Hello Traders.
T-Model Trader is back with his 11th blog post for the beginner series. I hope you all enjoy.
James Orr
Them times are a changin’
A few weeks back,
I was at the local Indian grocery store stocking up on some supplies. As I have
been shopping at this place for many years now, I have got to know the family
that owns and runs the place.
While walking the
isles, I could hear this rather animated discussion taking place out back, between
their twin boys aged 14. I could tell it was the brothers, rather than a
friend, simply because siblings have this way of communication that can be
totally devoid of any compassion what so ever.
It sounded to me as
though they were trying to convince each other of something. Amidst this
discussion, I caught what I thought was some trading lingo dispersed amongst
the barbed words and less than disguised insults. From time to time their
father would look at me and roll his eyes and shake his head.
Eventually I
asked him what was happening out in the back room. He told me that they were
trading. You can understand my interest, so I asked him if I could go out back
and see what they were doing. I had met the boys several times before as they
work in the shop from time to time. However I had to knowledge of this trading
interest.
So I stick my
head around the corner and say hi to the twins. Momentarily they pause and then
immediately start again trying to convince the other of their point of view. I
sat down and looked to the computer to see what it was that they were doing. Lo
and behold, it was the Eur/Usd forex pair.
I had mentioned
in an earlier blog that I wanted to find a market to trade during my daytime
here as the Ftse is an evening affair for me. After much looking I decided to
go with the Eur/Usd pair as it seemed to have the greatest movement during the
Asian session, which can be slow going at times. There is a nice time slot
between 11am to around 2pm in the afternoon when there is some good price
action happening. I have been doing this daytime trading now since the
beginning of February this year.
I turned to the
boys and said “I trade this pair as well”. As soon as those words moved beyond
my mouth I knew that I should have kept quiet as they both went at me
attempting to get me to take sides. At one point the father walked past and
said “Good luck”.
My brain went
into survival mode and I said to them that they can each present their thoughts
on which way the market may move and try to convince me with their insights.
I knew that I was
in a dammed if you do, dammed if you don’t situation, however I was really
interested to know their thinking. So, to avoid inflaming the conflict any
further, I got out a coin to toss as to who goes first. Their mother, who had
been out back in another room (obviously aware of what was happening) walked in
momentarily and with a rather mischievous grin said, “Boys, leave some meat on
him…he needs to get home”. I think my smile must have been shaking around the
edges from the look she gave me. A few minutes later she walked from the room
and said “Passion they have, tolerance they don’t”, with a knowing rise of the
eyebrow.
So, they each had
their turn.
At the time I
recall that the market was at a key zone and I was waiting for further insight
myself as to what direction it could possibly go. I could have made an argument
for either way as well. So it wasn’t surprising to hear these two sides being
presented.
After listening
to their respective positions, I told them that in my view, I thought both had
really good and insightful observations and that personally I was waiting for
further information from the market in order to see the direction. I don’t
think that either of them were expecting that answer as they remained
momentarily quiet for a second or so, before that inevitable teenager look that
alluded to “what use are you”!
Listening to them
bickering and arguing was like objectively experiencing the noise in my head at
times when I am attempting to analyze this market. The euro$ is solely my own
trading project. In making the decision to trade this pair, I wanted to do so without
any outside input what so ever. As such, I don’t read anyone else’s views etc.
It has been a
mixture of demo-land and live trading thus far. Just as I explained in an
earlier blog, if there are a few too many losses then I go back to demo until I
settle it all down again and rack up some wins.
All in all it has
been a most wonderful experience. After wanting to have a daytime market for
quite some time, to finally engage in it is great. That daytime slot around my
midday has a really nice pace to it. It’s much slower than the London or US
sessions, but it can equally put in some nice rallies as well.
It is that aspect
of doing it alone thou, which has been the best part of it all, as I sink or swim
purely on my own merits. Many a time I have felt like the two brothers at each
other, attempting to convince the other part of me that the market is going
this way or that. Although no one can hear my mind hammering out the analysis,
from within it sounded just like the boys….loud and furious. From that
experience of the brothers, I realized that I needed to quieten down the
internal racket as it really was non-productive (not to mention exhausting at
times).
I then realized
something important not long after, when in a state of total indecision I
finally just let go of it all and acknowledged that I had no idea. At that
moment, it was like a massive weight had been removed from on top of me. I
realized that there are times when it is necessary to just sit back and wait
for further information to print in the market, and that it is okay to not instantaneously
know. I guess this is what is meant by the phrase “Sitting on ones hands”.
I cannot help but
think regarding the brothers and their trading, how radical the changes that
have taken place on this planet. At their age I was building tree houses or
knee deep in the mud at the local creek, after I got home from school. As their
father explained to me, they have a small account of money from their shop
work. They are allowed 2 trades per week….which is one each. If they blow the
account then they have to work again to get some capital. And importantly, the
parents are not involved in anyway. It is purely the boys own project.
Taking
responsibility is a profound means in which to progress.
As their Mother
said, the passion is there. It would be interesting to see them in a decade to
find how they have fared.
It really is a
journey this trading reality.
Till next time
T-Model