Honeystocks Trading School London and New York
knowledge pays


How to play the game

Blog - How to play the game


The Terminator


Let me start off by saying, the Wall Street computers are much smarter than you and I… but please don’t take offence to that, I’ve accepted it also.

It’s simply the law of evolution… Man has created machines… Machines are taking over… and as an 80s Child, I’ve also seen the disturbing future laid out by The Terminator, and I know how this ends, but it’s not Arnie coming at me with a shotgun and a strange half man / half robot body that terrifies me, it’s the coding skills on Wall Street that terrify me more.

You see, these computers have 1 sole purpose, and it’s to make money, and more specifically, make money by taking YOUR money, and unless you have the knowledge to minimize the chances of this happening, it’s likely you’re going to be crying into your dinner plate most evenings bemoaning yet another quick stop out that’s resulted in more losses.

It’s not a great feeling, I know this 1st hand, and unless you have a strategy in place to minimize the risk of this happening, this vicious cycle will simply continue until you blow yet another account.

Let me ask you a question if i may.

How many of you enter into a Trade, and then watch in disbelief as the position immediately reverses against you, takes out your $1 stop loss, and then MIRACULOUSLY, the trade goes on to do what you expected it to do in the 1st place?

The harsh reality is…. this pattern will repeat itself over and over, and you might even put it down to bad luck, but at what point do you ask yourself if it’s simply a knowledge gap that needs filled?

The reality is, this is a gap that’s absolutely geared towards the Terminator’s on Wall Street, and you’re simply the Sarah Conner waiting to be terminated.

Thing is, do you ask tough questions of yourself at 10 Trades? 50 Trades? 1000 Trades? At what point do you say you could do things a little better?

No matter where you ask the tough questions, the absolute truth of it is… the Goldman Sachs, Morgan Stanley, and JP Morgan’s of this world… are targeting YOU, and they do this by complete design, it is not a fluke, and they see you coming a mile off with your retail position, and they know your psychology, and they will shake you out of your trade time and time again.

That’s the power of Wall Street. They love Day Traders.

So Sam, what’s the solution I hear you ask?

Well, that’s a question that’s not easy to answer, and for those of you that are perhaps a bit too gung-ho in your approach, and those of you that keep doing the same thing over and over expecting different results, it may require a change of approach, because the only way to prevent yourself being stopped out of a trade prematurely, is to understand KEY areas of Support & Resistance and to action a well placed stop loss.

This is easier said than done…. because it does require a fine balance of risk vs reward, and it requires a deep understanding of the correct Risk Management protocols… if you have no clue how to avoid the Terminator’s of Wall Street, you’ll likely be on the receiving end of a knock out blow eventually, and it’ll result in a “Hasta La Vista, Baby” scenario play out.

There’s a lovely chap I’ve spoke to recently, that has just blown Account number 3, and he’s been attempting to navigate the Markets with the same approach throughout each of these Accounts… a couple of months ago, he approached me for my thoughts, and asked how he could fix his issues, and whilst I love sharing my approach / content (I think 99% of you on this email list understand that well), sometimes, it does need some harsh words in order to bring about change, and unless you’re out there performing well… it’s tough… it’s a tough market to navigate just now.

However, If you’re carrying on doing the same things that you’ve always did, and you carry on getting caught out… it doesn’t take a Rocket Scientist to realize that you’ll continue to get what you’ve always got. So what harm is there in learning a new approach?

It’s harsh… but true.

The path of a trader is tough but it’s certainly not an insurmountable path… it just requires discipline and a quality over quantity approach as well as understanding the Overall Market and how everything interacts with each other.

Sounds easy… and I know I sometimes make it look easy… but the truth is… I was putting in 18hr days when nobody was watching, and I put in 18hr days so that you don’t have to.

If you’re Interested in being educated, and if you’re interested in understanding the full scope of what I do, and being part of an Incredible Trading Group (for which I offer incredible transparency) … It starts by clicking the link below.

Sam McCallumComment