Moving Forward

We're Back

First off we would like to take this opportunity to apologize to our dedicated subscribers and readers. After 5 months of prioritizing where it is Magnelibra was and where it needs to be, we are proud to say that our newsletter will be back on a regular posting schedule. We have various business needs that needed attending to in regards to our CTA program and aligning our future goals.

There is a lot that goes into this type of business and Magnelibra has come to far, has overcome too many obstacles and sometimes, you have to make necessary hard choices, sacrifices in order to have a more sustainable future. In the CTA business unless you are managing $5mm dollars or more, you are generally going to lose money as a business. There simply is not enough fee income to support operations, regulatory constraints and unfortunately those realities are obstacles any company needs to overcome, that is the breakeven points. We have spent 7 years developing a comprehensive futures and cash markets database, in order to build our trading program and we are now in the position where we feel we can grow this properly.

We have been in the financial trading business for over 20 years, first starting out as retail order takers, then moving to proprietary trading and then onto the Commodity Trading Advisory space. In this time we have obtained priceless knowledge in an arena that truly has no known bounds.

As we continue to learn, our hopes is to pass along this information to you in an easy to understand manner. All to often financial mathematics and jargon cloud the reality of our world, in fact it seems we often look to them for excuses as to why things may end up a certain way or not. It is not our job to decipher how it is, or what tools you may use at your disposal. We know all too well that there are many roads one can travel to end up at their destination, however that destination may not and quite often is not where one intended.

Ahh, such is life though, all too often mankind’s arrogance precedes him and leads to the old adage, “the road taken to avoid something often leads one straight toward that avoidance.”

We see it all the time, in our world of trading, we would opine that many new traders play not to lose rather than to win. Let that sink in for a minute as you judge your own psychology, how often have you had that feeling, when putting a trade on? It’s a very natural and innate human feeling, yet its this very fear, that drives one to make decisions that are less than optimal. We can recall many times where trades made us sick to our stomachs and the worse ones of them all have 3 very important and distinct characteristics:

1.       You spend days or weeks researching a trade and setup. Then when the time comes the market forces you into taking a position that is almost entirely opposite of the way you knew you had to be, it starts to lose money and you tell yourself, “if it gets back up to a certain P+L loss, I will take it off.” -Yea well we know what happens each and every time, you never make it back to that.

2.       Another rookie mistake that relates to point one is, when the trade is going bad, you put on more of the same trade, or what we experienced guys know as “cannonballing.” Yea you will get lucky a few times but one of these days, you won’t and it will do unrepairable damage both to your capital and your psychology.

3.       Turning winners into losers. Nothing stings more than when this occurs. You have a great trade on you get a little greedy and bam, it slowly erodes and now once up your goal for the day, now down for the day. Nothing destroys confidence like this little bugger.

The hardest thing to do is to admit defeat, to take the loss, but we can tell you right now, it’s a career saver. We know traders have to be cocky and arrogant, in fact if you aren’t, you most likely will not make it, why? Because its arrogance that will allow you to pull the trigger on something, it’s the antithesis of timid and shy. Traders can’t hesitate. It’s something we learned very quickly and taking risk does not come naturally for the majority, in fact its very difficult to learn and more importantly its expensive to learn because we know there will be wrong decisions and mistakes and in our world that costs both time and money, both of which have their own degrees of depreciation.

So our goal now that we feel we have broken the surface once again will be to enlighten our readers with our narration upon current market events, what’s driving them, possibly how to best navigate them and what to generally expect from yourself given the tools that you may have. We aren’t here to make you money, we are here to give you the necessary information and present it to you so that you can incorporate it into your own little microcosm called life.

Trading is truly unique, its inherent to the individual in regards to what drives their success. There isn’t one particular mold or formula that one can follow, all we can tell you is that adaptability is the key to survival and it is our goal to make you as adaptive as possible.

We apologize we took so long to get back, but we hope you enjoy the content we are going to provide. We generally try to stick to markets and trading, yet we know that there are many inputs that truly matter from psychology, to science to anthropology and geopolitical posturing. We are not an expert in all things, but what we are an expert in, is trading mentality, trading philosophy and we will continue to expand our knowledge and refine our techniques in regards to technical and fundamental financial market aspects. We hope you stay the journey with us.

Magnelibra Econemotions