Jun 24, 2008

Proof of trading

For a long time, I didn't post my IB results panel which shows my actual trades. Why? Well, I really didn't think of it and I honestly didn't know how to remove the 'shares' column. In any case, I am including this screen shot after every profitable day. There's really no need sharing proof of unprofitable trades now is there???

Why do I think this is important? Credibility. We may pass that off as some throw away word when it comes to looking at and analyzing charts. But my blog is not just simply a trading journal but also a tool to show other potential, full-time traders the realities of every day trading life using a particular strategy. The only thing you need to fill in is your risk size/amount.

To think of it now... I have no idea why all trading blogs don't/won't provide the same proof. Sure, it's not necessary. Sure, no one can force bloggers to do so. But I say this: Talking about trading is much, much easier than proving you can trade. What bugs me is going to a blog and seeing a 'so-called' trader posting charts that makes trading look so easy. Everything from creating a managable watchlist to the rationale for entry is extremely difficult and it absolutely has to appear that way.

I don't propose going as far as Dinosaur Trader with actual dollar amounts as income is a very personal thing. I personally don't like anyone asking me how much I make... never have, never will. What I can provide is proof of purchase so to speak. Proof that I actually entered a trade. Wow, how crazy is that?

So this is my challenge to any trading blog: for every winning trade you showcase... back it up. Is it really so crazy or so demanding?


ralph said...

IMO, I believe the reason many traders shy away from posting their daily trades is probably because they are not finding consistency in their performance. Take me for example, while I have had my share of wins in a solid moving market, I have sustained embarrassing losses otherwise.

While it is no excuse, I want to think that blogging is not just for purely chartable purposes, but it must satisfy the intentions of the blogger.

But still we are all very appreciative of the time, energy, and effort you and others expel each and every day. Thank You! Ralph

OONR7 said...

ralph: I agree... that's why I will post results only on profitable days. I certainly don't need to validate my losers :) or be reminded of a crappy day. I just think posting actual results helps to further validate a trader's skills. I hope to post many, many days worth of my results.

QQQBall said...

for some reason, disclosing dollar amounts somehow gets my ego involved. when my ego is involved, i want to be right, which is bad for trader.

i dont talk about trading to people i know, but if someone ask me how much i make, i know they dont understand anyway.

TraderAm said...

I don't have a problem with posting my trades. But methinks that you are going to have a hard time convincing most bloggers to do this :-)

Consider this hypothetical conversation :

Blog Reader says "Ok I can see your chart, but how do I know that the you took this trade. Prove it"

Blogger says "Why should I spend more time posting personal details? Whether I took this trade in real time is not the point of this blog. The chart shows the strategy pattern that I follow and it is self evident that if you entered this trade then it would have been profitable".

Anyway we'll see how it goes :-)

OONR7 said...

traderam: you may be right. However, if someone is posting charts as a way of explaining how a particular strategy 'could' work... that's fine, but just say so on the site. But if you're going to say that you indeed traded a particular stock I think there should be ownership of that and taking a few extra seconds to get a screenshot of your transactions (minus the share amount and income details) isn't asking for much. In fact, it's validation. Again, it's much different looking at stocks at the end of the day and then posting them on a page then it is to actually having the balls to enter the trade according to your system. It's just being real. I truly don't understand why any legit trading blog would have a problem with that.

Bubs said...

I posted every single trade I took for 16 months on my blog and trust me its not easy. Even though I only made a few grand in 16 months I still got emails from people saying I was making up some of my trades. I think even if you post your screenshot there will be skeptics, its not worth the trouble.
Since I stopped blogging I have had my best month in May and on pace to have a decent June. I also stopped reading most of the blogs that I used to read because most of them were really no help to me.

OONR7 said...

bubs: glad to hear you're doing well and back to making good money. I don't think taking a few seconds to take a screenshot of your trades is a lot of trouble. And honestly.. if there are skeptics after that, they can go fuck themselves.
Can a screenshot be altered? Sure it can but it's not entirely easy. And really, if someone's gonna go through that much trouble then they need help.
But I think that for most honest bloggers this is not a lengthy or problematic step.
BTW... miss the blog. Also, I totally agree about taking a break from reading other blogs when you're not doing well or just want to regroup. Sometimes too much information is just about the worst thing.

Trader M.D. said...

Heh. For what it's worth, I think there will always be hecklers.

I always post my trades winning or losing.

The main goal of my blog is to serve as a journal of my trades, good and bad, for myself. If someone can learn from what I did right or wrong, then that's just an added benefit.

I have nothing to prove to anyone. I honestly think thats the approach any blogger should take.

The best proof of your trades is that your blog and your trading stands the test of time.

OONR7 said...

tradermd: I hear ya. I just don't have any problem showing my transactions (not profit).