... this is how I would have come by it ... more or less. I did not intend to start a thread or journal, but some recent discussions about technical analysis and price action analysis have spawned a few comments from others that got me thinking ... and here I am - starting a journal (of all things) at ET (of all places)! Two comments in particular sparked my imagination this morning. The first comment was from wrbtrader: He continued: And the other from comment came from Mtrader: The recent passing of Mark Douglas prompted me to go back and re-read his book, The Disciplined Trader. That re-reading combined with some of the recent discussions here concerning TA & PA and trading further met with the two above mentioned "catalysts," and at least for today, I have become a journalist. I put this idea in motion this morning, but I have hesitated all day as to whether or not I truly wanted to get this started. But, I figured I can always just stop posting, have the thread closed, "cut my losses short" if need be. So here it goes. ___________________________________________________ I'm going to trade a simple TA system using a simple technical construct known as a "moving average." I will not share any of the technical details (chart, data interval), trade management details, entry and exit details, etc. other than to say that short trades occur when price is trading from below the moving average, and long trades are signaled only when price is trading from above the moving average. The set up is identified by the technical indicator(s), the signal and entry is determined by subsequent price action. What I do consider important is not the system itself, but the following considerations that I will abide by: Trade size starts at one contract, initial trading instrument is the 6E, daily loss limit is $300/contract, maximum per trade risk is $125/contract exclusive of commission, fees, and any slippage experienced in or out, time frame is 7:30 AM Eastern until 12:00 PM Eastern. Set-ups occurring between 7:15 - 7:30 AM Eastern will be honored if I am at my desk and I am prepared to trade. I am always prepared to trade by 7:30 AM or I do not trade that day. No trades will be taken on NFP dates until after the NFP data is released. I will not trade this system the morning of FOMC announcements. If this thread proceeds civilly and I don't lose interest in the work of keeping up a journal, I intend to add the ES and the ZB eventually. Trade size will increase at regular benchmarked intervals. The main idea of this journal is simply to execute a simple technical, mechanical trading system, and then to see where that takes me. The particulars of the system are irrelevant to the main theme, and sharing them and opening them up to discussion would only distract from what I am trying to accomplish. In anticipation of possibly starting this journal I traded this system today. There were four set ups and two signals, one resulted in a loss of 7 ticks, the other a profit of 20 ticks, and two set ups required a risk in excess of the $125/contract per trade limit and were consequently not traded. Here is how I intend to post results going forward: I will post results each day I trade this system. I will try to note here ahead of time when I will not be trading this system.
...I would...spend it on options if $1,000,000 magically appeared in front of me. and try to grow it relatively aggressively still. Once a trader, always...kind of...a trader. (not investor)
Think of this as starting with a trading power of one contract. and additional trading power must be earned by accumulating multiples of the daily loss limit. Today is wrap up of the European Eocnomic and Financial Affairs council meeting, and Draghi holds his public comments this afternoon. Much like an FOMC meeting, the market (for the Euro) often settles into a range and loses the volatility that generates set ups.
I had a buddy a while ago , who use to say:"I know how to make a second million, I just do not know how to make a first one..." Now I know for sure that he was wrong: if you do not know how to make a first one you will never make a second one Actually "Disciplined trader" is also wrong (concentration should be on the method not on the psychology), also at the time I enjoyed reading it
Amen brother. Psych is a joke without a winning method--- brokers and the market love it because it keeps losers in the market-- just read douglas--OMMMM-- and smile as you r account gets destroyed--
I totally agree, traders can't pull the trigger, sleep horrible, don't have all the answers before the question and think it has something to do with psychology when it comes down to not have well back tested method that can help them get all the answers. Way too often someone will say they have a method but ask questions in the forum which tells me their Trading Plan is not complete and yet they are trading. I never ask for day trading question here, if I had a question, I would test it and get my answers that way. It is good for others to ask questions, but if you are trading, purely dumb, it like being in middle of doing brain surgery, "Well what do I do now"? it not what I want to hear if I am one under the knife. Having a completed system will always solve most of psychology problems. If your method if traded correctly produces profits and easy to remember, most problems are overcome by slow but doing correctly method you have designed, I totally understand those who have lost for years lack confidence, but knowing you have system that produces should overcome brain use to losing.