The Trick to Trading

As I get older, I realize that I keep learning the same darn things

And I’ve had this particular lesson on my mind for awhile – I call it the trick. It’s the thing that makes the most difference

Let me explain. 

Here’s what most people, let’s call them jerks, think about trading: It’s either a one or a zero, or a one.

Meaning they consider trading as either a loss and it’s a sad thing, or a win and it’s a happy thing.

And they make it their life’s mission to create a trading system based on the highest percentage of wins possible.

Then these jerks will take that system and backtest it and they will literally ignore all the problems.

They’ll give excuses on certain losses and try to rationalize their nonprofitable system.

I’m one of those jerks. 

I’ll sit there backtesting systems, ignoring all the obvious issues, and everything will be fine until it’s not. 

Now I’m faced with a situation where I could have one giant losing trade or a series of losing trades that takes away all the profit I earned.

I’ve learned that the binary holy grail trading system doesn’t exist, it’s fruitless to search for it because it doesn’t matter. I’ve also learned of a different approach, one only a few people actually use:


They look at their trades as a group (a portfolio if you will) that is profitable, rather than individual bubbles that are either positive or negative. 

These chosen few are interested in equity growth – not trade success or binary outcomes.  

All successful people don’t care about the binary outcome of individual trades.

You cannot be hung up on creating or searching for a system that works all the time; instead, focus on a system that works across a portfolio

A portfolio trader knows when to gracefully closeout, take the money, and run. 

There will always be winners and losers in trading, that’s just how it works. So don’t fool yourself into believing you’re going to be that lucky guy who’s always the winner. 

Everybody, don’t be a jerk anymore!