≈ Profits in front of others. Losses in front of the mirror. ≈
Profits make you sociable. It is hard to find someone that goes on Facebook to talk about a –20% loss. A needle in a haystack.
On the other hand, profits have a social flavor that is intrinsic to them. The more you talk about them, the more you want to push forward and keep bragging. It’s addictive. It begins with a post about your +15% profit on social media and ends up on the family dinner. A Facebook like and a tap on the shoulder work wonders.
Profits in front of others. Losses in front of the mirror.
It is also a contagious behavior, like viruses. Once it’s spread, call the doctor. There are no losers in a roundtable discussion about trading. How to avoid it? With some pocket wisdom:
1) Keep both eyes and ears turned on, especially towards the trader that never loses. Hot tips, quick money, skyrocketing stocks. That person is teaching you how NOT to do it.
2) Pay special attention to those rare individuals that openly talk about their losses. They don’t want to look successful, instead, they usually want to pass along the things they have learned after losing.
Profits in front of the mirror. Losses in front of others. This kills the virus.
Chart of the Day
Cold Turkey
Speaking of viruses, we couldn’t help but notice the airborne contamination spread between emerging markets currencies. From this perspective, the emerging markets are more like drowning markets with the Turkish Lira being THE Thanksgiving Turkey. The graph above is from Aug 10th. From it, you will notice that all Drowning Markets were suffering but some were slaughtered. Investors go where the money/certainty/better ROIs are and currency rotation is a natural phenomenon. Think about a strong US Dollar draining the energy from weak and exotic currencies like some giant black hole out in the ether. (Source: Nord Insights, Brazil, Aug 10th, 2018)
Video of the Day
Learn more than one stop loss technique
As a trader, it’s important to know how you will set a stop loss. And, Coach T explains, it’s important to have more than one stop loss technique for your trading in this video.
Today’s Lineup
TALES OF A TECHNICIAN
The August that Was
“Short of one hiccup, August was almost as easy a month to trade as July (which was my best month of the year). The difference in profit between the two can be attributed to two of my trades which I’ll get into later. If you carried a bullish portfolio and didn’t make money in August, then something is wrong with your process. Further investigation is warranted to discover the culprit.
Coaches Lounge 11am EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
The Coaches Show 8:30PM EST
This is our weekly MasterMind group. Join the coaches tonight, 8:30pm EST to discuss the markets and help you prepare for the week.
Halftime Report 12:30pm EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.
Market Recap 4:30pm EST
The Market Recap is designed to give you a quick overview of the day that was. While brief, this report is designed to cover all of the major events that drove the markets that day and help you plan for the trading day ahead.
