Spydertrader's Jack Hershey Futures Trading Journal

Discussion in 'Journals' started by Spydertrader, Dec 30, 2006.

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  1. ivob

    ivob

    Hi KK70. I experience the same thing. The process is all that matters. An FTT is an early sign and it's impossible to tell how far price will go in your direction after that. We just focus on change and continuation and even change doesn't mean you make profits because the current (fast) channel may just slow down while you anticipated a reversal which may or may not come after that.

    We focus on what price doesn't do. "If it doesn't continue in the same pace then sentiment is changing and it will go the other way" is more or less the philosophy here IMO. And even if you get signals that do not support what you anticipated (for example if there's no low volume after the FTT) there often is plenty of time to get out with a few ticks of profits because for a little while it will seem like it is going your way after the FTT, trying to fool you so it seems.

    It's much easier said than done not to set a profit target in your brain and just keep on looking at the market. However, a profit target has to do with your entry, your exit and your P&L and none of this is important when determining market direction at any given moment. No market information comes from your P&L or from your point of entry or exit. We all know it but it's very hard to practice.

    Imagine price going fast in one direction, we notice an FTT and change our bias. It's just very hard to imagine price will make a big move the other way, because it "didn't look like it was going to do that". So if it stalls a little while or it seems to go against your position and then we have some ticks in our favor we tend to get out even though these few ticks will be many ticks eventually. Every big profit starts with a small profit after all and big profits is what we're after. So it's a counter intuitive strategy just like the whole market is counter intuitive. We have to forget what anything looks like and just annotate and discover the FTT's and BO's. While annotating and believing in it we train ourself to focus on what's important.

    The mindset of always being in the market (SCT) helps here because it always forces you to say something about the anticipated move or direction. What I notice is that the moment I think it's time to take profits is often a very good moment to reverse.

    We need a positive vicious circle here and we are building it thanks to Spyder and everyone else here. We develop skills, we practice, we become better, we have some successes have motivation, we become even better, we get more confidence in the method so we follow it better and become even more motivated and have more successes, etc. etc. All the time little by little we are improving.

    Anyway, sorry for the long post and feel free to correct or comment.

    regards,
    Ivo
     
    #1311     Feb 22, 2007
  2. Its funny you bring this up, I was discussing this same exact topic with a buddy yesterday. Shaking the whole entry/exit mentality and the benefits of just being on "the right side" of the market. It DOES make things much easier and more fluid. I completely agree.

     
    #1312     Feb 22, 2007
  3. Tums

    Tums

    Congratulations on the times downloaded !

    I have been reading like mad trying to catch up, but it seems there are lots of diversions and references to other pages, which led to other pages...
     
    #1313     Feb 22, 2007
  4. Pr0crast

    Pr0crast Guest

    What the... is that a glitch??? There's no way that many people read this thing, unless someone slashdotted the link or something.
     
    #1314     Feb 22, 2007
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