Don Miller L BR Slides
Don Miller L BR Slides
Keeping Perspective
Keeping Perspective
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Each dot represents a single Each dot represents a single
day day s actual results over an s actual results over an
extended span of time extended span of time
Within each dot may be 5 Within each dot may be 5- -20 20
trade sequences trade sequences
Above Green Line = Positive Above Green Line = Positive
Think about this the next time Think about this the next time
you you high five high five or or stew stew over a over a
trade result! trade result!
Always think to yourself: Always think to yourself:
Tomorrow, I Tomorrow, I ll generate ll generate
another another dot dot somewhere somewhere
on the chart. on the chart.
Afraid of Afraid of generating generating all those all those
dots below the line including the dots below the line including the
large draws?? large draws??
Strive to minimize, but they Strive to minimize, but they re re
absolutely NECESSARY to absolutely NECESSARY to
generate those above generate those above
No Risk = No Reward No Risk = No Reward
Net Sum of all dots?? Net Sum of all dots??
> $2 Million > $2 Million
Keeping Perspective
Keeping Perspective
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Non
Non
-
-
Numerical Performance Scorecard
Numerical Performance Scorecard
Implemented as an Experiment for Q1 09 to Implemented as an Experiment for Q1 09 to tighten tighten things up after some bad habits crept in Q4 08 things up after some bad habits crept in Q4 08
Experiment Result Experiment Result
Win/Loss: Win/Loss:
# Days # Days 58 58- -3 3
Daily $ Daily $ 11 11- -1 (Both Personal Qtrly Bests) 1 (Both Personal Qtrly Bests)
Subsequent Worst Personal Decision Ever as a Trader? Subsequent Worst Personal Decision Ever as a Trader?
Abandoning the Abandoning the Experiment Experiment after Q1 after Q1 DUH! DUH!
Bottom Line:
It Works!
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Non
Non
-
-
Numerical Performance Scorecard
Numerical Performance Scorecard
Objectives:
Determine Whether Its You,
The Market, or Both
Highlight & Monitor Areas of
Weakness
Provide a Visual Record to
Reinforce Confidence
De-Emphasize Numerical
Results Especially Daily!
Force Personal Accountability
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You find out life is a game of inches. And so is You find out life is a game of inches. And so is
football. Because in either game, life or football, football. Because in either game, life or football,
the margin for error is SO small, I mean one half the margin for error is SO small, I mean one half
a step too late or too early, and you don't quite a step too late or too early, and you don't quite
make it. One half second too slow, too fast, you make it. One half second too slow, too fast, you
don't quite catch it. don't quite catch it.
Al
Al
Pacino
Pacino
-
-
Any Given Sunday
Any Given Sunday
The inches we need are EVERYWHERE around us. The inches we need are EVERYWHERE around us.
They're in every break of the game, every minute, every second. They're in every break of the game, every minute, every second.
I'll tell ya this ... in any fight, it's the guy willing to die I'll tell ya this ... in any fight, it's the guy willing to die who's who's gonna gonna
win that inch. And I know if I'm going to have any life any more win that inch. And I know if I'm going to have any life any more, ,
it's because I'm still willing to FIGHT and DIE for that inch. it's because I'm still willing to FIGHT and DIE for that inch.
Because that's what LIVING is. Because that's what LIVING is.
The six inches in front of your face. The six inches in front of your face.
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Said Another Way
Said Another Way
Trading
Trading
books:
books:
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A Final Word on Patterns
A Final Word on Patterns
(From Don (From Don s 2010 NY Expo Presentation) s 2010 NY Expo Presentation)
Everything I Ever Needed to Know About Market Rhythms, Everything I Ever Needed to Know About Market Rhythms,
I Learned in I Learned in Trading Trading Kindergarten Kindergarten
( (Not quite, but you get the picture.) Not quite, but you get the picture.)
Breakouts Lead to Trends Breakouts Lead to Trends
Trends Lead to Extremes Trends Lead to Extremes
Extremes Lead to Backing and Filling Extremes Lead to Backing and Filling
Backing & Filling Leads to Backing & Filling Leads to
Consolidation Consolidation
Consolidations Lead to Breakouts Consolidations Lead to Breakouts
Wash, Rinse, & Repeat Wash, Rinse, & Repeat
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Said Another Way
Said Another Way
K.I.S.S.
K.I.S.S.
and Execute!
and Execute!
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Final Words on 2010
Final Words on 2010
Trading is a game ... nothing more. It pales in
comparison to life's true priorities, and simply provides
us with the analogy of all analogies, and parable of all
parables. It provides us with a unique practice field on
which we can learn and then try to apply the principles
to life. The better we trade, the better we live, and the
better we live, the better we seem to trade.
If someone ever tells you you can't, they're dead
wrong. If you're breathing, you can and you will.
Regardless of what the pundits say or how much the
temporary pain may sting, don't ever let anyone take
away your spirit and joy for life.
Tonight, we all dance. In part for the joy of personal
victory, but for all, the survival of 2010 and the
possibilities of 2011. If youre reading this, then youre
still breathing and I congratulate you. You made it. And
you're a year smarter.
Excerpts from Dons 12/31/08
A Night to Dance Post
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Forgive
Forgive
Yourself for Any 2010 Shortcomings
Yourself for Any 2010 Shortcomings
2010
Missed Trades Bungled Exits
Brain Cramps
Woulda Shoulda Coulda
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2011
Oh, the Possibilities!
Oh, the Possibilities!
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Thank You & Let
Thank You & Let
s Rock in 2011!
s Rock in 2011!
[email protected]
[email protected]
www.donmillerblog.com
www.donmillerblog.com