What is looning? Or what is loon? Loon is to endure. Perhaps not so apt to what I want to lead to….but wtf….wth….
Endure is to “hold it there” according to all my sadistic army sargeants… and I vowed never to be like them…and I succeeded! So many of my trainees appriased I was their best sargeant…or sargeant major…cool huh?
Eh where the f**k im going man….
The worst looning…is when you are losing. Dun ever loon when you lose. If you have a lmited capital…just like yours truly…you only have 1 chance…1 credit… no ‘u u d d l r l a b select start’ in trading…. (not the deftones song…I like deftones….i like my own summer….i like the riffs).
So dun ever loon when you lose. Here’s a chim way to look at looning when you (r) losing.
All you need is 1 big one, and you ….die. No top ups. No replay. No continue. You lose half your money, you need 100% gain to get back. Humungous effort. And that’s for a single trade. If you are staring at the table and think of your trading system…then you should think about your maximum drawdown. It’s similar, but a bit different.
But there’s one good time to be looning. When you are right. People have been looning…since 100yrs ago when they are right.
Turkey: “Why, this is a bull market!”
Elmer: “I know this is a bull market as well as you do. But you’d better slip them that stock of yours and buy it back on the reaction. You might as well reduce the cost to yourself.”
Turkey: “My dear boy, if I sold that stock now I’d lose my position; and then where would I be? And when you are as old as I am and you’ve been through as many booms and panics as I have, you’ll know that to lose your position is something nobody can afford; not even John D. Rockefeller.
Now is the time to loon…cos the market sentiment is positive. Then again, this is only valid for short term trend trading…for me.