It is because we all have the same mind-set...Cut losses short, let profits run. But how many of us really do it? I reckon' we tend to cut our profits short and let our losses run in the hope of a recovery. I have certainly done it myself. In the interim we get such tunnel-vision that we lose sight of the bigger picture. The curse of short-term-trading. We see the green and capture it clean...We see the red and bleed 'til we're dead. It is folly, but it is our nature. I have been going though this shit over and over in NQ for the past two months. Catch a couple of points on mega-point moves during the day, watch the loss build up and bail, and then witness the recovery the next day. Hell, even spread the bitch "just in case". And it winds up eating into the potential profits. It is very annoying. @johnnyrock Don't call it a comeback.
Mindset: A bad day/week can have a weird affect on me. I can, and have, attempted to continue on as if nothing happened - trading as if my mindset was in the right place. Not after, before this week. @beerntrading posted in this thread about mindset, having bad days after a successful day/period. I will be checking out his journal on a regular basis. Like @algofy he has probably been really successful in life. Me, not so much. More failures than successes. Never having experienced wild success, but in one arena. Although it wasn't illegal, or immoral, the reward was internal; because it lacked any sort of monetary reward it is beyond the scope of ET. But I wanted it. It almost felt like that is why I was put on this spinning ball that revolves around the sun. One of many spinning balls as science clearly shows. I no longer hold that belief, about myself, but the skill and confidence that came with it are clearly transferrable. For me, it is a misplaced confidence. In areas that I can be rewarded financially, I simply use it for an easy way out. I never came to CO because of legal weed, the nurture of this awe inspiring nature, or even because of the hippy vibe that permeates this conservative, military town. I arrived chasing hail storms. Colorado gave me back my conscience. Something that I briefly laid to the side when hope, they say it springs eternal, was shattered. Headaches! Heartbreaks! Heartaches!! 2008 was a rough year for most of the country. This brings me back to mindset. When a man's hope is taken away, how will he respond? How will I respond? Do I fix what is broken when I may be the least qualified person in the room to accurately assess that? Or do I rebuild in such a way that I know works? What way is that? The market, and my specific participation in it, is exactly the opposite of real life. Success snowballs! Confidence is a good thing. Overcoming fear is a necessity. In this arena, I lose fear when my experience is the exact opposite. My track record, even recently, would suggest that I would exhibit the same fear as I would have, stepping in the ring with a trained fighter. Instead of fear I am salivating at the opening bell. In this fight winner takes all! And then some. Possibly one's pride. Maybe their dignity. Their soul if you let it! If you read this far and you think I may have answer, sorry. Just more questions. Why am I not fearful?
https://www.elitetrader.com/et/threads/acrarys-strategy-formation.84891/ Work in progress, but this is a start. Check out the thread. Boxed in areas are my ideas. The rest is an oversimplification of the DUM concept for system development.
https://www.elitetrader.com/et/threads/its-been-3-years-and-im-back.302474/page-14 To paraphrase the author of this thread, pick one high probability setup and trade it across multiple instruments. Swing setup: Island Reversals (Alan Farley, daily charts) Day trade: modified cup and handle (only trade the pattern late in the day if traders are caught leaning the wrong way. 5' charts.) Markets for swing setups: gold, oil, corn, wheat, NQ); caveat: i use the ETFs to identify the gaps, but will trade the futures.) Day trade instruments: QM and NQ. Once I master these setups, assuming they are profitable, this journal could get quite boring. I could use a little less excitement in my trading.
Try this for a ponderment, and see how you feel. Go long in MGC Dec 2017, and short in MGC Feb 2018. Just one contract on each. Let them sit for a few months, and watch it all fluctuate on your statement. It might give you some insights. A suggestion to try to help you see a bit more than what you might normally see.
This is so weird. Today was the most relaxing day I have had since I started this journal. Maybe, it was because I took some time off to do a little gardening. If surf can post pics of his Rolex I can post pics of my little lady.