Turning Weaknesses Into Strengths

21 07 2011
Steven Place has this excellent article today  entitled “You’re Poor and Impatient, and that’s OK“.  

He points out something I think most of us here can relate to. One, we’re all most probably trading accounts under 30MM and we don’t really give a damn about what economic policies China, the US and all the European leaders have to discuss during G-20s and all other meetings.  Essentially, we aren’t whales.

We have 2 things that many whales can’t have: liquidity and a shorter timeframe.

Unlike most fund managers, we actually don’t need to think much about the fundamentals of the company we’re trading in, because the lack of liquidity isn’t something that will be overly expensive for us.  Equally important, we are able to get away with just trading stocks due primarily through the price action because the short term time frame will never be correlated with the long term potential of the company.  That is where we, traders, live and thrive for the game.  Hedge fund managers’ accumulation and distribution is something we can coat tail, or follow, or front run both on entrance and exit because we have little pockets.

This reinforces what Charles Kirk teaches too.  He reminds us ”how unimportant our opinions are.  Opinions are disregarded while opportunities are exploited.  When one is confused with the other, frustration will ensue.”  “Also, if your goal is to make money in the markets, stop trying to make yourself look smart, and turn off and turn out the noise.” 

Read more of his wisdom here as he talks about how much he enjoys trading and mentoring other traders.

James de Porre also known as “Rev Shark” used to talk about the same things in his book” Shark Investing.”  You can listen to his audio books. Check his site

I’d just like to write one of the things he used to say below:

Shark Investors are Aggressive – This doesn’t mean you act rashly.  What this means, is that you move fast, opportunistically and big.  Don’t squander the opportunity by not seizing or capitalizing those opportunities.  Aggressiveness is not merely in the buy side.  When the market turns bad, you’re aggressive about selling too.  You don’t hope and pray that things will turn.  You take defensive action and find safety.

You’ve got power, and you merely need to know you have it to control it.

You’re a shark, I am too :D

– The Faceless Trader

P.S.

It’s interesting to know that Rev Shark is actually deaf in real life, so you may think your deafness is a disability, but that is one strength in the markets :D

http://facelesstrader.wordpress.com/2011/07/08/turning-weaknesses-into-strengths-recognize-youre-a-shark/


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