Last week, I felt sad and painful for a fellow trader who suffered heavy losses. He joined us a few months back trading in the same room. A fantastic generous guy whom is not well like by some because of his naturally loud voice that disturb other traders unknowingly. He is a extremely nice chap, helpful and caring.
He traded the Simsci, Tw and Nikkei simultaneously with gusto, fearless and I always admire his guts in taking trades with size I feel uncomfortable. He goes to the maximum that his margin allows for him to day trade. When he is wrong, he averages then flip and turn, he can moves the Simsci a few ticks in a quiet market! And, I will be there to Yum him sometimes without knowing the trade belongs to him.
Is trading that simple?
This trader has been trading for more than a year and I heard he had already lost quite a fair sum of money since. Another quality that I admire is his perseverance, never say die attitude, a rare quality for a trader. But, he is also damn emotional and bloody stubborn, that's what make me feel that he will never make it as a trader if he don't change.
He simply does not practice money management even if he knows how important it is to any trader including those with plenty of experiences.
While relating how I admire this trader's guts, another senior trader laugh it off as an act of recklessness, GUTS, to him is having the courage to act and add on to a good position. I don't dispute that, the greatest traders on earth are those that dare to add on to their winning trades.
How about Warren Buffett? He was 6 months too earlier to get into the stock market during the Lehman Brother's collapse in 2008 accumulating cheaper and cheaper stocks on the way down. He was wrong for 6 months! Now, he is taking profit, it seems so simple when we look back in history.
Of course, Warren Buffett is a investor, we are traders, very short term.