A morning perspective

This streak of losing days is discouraging. I can't help but try to take a second look at everything I am doing and trying to figure out what is wrong. What has changed since the first part of May and a couple of good weeks?

My perspective. I started out May with zero losses. For the month of June I have wins and losses to match. Can I do this? When I started in May I believed that I could. Now here in June I find myself wondering.

It is what it is. I put this out there in order to work thru it. This is the real deal and since I intend on being a successful trader, this is a step on the path to successful trading.

I have been reading The Black Swan: Second Edition: The Impact of the Highly Improbable: With a new section: "On Robustness and Fragility". The book is written by a trader and has some interesting trading concepts/applications - I think he could of pulled some material right off of Scott's blog (though after about half way thru, I am starting to find it somewhat repetitive and egotistical, which Scott's blog is not; well, not egotistical, Scott never strays from what he thinks is key). Here is one quote re. coping with losses (and perhaps contributing to my change in perspective):

"The hippocampus is the structure where memory is supposedly controlled. It is the most plastic part of the brain; it is also the part that is assumed to absorb all the damage from repeated insults like the chronic stress we experience from small doses of negative feelings - as opposed to the invigorating "good stress" of the tiger popping up occasionally in your living room. You can rationalize all you want; the hippocampus takes the insult of chronic stress seriously, incurring irreversible atrophy. Contrary to popular belief, these small seemingly harmless stressors do not strengthen you; they can amputate part of your self." (Emphasis added.)

Anyone else hear FNG in this? The book is full of Scott's blog (planning on sharing more as I continue to read, but hoping to read about some application before I do).

What does this mean for me? I think this mental atrophy manifests itself as doubt in my trading abilities, primarily resulting in a lack of concentration.

To help overcome this, and as  reminder about what I am trying to do everyday, I went back and looked up Scott's momo analysis definition:


"Momentum analysis is essential in determining what side of the trade is the winning side and to get onto it. As my postings this year demonstrate, it is safer to be nimble and quick to change direction when the trade dynamics have changed. Big losses do not occur when a trader is not married to an idea of where a stock is headed.
I firmly believe that momentum is easy to spot long or short once you now what to look for:
1. A rise or drop in volume after a trend.
2. Longer or shorter candles
3. Markets and stocks moving in sync with each other.
4. Price acceleration/deceleration

Pare your indicators down to these few and immerse yourself in the flow. Getting into the flow and rhythm of the markets allows you to stretch out those daily price movements, maximizing your return." (Emphasis added, for my personal benefit.)

Simple and today's goals.

Trade well.