Game of inches: HVN

We treat the stock market as a game. A game where in every price fluctuation is important.

The differences between each fluc could mean the trader will hold on to their position or to execute a cutloss. We have to pay attention to the small details since they will determine your wins or losses.

Reminds me of an awesome speech by an incredible actor. 

Inches, case in point: HVN

I bought HVN on 1/12/2018 thinking that it was doing a nice consolidation. Come Friday 1/19/2018 it made a nice move intraday but closed in the red. I sold for two reasons:

- it hit my timestop
- the move made it look like a bulltrap

We all know how it moved this week. 

That's the break in this game. It's all about the inches. Now it's back to the drawing board. Looking for that next perfect setup. 

Watch the entire speech from where the above quote came from. Riveting.

Lessons from a master angler

The past holiday break, I've been binge watching the show River Monsters featuring Jeremy Wade. Take a look at his greatest catches here. 

What caught my robot senses, aside from the monster fish, was the parallels in his approach and methods to the way trading is done.

Each episode begins the same way, he goes off to investigate reports of a monster fish in some remote area and will go and try to catch it. He then does an immense amount of research before actually going into the waters to fish. He would ask the locals of the area and try to identify what kind of fish he is actually looking for so he can determine the necessary tools and techniques he would then use to catch the fish. 

The show focuses on just how much preparation is done BEFORE he even goes into the water to fish. What a revelation!

Applying this approach to trading, before the market even opens, the trader should have already done their research and have made their trading plans. Buy and sell areas/triggers, which stocks to watch, which stocks to avoid and so on. 90% of the work should have already been done beforehand so when the market opens, all they have to do is wait and execute their plans. The traders, like the anglers, will cast multiple fishing lines and see which one moves first. 

This has made me curious and I went to go look for other similarities between fishing and trading. 

Ah, TOTGA, the one that got away. Some people will always focus on the what ifs. What if they bought Y stock at X price and then it went up. Another thing, people usually want proof of your achievements, hence the term, pics or it didn't happen ;)

I've discussed this point previously. Just like the fishes in the sea, Ms Market will never run out of plays to give us. If you missed one play, just be better prepared so you can be ready to catch the next one.

Catch and release is a practice within recreational fishing intended as a technique of conservation of the fish. In the stock market, this is intended for the conservation of the trader. It just means you have to sell the stock or your holdings for you to profit or cut your losses. Unless, you want to be an investor in a company/stock then by all means just hold on to your positions.

Lastly, one other thing I picked up from Jeremy Wade is PATIENCE. Fishing is BORING. Each episode shown could actually have been 2-4 weeks of actual fishing. There could be days where he will catch nothing but he will still persevere. Confident in the fact that his approach and process is sound and it's the fish that aren't biting. He doesn't get frazzled easily and in the end, always catches his monster.

So I end this post with a video of the master in action.