Hey Guys,
The market is still down around where it was when I emailed yesterday. We'll wait and see if things seem to kind of "hold" here or if they find a way to break one direction or another. Some industries, like energy, are getting throttled harder than others.
Last night I watched the Warriors win the NBA championship, and in my mind I saw potential parallels to the journey we might go through as traders.
Just two years ago, the Warriors had a terrible win-loss record. Players talked about how tough it was to grit through that season. And here they are just two years later being crowned as NBA Champions.
After they won last night, one famous ex-NBA player said, "An NBA championship is never just won, it is earned through the pain of endless practice, inevitable losses, and unexpected injuries. Only the strongest prevail."
And that quote reminded me of our journey as traders here (minus the injuries, which luckily the stock market doesn't dish out to us!). The losses along the way are inevitable -- there is no way anyone can get through a long term trading journey without drawdowns. And it takes endless practice in the sense that I just keep taking the trades over and over, day in and day out, so as to stay in lock step with the back-tested approach. And in terms of strength, this journey is not for the faint of heart. It takes true strength to live through drawdowns of this magnitude and still put in the time and effort to see this through. There are no guarantees in the stock market, just like there aren't in the NBA, but if we stick with this long enough, the payout might be rewarding.
I picked up a new position today in the low-priced account for BZ. In that same account, there were stoplosses this morning from energy positions I was holding.
If you have any questions or feedback, I'd love to hear from you.