Independence is a wonderful word. Having the freedom to do what you wish within very reasonable terms is what all peoples on earth want. (Except for those who think it is ok under certain circumstances to wrap a baby girl in bombware and have her walk into a crowded building.)
When most people think of independence they are thinking of having the financial wherewithal that allows them to do just about anything with their time that they cannot do now without asking someone who gives them a paycheck.
Many believe that trading is the ultimate vehicle to enable this kind of independence.
I have this kind of independence completely from trading, and of course, am somewhat biased on this subject.
My bias is different than most might think. I don't believe most of you reading this should ever attempt to trade for a living. If you want to trade part time or test out some ideas you have with micro capital-- GREAT!
Trading is an intriguing mistress who doesn't like to share.
I don't say this because I want to keep all the market's money to myself. Trading is tough.
Many other jobs are too.
But with most jobs your requirements are to show up, apply your expertise, and at the end of two weeks, you get a check. You usually aren't required to show up with a quarter of a million dollars and 2 out of three weeks end up having to pay the firm.
12 years ago, a good trading friend of mine (I'll call him Jack) was bemoaning that his new bride Joan, a beautiful daughter of a successful lawyer, was incredulous that he could go to the futures exchange all week and end up making more losses than profits-- forcing him to pay up. Sometimes weeks would pass before he would show black ink. Jack had been making a living trading like this for 8 years, but Joan couldn't handle it. It was completely illogical to her that you could go to work, and not make money by the end of the week for your efforts. Jack had to be doing something wrong.... (Yeah, he married the wrong girl....)
After being together for over a year, in which he made better than average returns, Joan finally said, “You have to get a job with my father, or we're through.”
Jack's been married to someone else now for ten years, who better understands the trading concept. He made absolutely certain she knew the realities of trading his way before he made the next “trade”. Divorce was expensive since Joan had access to a determined and emotionally-involved lawyer, her father.
Most people thinking this business has to be nirvana just don't think about what they need to pull it off.
These four things are crucial to be the best in this business....
Independence, to be continued ----
____________________
Here's this week's recap:
The data below is as of Friday's close, July 4, 2008:
Start of week equity: $ 767.88 (including unrealized P&L)
OneNightStand Exit(s) on 06/30/08 :
*Eur/Usd: Long @ 1.5769, out @ 1.5787 for a 21 pip gain.
*Gbp/Usd: Long @ 1.9896, out @ 1.9934 for a 38 pip gain.
*Usd/Chf: Short @ 1.0222, out @ 1.0171 for a 51 pip gain.
Total profits- 110 pips ($8.25)
Completed FirstStrike trades this week:
- Eur/Usd: short @ 1.5737, stopped out at 1.5797 for a 60 pip loss.
- Gbp/Jpy: short @ 210.59, stopped out at 211.49 for a 90 pip loss.
- Gbp/Usd: short @ 1.9884, stopped out at 1.9944 for a 60 pip loss.
- Usd/Chf: long @ 1.0223, stopped out at 1.0163 for a 60 pip loss.
- Usd/Jpy: short @ 105.53, stopped out at 106.13 for a 60 pip loss.
Total profits: 0 pips
Net losses: 330 pips ($37.72)
OneNightStand 07/04/08 entry(s)
-none-
Unrealized Profits: $ -0-
End of week equity: $730.43. (includes unrealized P&L)
Total Loss for Week: $ 37.45 (4.8% weekly decrease)
This was another week with losses. You get used to them trading over the long haul.
Have a safe holiday weekend. The weather is great here in Minneapolis. Our 4th of July was only 78 degrees. A little warmer than I like, but very pleasant.
See you next week.
Joel Rensink
www.infiniteyield.com
PS: To receive the FREE! trading rules for the Infiniteyield Forex Challenge ($499 value) and the semi-monthly newsletter about this challenge, send an email to: newsletter@infiniteyield.com and tell me to which address you would like it sent. Please do not use AOL, Hotmail or Yahoo addresses. Nothing personal, but they've been known to filter out more good mail than actual spam. Try a Gmail address. It's free, simple and perfect for traders!
No comments:
Post a Comment