The problem with fixed systems and fixed rules for trading is that the market is constantly changing. What worked today, may not work tomorrow despite the claims of those who refuse to be tested in public. Stay flexible and change with the market for best results. surf
Job #1 for a day trader is to pay attention. If you ran a trading business and mrnate22 was one of your employees, would he still be employed after Day 7? It's not as if he invented the universe during Days 1 thru 6 and on the 7th Day he rested. He's a problem employee. If you think he's redeemable, help him find counseling and set very strict rules. One more violation, fire him.
The fact that "what worked today, may not work tomorrow" is absolutely irrelevant to the price action trader because price action trading methods have been working for as long as there have been liquid markets and once you have defined rules for trading a positive expectancy system that's been tested through varying market conditions (trend, strong trend, wide and narrow ranges), it will continue to work over time, meaning yesterday's, today's, and tomorrow's results may easily be randomly distributed outcomes that have no bearing on the larger result we care about. Though I've honed my trading plan to improve entries and reduce the size of stop losses, the core plan is still in place. I've been trading the same core strategy I initially defined in the summer of 2010, and it's worked all that time, through high and low volatility, trend and range. This morning my first four trades were failures, two of them full losers, the other two allowed me the chance to get out break even, but may not have, meaning I could easily have had four back-to-back losing trades. My brain said, "Oh no, you've lost your edge, it's just like they kept saying on ET, edges don't last, it's over, you have to figure out what's wrong, before you know it you'll be homeless and forced to beg Surf for a place to live..." (OK, maybe not that last part.) My initial inclination was to stop trading and figure out what was "wrong". That's our human nature. But thank God for folks like Geez and Ammo who taught me via their consistent daily trading in public view what it means to have a system with rules, and to exercise a trader's mindset. I did some deep breathing to regain my focus and shut off that brain babble, and then continued to trade my plan without any changes for what turned out to be a nicely profitable day, with only one other losing trade. Surf, can you provide some examples of when the market changed in such a way that "textbook" technical price action setups no longer worked for day traders and very short term swing traders (2-7 day swings)?
I know everyone is gonna say how stupid I am but I wanna be honest in this thread.. I took another mediocre setup 30 mins ago.. I don't know why.. Trading just drew me in..
thats about as common as blinking,you have to have very strict rules when crossing the street,paying bills,working near a stove,swimming,going up and down stairs,etc..i am sure you have mastered them,you need to ask yourself why you want to trade and if your not serious about it, you should step away until you are..are you really trading?
Ammo, I do have very strict rules.. but I still break them.. and I am serious about trading.. You lose real money so I don't know anyone who wouldn't be serious.. I trade so I can make money and Im greedy too which is probably my problem but how do u solve that?
So you break your rules and take mediocre setups because you're too greedy. I've an idea that will take care of all your problems: Trade size that ensures you're leveraged to the hilt on each trade. Put that PDT margin to full use. This should help you focus only on setups that fit your strict rules, and satisfy your greed as well. And if you mess with your strict rules, you blow up, and all the gnashing of teeth and pulling of hair will be over. :eek: