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July 21, 2012 / redman59

An Interesting Trade Indicator and Learning To Think For Yourself

I have an email account setup with Hotmail that is specifically setup to receive emails from promotions, trade services, etc….pretty much a spam account. I suggest that some new traders setup an account like this when they are asked to register an email account when they receive a solicitation from a third party or when they are asked to enter an email for further information from a company or service.

I have an account setup like this an in late February and early March I received a plethora of emails from services like this stating how they have been killing the returns and market, based mostly in options. While I am mostly an options trader and “respect” the leverage I have also read many articles on how options have wiped traders out, and I really believe it as many newer traders read the books/articles on these percentage gains and begin with the risk management principle. One video I recently watched from a blog post by @chessNwine was titled :

“PHIL IVEY ON BEING FLEXIBLE AND NIMBLE”

http://ibankcoin.com/chessnwine/2012/05/11/phil-ivey-on-being-flexible-and-nimble/

A specific point in the video was at the 1 min 32 sec mark, titled “When to Continue, When to Quit”, I really believe this is important for traders as I know from the past. When you find that groove/zone, there is nothing like it, everything is firing on all cylinders and the money is flowing. But when you are out of that groove (and I know) I went for the revenge trade or just to trade and my poor performance reflected.

So what am I getting at? I have been trading since mid-2006 & have subscribed to many services and setup that spam account. From experience I have realized when that Inbox becomes flooded, it’s time to reduce some risk (not be completely out) but realize some returns are getting to be good and to step aside and exercise patience.

Below is a picture of the SPX showing the run and when my Inbox became flooded as well as my personal thoughts about services.

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