I recently started a series on my blog about the evolution of my trading, beginning with my trading using the eminiwatch method which consists of sine wave cycles on multiple timeframes. When I got rid of all that my results improved quite a bit but there was still one problem - the psychological issues! I would do anything to avoid a loss. And that had to change. So I set out to change my thinking and my beliefs so that I can accept small losses and keep them small. It's not easy to do and I had a small relapse yesterday but overall I'm making a lot of progress. I've been writing about all this and I'd love to get some feedback on it. I've been journaling it as I go and my results are improving daily. So I hope you will find it useful. The series starts here: A look back on my journey - Part 1 I'd love to discuss some of these issues that all struggling traders face.
Good riddance. I trade without any indicators too. They only serve to confuse you. All a trader needs to be a success is a chart and mental trendlines.
I last wrote about Market Profile and today I wrote about volume profiling which I learned from FuturesTrader71. I hope you find it interesting. http://www.tradewiththeflow.com/2010/10/14/a-look-back-on-my-journey-part-6-volume-profiling/
http://www.elitetrader.com/vb/showthread.php?s=&postid=2981494#post2981494 Cunparis looks like a shill to me
Went short yesterday before the close, scaled out before the European open and then just took profit on the 2nd half before the ES close. Cheers!
Some thoughts on yesterday's ES trades: 1. I won only half my trades. But I ended positive. How? My winners were bigger than my losers. Thatâs really important for me. 2. While it wasnât a good day, I got 2 pts trading one contract (trade 2 was actually two different setups that overlapped). If I can get 2 pts/day every day Iâm all set. So the point here is one doesnât have to get 10 pts to make a killing. Just 2 pts/day consistently. 3. Since I won half and lost half, those losers have a big impact. If I could have prevented one loser, I would have finished one pt higher for +3 pts which is 50% better. Yes, one single trade can impact my profit at the end of the day by 50%. And if I could have been on the right side instead of the wrong side, it would have made a difference of +2 pts which would have doubled my performance. Each trade is very important! The one time I read an email or surf the internet could be the time I miss something and lose. 4. On Trade #4 I didnât like the action on the DOM and I cut it quickly. This allowed me to re-enter 2 minutes later 1.75 pts lower. Now it doesnât always work out this way but this is the biggest argument for using tight stops, and if possible scratching a trade thatâs not going well.
Another way to improve at least during paper trading is to use a timer: 1. If you trade is negative for 5min then get out. 2. Dont get out of a profitable trade until after 20min. Will help you psychologically.
Interesting suggestions. I've debated on the first one, also known as "time stop". I have had trades take forever to hit their targets so I am undecided. For the second, my target is based on a multiple of my risk. so as soon as I have that I want to exit. This is for the first contract. Once that's consistent with real money then I'll add a second and go for the next S/R level while trailing a stop. I try to remove time from my trading. I don't use any time-based charts. 20 minutes is a long time for some but a very short time for others. Thanks for sharing.