Why Can't we See what's really there in Real Time?

Discussion in 'Psychology' started by Flashboy, Mar 12, 2009.

  1. I do this time and time again. I take a trade without seeing the entire picture.

    I attached a chart with a short I took.

    Actually my trading plan calls for going long 1 bar earlier than this short I took but I focused only on those things that would support going short. I wasn't at desk for the long so I missed it.

    Those things were the doji that formed in the rectangle, the 30 min. chart started to go down the prior 2 bars.

    What I failed to see was:

    1. We were oversold

    2. the 30 min. chart showed a reversal bar.

    3. the 30 min. chart was in uptrend, came down for 2 bars then formed a long legged doji. but overall trend is up

    4. We were coming off of a prior support area on 5 min. chart.

    I've been making these mistakes for so long. I need to either give up trading all together or figure out how to conquer these demons that are sabotaging me. And I've been at this for a long time now and still unprofitable. so I'm starting to think I only have one option
  2. Redneck



    The short answer - Because you are not a detached observer

    The longer / harder answer - Figure out how to become one

    Take Care
  3. I know you're right. I honestly think I could tell someone all day long what to do if I had no monetary attachment to those trades and that person would make a ton of money.

    I do it all the time when I decide not to trade.. to just sit and observe. but as soon as I get to trading.. all the emotions come out.
  4. It's what I refer to as a frustration trade. You missed the initial long entry, so rather than be patient and buy the pullback, you try to pick the top, going short. The chart isnt too clear,so can't make out the MA's, but stochastics had clearly crossed up, with good separation. Definitely not a time to go short. Even at that, if you had a stop, you didn't get hurt much.
  5. NoDoji


    Flash, I've come to the conclusion it's like being a pilot. You got to cross-check everything, and get to where you do it naturally. But in trading you must learn to do it very quickly.

    I keep a 3-min and 30-day chart up at all times for any given stock and I always check the 6-month and usually 1-year as well for reference.

    I keep SPY up now and check it for confirmation that the market will move the trade in my favor.

    Make a checklist (applied to both your trade and the market at large):

    - overbought/oversold
    - uptrend or downtrend
    - minor S/R (high/low of the day)
    - major S/R (high/low 6-mo & 1-yr)

    The chart you posted was a low probability short, so there was no reason to put on the trade.
  6. Thanks for the Help.

    I've been meaning to do this, the checklist but haven't. and you're right.. you need to learn how to do it within seconds of realizing there's an oppportunity.

    I've enjoyed your journal although I never posted in it.