I decided to start a journal here on ET. I'm hoping this will give me a place to document my thoughts, provide some accountability, and lay out what I'm working on in hopes for some constructive feedback along the way. I've been trading for a little over three years and I'm sure I've made just about every dumb mistake in the book. I've been a DOM scalper but I keep slowly bleeding accounts so even though I am profitable more than 50% of trading days, my profit days tend to be small and I let my losing days get away from me. I'm looking to learn how to read price charts but most importantly, how to control the man in the mirror. There is a lot of progress that needs made in the discipline and psychology departments before I will be a consistently profitable trader.
I have been a live day trader for over three years and I currently have the emotionally painful experience of not having a live trading account. I'm currently on a 30 day demo. I have enough funds to put in for another account but the last 3 or 4 times I've done that the results haven't led to having any money in the account within 2 or 3 months so until I get my shit together, I'm not willing to risk any more capital. I'm currently taking the advice of @NoDoji and looking backwards at previous days' price charts looking for patterns that repeat themselves and then taking note of what happens at each patterns occurrence. Once I find a statistically tradeable pattern, I'll test it in live simulation and then likely a topsteptrader combine. Hopefully I'll find a few patterns but time will tell.
Hey OMS Please allow me to consolidate and group First part of your journey: build the mental..., a proper trader's mind set This the learning cure - we've all been there..., done that Not an issue long as we don't keep repeating the same hiccups ======================== This all about mental make up ============================ Top 2 - agree 100% - and both are mental 3rd - easiest to accomplish - but will not fix top 2 ======================= Until one can successfully trade SIM - absolutely no reason to go live / risk money Successfully trading SIM..., means absolutely no shortcuts..., means treating it exactly as you would your live accounts ================= Second part of your journey: build the necessary tools ================ These are two completely separate.., yet symbiotic parts - to you the trader Where would you like to begin Sir RN
Fair enough.., lets get to the nut cuttin Few ground rules: I don't mince words - I expect the same from you Honesty - you'll get it from me - I expect it from you You get pissed - either at me or in general - say so You have questions - ask.., either here or in PM You feel I've posted BS - say so You have something on your mind - speak it.., either here or in PM Know..., every emotion / doubt / question / concern / bitch/ unworthiness / flat stupid / frustrated / or whatever..., you've had..., or will have - I've had it too I survived - so to will you This will be work..., this will change you - since you asked.., I'll assume you're up for it ============================== Step 1 - clarify and solidify Need you to create your Approach / Methodology Some call this a trading plan - I don't..., I will ask you to create a trading plan for each trade - but that is a ways down the road - and we'll discuss when appropriate ========================== Your Approach / Methodology Addresses the; What / Why / How / When - of your specific trading (the who is obviously you) Examples: What: What type of trader What tools you will use What TF's you will use / which is your trading TF..., your higher TF..., your lower TF What are your signals - Which btw - you only get two setups (signals) at this stage - one for longs..., one for shorts - matters not which signals you pick either What context you will use What it is you're trading Add to as appropriate When: Times of day/ week / month / whenever - your will trade Again - add to as appropriate How; How you will be going about your actual trading How will you create context How will you identify price's bias Again - add to as appropriate =================================== This is your approach / methodology - create / add / modify accordingly This meant to clarify and solidify - in you - what it is you the trader does Keep the mkt out of it - this is only about you Anything you're unclear/ unsure about - we can discuss (here or in PM) Goal is to get this crap straight in your head - so you can execute it to the letter - no matter if all hell breaking loose in the mkt Get your approach / methodology created - then we'll move on down the road ================= In the meantime I have a few questions I would like you to answer please (here or in PM) Take your time..., and think through these please How do you feel about uncertainty How do you feel about a losing trade/ series of losing trades (For instance: do they piss you off / make you feel less than / make you feel you were wrong / how do you view them) Do you believe losing trades..., are as much a part of proper trading - as are winning trades Objective..., unbiased..., mentally centered..., dispassionate - to what extent of each are you.., when trading You an observer and exploiter..., or a participant You been trading for over 3 yrs - what stuff (crap) has built up over that time - that needs resolved (put to rest) ========================= I've asked some pretty poignant questions - feel like not sharing with the world..., PM your responses Me - I'm a simple minded..., dumbass redneck - I could give a shit what the world thinks And at the end of this journey of your's Sir - so too will you not give a shit - if trading correctly what you truly desire ================ After your approach / methodology complete - next step will be to instill discipline..., patience..., routine - but not until the approach / methodology complete Can't do it..., if we're even a little unclear on what exactly it..., is RN
I have been spending the last few days thinking about the above questions and it's pretty clear there is allot that I don't know, not only about myself but also about the market. I did some sim trading this morning and got absolutely wiped out. I ended 0 for 6. I have to study more and get better.
Also, I'm currently re-reading Trading in the Zone by the late Mark Douglas and I'm making my way through Brooks' materials.
Honesty - I respect that.., it a good/ solid foundation upon which to build Screw the results - the only question is; Did you follow your process? No need to answer OMS - before we're finished..., your answer will be: Yes ====================== Study more what; You The mkt PA Indicators The Fed Monetary policy China Why the chicken crosses the road (my sorry attempt at humor) No matter..., I'll assume we're still focused on this..., first and foremost - until you say otherwise ============================ Beautiful One important note - take time to rest / do something else / give your mind a break away from trading I understand you're eager - but this is going to take time..., and too much of anything is bad People can only absorb so much at a time / can only learn / change at their own pace We can cram for exams - that crap absolutely does not work for trading Our internal must be rock solid / and built on unwavering..., factual..., conducive to trading beliefs - otherwise the mkt (actually we) will rip us to shreds RN
I was thinking about this yesterday just prior to the fed announcement Not only should your approach / methodology detail out what you will do It should also include what you won't do Examples; Not enter prior to an announcement / certain reports No trading during chop / lunch / 15 or 30 min just after the open /or prior to the close No trading after x amount of losses..., not mentally prepared..., physically rested / fit..., or after cocktails You get the idea When / how / why we trade - is important When / why we don't trade - is..., as important RN