After stressful trading each day, I plan to post under this thread some thoughts on trading. You are welcome to join. I lost today, I knew this was coming. It was just a matter of time. It happened today. Among over 100 trades, this is the second loser. But the loss size is 10 times bigger than a winner. The first loser is about twice as big as a winner. I have been doing bad trading for a long time, I guess I deserve it.
Quitting is a joke. OK, back to thoughts on trading. You know, sometimes trend is not your friend, but your enemy.
thats pretty impressive. obviously something is working with your edge. When you have a streak of that many wins i know it is very easy to think they're all gonna be winners, average in on a loser, and toss aside one's money management "just this once". in my experience this has typically had the same result you wrote about it with the loss being excessively larger than any of the winners. discipline is something im still struggling with. anyway, youll get it back.
Thanks for the encouragement. Unfortunately I never had discipline. I violate my rules every single day to get winners. If I follow my rules, I will have more losers, but winners will be bigger. I traded CL yesterday and today, it punished me instantly for my mistakes. I got away with my mistakes in trading ES, but in CL. The good thing is that I have decided to follow my rules. There is no better teacher than losses. I guess a trader grows up because of pain.
After you trade CL, you wonder why you want to waste time on ES. Besides, ES has given me a bad habit. CL told me: Get rid of your bad habit, or I will punish you. ES bluffs a lot, CL seldom does. Need to take CL seriously.
I used to think that if a trader fails, he is to blame, not the market. Today, I changed my mind. Now I think the market is to blame, not the trader. That's pretty deep stuff.
there are a few types of traders in the market: 1. those who know a little. 2. those who know a lot but cannot do it. 3. those who know a lot and can do it. note1 : those who know a little and accidentally do it well should be categorized as 1, because they have no idea why they make money and usually give it back. note2: there is qualitative difference between "lot" 2 and "lot" 3.
It's called self-attribution bias. When you're doing well, it's because of your abilities. When you're doing poorly, it's the fault of something else (be it random occurence, happenstance, or the market). You need to overcome this to improve. The reason you used to think that the trader was responsible for gains/losses is because you were doing well. The reason you now think that the market is to blame for gains/losses is because you're doing poorly.