I posted this in a trading thread. Thought you might like the premise of a trading plan and discipline of the plan as seperate parts and which part comes first. Have a good day. Raining up here in Michigan, the farmers corn field out my window is smiling and green. bighog Registered: Aug 2005 Posts: 1634 06-17-09 07:44 AM I disagree that "DISCIPLINE" is the answer to making money. Discipline is about "NOT" losing money. Discipline is not part of the plan to make money, it is what is used to CONTROL yourself from YOU. You are and always will be your own worst enemy. Sure you use discipline to exit trades when you were flat wrong, thats a given. How can discipline increase your odds in a game of chance? A loser is a loser and a winner is a winner. Correct? Discipline is my world is "AFTER" you are filled, not BEFORE. Some will say discipline as they define it in trading means not to overtrade, size matters, yada, yada, yada but that is incorrect. That stuff is about money management etc. Risk management and money management are not the same. The days MISSION is to have a battle plan to attack the mkt and gain what you can by implementing your well honed tactics based on the odds those tactics (signals) have shown in prior mkt conditions. Lets just call it an "INTERNALIZED" battle plan of attack. Discipline is NOT a plan of attack, discipline is a plan of exiting the battlefield, you use discipline to exit when your tactics have pinged the gray matter between the ears that you have reached the profit potential of that individual skirmish. Thats also the same discipline you use to exit a losing battle. I would never go into a battle on a hope and a prayer (there are no trading gods and god does not bless trades). Entering a battle with just an exit plan is admitting you are NOT ready to do battle in the real world. Discipline is NOT the winning strategy you seek. PS: more wins over losses only counts in coin flipping, NOT in a game of probability with overhead costs.
bighog Registered: Aug 2005 Posts: 1636 New Post 06-17-09 05:15 AM I posted this in a trading thread. Thought you might like the premise of a trading plan and discipline of the plan as seperate parts and which part comes first. http://www.youtube.com/watch?v=6D7rWLzloOI
I would say discipline is essential. becuase trading is a solitary individual activity, no boss. no boss, sound great, ah! but people will always violate their own promises or rules. I read through <market wizard>, I found those people from military can do better trading than those who are from other social ladders. like martin scwartz, his pit bull several times mentioned his military background and saved his trades. military people will honor their order without any second thought, that is why they do better. discipline means "do things based on rules", market is ever changing, every monent is opportunity, but who cataches all of them? we only know certain market conditions, discipline asks us to do those who are good at.
+$154 Offered 23.24 STEC after it pulled back from that opening high, and patiently waited for the retest, lifted .06 cents from the top. Patience pays off! Covered @ 22.97, pivot from just below round number: +$52 It didnât stage a strong rebound at all and I was just about to re-short it when it literally fell off a cliff. I almost chased, but decided to wait for a run up from oversold. Short STEC @ 22.99 pullback from lower high, covered 22.60: +$76 Short STEC @ 22.63, overbought at the 20-period SMA, lower high. It began to consolidate in a narrow range, so I exited @ 22.49 expecting a break to the upside (which it immediately did before I could get my long in edgewise): +$26 Offered STEC @ 25.55 and it missed twice. It kept dropping off 23.50 resistance and then bouncing back from higher lows, forming a really solid bull flag. At that point I should changed my sell order to a buy stop at that price and caught a beautiful breakout. Then when it ran up really hard I was afraid to short it. That is the ultimate short signal. I need to remember that. Still 200 shares. No order entry errors so far this week!
nodoji u are doing great; just a suggestion; i think you should trade dollars than shares. so each trade is the same amout eg 20k or 30k per trade instead of 200 or 300 shares. this kind of change might be good to try.
Thanks Elit! I agree with you. I've been sticking with 200 shares because of all the order entry errors I was making. Will likely size up soon here!
TEST: http://www.bluefutures.com/xtrader.htm scroll down to where it lets you to get a copy of user manual (in PDF) 495 pages ha https://customer.velocityfutures.com/download/X_TRADER_SETUP.jpg https://customer.velocityfutures.com/download/7xBasicSetup_Simulator.png http://www.velocityfutures.com/x_trader.html Nod, philly fed just popped us from 907.50 +6 line up to 915.00. was behind 7 ticks before that .............. as the whipsaw song says...........one good one wipes out losers (paraphrased). thats where a trader believes in their tactics. On the lower part of page there are x-trader and x-study FLASH stuff as helpful to get setup. ok, done, later
+ $76 Offered 24.20 STEC on open, never came close before its big drop. Small ESRX short, stop to b/e, stopped out b/e (-$1). Short very small STEC @ 23.20 when it broke down the LOD, stop to @ b/e because of how low it was, out for -$13 with slippage as it found support just below that area. Short STEC @ 24.51 pullback from HOD, covered @ 24.31, trend line pivot: +$100 (Traded 500 shares of this one in Etrade account to generate some cash to pay the bills, ha, about enough to pay the water bill. I covered a bit early of course!) End of day swing short ESRX @ 66.10 pullback from highs, overbought on the daily and it makes nice retracements off highs (30-day chart attached). Mainly I paper traded ES today and played some guitar. Got my demo account for ES up, but the tutorial sucked, so Iâll be looking to get a walk through this afternoon. Hog, thanks for all the info!
I think you are not ready to trade ES. 1 point move in Es one contract is 50 bucks! when you are able to trade 1000shares for 30bucks to 50bucks, and you are able to extract at least $0.3 ~1 point per trade, you are ready to trade future market.