If there is one thing that stands out from any conversation with Brian Shannon about the trading process, it is this:
For discretionary traders, there are no rules. Instead, there are “guidelines.”
And because Brian is human, he occasionally breaks his guidelines and suffers the same consequences as anyone else. Everyone gets what they deserve. Even a trader of 30+ years like Brian Shannon.
If a trader buys the dip or sells the rip without a plan to control her risk then she, too, will get what she deserves. Eventually. The market is always on the hunt for our weaknesses.
This is one of the things I love about my friend Brian. He doesn’t tolerate nonsense. He tells it like it is. Tough love. It’s what a trader needs.
And he’s adamant about tuning out the noise and focusing on his strengths. For instance, he no longer pays any attention to financial TV. “It makes me emotional. TV is just theatrics. If it doesn’t help me make money, I completely ignore it.” He knows what he’s good at, says no to everything else, and makes the best use of his time by focusing his energies on profitable pursuits.
Shouldn’t we all live and trade like that? [Read more…]