Tradersaavy's Discipline Journal

Discussion in 'Journals' started by tradersaavy, Jun 23, 2004.

  1. short 10396
    target is 10381 which is also just above previous day low
    #161     Nov 10, 2004
  2. I did have a major divergence inside this time period, but I did not have divergence inside divergence, which is required for this system, so I passed on the trade.
    #162     Nov 10, 2004
  3. still in trade.

    this really looks like it wants to move against me.

    5m chart on ES, NQ, YM have nice candle looking formations.

    but i'll stay the course, in case the signals kick it back down.
    #163     Nov 10, 2004
  4. and there we have it,

    stopped out 10410
    #164     Nov 10, 2004
  5. Here is the chart for Nov 10 trade 1.

    I truly believe that a trader should find a system that fits his personality.
    This is an interesting thought though because perhaps the only system that you come up with that works, is not one that is in line with your personality.

    Not much to say about this trade.

    Signal was there.
    Target was not hit and did not get an opposite signal.
    #165     Nov 10, 2004
  6. I have decided that I will not look for ways to "capture more of a move" with this system.

    In previous posts I have mentioned that I would work on this and log it in this journal.

    Well I have decided that this system is not meant for trailing stops or taking partial profits to let the move run.

    This system is designed to expoit short moves with a fairly high probability.

    It is designed to be profitable over time.

    Moving a stop or taking partials will not let this system grind out its edge.

    Some of these signals could be taken to get in early on large moves, but there would need to be different filters to select these signals. This would be in a different journal.

    So, I will continue to log trades and random thoughts on these trades so that they can be reviewed at a later time in the hopes of learning.

    Hopefully I will learn something from reading back through past trades and hopefully other fairly new traders will too. I do not know how beneficial this journal would be to experienced traders.
    #166     Nov 10, 2004
  7. Having some connection issues.

    There was another trade today.

    Will see if the computer issues are gone tomorrow and I'll recap.
    #167     Nov 10, 2004
  8. short YM 10424
    #168     Nov 11, 2004
  9. target hit 10409
    #169     Nov 11, 2004
  10. Here's yesterdays late FOMC meeting nice volatility trade and 11/11 trade #1.

    The biggest discipline area for me and probably a lot of traders is to take a signal even if your gut/intuition/feel/whatever says no.

    I know for me there are times, like yesterday where I noted in this journal that it really seemed like the trade would go against me, and it did.

    However, there have been countless times where I felt that I shouldn't get in a trade or while in the trade that it would go against me and it does not.

    This is where the signals have to be trusted.

    I started trading with discretion. This was tough because when something goes wrong you feel that you were not in tune.
    Then I worked out a totally rules based/mechanical system. This was good because if something went wrong it was the system. Of course, the trader is responsible for tweaking the system to optimize it, but that's another discussion. As well, totally rules based/mechanical systems can be backtested more effectively in comparison to a discretionary approach.
    A mechanical system should be great for newbies because they can practice trade psychology. You can give a totally profitable mechanical system to 3 traders and get 3 different results.

    The system that I am trading here now in this journal is pretty mechanical, but the recognition of the divergence is not mechanical. It is something that a trader needs to get a feel for, no matter which indicator is used to assist in reading the price action.
    #170     Nov 11, 2004