I'd like to become a better trader

Discussion in 'Journals' started by PO, Feb 2, 2011.

  1. PO

    PO

    I\'m in the process of backtesting Es vs Nq as well as working on selecting my best set ups. It\'s a process that is going to take me a while, so meanwhile I\'m trading NQ to get a \"feel\" of price levels, S/R, stops, etc. I can\'t just memorize the levels, I need to trade them to get familiar with them. Meanwhile, I\'m still working on setting up a different platform, backtesting, reading, etc.

    Bear with me as I\'m trying to work on multiple things at the time, so the next few weeks probably will be very hectic. That\'s why I\'m trading in sim.
     
    #341     Feb 24, 2011
  2. PO

    PO

    we can certainly discuss this later today... Other people are welcome to chime in.

    Do you use fixed stop in number of points? or $? or based on the set up situation? thanks.
     
    #342     Feb 24, 2011
  3. PO

    PO

    one interesting observation is that ES made a new low in 12 slot, but NQ didn\'t . I would have been stopped out by now on ES, but not on NQ. And I did notice that many times before in a similar situation. So the lesson I need to learn if I go back to trading ES is to give it a .75 - 1 stop below day low. I will also need to back test this to verify.
     
    #343     Feb 24, 2011
  4. PO

    PO

    another observation is that if I weren\'t in sim now, I would have covered some of my long now to make up for the 2 losers I had today, but i\'m in sim, so I don\'t care and will hold it. That\'s why sim trading is so different. :(
     
    #344     Feb 24, 2011
  5. I am no expert but first and foremost you attitude is extremely negative. Secondly you should start with stocks and move to futures. You should trade stocks in the 20 to 50 dollar range.

    Trading stocks will teach you to get into and out of trades in small pieces at a time versus large quantities like the e-mini futures.

    You should not trade simulators unless you are learning a new trading platform.

    Being successful is about:
    1. having a plan= is trade long term or shor term and how long or short
    2. how much will u risk and how much actual pain can you take
    3. how many losses in a row can I handle before i wipe myself out or quit
    4. Do I understand in my soul that I am a winner. the market does not care about me or know about my trades.. there is not a conspiracy against me.. trust me the amount of money yo have is nothing compared to the big funds.. those are the guys who worry about other conspiring against them..
    5. after losing can you get right back in
    6. after winning can you get right back in or quit
    7. start out trading 1-10 shares at a time.. and thats it
    8. are you a scalper or a day trader
    goodluck
    lastly.. i feel like you should quit trading based on what I am seeing. go back to the books, study study study price and volume action.. then get back in
     
    #345     Feb 24, 2011
  6. emg

    emg

    let me give u an advice. backtesting does not work. when forward testing, every tick moves is based on your computer/internet ping or cpu usage. when u begin to backtest, the lenght of each bar changes and will be off by 1-4 ticks and u will not notice.

    every mili second of your internet ping changes the tick by tick. when backtesting, those bar settled based on the actual.
     
    #346     Feb 24, 2011
  7. Redneck

    Redneck

    You going to practice like you play.... or dick around and waste time and effort

    If you would have done someting for real - then do it sim dammit

    RN
     
    #347     Feb 24, 2011
  8. Best Loser,

    Some random thoughts and ideas.

    Why are you trading 3 contracts in the simulator? Is that because that is what you plan to start trading when you return to live trading?

    My advice? Forget about it. When you resume live trading, you should trade one contract until you see some consistency with that. The extra risk from swinging size is affecting you a lot more than you may think, especially when you encounter a losing streak (you will).

    I say this from experience that I have paid greatly for.

    It seems like you still might be trading your P&L. Forget about it. Start trading the market. Focus on extracting points from the markets and forget about dollars for a while. Trade points. Do the same when you get back to live trading.

    All of my own big drawdowns have resulted from the following pattern: 1) Consistent sim bucks; 2) Consistent bucks from one contract; 3) Start dreaming about my future because things really start to look promising; 4) Ramp up size way too early, lose focus on the market and start trading my P&L. 5) A drawdown that is way bigger than acceptable within my system and which also crushes my confidence and flow.

    With regards to the simulator, you need to take it very seriously. Remember, you only answer to yourself (and the market).

    What I did was make a weekly goal. For what it`s worth, weekly goals make more sense than daily goals in my opinion. For me, that was 5 points per week in the ES-market.

    I was not allowed to start trading live until I reached this goal for two weeks in a row with consistent trading.

    This made me take the simulator training very seriously. I even felt some slight anxiety at times.

    Further, I disagree about a fixed stop. It does not make sense. I would rather operate with a maximum stop known in advance. Not saying that this is right, but personally I have a max stop of 2,5 points on rare occasions, but usually I use 1,0-1,5 points as a stop.

    Having a fixed percentage risk per trade that you never exceed is what it`s all about. If it can be less, then all the better.

    Just some thoughts :)

    LF
     
    #348     Feb 24, 2011
  9. PO

    PO

    stopped out and again
    long 3@22.92.25, stop 2288.25

    bounce off YL.
     
    #349     Feb 24, 2011
  10. PO

    PO

    closed 2@2308.5 before my target was reached. I\'m cutting my winners short.
     
    #350     Feb 24, 2011