I'm going to design a computer especially for trend system traders. It will be programmed so that after a few whipsaws, it will start sputterng and spitting out garbled data. Then all the traders will stand around and say,"It's ok Nellie. We've paper traded this system a thousand times before. Sure we've had drawdowns, but it always comes back. Hang in there! SOMEBODY! QUICK! GO GET A RAG AND SOME WINDEX! AND MAYBE A SMALL FAN! There....I think she's gonna be all right." Maybe that will keep the traders in.
Ok ditch, let me format the topic in a way that even you can understand. Dear fellow members, Do you sometimes find it hard to discipline yourself to adhere to a system? I think it would be interesting to discuss this topic. marketnoize, What are your thoughts? (and I already had enough shots to last one man more than a lifetime. I even have credit in case I am reincarnated so I don't have to go through all that again in another life.)
Yesterday I was totally convinced the market was going up after a small pullback in the morning. The big gap, the Iraq news, etc. I very seldom pay any attention to the news any more and I usually prefer to fade gaps but I really thought this was a market mover. My system told me to short around 9:55 but my opinion was so strong I ignored it. Big mistake. Hopefully I learned another valuble lesson.
Profitseer this is an excellent topic. And easyrider qualified it perfectly. Too many times, lol, too too many times I find myself looking back and saying, "you were supposed to be short there, or long there...but nooooo you knew better didn't you bonehead?" Or how about when you "anticipate" the signal by getting in early - you know, for more profits grunt grunt - and the signal doesn't happen? Or getting out before the "system" says to, again because I "know" what the market is going to do. Perhaps I could write a program that monitors my keyboard such that any use of it to initiate a trade outside the system parameters generates an electric shock and blurts vulgarities. Just a thought...
Right now for example, I am in two positions. One is doing poorly, one is doing well. Both are still in. But I am not emotion neutral. The negative one stands out like a zit on the face of a pre-teen. I am dying to cut this one now. Begging to cut it now. But can't. Shouldn't. Won't. Aaaarrrrgggghhhhh! Got to go to rehab so I won't do it. And of course the two thoughts run thru my head - if it continues to go against me then my pea brain will say "I knew" I should have cut it. If I cut it, and it comes back, my pea brain will say, "See... see.... mister know-it-all, mister big-time traderman, mister discipline." So I will wait it out because that is what I am supposed to do, and my method is a close only trade, disregarding intraday noise. Maybe I better go down to the free cheese place and get in line.
see? Now if you were using one of my specially designed system computers, it would start flashing you msgs like, "Are you sure?" and "I don't think I can go on this way" And then you would be saying, "Now listen here you stupid pile of chips! I'm the one that thought this system up and I'll be the one to break the rules if the rules need to be broken. You! You just stick with the plan!!! You understand? Hey you stupid computer, are you listening to me?" I tell ya it aint enough that the market is going against me, this spineless computer of mine shouldn't even be in the kitchen if he can't stand the heat!