Big Mike's Trading Blog

Day trading futures, discussing money management and trade management techniques, and more

The Hand That Feeds...

Make sure you are trading your own method and your own style.  Trying to copy someone else's method and trade it won't work.  It. Will. Not. Work.  You have to own it, and to own it you must understand every facet of it, and to understand every facet of it you need to basically create it or wield it with experience on your own with a lot of time and experience.


Trader A gets a puppy.  The puppy has been with Trader A for 5 years, and is now no longer a puppy.  Trader A asks Trader B to watch his dog while he is out of town for the weekend.  Right before Trader A leaves, he feeds the dog one last time his breakfast. (hits a profit target in the market)

Trader B goes to feed the dog later that night, but the dog gets real defensive.  This has never happened before to Trader A.  The dog may even bite Trader B if Trader B does not understand the situation properly and doesn't give the respect the dog is requiring at that moment. (taking a big stop in the market)

Even though the dog has been fed thousands of times by Trader A, and never experienced this behavior with the dog, Trader B can try to perform the same action or mimic that action yet experience drastically different results.  The same is true in trading, the market must be respected and in many ways you earn that respect within yourself.

You can quantify this in trading by talking about how Trader A would set a stop or target different than Trader B, or how they would exit a trade at a different position due to a (lack of) understanding of the price action, etc.

Don't try to copy someone else's method.  Instead, you need to make it your own method.  Go get your own puppy.

Mike

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