Day Trading Is Not All That (Part 3)

Inspired by the writing of Louis Horkan Jr., today I will conclude by sharing more experience of a full-time trader.

I am just one [full-time trader] so please take this for what it’s worth.

I do not find trading to be a business where I make money all the time. I make money much of the time but on rare occasion I lose far more than I ever make in a short time periods. This makes me interested, motivated, and humble. I am interested to overcome the challenge of staying on top. I am motivated to grasp and manage my risk every day in order to prevent career-ending losses. I am humble enough as a result of my experience to know it never makes sense to claim victory in this pursuit. I am always one catastrophic loss away from being forced to return to Corporate America.

I disagree with Horkan Jr. because I do believe trading is about having nerves of steel. The “preconceived ideas” are formidable distractions that have good potential to cost me a lot of money if my nerves of steel don’t resist the illusory temptation. I have found it necessary to flex my nerves of steel and be mentally tough in the midst of stressful drawdown. When I’ve had catastrophic losses, those nerves of steel have prevented me from walking away forever with tail between my legs.

Finally, I find it noteworthy that the amount of time I spend doing the actual trading (e.g. entering, working, and executing) is just a fraction of my overall workday. I do many other activities that keep me engaged and, I hope, “sharp.” I spend a lot of time blogging. I spend time backtesting. I listen to trading calls and trading groups.  I tweet with other traders.  I read trading forums.  I sometimes talk with other traders to share ideas and develop new strategies.

Thanks to Louis Horkan Jr. for a very thought-provoking article.