Tuesday, April 14, 2009

Five Things You Never Hear Traders Say When They're Making Money

There are certain comments that traders make only when they're losing money. The comments are meant to pertain to the markets, but you can reliably take them as P/L confessions. So, drumroll please, the top five countdown of things you never hear traders say when they're making money:

Number Five: "Just wait 'til the bubble bursts" - Translation: I'm not long and the market is ripping higher. Coach's comment: The market doesn't give a rat's posterior about your economic and political views. Trade what the market is doing, not what you'd like it to do in your nihilistic fantasies.

Number Four: "It's a slow market" - Translation: My timing is off and I'm not making money. Coach's comment: Volume is down and volatility is down and you're trading like it was October. Someone's slow here, and it's not the market.

Number Three: "This market is manipulated!" - Translation: It can't be my fault that I'm not making money! Coach's comment: Who manipulates the market on your winning trades?

Number Two: "I was early" - Translation: My timing sucks and my trade is under water. Coach's comment: Being early is no more consolation in markets than in the bedroom.

And the number one thing you never hear traders say when they're making money:

Number One: "That had to be the PPT (government Plunge Protection Team)" - Translation: I was short and the market is ripping higher. Coach's comment: Very subtle of that PPT to turn market indicators bullish prior to the breakout of financial stocks and lead the breakout with moves in emerging markets.

So there you have it. Armed with the above five observations, you're now prepared to read and translate at least 50% of the financial blogs out there. Coach's comment: People's frustrations make for some of the best contrary indicators.


dowcow said...

Oh dear, does Brett have a microphone in my trading room? :-)

etoke said...

Looking for bugs in my office. You've just caught me on point 5 not even 2 minutes ago.

Very happy to have received today my copy of The Daily Trading Coach: I preordered it on Amazon.co.uk as soon as it was available for preorder. Took a while to reach central Europe, but it finally arrived!!!

Soham Das said...

Hahaha... hilariously fantastic...[:D]

What if I am long, mkts are soaring but mouthing invectives everytime price breaches an important level? :D

I know I can be weird! :P

Jump Up

Damien said...

The bedroom joke was classic. I will be recycling that one with a citation.

dgroch said...
This comment has been removed by the author.
OKL said...

I have a love-hate relationship with psychologists, especially the good ones.


Cheerios Doc!

heywally said...

That's pretty much it. The good news though, is that that's our competition.

Trader Kevin said...

I once heard a fellow trader say, "My ideas were right today, but my timing was off." LOL!

Y.W said...

I was early due to market manipulation.. really...

Brett Steenbarger, Ph.D. said...

Many of my acid posts are also poking at myself, I assure you! Thanks for the comments :-)