Buy here and sell there. If the indicator crosses the zero line you go long, if the indicator plumbs under the zero line then you go short. Exit on close or earlier if the latest three bars lowest low is hit. Does trading fully fit in with this ? No, trading is just something that goes beyond an entry and exit technique. If you are a veteran trader, or simply someone that survived the hurdles of the markets for long enough, and that would be much already, you well know that trading is other than an entry and exit technique. Trading is what comes into your mind two minutes after the market closed. Trading is what you feel when you make a lot of money and how you are able to handle your social relations after you realize you are a top trader. Trading is to understand when it is time to go on holiday or simply to stop trading forever because you are a looser. Trading for a true speculator is a mission, not a job. Do not worry, I will not bother you about psychology, psychology is important but it is a piece of the full picture that accounts for a mere 10 percent. In this column I will write on the contrary about the fun you have in trading, or if for you trading is simply a job like selling second-hand cars or producing iron tubes. I will ponder over how much sex is intertwined with trading. Just gauge what kind of erotic charge you can have after you lost your shirt on the markets or which place traders usually go after a windfall profit. To the morning Mass ? Or to a night club ? I will write about how much if you are a top trader you are able to control yourself without giving too much importance to the money you make. Just stop for a while, sit down and think what you will do if you would be able to bring home 10.000 euro per day. In organizing the Top Trader Championship (www.toptradercup.com) I met traders that transformed a 500 euro account in a 10.000.000 euro accounts in just two years. But their life was destroyed, because too much money fallen from the sky has no value and moreover if you make 10.000 euro and still you live among people that make that sum in a full year you will encounter a lot of problems in social relations. You will need in order to survive to be much smarter in social life than in trading. The law is always the same: too much money in too short time creates social and personal dramas like too little money in too much time. There are amateur traders that just trade as they would follow the soccer league, there are traders that trade to have the same excitement like in horse races, the are traders that trade just to dream a life better than the actual one, there are traders that trade because they lost their job and they cannot tell the family they are hopelessly jobless. There are traders that trade because they have nothing to do in life. How many traders trade for a living ? Just a few. This column will collect a bunch of ideas and experiences about trading in the same precise order a cocktail is shaken out by a barman. “Market rap, an Odissey of a still struggling commodity trader”, Trading Books, Art Collins, 2000, is one of the most informative book about the hidden soul of a systematic trader. And precisely from this book I brutally copied the title of the column. I am not a top trader, I recognize myself in the autodefinition of Mr. Collins: my life is really the “odyssey of a still struggling commodity trader”. And from this point on I want to start a long journey with my readers along the roller coaster of the trading world. If you are looking for entry and exit technique please read elsewhere: this is only an out of tune market rap !
Emilio Tomasini is Chief Editor of the Italian edition of TRADERS’ MAGAZINE (www.traders-mag.it), the leading monthly publication in Europe for trading and investment, and since 1999 he organizes the TRADERS’ CUP the most important real money European trading competition (www.traders-cup.it). His personal weekly free newsletter L’Indipendente di Borsa (www.indipendentediborsa.it) is one of the most reputable Italian financial media and counts more than 100.000 readers. His website in English is www.emiliotomasini.com