The Bottom Line

What is the bottom line? Supposedly the ultimate truth for the declarer of such. If you, like me, prefer to know the truth, it's great to think that such is possible. However I find that oft the bottom line is more like a "do not cross" and when uttered to me, I feel boxed in, unable to maneuver even if there were an exit point other than the trap door. It's a "take it or leave it" challenge without the time for analysis; the ultimatum is in your face so it's a yes, no, do not pass go and there I am judged, locked up, throw away the key forgotten.


On the other hand there's the "no bottom line" where I don't get any clues, guidance or hint of a direction; bottom is up, up is down and sideways is everywhere. Confusion rules under the guise of being nice and accommodating, wearing a badge of a conformist. Having the least consideration of judgement, one that usually ends in being "bottom lined" painfully by an outside force; abrupt and final perhaps as in a twilight zone.


Bottom lines come to meet us in other ways as well. The kind I prefer gives me more time to make that ultimate decision to know when and where a smoother transition is possible. I feel that way I can have a conversation an impact and maybe some influence on the outcome, and the feeling of being in some control of that final decision; allowing me the line I've also chosen, not just chosen for me; more of an agreement than an ultimatum.

I've struggled with it all, sometimes being very lax in my manner and other times way too tight but I assure you that the ones I remember are the ones that were forced on me; those being the most difficult to swallow and the ones we should all learn from and never revisit. Alas, if only we could be so perfect, never needing a repeat lesson on anything.

So we've met them all, the abrupt, the obscure and the put off. None of them feel good really for you already know I'm speaking of stops. Not easy to set for by its very "definition" it means "loss" of some funds we've put at risk. Even when speaking of a trailing stop once gains have been made, it's not easy to say: OK I'm willing to give back ___ $ in order to make more gain.
Yet that is exactly what this game is about: willing to give in order to gain and to set that bottom line is perhaps it's most crucial though difficult step.

It may help you to think of it this way: bottom lines keep you from hitting bottom.

After I Stop Laughing

Wow it feels sooo good. Tax season's over and I'm back to what I hope soon to be my single occupation, that is, until something else catches my interest.. Ha Ha like becoming a sommelier. Oh how I missed writing!

It's been a busy and challenging tax season, one of the most interesting I've done. Although mostly I have returning clients there are always new ones I am happy to receive. Bad fortunes, good fortunes, what I've learned throughout the years is that we all go through cycles yet I've also learned to tell the difference as to how we all accept and deal with them makes a world of difference in the outcome.


There's something to be said about the way we view people's occupations, careers, life's work, education. We tend to have a preconceived notion about what it takes, what it's like and especially what it's worth and we tend to think we know what their fortunes will be based on those preconceptions. Yet life is not that simple; everybody arrives at what they do to earn a living from different experiences, twists and turns in life and everyody manages their life and fortunes from those very same experiences and learnings. What we witness in our youth greatly influences the way we look at money and the way we spend it. Although it's not from that point of view that we chose our occupations.


We also tend to judge people by what their occupations are and think we know their standing in life and who they are just by their titles. Notice what comes to mind when you hear them: teacher, lawyer, doctor, waitperson, firefighter, president, CPA, dancer, retail clerk, trader, mechanic. You'd think that one might be better off than another just by what the reputation of their occupations is. Yet I'm constantly amazed how incorrect our preconceptions are. I've seen great earnings without savings and I've seen low earnings yet great retirement.


I have not been in the habit of sharing with people what I do for the very reason that being a trader has many misconceptions and is somewhat difficult to explain. Yet this past year I've decided not to hide behind some other titles I've had and found reactions of mostly surprise and awe with only a judgement or two; and mostly I've also found absolutely no understanding about how the markets work. Mind you these very same people think they have total understanding about capitalism. I'd like to say that these comments lead to a spirited discussion about trading and it's contribution to the state of the economy, but alas that is not the case; instead the subject is dropped very quickly with a comment such as "I couldn't do that" . Whatever that means; I've learned not to pursue the subject.


I'm sure I'm not alone being so evaluated as to my worth to society; as I'm sure I'm not alone when admittedly I've sometimes wondered the same. After all, the object is to make money and ultimately the object is to make more money with money. Doesn't sound very creative, until you look at and truly understand what it takes; when you do, you also realize that it contributes to society in a far more outreaching way than most can imagine.

This is not an easy occupation, as wel all know, yet it's the one that I always share with a grin on my face. Those of you I trade with on a daily basis know just how much fun it can be. It's what we make of it each day and it's not so much as the pursuit of money but the challange in creating it. I can't help the grin, it's like a cheshire cat grin now that I think about it, so no wonder they look at me funny. Of course, when I stop laughing, I will pursue other occupations of interest, like becoming a master sommelier; oh I've said that already haven't I? GRIN!

The reluctant trader

Ok so you may think this is about you. Don't you? A familiar tune? Surprise! It's about all of us. We all have days when we are reluctant. Everything shows up just fine all systems go yet we hold back. What's happening? What stops us from entering a trade?

I find that for me it's when I am not "upbeat"; my mood is lacking a certain "oomph". A positive note, figuratively and literally. It's when I don't listen to music, it's when I am too much into myself and listening to the old tapes; the ones inside my head. You know the ones, those negative critics we all have inside of us. Don't deny it you do too.

So what brings out the critic, that negative soul which loves to bring us down from a cloud! Is it a bad memory, is it the last bad trade, is it the news? Or is it something so ancient that we cannot quite find its origins; so familiar it becomes a security blanket of sort, a comfortable place of being because after all, if we are convinced that what we'll do will have a negative result, it's best to do nothing. So NOT entering a trade becomes positive or the right thing to do and that's where we get stuck and where the battle is fought.

Like with a Chinese puzzle the more we battle the more we get stuck. The battle so strong that it wears one out as well as wears one down. Negative thoughts build up fear which is a powerful force; so strong that many get paralyzed in it's grip and our critic uses fear well because it uses past mistakes to prove it's point. It becomes extraordinarily hard to find a positive note and if one is presented, it has to be proven inconsequential because when a position is taken, it has to be defended.

That is until I realize that I'm too busy fighting battle instead of thinking how wonderful it is that I have such a critic inside which looks out for my safety. My negative tapes stop playing real quickly when I stop the battle and acknowledge their validity in my life. I don't know about your critic but mine likes that compliment and feeling that it has accomplished its job, fades away letting me go on with living. It's because it's not the battle but life's flow which we seek, so acceptance of ourselves brings us back to the present where action can take place.

What happens after is in itself extraordinary. I notice sunshine, blue skies, and all of a sudden recognize familiar patterns on charts that have proven positive before and almost without effort, the trained eye hand coordination moves in for the kill. Rhythm back, what else is there to do but dance? So, I turn on the music.