Friday, September 25, 2015

Your Trading Is All Wrong


In my opinion, there is no right way or wrong way in this business.  Your P&L is your daily, weekly, and monthly report card.  There're a million ways to skin a cat in the stock market. Value players buy distressed beaten down stocks, others are momentum traders who buy stocks that are moving up, you have the mean reversion players, trend-followers, passive investors, etc. Some investors draw lines on charts and look for patterns, others need a reason why they should buy something, that gives them the comfort that some thinking actually took place.

You are always going to have these different type of investors stating that their strategy is better and that the other strategies are inferior. If you don’t have a strategy, then sadly you will be pulled in a million directions especially nowadays with social media. Get one.

Imagine if your child was a star high school basketball player with an unorthodox jump shot. But, he makes just as many shots as the best players in the country, are you going to change the way he shoots? Let your P&L do the talking and cut out; this is the right way, or that is the wrong way noise. 

The traders who yell the loudest about their strategy are normally the stubborn ones who fail to adapt, they suffer the biggest drawdowns. 

fzorrilla@zorcapital.com   @Zortrades

1 comment:

  1. Thanks FRANK ZORRILLA!! Of course, there is no right way or wrong way in this business. Sometime , Luck matters a lot in case of trading. It can be result into big profit or loss as well. Cheers!
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