Skip to content Skip to footer

Michael Venezia: Trading Your Own Rules

After 20 years of active trading, I have realized, both by my own experiences and by watching my peers, that the most effective way to be a consistent producer in this business is to simplify things or what I like to say, “less is more”.  Back when I started trading (1995) you either paper traded (in a loose-leaf binder) or put real money to work.  There weren’t any simulated platforms to trade on. 

There weren’t any Tweets and if a stock made a violent move, we traded it and worried about the news later which was usually precluded by rampant rumors which I liked because it kept up the action until something concrete came out as to why the wild movement.  The point being, I had to learn early and my mistakes were reflected in my P&L. 

Understanding The Fundamentals 

I have clients that traded on simulated accounts, they treat it like a video game, and don’t take their fundamentals seriously.  I tell them this; “if you are hitting golf balls on the practice range you probably try some crazy shots or try and hook or fade the ball but really gain nothing because you are out of your routine and not working on your core skills”. 

I doubt you would try the same shots or have a lack of discipline on the course?  Don’t waste time, and build your own style.  Every tick is a learning experience and should be absorbed as an opportunity to learn.

As I became more experienced and made consistent money then came the “perks”.  I added more computer screens, ordered Bloomberg, read books, went to seminars, and in some ways tried to adopt and even copy more successful trader’s styles and their mantras and discipline’s.   As time went on, with all this inundated information I actually became more confused and had conflicting ways in which I looked to enter or exit a position.  My thoughts were no longer mine.  The very thoughts that got me there were suppressed and at that stage of my career, I started to tread water and churned my account.

I got back on track but one of the oldest philosophies out there and suggest it every time one is in a slump or not seeing things clearly…..I went back to basics. I simplified things and took all the knowledge that I acquired from myself, other traders, books, etc., and developed my own style. 

Final Thoughts

I have gotten tons of advice from elder traders that I should find a specialty and focus and try and perfect that but I didn’t go that far.  Don’t get me wrong, I didn’t make these rules up. I just stuck to them.  I would venture to say that the top 5 trading principles I abide by are in the top 10 of the best traders out there.  I narrowed down my rules and complimented them with my trading style.   I also realized that there is always another trade and don’t get frustrated when I miss a trade.  If you are able to be patient then you will have the patience to work on your style.

There is nothing worse than losing on a trade or being in a bad position when you break your disciplines.  The fact I may let myself down is worse than any monetary loss always keeping in mind that you’re only as good as your last trade and if that last trade is a discipline breaker than that’s what you are until you get back on track.

MICHAEL VENEZIA
Trader
mvenezia@rhino-report.tradeviewforex.com

Follow Us on Twitter

 

Tradeview Ltd. is not a portfolio manager or an investment advisor. This Market Report is for informational purposes only. Any statements made or opinions voiced in this Market Report do not constitute investment advice. The Tradeview Ltd. Market Report does not constitute a solicitation to buy or sell in the financial markets. Although the information contained in the Market Report comes from trusted sources, Tradeview Ltd. is not responsible for guaranteeing the accuracy, timeliness, completeness, or fitness of such sources. Tradeview Ltd. shall not be responsible for and disclaims all liability for any losses which may be suffered from access and use of the contents of the Tradeview Ltd. Market Report. Trading any financial instrument on margin, using leverage or otherwise involves considerable risk. Therefore, before deciding to participate in any style of trading, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consulting with your investment counselor, attorney, accountant or other professional upon whom you rely for guidance as to the appropriateness of an investment in any style of trading is recommended.

Tradeview Ltd.

Is licensed to carry on securities investment business and is regulated by the Cayman Islands Monetary Authority (CIMA) as a full securities broker-dealer. Tradeview conducts business pursuant to the Cayman Islands Securities Investment Business Law (SIBL) and its activities fall under the direct supervision of the Investments and Securities Division of CIMA.
Headquarters: 5th Floor Anderson Square, 64 Shedden Road, Georgetown, Grand Cayman, Cayman Islands KY1-1002, BWI.
Website: www.tradeviewforex.com

Tradeview Asia Ltd.

Is licensed and regulated by the Labuan Financial Services Authority (FSA) as a Money Broker, registration number LL15870 licensed to facilitate transactions in foreign exchange pursuant to Labuan Financial Services and Securities Act 2010, the Labuan Companies Act 1990 and the Labuan Business Activity Tax Act 1990.
Headquarters: International Business Financial Centre at Office 5, Jamie Business Center I, Unit F10, First Floor, Paragon Labuan, Jalan Mustapha, 87000 Labuan F.T.
Website: www.tvmgloballtd.com

Tradeview Europe Ltd.

Is licensed as a Category 2 Investment Service Company and is regulated by the Malta Financial Services Authority (MFSA). The Malta Financial Services Authority (MFSA) is the single regulator for financial services in Malta. MFSA is a fully autonomous public institution and reports to Parliament on an annual basis. The MFSA is a member of the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA) and the International Organization of Securities Commissions (IOSCO) and is a signatory of the Multilateral Memorandum of Understanding with other European regulatory Institutions. Tradeview is authorized to provide financial services across multiple asset classes and is passported in the EU/EEA under MiFID II (EU Markets in Financial Instruments Directive).
Headquarters: 157 Archbishops Street, Valletta VLT Malta 1440.
Website: www.tradeview.eu

Tradeview Financial Markets S.A.C Global

Is authorized to conduct business pursuant to and in compliance with the General Law of Companies (LGS) promulgated by the government of Peru. Tradeview Financial Markets S.A.C is registered with the National Superintendence of Public Registries (SUNARP), company number 13089531. Tradeview Financial Markets S.A.C provides financial services in selected OTC derivative markets in compliance with all applicable government regulations.
Headquarters: Los Mirtos 239 Urb. San Eugenio, Lince, Lima, Perú.
Website: www.tradeviewlatam.com