I'm pretty happy I closed a trade today because it exceeded my loss limit..otherwise, I'd be poorer typing these lines... I thought that averaging down was one of the biggest errors newbies make, fear is quite an important part of successful trading as long as keep it under control and not the other way
This is such a true statement for me. I had to get the technicals of trend following first, then tackle the emotions of trading with the trend. I still find myself occasionally not pulling the trigger on a valid setup, only to find that i missed the "Trade of the Day" (ie the 50 pip run of the euro starting around 11:20 yesterday). But not as much as several weeks ago. Now that my emotions are a little more under control, earlier this week i found myself tearing apart my system and rebuilding it from the ground up. It's sleeker, simpler, exact entries instead of vague, targets, runners, more specific exits, fewer rules, etc. but still has the same premises. (and i really thought i had a good plan initially, three revisions ago) And I am only allowing myself to execute one piece at a time, doing that piece well, in essence, "earning" the right to trade the complete system. So as one aspect gets stronger, it points out weakness in the other. strengthen those weakness, and you get new insights into the former... and so on, and so on. Good Trading H
I laugh when when I think about the first thing I said him: lol, Jack seems to really enjoy utilizing his CLM (cognitive learning model). We know he rarely gives an explicit reply. For help with any clarifications you could use these sources: ET search; Thefreedictionary.com(& encyclopedia); and Google.. amongst others . Thought provocation/association is the name game. Lingo: I think the pinwheel is an invention to keep the mind from being overwhelmed. It's a pretty neat expression, and is adequately descriptive.. kind of like the color of light.. or lack of light. It could also be described as a factory-all compressor that gives the minimal amount of psi needed to get the job done (ie,24:2 or 192:16). But, it's only turned on when needed, and as a pre-requisite, it's regulated, so as to not blow out the o-rings or clog the filter.... lol. Since the pinwheel is simplex, I think the current challenge for learning is, the appropriation of ordinal altitudes. I mean attitudes...What ever. Ktm'r
======== re; doing years of research /trading work Even though I 'm right handed, Lefty is right; doing years of work is the tough part, because trading is harder than just knowing probabliities on trends & shorter countertrends or sideways trends [ranges]. Steve you had a good point because info is never enough; without actually doing like, actually trading with trend,/plan or occasional countertrends, info is never enough. Plan written would have to include basic differences between trend/countertrend and so on.
The trend that takes place before position entry is not where the money is made. Whatever price trend is going to follow position entry is not usefully predictable based on price trend before that point, using any standard method. If it was, efficiency theory says that the difference between current price and predictable future price would be closed almost instantly, and there would not be an exploitable opportunity there. So that's why trading the trend is difficult.
Pabst, Since I trade intraday I was referring to the intermediate trend.. the 30 min. trend which was down.. but yes the daily trend has been up..
Steve, You couldn't be more right.. and I have gotten much much better with this.. I used to be horrible about it.. and my plan now calls to only buy bottoms if at support and a true reversal signal is present.. I do know now that I can wait for the market to show me its turning and still grab a nice trade after it has turned.. but I do miss out on good continuation trades with the trend because I am too concerned with when/where the market will reverse..