What's rules do you follow to keep the discipline in check?

Back to Demo for me, when I have a bad day or stop trading the plan and just gambling.

 

Two rules that help trading are money management.

1. Have a daily loss limit-

Whether this be points or dollar amount. This should be a small percentage of your account. This will keep one bad day from destroying your progress and potential.

1. Risk half of your profits to increase your bottom line-

Another way to keep your discipline is to not let wining days turn into losing days. Have certain bench marks , points or dollars, where you add in a level. For example, when I reach $1000 profit, I will not allow myself to go below $500. This rule will force you to walk away with profits

Read full article called Survivor Day Trader:

https://www.cannontrading.com/community/newsletter/Survivor-day-trader-and-coffee-chart#one

 

Follow your trading plan of your trade method including documenting your trading (writing down your thoughts) from trade to the next trade assuming you're not scalping.

This will slow down that "rage trading" that you mention via allowing you to take a emotional breather and brings back a little calm in your trading because you know you now have trading notes (your thoughts) that you can not get from your broker statements that you get later at night from your broker.

You'll be able to see via your notes what are your triggers for the rage trading.

wrbtrader

 

Thanks! Do you have a template for your trading journal or do you know where to find a good one?

 

That's really tough! but I have to say that the days after I lost control, are usually very good days.

 

Mine went out the window and the window wasn't even open, today, sucky sucky combine $2 of daily limit was over so might be screwed ( switched to sim and it moved back to live arghhh )

Back to demo all fixed back live tomorrow trading

 

There are usually some tell tail signs that it is not a good day. E.g. for me and my tactics and system:

Too many scratch trades (as a percentage of Wins) -> Poor entries/exits
Total win and losses in points or dollars is 2-3x daily goal -> Churning
Missing big moves from an early exit -> Lack of confidence
More losses than wins -> Poor entries/exits
Full Stops -> Many reasons
Other things too.

So I add all those sub optimal "types" up during the day, AS IT HAPPENS. If the cumulative (weighted) amount is above a threshold, I close everything down and walk away for an hour or the rest of the day. Basically a "Tilt" meter based on the trades as the day progresses. I want to PREVENT a tilt.

 

Do you keep an error log? of every suboptimal move for every day? and look at it on Friday? and repeat any entries? is it really annoying?

 

%%
YES;
study charts much more than that/that keeps one from stupid stuff like revenge/rage trading.
Most profitable traders/investors get smaller after losses\unless one has a very low hit rate.
And even a low hit rate/one could benefit from cutting back when losing; turtles did that with a low hit rate.
Blowing up an account could be a clue to change/unless the main goal is drama.Good question,trex.........................................................................

 

Don't risk everything you have for what you don't need.