One Trade at a Time

Recap:

I'm not following my rules/system completely.

I still overtrade at times, don't always take good setups, and every now and then I try to "win back my losses."

I have a giant ego.

I'm a guy who likes action.

I let myself get distracted ....

I still am completely f*cking terrible at letting my profits run.

I never thought about being wrong or what else could happen.

I knew nothing of ......

Just caused myself some more pain.

Took another trade while on the phone.

I was filled late and found myself chasing the trade a bit.

I've lost track of the several more trades I've done.

I should have kept my stop where it originally was.

Lastly, I think I may have been not just taking the best signals, but rather taking any signals, including ones that I don't feel as confident with yet.

I needed to make back what I lost.

I thought my trade would be successful.

I thought I'd just hold it until it became profitable!

I jumped the gun on my first trade today.

Somewhere I KNEW I shouldn't put on that last trade.

Did terrible today. I realize I diluted my edge.

I've been over-trading all day,

I've always viewed trading as a dues-paying thing.

Right as the market opened, a friend called me to meet up.

last but not least........

I have a terrible habit of saying I'm done when I'm not really done.

..................

CA,

you are so far down the rabbit hole.
when you get to the level of mindless drivel it is over .

nothing you can post will change the outcome going forward.

it will be less painful to take bags of money and toss it out while driving.

a new fork in the road will be required.

cheers,

s

 

Ah that seems like ages ago. I cringe when I re-read my old posts.

For the record, all of those quotes were from back in the summer/early fall. At that time I didn't have a trading plan and I was attempting to trade stocks at a prop firm. I lost a couple grand before closing the account and taking a long hiatus to write a plan and study the market.

There have been a lot of changes since then. Most notably, I now have a trading plan with strictly defined setups based on price action. I'm also only sim-trading until I am consistently profitable.

Currently I have a strategy and am testing it to see if live sim-trading results are any different from my back-testing results.

You are correct however, as the future is the only thing that holds the outcome, let's hope it's a positive one!

P.S. Could you elaborate on needing another fork in the road? I ask because I feel I recently had one.

 

Jan 26 th 2012.

" This morning I felt the urge to trade, even though no signals were present.

Took the trade. I felt that I wanted to hesitate before taking it, but nevertheless I took it anyway.

I didn't follow the plan.

Didn't trade according to plan........"


s

 

Shopster,

You're cherry-picking quotes. Maybe I should have been more specific when writing out my thoughts.

I expressed my desire to trade at 9:30.

Then, at 9:51, 20 minutes later, I had a signal and took it. Two entirely separate occurrances. First I thought about trading but had no signal so I did not take any trade. Then I had a signal, and although I was hesitant I still took the trade.

Taking my thoughts out and only examining the actions: I had no signal and took no trade, and then I had a signal, and took a trade.

Then, on my second trade:

Although I didn't follow the plan, just to clarify, the entry was the only faulty part of my actions, and more importantly, I said I had to go over my strategy again.

At this point I have done that, and only time will tell what is ahead.

 

C,

it makes no difference.
seen a lot of dead traders lying at the side of the road with the " needle of false hope " stuck in their arm.

if you cannot pick out the patsy at the poker table, nothing will change the outcome.

s

 

CA

Trust you had a good weekend….

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Well tomorrow is Monday, and your day 2….

Wish I had some clever saying…, or warm and fuzzy blurb for you – but I don’t

So…

Come Monday; place your ego, and your opinion, up your ass – and trade your plan… (as that is all that matters…)

Be certain... I will do the same Sir


Last week – is just that – last week – time turn the page and move on

Take it one day at a time… one trade at a time
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That said, I do have some thoughts…

Imo we need a few things to trade successfully…..

1.) Ability to read price
2.) Context - Encompassing the TF we’re trading…, in conjunction with context encompassing a higher/ overall TF (both diagonally and horizontally)
3.) A plan - Detailing how/ when to trade within our trading TF context
4.) The correct mindset - To execute our plan – consistently – and repeatedly – regardless of what our thoughts/ feelings scream at us

I would argue (and repeatedly have) #4 is the most important


And to that end I believe you are working on #4..., while at times, reviewing/ questioning/ reverting to #3 (and if I am wrong about this then please correct me) but assuming I am correct;

For at least the next 20 trading days – please focus solely on #4 (by consistently, and repeatedly executing your plan)

Rest assured CA – You ARE keying in on the main issue holding you back… just keep pressing forward Sir (one trade at a time… one day at a time)

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On a different note;

Last Friday you said your mentor ripped into you and shredded your ego... Kudos to him/ her for doing that…. also Kudos to you for listening

All ego and opinion have EVER done for me while trading – IS lose me money

So should you need that again…, please don’t hesitate to reach out to him/ her… it is vital our ego and opinion get quieted when we trade

-------------------------------------------------------------------------
Okay

Tomorrow it’s all business CA – trade like it – come hell…, high water…, feelings…, or thoughts (the last two do subside over time)

Get your mind right tonight…, then trade your plan tomorrow

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Here’s one of my redneck-isms for ya – fwiw

If it is to be – it is up to me (meaning you)

Successful trading Sir – win, lose, or draw
RN

 

You are Very Welcome Sir

RN

 

If you haven't already put together statistics for that (I had 3 months worth trading intraday, 5-min TF, before I started to trust my system), your trading plan is based on theory at this point and that's why you don't yet trust it.

Once you have solid statistics, THEN you know that the profitability of individual trades is not important; the profitability of trading all valid setups during your work day is important. You also know that if the development phase of your plan indicated there might be days with 3 or 4 back to back losses, then 3 or 4 back to back losses doesn't mean you've suddenly lost your edge.

Once you have stats and a plan, then sim trading is where you practice trading the plan properly, which you're now doing, but do you have a plan you trust now?

If you have a plan you trust, your sim trading should be relaxed.

If your sim trading isn't relaxed, or if you're violating your rules, then you don't have a plan that's well-defined enough for you to trust.

If you believe you have a plan you can trust, but you're violating your rules, then you don't trust your plan even though you believe you should. This is the sign of psychological/emotional issues that must be settled before you'll trade consistently well.

 

NOD is of course correct with her entire post… however if her assessment is correct, about your trading plan that is, then I am wrong with what I’m doing….


Here’s my take;

I am assuming (maybe incorrectly) you do in fact have a viable plan – but you’re in between and betwixt


Meaning;

You don’t know (trust) that your plan is viable – because you can’t execute it consistently….

And you’re not executing your plan consistently – because you don’t know (trust) that it is viable…


A viscous loop with two random variables – which (I think) you’re attempting to break by focusing on one aspect (the consistent execution)


Then once consistently executing – you would reevaluate your plan’s profit viability – and of course modify if/as necessary



Now if I am wrong about this… then obviously I am wrong… and I should not be pressing you to trade

If however I am correct – then its balls out

Only you know the answer here….
===================================================

Having said the above…

If you need time to step back and suss out your plan further – say so… I’ll back off and you take all the time necessary

If on the other hand – you feel you have a working plan – which like I said…, I take it you do…

Then its time to trade it, come hell or high water

====================================================

I believe you posted your plan is;

Entry

HL (I’m assuming go long when price is trending up in your trading TF)
LH (I’m assuming go short when price is trending down in your trading TF)

Exit

When price either hits your stop…, or hits your minimal profit target (granted you didn’t explain how you would identify these, but that’s easy enough to do…)

This is a viable plan btw – if it is in fact what you’re doing….
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Just one of the pitfalls of communicating over the net…, way too much room for translation error


CA – what say you Sir – your plan currently viable, or not

RN

 

RN,

Indeed I believe your take on the situation is correct.

I've not tested a method yet for more than a couple days so that's what I'm doing now.

I've gotten really good at back-testing every method possible, but not sim-trading it long enough to get an idea of how capable I am at achieving similar results..

So I believe I've got a viable method with back-testing results, not 3 months as NoDoji had, but I've got results nonetheless.

So far today I'm 4 for 4, execution-wise.

Got a late start with trading as I had a charting issue. Switched back from demo account to live account (sim-trade mode).

Anyway, I'm already seeing that I will need to make changes to the method. For now though I'd like to actually follow through and continue executing the method as is, and later I can come back and review notes on performance.

C.