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Old Nov 20th, 2011, 09:43 PM   #409
jas_in_hbca
 
 
Join Date: Feb 2010
Posts: 750
Quote:
Quote from Redneck:

JIH

IMO

93 to 95% mental.... 5 to 7% mechanical

The nut running the mouse is the major contributor to his/ her success... or failure

RN
Thanks RN,

Over the years the books have always said something like, "once you find a strategy that has an edge the hard part is the discipline to trade it. This book will teach you the discipline...." My reaction was always , wait i bought this book to get that edge ! I can handle the discipline.

Discipline to me was always mostly ability to take a loss. I'm good at that but have come to realize it's much more. Managing stress, overcoming hesitation, missing trades, over trading , staying positive etc.

The idea trading is 90+ % mental still fascinates me. The good news is i enjoy the mental aspects as much as the actual trading. Peak
performance, positive attitude, visualization exercises are all interesting to me.

Knowing that it's primarily mental certainly makes one think about it from a whole different perspective as well. Thanks.


just finished re-reading The Outer Game of Trading by abell & koppel. i'd recommend to all struggling traders. Now reading Day Trader's Advantage by Abell. Both are heavy on the psych side. I'd read these years ago. Seeing things different this go- around.
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Old Nov 21st, 2011, 05:47 PM   #410
jas_in_hbca
 
 
Join Date: Feb 2010
Posts: 750
I don't think it was psych issues today. Just couldn't catch anything. I kept trading because i didn't feel i was taking bad trades.

O.K. so the question i ask myself is - what IF it was a psych issue ? What mistakes or opportunities did i miss due to my state of mind ?

Hard to say after the fact but possibly holding a short bias too long. Afraid to take a 2B buy (failed b/o). Also exited a trade too soon. Are these psych issues or just lack of experience ? I'll assume both and keep working on solving both. Holding trades longer - i need to just keep reminding myself this is a problem area to work on. Slowly making progress on this. Missing trades is experience and ability to accept the uncertain.

Still going 1 step forward , 1 back.

10 trades -12.75 pts. sounds bad but i think it was just one of those days.
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Old Nov 22nd, 2011, 04:17 PM   #411
jas_in_hbca
 
 
Join Date: Feb 2010
Posts: 750
Areas i continue to focus on:

Overcoming hesitation on entries. Accept uncertainty.
Take reasonable profits. Not every one will be a homerun.
Take heat when price action indicates to stay in trade.

I used to print charts of set ups and put in a binder. I've started doing that again. Making notes on charts and filing based on set up category. (Actually i'll be organizing the collected charts over the T-day break.)

Still just trying to grind it out and stay focused everyday. Was able to overcome some missed oppurtunities and frustration to end BE. Afternoon was more hesitation and missed trades.

It's very simple really. See the set up , accept the ambiguity, enter, manage the trade. Repeat.
Attached Images
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Old Nov 23rd, 2011, 05:38 PM   #412
jas_in_hbca
 
 
Join Date: Feb 2010
Posts: 750
My trade review process used to consist of printing out the chart for each trade, completing a trade review worksheet (set up type, exit type, gain/loss, mistakes, notes) then putting the info into excel.

After a while i stopped entering into excel. Then it got to the point that it was too many trades a day to complete a worksheet for. Plus i was collecting alot of paper work.

I haven't felt i was training myself properly by skipping the actual recording of info so now i've designed a new worksheet.

The important info in my development has been keeping track of my trading mistakes. So my new w/s is 1 page which i should be able to list all trades for the week on and the main item i'm recording is mistakes. I'll print charts only when it provides a good example for future reference.

I also want to keep track of the # of trades i'm missing.

Rather than describe it further i'll just post a pic.

Comments or suggestions welcomed and appreciated. Thanks !


Today 8 trades -.75 Still making mistakes. Correcting them is my primary focus now. this is an improvement for me as before i was always focused on understanding entries. I'm not improving as quickly as i had hoped but will be happy with at least the little progress i am making.

Happy Turkey day traders ! I hope everybody enjoys their day off.
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Old Nov 25th, 2011, 03:59 AM   #413
Instynct
 
 
Join Date: Dec 2007
Posts: 1,970
Quote:
Quote from jas_in_hbca:

My trade review process used to consist of printing out the chart for each trade, completing a trade review worksheet (set up type, exit type, gain/loss, mistakes, notes) then putting the info into excel.

After a while i stopped entering into excel. Then it got to the point that it was too many trades a day to complete a worksheet for. Plus i was collecting alot of paper work.

I haven't felt i was training myself properly by skipping the actual recording of info so now i've designed a new worksheet.

The important info in my development has been keeping track of my trading mistakes. So my new w/s is 1 page which i should be able to list all trades for the week on and the main item i'm recording is mistakes. I'll print charts only when it provides a good example for future reference.

I also want to keep track of the # of trades i'm missing.

Rather than describe it further i'll just post a pic.

Comments or suggestions welcomed and appreciated. Thanks !


Today 8 trades -.75 Still making mistakes. Correcting them is my primary focus now. this is an improvement for me as before i was always focused on understanding entries. I'm not improving as quickly as i had hoped but will be happy with at least the little progress i am making.

Happy Turkey day traders ! I hope everybody enjoys their day off.
Your psychological issues with trading might be because you don't have confidence in your plan and your ablility to read the market. It's a viscious cycle that feeds on itself if you don't get to the root of the problem. I've seen some of your past trades plotted on your charts but you don't give much reasoning for why you took them. Post wednesday's trades plotted on a chart and give detailed reasons why you took them. I'd like to throw some non-professional comments to them if I may. Then you can evaluate my comments and see if they help you down the line.
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Old Nov 25th, 2011, 05:21 AM   #414
Bombardier
 
 
Join Date: Sep 2011
Posts: 194
jasinhbca, I saw your P&L plots, I admire your analytical approach. The thoughts you share and the efforts you put in at reassessing the trading day and even the printouts you make, shows me that you truly want to learn it in a proper way. Let me attempt to redirect you to the right path because I believe that you are expending your focus on the wrong thing.

We are here to trade trends on a consistent basis by simply following them. At least I can see from your annotations that you are trying it but trade in a very intimidated way. The numerous trades you take and the little proceeds you get from them do hint that you have second thoughts and prefer to close a position before it may turn against you big time. Why is that so? While the market wiggles and you take a mini loss after another, an experienced trend trader has been staying in his position during the whole time. No action was taken at all, but yet the trend trader ends up with a more advantageous position than the one who is being assertive. That trader is convinced of his methods, his bias, his position, his stop, himself. Be more convinced of yourself. We need to acknowledge that markets do not move like elevators, but like waves within a current. Uptrends will always be interrupted by frequent sell-offs whereas downtrends will witness just as many rallies. What the trader has to focus on, is the overall current in the shape of trends because this tells you the path of least resistance.

To avoid fearful closing of positions, you need to know why you are opening the trade in the first place. What is your rationale for going long or short? I cannot help you with it because the entry is at everyone's discretion. What I can recommend is that you put a properly chosen stop level based on price action and let the market prove you wrong. Unless that happens, you must stick to your trade through wiggle and waggle. Hint: the stopout should happen where the original reason for your entry is no longer given due to objective observation of price action (not your gut feel). Make printouts of larger time frames than what you are currently looking at. You focus too much on the random moves intraday, than the actual trend in the broader perspective. Trade those, and you will witness far greater success. It is evident that a trader gets confused every single trading day anew. Randomness has no logic, so do not seek logic in randomness. Start looking at the forest for the trees. My favorite time frame is the 1H. I don't look at anything shorter term. Feel comfortable with holding your position over night, even several nights. It is a common misconception communicated among newbies that you must close your trade within the same day. Trends last more than a single day. They last multiple days to weeks, sometimes months. Why? Because public sentiment does not shift from one moment to the next but takes a long time.
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