When I started my career in this great business in the early seventies, I worked under a guy named Gary who acted as a mentor to me.
Now Gary was definitely a character and his trading style was something else altogether.
Every time he made a trade he would flip an egg timer over and the sand would start running.
Now you have to remember, I was green to trading back then and had never seen someone with Gary's unique approach and trading style. I just thought that having an egg timer on your desk and flipping it over every time you made a trade was a normal part of trading.
Have you figured out why Gary was using a egg timer?
Was it because ...
(A) He liked playing with egg timers
(B) He liked to time his poached eggs
(C) He used it for money management
If you chose (C) you are correct. Gary did use an egg timer for money management. It's not as crazy as you might think and it suited Gary's own style of trading perfectly.
You see Gary was using a TIME STOP.
How it worked is like this, Gary would see something on his intra-day charts that was a buy, and then buy it immediately. If it did not go up by the time the sand had finished running through his egg timer he would exit the market win, lose or draw. It was just that simple.
I never had the type of trading personality to trade like Gary, but I have to admit the egg timer worked.
P.S. If you missed any of the "Traders Whiteboard" series watch them here.
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