tick.  We have all had days where everything we touched turned to shit. What do you do in those scenarios?  How do you get back at the market?

Do you keep trading?

Do you throw your monitor off you desk?

Do you quit using risk management and dump your plan?

Do you yell at your kids, your wife, the world?

The beauty of trading is that every day you go through very similar things.  Whether you are cognizant or not, it happens. Every persons reaction to a negative outcome is basically the same.  But the time we spend in that reaction phase is different.  For some it is hours or days or never.  For some it is an instant.

If you really want to get back at the market you can only do so by learning.  This is the only reaction that does not have negative consequences (if you do it right).  Nothing worse than having to replace equipment and no one wants their family and friends to think they are an asshole. Staring up at the huge pile of losses is one of the loneliest places in the world.

The market is not your friend, it is here to run a business.  It makes business decisions. Act accordingly.

We would really appreciate your feedback, if you like, hate, or think we are full of crap. Please leave a comment, a voice mail (312) 725-9121 , email info @ traderhabits (dot) com or twitterstocktwitsyoutube and facebookSubscribe to Traderhabits by email or to newsletter.

Sign up for our FREE Morning Brief, big picture view of markets in critical area and proprietary support and resistance.  You can also sign up to see us trade live here.

 

6 Responses to This isn’t show friends it is show business.

  1. Emini All says:

    Great Post.    It is so key to learn from bum trades and not beat yourself too much.   Thanks for this blog you allways have a great perspective.   Have a fun holiday.
    cheers,
    Emini All The Time

  2. [...] To Finish this article, click here. [...]

  3. [...] Eli Radke, “The market is not your friend, it is here to run a business. It makes business decisions. Act accordingly.”  (TraderHabits) [...]

  4. [...] Eli Radke, “The market is not your friend, it is here to run a business. It makes business decisions. Act accordingly.”  (TraderHabits) [...]

  5. [...] protection along with wealth management. The following block quote is from the bookends of this brief note from the Trader Habits [...]

The services and materials provided should not to be interpreted as investment advice, an endorsement of any security, commodity, future, or personal investment advice, or an offer to buy, sell, hold or trade futures, options or commodity interests or a recommendation to buy, sell, hold or trade futures, options or commodity interests. You assume the entire cost and risk of investing and are solely responsible for any and all gains and losses, financial, emotional, or otherwise, experienced, suffered, or incurred by you.

Read previous post:
JPM is not the only one at fault.

Much has been written about JP Morgans blow up and I have read very little with the exception of Kid...

Close