10 Minute Read

Tackle Today: We love losing –100% 🖤

March 12, 2019

By | No Comments

≈ That’s the beauty of the financial markets. ≈

“The most terrifying fact about the universe is not that it is hostile but that it is indifferent; but if we can come to terms with this indifference and accept the challenges of life within the boundaries of death […] our existence as a species can have genuine meaning and fulfillment. However vast the darkness, we must supply our own light.”

Stanley Kubrick for Playboy Magazine (September 1968) —

How successful traders and investors are born? This is the million-dollar question we are humbly trying to answer with the 3-part series “The Holy Trinity of Trading”, published in the Trading Justice newsletter.

The first step in becoming successful is mastering Portfolio Design—covered in the February edition. The second step is mastering Position Sizing (Money Management).

Above all, Position Sizing is an exercise of humility.

  • We don’t move the markets, we follow them.
  • They are indifferent to us and can be very hostile.
  • They are not simple, but utterly complex.
  • We don’t know the future.
  • Uncertainty lurks.
  • Fat tail events await.

To some extent, we must love the fact that we can only lose –100% and acknowledge that Position Sizing will be there for us when all else fails.

This is what the March edition of the Trading Justice newsletter is all about. This month, we are taking you for a ride in the unfathomable universe of Money Management. A universe where the most you can lose is –100%.

Chart of the Day

The Boeing Company

In the March edition of the Trading Justice newsletter, we talk about Creatures from the Abyss & Meteorites from the sky. We can’t predict when they are coming for us, but they are, inevitably. A deadly crash in Ethiopia last Sunday killed 157 people. From its highs on March 1st to the bottom yesterday (March 11th), Boeing shares experienced a –18% drop. Only position sizing will be there when all else fails.

Video of the day

Pre-Defining Risk

Coach Noah Davidson explains the importance of defining risk before placing any orders, even more during high volatile markets.

Today’s line up

Tales of a Technician

How I Traded the Boeing Gap

Boeing’s textbook bull retracement pattern made it a top contender on our weekend Scouting Reports. But Sunday’s plane crash changed everything. Google it if you haven’t read the details. I want to focus on how we might have traded this morning’s down gap. Specifically, I’m going to illustrate how I scaled-in to bull puts and successfully turned a large loser into a scratch.

Traders Lounge 11PM 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

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.

Tackle Trading: Financial Freedom is a Journey. Sign up now for a 15-day free trial.

Financial freedom is a journey

The Tackle Today series is brought to you by Tackle Trading.

Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.

# Sign up now for a 15-DAY FREE TRIAL #

Legal Disclaimer

Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.

All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.

Leave a Reply

Chart Modal

Tackle Trading