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gmst
Registered: Jul 2011
Posts: 3696 |
04-07-12 02:25 AM
Many Thanks Shanb about the visualization tip. Its a very practical and concrete advice. When I was in high school, I used to do it and it proved to be very useful. You just made me remember that. 
Btw, I don't have any problem at all regarding my discipline about trading all valid signals. Its very rare that I miss any signal and that is always due to not being at the desk at that moment. This is a rare problem. And in my assessment, it won't really have any material effect on my trading if I miss say 5 trades out of 100 setup trades.
Historically, the much bigger problem has been the lapse in discipline to not take any unplanned trades. This is where I have lacked in past and am promising to stop it completely.
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Shanb
Registered: Jun 2011
Posts: 1107 |
04-07-12 02:42 AM
Quote from gmst:
Many Thanks Shanb about the visualization tip. Its a very practical and concrete advice. When I was in high school, I used to do it and it proved to be very useful. You just made me remember that.
Btw, I don't have any problem at all regarding my discipline about trading all valid signals. Its very rare that I miss any signal and that is always due to not being at the desk at that moment. This is a rare problem. And in my assessment, it won't really have any material effect on my trading if I miss say 5 trades out of 100 setup trades.
Historically, the much bigger problem has been the lapse in discipline to not take any unplanned trades. This is where I have lacked in past and am promising to stop it completely.
So you mentioned some spreads? Curious to see what you are doing there.
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gmst
Registered: Jul 2011
Posts: 3696 |
04-07-12 02:57 AM
Quote from Shanb:
So you mentioned some spreads? Curious to see what you are doing there.
Not doing anything currently. Will share once I spot something. Will be mostly intermarket spreads so like CL against ES kind of stuff.
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dom993
Registered: Jul 2008
Posts: 544 |
04-07-12 03:59 AM
Discipline ... here is what I am doing ... and it works pretty well:
* for each discipline error resulting in a loss, I transfer that amount from my bank account back to my trading account.
Rationale: 1) my trading account still reflects what my P&L should be
2) pulling money out of my bank account is way more material than when the loss remain "hidden" in my trading account balance
* for each discipline error resulting in a win, I transfer that amount from my trading account to my bank account, and from there to a charity.
Rationale: 1) my trading account still reflects what my P&L should be
2) I don't benefit of my discipline errors, which quickly translate into "what's the point (of taking an unplanned trade)"
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tiddlywinks
Registered: Mar 2007
Posts: 206 |
04-07-12 04:16 AM
Quote from dom993:
Discipline ... here is what I am doing ... and it works pretty well:
* for each discipline error resulting in a loss, I transfer that amount from my bank account back to my trading account.
Rationale: 1) my trading account still reflects what my P&L should be
2) pulling money out of my bank account is way more material than when the loss remain "hidden" in my trading account balance
* for each discipline error resulting in a win, I transfer that amount from my trading account to my bank account, and from there to a charity.
Rationale: 1) my trading account still reflects what my P&L should be
2) I don't benefit of my discipline errors, which quickly translate into "what's the point (of taking an unplanned trade)"
So let me get this right.
1) You bail yourself out when you "wrongfully" lose.
2) You get a tax benefit assuming you're in the US, along with the "feel good" associated with giving when you "wrongfully" profit.
I think you are better suited to a political career in the US.
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dom993
Registered: Jul 2008
Posts: 544 |
04-07-12 05:00 AM
Quote from tiddlywinks:
So let me get this right.
1) You bail yourself out when you "wrongfully" lose.
2) You get a tax benefit assuming you're in the US, along with the "feel good" associated with giving when you "wrongfully" profit.
I think you are better suited to a political career in the US.
1) no bail-out there ... my bank account goes down with every discipline error, which has a direct impact on my lifestyle - contrary to keeping the loss hidden in the trading account.
(and those money transfer never show-up as realized P&L nor performance in my trading account statements)
2) believe me, I would burn that money if it wasn't such a waste doing so. This is just to ensure I have *NO* reason to be undisciplined - and again, it is working pretty well for me.
You gave me a good laugh with your conclusion
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