Will document thoughts outside of specific trades here. Mostly for myself to reflect while in/around the moment, but I'm sure others could find something to reflect on as well.
I made a stupendously bad trade yesterday. I followed someone else. I ended up losing a lot of my first week's gains because my scaling in is different from his (I maxed out my max trade size before he did). Pure, utter stupidity. I even knew this going in. I have updated my checklist to make it more clear that I am taking only my own trades. I have to check off each thing before the code lets me place a trade. Psychologically though, I did not feel at all stressed. Bottom line: stick to the checklist.
Psychological impact of taking someone else's trade is that you feel less confident on your own. Which results in missed opportunities. There are 300 billion possible systems, all of them profitable. You already have one that's profitable. Wring that one out, make it second nature and then move on.
Wanted to ask the same, but then if the person, that he choose to copy, wasn't that expierenced (based by the judgement of expierenced ones), then it may hurt an ego of oneself, because it was a wrong choice. And if he was an expierenced person, that may give a bad rep, for that person. Double edge sword. Or maybe im just ovethinking. Politics. Not revealing the name, is the best outcome, but if i would ask, then it would be, - was it equities, options or futures, was it automatic system, member of ET ? (but that would be, wasting of time?) Then one can sorta guess, who was that. Following the jornal. Good read. And , a wrong choice is better than none, given the fact that theres was ,,gem" & the lesson in it.
Very experienced guy. His trade was good and he closed for a profit. However, he scales in between 6-9 lots, I only scale in 3 for now. So you can see the disconnect. Bottom line: I just shouldn't do it. Mine works just fine. I do like his system. It's legit. I'll back test it later but I've watched him do it live. It's simple and works (and can be automated!)
Relating feelings on a scalp-y trade I just exited. 1. I need to go pick up my boy at school. He has hockey later. So I had a deadline by which to be out. I did look at the time and estimated I had enough time for a scalp (around 1.5 hr). I was right. This time pressure is not good though even though I wasn't feeling pressured. Maybe I should not trade in the afternoon. Remember, one good trade is enough. 2. Price was really driving home the point I read in Pitbull which is (paraphrasing): quite often when you get the feeling in your gut like you want to end the trade, you really want to double-down instead of exiting. I didn't double down though. I don't think I ever would on a scalp. Bottom line: name of the game is keeping busy and protecting capital until the right trade comes along.
It didn't matter how incredible I knew a trader was. I never entered into someone else's trade because i then felt I needed them to tell me what to do with it.
I think in the back of my mind it's just that I know eventually I'll start a strategy where I trade like him. But it's too early.
It's kinda like having a short position, margin/leverage, or CFDs, where someone else, dictates your outcome.