Managing Trading Emotions: Why Our Ancient Instincts Cost Us Money
In this weekend's article, I want to explore our psychology and how humans are wired to handle emotions—both positive and negative. During my session in the futures room, we discussed excitement (or FOMO) versus fear, and how these primal responses affect our trading decisions. The Evolutionary Cost of Fear To understand this better, think about…
Giving a Hoot About Your Problems
I love nature. I love making analogies about nature. Our neighbor had a small bird problem—and by "small bird problem," I mean both that the problem was small and the birds themselves were small. Hundreds upon hundreds of birds had taken up residence in the trees lining the sidewalk in front of their house. We…
Two Ways to Play Homebuilders
Homebuilders rallied 40% off their annual lows. Everyone celebrated the bounce. The Fed cut rates in September, and housing stocks took off. But something broke in the past week… The ITB ETF tested resistance at $117 twice and failed both times. The uptrend line that held for months snapped. Treasury yields refused to drop despite…
Growth Despite Hardship
On the path where I walk my dog, in the middle of a small crack in the pavement, a solitary marigold has sprung up in this unlikely spot. Despite the inhospitable conditions—excessive heat and little water—it thrives. While it's not difficult to see lessons in this hardy foliage, my mind turns to my mother. Perhaps…
The Fly Trap Can Catch More than Flies
I got trapped by my own fly trap last week. Every September where I live, house flies invade. We try everything - sprays, swatters, those salt shooting guns. Nothing eliminates them, so we manage with sticky fly strips. You know the ones: gooey plastic strips that trap anything that touches them. I was grabbing a…
The Unexpected Metals Mining Revolution
Gold, silver and copper don't need to go any higher for mining stocks to deliver massive profits. You see, most traders assume metal prices need to keep climbing for mining companies to succeed. That’s not exactly how it works… Current metal prices already provide mining companies with sustainable margins that could last for quarters or…
Another Punch to the Head Until You Learn
This week's trading was rough. We had big wins, big losses, and flat days. The difficulty in trading this week reminded me of my years studying the martial art of Kenpo. I had already decided after Tuesday's trading session that this weekend's article would focus on a specific lesson I learned in Kenpo—then I read…
Three Life Lessons from Monty Python and the Holy Grail
The past two weeks have been heavy, so I thought I'd lighten things up by reminiscing about simpler times watching Monty Python and the Holy Grail. During Friday's session, as Brandon and I passed control to Gianni, I quipped "My sister was bitten by a moose"—a reference to the movie's absurd scrolling credits. That level…
Life and Trading Is a Race
We’ve just completed our first month of trading in the 10% Club…And what a month it has been! We not only met but far exceeded our goal, achieving a 45% return on the entire portfolio, leveraging trades placed live during our morning sessions within a 2.5-hour window. And we did it while keeping our risk…
Driving the Market: Lessons from a U-Haul
Next week, my son is moving for school and work. The good news? We actually like our sons—most of the time—and he’s moving closer to us. The bad news? I get to drive six hours and help him move heavy furniture. When he said, “I think I’ll just rent a U-Haul and load everything up,”…