Holiday Missive

This week’s missive is not going to have any trades to discuss. I want to talk about why EII Capital does what it does. First we will start off with a friend of mine that recently is getting back into the trading game for a living. He has been doing other things for the past 4 years. He took a demo of our software and wanted to know what the 2’s and 4’d were in the Multi time frame emails. I said we have videos describing them. He said I don’t care about the videos I just want you to email me signals.
My first thought was….Has he really gone retail in just four years. He no longer wished to learn but yet just wanted to gamble and take someone else’s tips without having any knowledge on it???
This stayed with me until weeks end. For the weekend I decided to grab my copy of “Reminiscences of a stock operator” and bring with me up to the in- laws in Connecticut for a quick reading at their poolside.
This all will now center around chapter 16 of that book. First Jesse Livermore repeatedly talks about how he stuck to his own strategy. What he felt comfortable in. What he did that made his trades take the path of least resistance. He makes it clear how he stuck to his own thing and didn’t take tips from or listen to others. Whenever the time came where he did listen to others, he lost. And in some instances went broke. Unless of course, the opposite of what was recommended was done.
All people want is tips and signals. You all want to be told what to do and do not want to put any work into it. You want tips and you want easy money or as I like to put it, you like to dream.
This is precisely why EII Capital operates the way we do. We do not give exact signals. We could easily give you buy and sell signals at particular prices with stops, targets and all the gadgets necessary to peak your interest and satisfy your need for easy money. However in the long run and through experience we know that will never be the case. You will end up not paying attention and losing focus. You will never do all the signals. You will wind up taking the losers and passing on the winners. Throw a few chairs, and perhaps simulate The World Cup and try to score a goooaaalllll with the water cooler.
In the past 15 years I’ve seen a lot of it. This is all why we give potential opportunities that you the user have to use your own knowledge to determine if it’s for you. Does the opportunity fit into your trading plan? Does it fit your style? If not than you should pass. If it does then you should take your entry.
There are hundreds of ways, styles, and strategies to trade the market with and make lots of money. However one person cannot trade every style, every strategy. So what happens is greed kicks in again. You want to make every cent of every move of every instrument. So you listen to others and start to combine strategies. A short term trade turns into a long term trade. Then the margin clerk calls. Sorry game over.
Do your research. Develop a strategy that you’re comfortable with and that you find yourself being right with most of the time. Stick to that strategy and do not listen to anything else. The idea here is to be right and make money. Not to make all the money. Remember bulls and bears eat….Pigs get slaughtered….