The evolution of my trading - Dumping the indicators & loving small losses

Discussion in 'Trading' started by cunparis, Oct 13, 2010.

  1. 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.
  2. Bakinec


    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.
  3. joe4422


    Sounds like a smart move. Instead of an indicator, you really just need a plan.
  4. dave4532


  5. 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.


  6. I had $200 to win on Secretariat in the Derby.
  7. 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. That’s really important for me.
    2. While it wasn’t 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 I’m all set. So the point here is one doesn’t 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 didn’t 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 doesn’t always work out this way but this is the biggest argument for using tight stops, and if possible scratching a trade that’s not going well.
  8. David70


    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.
  9. 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.
    #10     Oct 22, 2010