Want Some Free Trading Advice? Pass the Sugar!

Seriously – this isn’t a get rich quick scam, it’s more top quality trading advice from “Oldest TraderBlogger In the World*” Peter Brandt.   Peter blogged a few weeks ago about an extremely bullish setup he saw in sugar.  He got long.  Then the pattern broke down, and he got stopped out.  Then sugar popped again – a total whipsaw for Peter – he’s long again, and he has some regret that he wasn’t as long as he wanted to be for the bounce.   Click over and read his entire piece, but the point is this: discipline, discipline, discipline.  There are other points too, and Peter makes them crystal clear.   If I bold-faced the important parts of this excerpt, the entire thing would be in bold.  All traders would do well to heed these maxims:

“So, what should be my response? Should I chase the market? Should I sulk and moan that the boat has left the harbor and I am still standing on the pier? Absolutely not. I will tell you what my opinion is of market situations such as this:

  • A good trade must be right on both direction and timing. If one of these factors is wrong, the trade is wrong.
  • I have trading rules and I must follow them. If my rules prevent me from participating in a market I correctly called, so be it.
  • Traders MUST force discipline upon themselves, even if it means a move will be missed.
  • There will always be another market. It is a sign of trouble when a trader feels he or she must be in a given market even if the set up was not right.

So I am long half of a position. I need to be happy about this. It is important for a technical trader to be driven by precise signal set ups, not by market opinions or emotions. Emotionally it is tough for me to watch Sugar rally. So what? Emotions are never a reason to be in a trade.”

related:

A Study in Frustration: What to Do When You Become a Sold Out Bull

When I was Your Age…

note: I apologize, but I couldn’t find a quality short clip of WSOP Champ Joe Hachem shouting “PASS THE SUGAR” – all of the clips are too long to bore you with.

-KD

disclosure: long $SGG

* not confirmed

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