SpaceX Executes Historic Reuse of 1st Stage Booster Rocket

History was made on Thursday, 3/30/17,  when billionaire/genius/entrepreneur Elon Musk and his company, SpaceX, successfully reused a first stage rocket booster that was part of a prior launch.

Up until this point, when rockets carried up satellites or other payloads into space, the stages of the rocket were deemed disposable as no one knew how to get them back undamaged. The problem with this was that the first stage of the rocket is also the most expensive component. It’s like having to throw away a jumbo jet airplane after just one use.

The technology of SpaceX changes that with the ability to reclaim and reuse the 1st stage. After several successful retrievals of 1st stage components guiding themselves back to a launch pad on Earth via AI/GPS, this was the first time one of them was actually reused on a new flight mission.

This is a game changer marking a significant reduction in space travel costs.

Article can be seen here: http://www.npr.org/sections/thetwo-way/2017/03/29/521941656/launch-land-launch-spacex-tries-reusing-its-rocket

 

Video of launch/ 1st stage return:

 

 

 

Trump and Ryan Get Served Humble Pie as Obamacare Repeal/Replace Juggernaut Crashes into Tea Party Ice Berg in Shocking Defeat

The Trump Administration has been on a legislative rampage since inauguration with numerous controversial executive orders and the first big planned legislative event was the repeal and replacement of the ACA otherwise known as Obamacare. They seemed intent on maintaining a high level of momentum and speed in executing their agenda.

All this came to a screeching halt on Friday as the much hyped Trumpcare/Ryancare Bill meant to replace Obamacare was pulled from the planned vote in an embarrassing defeat as there were not enough votes for the Bill to pass.

 

The implications and level of this failure are quite astounding. The GOP has voted to repeal or amend Obamacare 54 times while Obama was in office. There was never a problem getting those bills passed in the GOP controlled House during Obama’s term.

Now that the Republicans control the Presidency, House, and Senate, the failure of the House to pass a bill puts the GOP is a bright “Emperor has no clothes!” spotlight. The obvious conclusions are:

  1. The Republicans NEVER had a true working plan to amend/repeal Obamacare. All those consensus votes in the past were a FRAUD knowing the bill would fail in the Senate or be vetoed by Obama. Now that they know their Bills will really go into effect, everyone is no longer on the same page.
  2. The Republicans had seven years to develop a working replacement plan but have NOTHING to show for it. Think of all the taxpayer time and money wasted in their fake “repeal” bills put on just for show.
  3. The GOP is very good at opposing the Democrats, but come up short at the task of governing and building consensus. It’s far easier to be disruptive than creative.

The inside story is that White House Chief Strategist Steve Bannon thought he had power he didn’t have when he tried to force rebelling Republicans to get in line and vote “yes”, and their reply was basically:

 

 

As for Trump, his aura of invincibility along with his winning streak for successfully bucking the system has come to an end. All the “Business mastery” bravado and supposed “Art of the Deal” expertise have met their match at the hands of rebelling fellow Republicans.

It became all too clear that electing a person with no prior political experience or expertise to the highest office in the land comes at a cost.

 

Nobody knew healthcare could be so complicated?? Actually, anyone with any experience or who paid ANY attention at all to the healthcare problems over the past few decades knew it was a complicated issue. You would have to be supremely arrogant or naive to think you could just walk into a problem you didn’t research or have any background knowledge in and think you would come up with an “easy” solution.

 

When met with this failure, does Trump own up to it and accept the loss like Paul Ryan did? Nope, he pointed the blame away from himself:

 

It’s beyond absurd to blame the Democrats when The Presidency, House, and Senate are controlled by Republicans and they are trying to pass a law that goes against the healthcare package the Dems created. Why would the Dems support a bill that replaces their own law with a much WORSE substitute? That’s like your boss asking you to vote to cut your pay in half, and then complaining that nobody agreed to it.

He’s also now saying he never said this bill was a top issue and that he never said he’d do it quickly- another LIE:

Does Trump have amnesia that EVERYTHING he says to the public is recorded?

Some folks will blame The Freedom Caucus – the group of Republicans that voted against the bill, but in truth, they were just keeping the GOP to their word of repealing Obamacare rather than amending it. They wanted it eliminated entirely as the GOP said they would do time and time again. The GOP was once again burned for making promises they knew they couldn’t keep.

There’s a clear obvious reason the GOP backed off fully repealing Obamacare – many of their constituents would be be impacted and lose their health insurance. That would have bad consequences for them come election time.

The GOP healthcare bill was built on arrogance and the desire to cut taxes for the wealthy rather than try to obtain low cost effective healthcare for all. They didn’t try to work with the Dems for their input or seek advice from the American Medical Association, American Hospital Association, AARP, and a host of others who are opposing this fault ridden bill.

Some of the biggest problems of the bill:

  1. Does NOTHING to address rising costs of health care services
  2. Reduces subsidies for most and especially the elderly – the folks who will most likely need medical attention
  3. Allows insurers to hike up costs for those over 50 up to 500% of what is being charged to younger people. Obamacare capped top rate to 300%
  4. Eliminates all essential benefits like preventative care, prescription drugs, maternity care, addiction help, etc.. This basically allows insurers to sell you pieces of paper that say “insurance”, but cover very little so you come up snake eyes if you ever need to use it.
  5. Eliminates Federal funding of Planned Parenthood. Even though no federal funds are used by PP for abortions by law, the ACHA tries to mandate moral agenda by forbidding PP to conduct any services regarding abortions if they wish to continue to receive funding- funding that now goes to women’s health care like mammogram screenings.
  6. Removes “mandate” to buy insurance while keeping the rule that no preexisting conditions can be excluded. This is a recipe for disaster as people will only now sign up if they get sick, and insurers stand to lose billions. This alone GUARANTEES skyrocketing insurance rates to cover for these losses.
  7. Gives the wealthiest groups millions of dollars in tax cuts at the expense of everyone else in higher rates/less coverage
  8. CBO estimates 24 million folks will lose their insurance.

As bad as this bill was, the GOP Freedom Caucus still felt this package was “too generous” and wanted even more cuts- to the point where moderate Republicans were now refusing to vote for this.

Trump promised he would fix the health care problems, but this bill makes things far worse. Makes you wonder if he even took the time to read it.

Now he says he will just let Obamacare implode on it’s own- walking away from the problem like a quitter instead of a dedicated elected official trying to help those who elected him into office.

Why not work to repair Obamacare to solve the problems instead of trying to just slap together a toxic inferior replacement? The answer is they want tax cuts more than they want to create a true working and acceptable healthcare plan. Thanks to the numerous angry town halls of their own constituents yelling at them to come up with a REAL solution or leave Obamacare alone, they knew they’d be in big trouble if they went ahead with this “repeal/replace” charade.

Former Speaker of the House John Boehner’s speech on Obamacare now fits the Republican American Health Care Act (AHCA) like a glove:

 

 

Republicans now OWN the healthcare issue and pressure needs to be kept on them to provide a solution that works for the majority, not just their wealthy elite donors.

 

We Get the Government We Collectively Deserve – “Tough Love” Edition

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The results of the 2017 election with the defeat of Clinton by Trump have left many heads spinning in what can be said to be the greatest election surprise since “Brexit“.

 

headspin

 

The first two weeks into the new era of Trump make two things abundantly clear:

  1. Just as in the transition from the primary contest to the general election, there is no new “presidential” version of Trump. Uncensored opinions and Twitter statements are not going away.
  2. Everyone who thought there were no real differences between Clinton and Trump or that Trump was just “bluffing” with his extreme campaign statements are being proven wrong on a tweet by tweet/day by day basis.

 

Here are some of the highlights to date:

  1. New Press Secretary Sean Spicer is sent out on his first meeting with the general media and inexplicably flat out lies about Trump’s inauguration crowd size being the largest ever despite clear proof to the contrary. All the media is disparaged as being biased and unreliable for pointing out the FACT that Obama’s 2009 inauguration size had a much larger crowd.
  2. Former Campaign Manager Kelly Ann Conway defends Spicer’s false statements as being “alternative facts”.
  3. The CIA is accused by Trump of acting like Nazi’s and the retiring head of the CIA is insulted/accused of leaking information.
  4. Despite the vast majority of both Democrats and Republicans along with the election commission and observers agreeing that there was no widespread voter fraud, Trump insists that millions of illegal votes was the reason he lost the popular vote to Clinton and has stated he plans to launch an investigation.
  5. Bypasses Congress with issuing an executive order freezing the refugee program which results in chaos and mass protests as many innocent people are wrongly denied entry, treated as criminals, and/or and left in limbo.
  6. Nominates a hard right judge for SCOTUS.
  7. Has a frosty exchange with an old US ally, the PM of Australia, and ends the call short.
  8. Speculation about military engagement with Iran after Trump tweets they are put “on notice” after their ballistic missile test.
  9. Officially withdraws the US from TPP.
  10. Calls out CNN as “fake news”.
  11. Started the process for repealing the ACA- no specific replacement named yet.

Quite a ride so far for it being only the SECOND week into his term.

It’s also true that his teflon status with his base supporters remains intact, as he apparently can do no wrong to date that is seen as a negative. It makes sense, as he is following through on his campaign promises, love them or hate them.

Progressives are protesting and are left wondering along with establishment Dems and Reps how it is we wound up with such a surprise election result.

So how did we get here?

I’m a firm believer in the adage “We get the government we deserve”.  The actions of everybody taken as a whole reflects the type of government we wind up with. This wasn’t a random raffle – there was a vote which came out with these results. It took a culmination of things from all sides to get here- electing someone with ZERO political experience who has made outrageous statements, disputes proven facts, pushes their own reality, and shows little if any discretion in talking to the media, government officials,  and our historical global allies.

It’s easy to point the finger at others, but there is plenty of “fault” to go around. So here comes the hard facts and questions that people/groups need to look inward to answer if they don’t like the results:

A) Non-Voters:

According to compiled voting stats, 40% of the eligible voting population decided they had better things to do than to go cast a vote. Considering this was the most polarizing election in modern history with distinct ideologies and an aging SCOTUS up for grabs that can shape events for a generation, it’s amazing that so many decided to let others choose their fate for them. Maybe I shouldn’t say “amazing”,….it’s more like incredibly stupid.

There are some people who have somehow rationalized that they are “above” politics and decided they won’t “sully” themselves with all this corruption and fault filled candidates. What those folks fail to grasp is they will be subject to the winner REGARDLESS of whether they cast a vote or not- so it’s in their best interest to make a choice, even if it’s the lesser of four bad choices….I say FOUR because Jill Stein and Gary Johnson were far from being perfect as well.

If order for our government to function properly, we need people willing to vote and make their voices heard in electing effective leaders. Not voting makes it a no brainer than you will be ignored by whoever is elected as politicians are trained to only cater to the groups that will vote them out if displeased. They have no need to worry about the concerns of those who don’t vote.

The lower the voter turnout, the more likely it is we get more radical politicians favoring interest groups and corporations over the majority.

What’s more shocking, is that those who stand to benefit the most from voting, the young and lower income groups, have among the lowest turnout rates.

I would like to interview all the folks protesting today to see which ones didn’t vote. Those that didn’t vote should hang their heads in shame and just go home. They had a chance to make a real difference by voting but threw it away. Those who don’t vote have NO RIGHT to complain.

B) Conservatives:

Republicans choose an outsider to be their front running leader- someone with no past political experience. In other words, this can be viewed as a rejection of all the establishment politicians that represent you. If you aren’t pleased with your current leadership, why do you keep voting them back into office year after year after year? Here’s a perfect example- Marco Rubio had the worst attendance record of all Senators – he was failing to to do his job and was called out on this by Trump and other Rep candidates. Rubio’s answer was that he stopped attending because he decided that being a Senator wasn’t going to solve the problems of America, a questionable statement at best.  So his plan was to not run for reelection and just compete for the Rep President nomination. But when he lost, the RNC asked him to run for Senate again, and he won. Think about that – a Senator with the poorest attendance record clearly not doing his job is reelected by his constituents! So if Florida continues to be neglected by this man, Florida voters have no one to blame but themselves.

Then there are the conservatives who inexplicably vote against their own interests- like those who have received life saving treatment and surgery under the ACA, but voted for Trump anyway.

Why not start holding your elected officials accountable for serving YOUR needs? Voting for an outsider is a clear indication you believe the system is failing you, but keeping most of the same people in office means you don’t care that it’s failing and that is the definition of insanity – doing the same thing repeatedly and expecting a different result.

What’s also disturbing is the continued silence or mental gymnastic excuses of most Congress republicans when they should be calling out when Trump crosses the line. If you don’t call it out as wrong, expect Trump style politics to become the norm.

C) Progressives:

I never realized the full extent of “progressives” being messed up and corrupted until I saw the Bernie vs Hillary primary race. What should have been a fair contest between two people with progressive ideas was marred by outright collaboration and “game fixing” by the DNC in support of Clinton. The leaked emails show CNN contributors like Donna Brazile was giving Clinton the questions she would be asked at townhall meetings in advance – a clear ethical violation. The DNC lead Debbie Wasserman Schultz was found to be engaging in behavior/actions biased in favor of Clinton winning the Dem nomination over Sanders and had to give up the post in disgrace- and guess who replaced her…..Donna Brazile!!

Oh, and what became of cheater cheater Debbie Wasserman Schultz? She was rewarded with being made the Clinton campaign chair and was also reelected- way to go Dems with being just as bad as Reps with continuing to reward/reelect bad candidates.

Progressive newspapers and online sites became hit machines attacking Sanders when the level of his popularity made him a threat to Clinton’s chances of winning. Accusations of Sanders “lying” about being involved for civil rights in the 60’s were soon dismissed after pictures of him being arrested during that time showed up, but they soon looked for other areas to attack in a one sided “Let’s take Sanders out of contention” way. To be fair, some progressive media that supported Sanders was lopsided biased against Clinton as well. So much for the case that the progressive media isn’t biased, akin to conservative media they like to attack.

It doesn’t end there – once HRC won the eventual nomination, many Sanders “progressives” bitter about the primary campaign decided that a Trump win would be better than Clinton as a lesson to Dems to play fair next time. This is so ignorant of the realities of life and common sense I don’t know what else to say. How can letting SCOTUS go hard right for a generation and having all progressive achievements rolled backwards or just eliminated be worth “dissing” Clinton and/or the establishment? Some of these folks are under the delusion that Trump is guaranteed to lose big in two years, but even if that were the case, based on Trumps speed of his agenda, the progressive damage could be irreversible by that time for at least a generation. Childish arguments that had people condemn Sanders and Warren for supporting Clinton is just that, childish and clearly losing sight of the bigger picture at stake. The Republicans won this because they showed more maturity and made the decision to vote for Trump, warts and all, to move the overall conservative agenda as opposed to letting Clinton win.

Also, so called progressive sites like TYT (The Young Turks) and Secular Talk decided it would be a “good idea” to keep bashing Clinton during the general election. What is the point of this? Common sense would say you try to get her elected, and then hold her feet to the fire to make good on her campaign promises or face being primaried  from the left. Fox News and other right biased media should thank them for the nice assist.

Lastly, the “deification” of Obama needs to stop and progressives need to realize where improvements can be made as to WHY so many House and Senate seats were lost during his eight years in office. He campaigned as a progressive, but acted more like a moderate centrist once elected. There are a lot of protests over Trump’s attempts at banning Muslims, but what about Obama’s continued indiscriminate bombing over Muslim countries that are also killing many innocents as collateral damage? Why isn’t our media showing us all the dead folks overseas “accidentally” killed by our continued bombing?

Why were Obama and Clinton so gung ho about TPP when the US is getting decimated by outsourcing to these cheap labor countries? The fact that Trump ran on ending the TPP and bringing jobs back to America against Dems should be considered a huge embarrassment for any true progressive Dem.  Dems nominated a candidate that gave sweetheart speeches to Goldman Sachs and was afraid to release them? Her extent of push back against the excesses/shenanigans of Wall Street when she was a Senator was just to say “Cut it out“? This is what qualifies for and is accepted as progressive??

Remember folks – under Obama’s watch, NO major bankers were criminally held accountable for the 2008/2009 crash that led to the Great Recession and the expiring “Bush Tax Cuts” were made permanent.

In my opinion, Dems are likely to lose again unless they clean up their own backyard, such as getting rid of the folks who “grandstand” as being progressive, but act differently when it counts.

Here’s a clear example- NJ Senator Corey Booker received lots of press as a progressive leader when he testified against Jeff Sessions being appointed attorney general. The Republicans had the majority numbers to prevail, so Booker’s actions were more for show than for effect. However, when he had a chance to make a true progressive difference in support of fellow Senator Bernie Sander’s bill to allow the US to accept prescription drugs from Canada to add competition to lower costs, he voted AGAINST it, showing his true colors.

 

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For those who are happy with the election results, here’s some tough love facts/questions for you:

Do you realize that Trump campaigned on “draining the swamp” and disparaged Clinton’s and the Dems connection with Wall Street and Goldman Sachs, but has now appointed SEVERAL Goldman Sachs alumni  and other “swamp insiders” to top office positions? What are your thoughts about “The Wall” he promised Mexico would pay for, and is now looking at taxing exports from Mexico, which means WE would be paying for the wall in higher food prices?

Doesn’t it concern you that he is so sensitive about the election results that he’s making continued outright lies, and he has no shame spinning everything to suit him despite what the facts actually say?

A lot of conservatives despised Obama’s use of executive orders as an overreach, but now have no problems with Trump doing the same. What about all the arguments about respecting the constitution and balance of powers?

 

 

 

 

 

Life Imitating Art – Simpsons Prophecy about 3 AM Twittering Trump Tirade Comes True

On July 30th, The Simpsons Cartoon show released a video on YouTube depicting a commercial showing Trump going on a Twitter rant at 3 AM:

 

On Sept 30, exactly 2 months to the day later, Trump fulfills the comedic prediction by actually going on a Twitter rant escapade around 3 AM!!!

 

 

We are in the MATRIX……

 

Common Sense takes a Powder as Britain Votes to Leave the EU

brexit

“Brexit”, the media created cutesy lingo for the British referendum on whether to stay with or leave the European Union. I’ve heard it discussed backwards and forwards and sideways throughout the days, weeks, and months leading up to the vote that just took place.

Despite all the fear mongering and artificially induced drama by the media, I never actually considered the possibility of Britain actually leaving the EU. It seemed so absurd that there would be enough people that would want to turn the clock back with actions that will surely spawn negative unintended consequences.

Well, I was proven wrong tonight as polling states that the vote for Britain to leave is expected to be the winning consensus.

I’m not the only one caught by surprise, as the futures markets are roiling with a nice big fat after hours crash that will translate into crashed markets on the open Friday. The value of the Pound has plummeted. The majority of businesses were counting on a “stay” vote winning, and this just adds a boatload of uncertainty for both Britain and the EU going forward.

I truly believed Britons had more common sense than this. Color me wrong.

There will be lots of analysis on how this wound up happening, but it’s likely due to the same old things that breed surprise outcomes:

  1. Voter apathy – which favors those who have more motivation, typically the conservative vote. People love to complain about government and politics and then find other things to do when it comes down to taking the time to cast a vote.
  2. Low information votes- people voting on something without doing their due diligence to figure out the true pros/cons of their choices. What are the odds that the majority of people who voted YES on leaving did so out of xenophobia and border control without thinking through the economic consequences of their actions.
  3. Media stupidity of focusing mostly on ratings rather than trying to educate people on the actual facts rather than false arguments and hyperbole.

The irony is the first unintended consequence of this action besides crashing global markets will likely be layoffs as British companies retrench over fears that current trade agreements are now in flux.

 

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Voting Day in Cali – Sample Ballot Blues

Kodos

 

I dreaded looking over the sample ballot book for California- there are so many pages! It’s like a mini book! The numerous pages led to me continuing to put off completing by ballot until time was about to run out.

I wonder how many folks got scared off from voting seeing that huge sample ballot book… =:-0

It boiled down to just facing the music and going over it this past weekend. Fortunately a big chunk of the propositions were just city charter updates with no changes to ponder.

Normally I mail my ballot off ahead of time, but this time around, I just took it to my polling center and dropped it off there.

Better late than never!

While driving there I heard an ad on the radio asking people how would they like to make easy money working just a couple hours a day. They were talking about trading!

I’m not going to call the company out who was advertising, but to portray trading as something easy to excel in and with just a couple of hours per day of effort is grossly misleading at best, fraud at worst.

They may as well advertise making a living being a pro sports star with just a couple hours a day of effort. It’s been my constant observation that outside of inheritance and lotteries, lots of effort is required to achieve most worthwhile things.

 

Trump All but Completes His Hostile Takeover of the GOP Pres Nomination: RIP Conventional Wisdom

Danger Shock Hazard

Trump’s win in Indiana coupled with Ted Cruz dropping out of the race all but ensures Trump’s eventual clinching of the GOP’s Republican Presidential nomination, leaving all the pundits who never fathomed such a scenario in their wildest dreams stunned, and scratching their heads.

This election cycle has been a perfect case study of why you shouldn’t trust the “experts” when it comes to making assessments/predictions. We’ve seen in the 2008/2009 market crash that the vast majority of political and economic “insiders” had no idea of that approaching crisis and certainly gave no warning to investors.

This time just about all the so called political guru’s completely missed the rise of Trump and his ability to stay afloat regardless of what he says no matter how inflammatory. They are flummoxed about his ability to withstand increased scrutiny and a biased assault of press related articles against him, attempting to write him off in hopes that the polling numbers would follow, which they didn’t.

Even worse, having missed the boat on predicting the ascendancy of Trump’s campaign, they have the audacity of now writing articles on explaining how this came to pass- like anyone should pay attention to the same folks that were completely oblivious  to his sustainability in the first place.

Simply psychology can explain the Trump phenomenon.  People are angry at Washington and the constant failure of their elected officials to live up to their promises. In their frustration they seek someone not yet “tainted” by the system that constantly overpromises and underdelivers. They are now ready to pick an outsider over the political insiders.

Trump remains on top due to his public persona of brashness/arrogance towards the establishment. The more he is attacked, the more he fits the role as the “rebel” of politics to all his supporters, which increases his appeal. It’s very similar to the daughter who is dating a “bad boy” and the more the parents admonish and scold her to let him go, the more attractive he becomes to her.

The “experts” ask, how can Trump supporters be so oblivious to all the negative things he has said as well as his past flip flops on opinions? Why doesn’t this exposure change their mind? The answer is they have made an emotional choice based on their resentment of their elected politicians as well as his positive message on better times ahead with bringing back outsourced jobs and good times in general, and are ignoring/rejecting anything else said, period. Back to the daughter/bad boy example- how many times will she be “persuaded” with a list of rational cogent reasons why the guy she is dating is a bad match? How many times have your parents persuaded you to change your mind after you became passionate/excited about something or someone?

The “experts” asked, why did Marco Rubio fail to beat Trump at his own game of childish attacks/insults? The answer is you can’t imitate someone’s “brand” and expect to beat them with it. It’s the equivalent to the school valedictorian/nerd taking off his suit/tie, and putting on a leather jacket to try to woo the daughter away from the bad boy. All that does is make you look like a “wannabe” as well as corrupts the “brand” you stood for.  Notice how Cruz and Kasich didn’t take the bait to go into the mud, and how they continued to poll higher than Rubio before he dropped out.

Now these “experts” are saying in 20-20 hindsight Rubio made a mistake in fighting Trump in the mud when they were the ones who suggested he should do it! The lesson here is to be true to yourself, or at least “appear” that way. =)

Tonight we know that not even the behind the scenes 3D Chess Level strategy of Ted Cruz or his team up with Kasich was enough to stop Trump’s growing momentum.

This election season is one for the history books – that a non political outsider could take out a field of seasoned elected professionals that were way more funded and entrenched in the system than he ever was, and ride a populist wave to the Republican nomination turns all conventional wisdom and expert analysis on its ear. We live in interesting times!

 

 

Trading 101: The Key Ingredient to Sustained Success is Failure

My trading style uses fairly tight stop loss settings, which demands that my entries be pretty accurate with a small margin of error. In some trading circles, this would be seen as being “amateurish” for not allowing your trade to have breathing room to deal with the range of market volatility. Of course, most of those same trading circles view the market as mostly random in the short term that must be met with a ball park entry with a wide stop loss.

I used to trade with wide stop loss settings, or threw caution to the wind with “mental stops” rather than actual programmed stops. The market can gyrate so much that it’s an easy habit to get into. The market rarely moves in a straight line and can drift back and forth before making a definitive move in a particular direction. When stops are tight, it’s easy for price to move just enough against you to trip the stop loss before moving in the anticipated direction. This often happens enough to be a common frustrating experience among traders.

Using wide stops gives you more leeway when in a trade, but that also means your losses will be greater when they are tripped. Of course some traders don’t use stops at all- as that guarantees you will never be whipsawed out of a trade, but that also leaves you without protection if the market makes a big move against your position.

Not using stops is high risk, yet most traders including myself have engaged in such behavior due to the frustrations of getting whipsawed out of trades that would have eventually worked. But eventually the Grim “Stopless” Reaper cometh and will make you pay for not using stops. Eventually one learns to incorporate hard exits via stops, or the market will do it for you with severe losses that can blow out your account.

Over time I’ve learned that while using stops can be frustrating, and using tight stops VERY frustrating, it forces you to really focus on your trading system to find ways of improvement. Typically when a trade is entered that doesn’t work out, it’s one of three things:

  1. System is correct, but market had a random spike/dip due to some late breaking news.
  2. System is correct but the application of system was wrong.
  3. System has flaws that need to be worked out.

Out of most events encountered, #1, is VERY rare, while #2 is more common and #3 is typically the most common. One could say that #2 is a subset of #3 since proper execution is also part of the system.

I’ve been working on precision trading, where one can trade the daily battle between resistance and support with a fair amount of accuracy so as to not need to use wide area stops. Using tight stops and the ensuing failed trades and frustrations that resulted were actually great motivation in improving my trading system.

I find that my post trade analysis of failed trades have been responsible for the bulk of my trading system evolution. Preparation and planning can only go so far but I seem to be able to pick up so many more fine details of what went right and wrong when the analysis is done right after the trade is finished- likely because my plan is fresh in memory so it’s easier to pinpoint the aberrations. It’s a great feeling to spot a problem that was previous missed that when fixed, improves the accuracy of my system.

It’s a lesson I like to forget – that failure is a part of progress, since it opens the window for improvement. To get the best out of failing, it helps tremendously to have a clear and concise system trading plan that you can back track step by step to see what went wrong as well as what went right. A big mistake I’ve seen other traders make is “winging” trade entries in real time without a clear plan of specific entry and exit strategy. The point of system trading is the eliminating of seat of your pants “ad lib” style trading.