usually best to simply not trade a stock when it's still inside the high/low range of it's previous trading day. or after 11am. or when the COMPQ is inside it's prev day hi/low. 2-day high/low breakouts, eg CDWC- short today 3/10, GILD+ long, out of 2day ranges, the best type of plays imho. ken
quote from iceman1 : I am not drawing any distinctions between mental and psychological conditions. What I mean is if the trader can achieve a level of concentration by focusing on executing their trading system according to its tested rules, then the mental state acquired by the trader will determine profits/losses whatever the market conditions may be.
I didn't know their was any distinction to draw. Well... as long as you know what your saying and can take it to the bank... doesn't really matter whether anyone else on ET can understand contradictory posts. But you changed from deciding when or when not to trade (the subject of this thread) based upon "mental and psychological conditions" to trading whenever one can achieve a "level of concentration" by focusing on "tested" rules... regardless of market conditions. So anyway, back to the subject of this thread. When and how do you decide when NOT to trade?! Did you mean: whenever you do not feel sufficiently in tune with the markets... and don't see yourself capable of getting into a high state of readiness, focus, flow and concentration... and thus become less capable or incapable of successfully executing according to (your) plan... perhaps due to difficult market conditions?! Is that essentially what you meant to say! p.s. what "level" of concentration.... any level? Blue, Yellow, Orange, Pink, Red? :eek: Ice
some things are worth repeating. This is something I wrote a while ago. Part of one of the threads I did when I used to contribute more about trading and less in "chit chat".. The quote is a bit out of context as you can tell. I was a direct response to someone that had an "overtrading" problem.
Here, you can read the whole thing if you want. Written when I was of sounder mind http://elitetrader.com/vb/showthread.php?s=&threadid=6666&perpage=6&pagenumber=1 Peace, Rs7
It's all about knowing how you win... LIke on the last downfall today, I made a right call going short but I wasn't in the trade. There was enough space eventually but it would have been a possible loss. It's all about constant self-analysis, discipline and subjective trading rules.
From 'Where are the Customers' Yachts' by Fred Schwed, Jr. "Your average Wall Streeter, faced with nothing profitable to do, does nothing for only a brief time. Then, suddenly and hysterically, he does something which turns out to be extremely unprofitable. He is not a lazy man."
That is a great quote. Working hard and not hard and smart is probably the downfall of many traders. Most traders theorize that since they are traders, their job is obviously to push the buttons and trade. One of the switches in thinking I made that has made a huge difference for me is to think of it like athletics. When I was in school and played football, the "work" was in two a days and then after school for practice. If I did well during the work part then I would get to play on friday night. In trading, the work is for the most part done when the market is closed and everyone else is away from their screens. If you do a good job at the work, hopefully you will be able to play for a long time. Brandon