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MCM

Flyfishing & Trading

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In a recent thread, DugDug mentioned to a trader how he is in the quandary of a amateur flyfisherman. Spending more time thinking about the cast/the fly/the water than just being in the moment and fishing. It got me to thinking just how much analogous learning there is between the two pursuits. Thought it would be a fun thread to start – but not only include flyfishing – but perhaps other pursuits (learning to fly, golf, running, losing weight, etc). Thought it was a good non-trading day rumination!

 

So – to get it started – I will offer some off the top of my head similarities between flyfishing and trading. I dare say I am better at fishing right now than trading – but have been doing one for 20+ years and the other for 1 ½ years. Love to venture after trout, pike, tarpon, permit and roosterfish on the fly. Perhaps that explains why I have a hard time concentrating on just one or two contracts to trade.

 

New waters = new contract : your first goal should be to spend some time watching the water! Don’t step in the water right away. Don’t expect to catch fish immediately. Questions to ask yourself – is there fish to catch? Are they easy enough that you do not need to expend too much time/energy in the process? Who is your competition? Is the area of water great – but timing just not there (spring run-off, high noon, etc etc). Are you there too late in the day – has it already been fished out?

 

Catching the easy small fish versus stalking the larger fish = high time frame trading vs lower timeframe : Oftentimes you can scalp a smaller trade – but miss the more profitable trade in the larger timeframe. Much like a nice area on the stream – the small trout are feeding aggressively at the edge – but if you wait and time your cast correctly – you can target the larger fish. Days to remember are not typically the ones which you catch a ton of smaller fish – but the one in which you worked for a beautiful fish that you knew was there – but had to take time in order to get it to feed on your fly. Wait for the big one to feed.

 

Not flogging the water = keeping your powder dry: Don’t overcast the water. Wait for the opportunity. Then make your best presentation to the fish. If the fish doesn’t take it – perhaps there is a reason why. The fish has already been spooked – perhaps it was caught earlier in the day. Move on to the next area that looks productive.

 

Keep your equipment in good working order = keep your charts updated and do pre-trading prep. Don’t expect to dust off the equipment after it was sitting in the attic for 12 months and think you will hook up and land a fish. Knots gets old – tippet gets brittle – and reels need lubrication & cleaning. Spend a day before you go getting the equipment ready. When done for the day – clean your gear and put it away. Review your trades and put them to bed – it will prep you for the next day.

 

 

I am sure there are more…hope this isn’t too esoteric of a thread. But like I said – it’s the weekend.

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I love it when I reel a big one in - give it the priest - gut it, gill it and put it in the bag to take home for dinner.

All the little ones I release back into the wild, for while they gave me enjoyment/frustration/a lesson, they cannot provide the sustenance I need to keep fishing.

However I will continue to target any fish, or likely area they might be found in the hope that I can catch that big one, get a run out of it, reel it in and make my day.

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http://www.traderslaboratory.com/forums/f37/know-thyself-7551.html

 

FX Girl presents another metaphor - Surfing - in a post about 2/3rds down the first page in this thread. Quoted below (hopefully with no objections - apologies in advance if FX Girl would have rather not had me cut/copy this!)

_______________________________________________________________________

Dear BlowFish: Thanks for calling our attention to Anna-Maria's post - very interesting, and obviously it works well for her. We probably all have our own metaphor for trading the market. For me, it's surfing.

 

I spent hours in the waters off the southern California coast as teenager. When there is clear intent in the market (you see the wave coming), you time your entry, turn the board around and wait until you feel it (meets my trade criteria) - the water where you are sitting on your board begins to suck back into the the face of the oncoming wave (pullback). Then when you feel the power of the wave under you, you dig in and paddle (entry). The wave pulls you up into it and you take the ride. As the power of the wave ebbs, you kick out (take profit), and paddle back out for the next wave (next trade set up).

 

Yes, I know that there are guys out there trying to take my money, but I certainly am not in the market "... to bury the stiff who gets the wrong side of my next long-short pitch." No battle for me, just harmony with what is.

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