Sempai's YM Journal

Discussion in 'Journals' started by sempai, Aug 15, 2003.

  1. sempai

    sempai

    I've been contemplating what to do from here and I think I'm going to go back to the paper trading stage and continue to try to work things out with the technique outlined here.

    I've also got some other things I've been developing as a result of observations made while trading these setups, in addition to some things I worked on in the past that I may revisit and work on some more.

    I don't think it's a very good idea to keep trading these setups with real money based on the results I've experienced after the last few days (it's enough to prove that as it stands now - even with the changes I've implemented, this system most likely still has a negative expectancy). If, after paper trading for a while and making any necessary adjustments, things seem to be working, then I may decide to try again with actual trading.

    However, I won't be posting the results if and when I do resume trading, since I'm concerned that doing so may be affecting the outcome. Perhaps the results will improve when I stop posting - it will be interesting to see.

    As far as I'm concerned, this exercise has proven to me, once again, that with trading, things usually don't work out as well as they first appear they might, and even if they do, they stop working after a very short period of time. I tend to get excited when it appears something might be working which makes the inevitable failure (at least so far) that much more disappointing.

    I've considered the psychological aspects as well, thinking that because I pretty much expect things not to work out to begin with, that creates the reality, so I decided at the beginning of this thread to approach this latest attempt with a "beginners mind". In other words, I threw away my prejudices and skepticism and had a very positive attitude that this was going to work. I assumed the "act as if it were so and it will be" mentality.

    One very positive thing I got from doing this journal is that it forced me to do my homework. I did more research and review while doing this, even though I was only trading for one hour a day, then I used to do when I traded all day long. This was probably because I was too mentally exhausted after trading all day to think about the markets any more.

    Additionally, I found that it was much easier to maintain my discipline and I made fewer mistakes, because I'm only trading for an hour and don't get so mentally fatigued. Also, knowing I only have an hour to trade makes me focus much harder on doing it right because it feels like my opportunities are much more limited (i.e. I won't get a chance to "make up for my mistakes" in the afternoon).

    I'm not the type of person that likes to ask for help, but if anyone out there who has been trading successfuly for a living for a while (either position or daytrading), has any suggestions on how to proceed (i.e. changes to make, problems with my method or approach, problems with my thinking, assumptions, etc.), I would be interested (and very grateful) to hear from you, either in this thread, or via p.m. or e-mail. I'm not looking for any specific methods that you use or "secret formulas" or anything, but if I could talk to someone who knows what they are doing, and discuss my experiences, maybe they could say or point out some things that would help make things click for me. (A little moral support would also go a long way at this point). Also, I'd like to network and meet successful individuals in the field. I'm back in school working on a business degree and would like to continue work in the finance/investment/trading arena when I graduate.

    As difficult as it's been, and despite my continued failure to be profitable after almost ten years of trading, I'm still determined to keep trying (I must be insane). It's not even so much about the money any more as it is trying to figure out how to be successful at something that I've worked so hard at and for so long. It really would be a perfect job except for the part about not being able to make any money at it. :p

    In return, I'll share what I know (I know this isn't much incentive, but maybe I can contribute something of value), and I also will (and already do) try help others who have less experience than I do.

    That was also part of the purpose of this thread - I'm attempting to show some of the newer traders here at ET the reality of trading, and point out a few things I've learned along the way.

    It's been my experience time and time again, that whenever I've found (or more often paid for) something that appears to be a good idea or method at first, it usually ends up failing miserably, causing a lot of grief, aggravation, and anger, not to mention financial losses. I've certainly become wiser - I'm smart enough now to back off quickly before I've done too much damage, and go back to the development and testing stage rather than punish myself by continuing with something that doesn't work, just to prove that I can follow the rules with discipline and it's the (system/teacher's/market's, etc.) fault.

    Anyway, this was fun to do (except the losing money part) and I hope a few people have picked up some useful information from what I've presented here in this journal.

    See you all in the forums. :)


    Sempai

    (A term used to refer to a student of the martial arts)
     
    #61     Aug 27, 2003