Just a suggestion. How about maybe just sitting down and going over the setup that you're using. Like a check list go down the list and see what has to happen for you to take a trade. i.e. 1. retracement 2. OB or OS Define your setup and then back test it. See how it does over a particular sample size. Trade it with real $ in real time with small size or simulation. Keep track of your trades and grade them see how they did. A journal that lists whether or not the criteria was followed before you took a setup. Your feelings during the placing of the trade. i.e. I was nervous I was relaxed. It sounds odd but if you keep that journal you'll start to see a recurring pattern. Go over your journal at the end of the day. Review every trade and try to find out what you did wrong i.e. you didn't follow your rules. If you didn't follow your rules then the trade was an impulse trade. Successful trading is actually boring. Thank about it for a second. "It's like stamping license plates" - Doug Hirschorn " Trading should be like like factory work" - John Carter One of my favorite quotes: "All you need is one pattern to make a Living! Learn first to specialize in doing one thing well.â-Linda Bradford Rashke Define your setup and focus on that one setup until you understand it and can execute it and know it in and out. Ask yourself the question about why you're trading, for excitement or to make money? Good Trading, Qyu
You want to know why we make trading so difficult? Because WE MAKE IT THAT WAY. *At least that is how I understand it from reading Trading in the Zone.* The question is, how do we change ourselves to make it easier. Hehe, the first way is to actually read that book, because it helped me in so many ways, it is amazing.
JMowery1987 Great book. I'd definitely recommend any of Mark Douglas' books Brett Steenbarger and Doug Hirschorn have written some great books also. I think definitely looking inside ourselves and asking why we do things helps a lot. Creating a personal trading journal and going over it to find recurring reasons for our behaviors is a great tool. An eye opener.
I have always had a hard time following the trend, too. When you buy as it's going up, it's tough not to be overcome by self-doubt. What I've found useful is plotting the Opening Range and Pivot Range to base my entries - fractals, if you will. You would be hard-pressed to find an up day where price didn't either bounce off of or plow up through either or both of these points. Havng these specific prices, I'm able to see what the stock does when it gets there - and I look to the tape to show me where order flow is going to push it. If it's at the top of the opening range and I see an order come into sell - I'm shorting it. If I'm wrong, however, I know precisely where to get out - within a few cents of the top of the opening range. Refusing to follow the trend, IMHO, is about: A) Not knowing where the trend began and what made it move in that direction, and B) Not knowing where to get out if it reverses. Answer a) and b) and you'll be set.
from qyu-- Successful trading is actually boring. Thank about it for a second. "It's like stamping license plates" - Doug Hirschorn " Trading should be like like factory work" - John Carter I don't think successful traders are bored. Every successful trader I have seen has a passion and enthusiasm for trading. It is simply that we are supposed to be enthused about the process and not worried about the money on that particular trade.
No.. I didn't save them.. Are they in the Price and Volume thread.. I'll try to search for them in a few..
I agree with the above but there is something to be said about boredom if one is having problems with itchy trigger fingers. Addiction to random rewards (over consistent rewards) is clinically proven in lab animals, and it's the same thing when it comes to trading -- if proper trading bores you, then better look twice at what's really motivating your efforts.
Hi, Flashboy. I've struggled with this same problem, and I think it comes down to priority of focus and/or patience. I'll assume that you're already tracking higher-level timeframes to get a sense of whether the market is trending or not. I find it can be difficult to simultaneously look for both trend and countertrend entries. Since my default style is to buy/sell short-term support/resistance, I tend to miss the great opportunities on trending days when I don't shift my priority of focus from scalping to trading with the trend. Many times I simply can't see past the bias of my default priority in order to consider other opportunities. On days when I determine the market is clearly in a trending mood, I've made a conscious effort to try to shift my primary focus to entries and exits that are appropriate for those conditions (i.e., longer-term trades), and I simply stop trying to monitor countertrend signals. The patience part of the problem has come in when I've realized that I missed a good entry for a position with the trend, think of the money I could be making, and then impulsively enter countertrend positions just so I'm not missing out. This has been bad for me in two ways. First, as noted above, because my attention is on the countertrend I completely miss the next opportunity that comes around to get on the trend. Second, the risk/reward ratio of countertrend trades on trending days can be very unfriendly to equity. Sitting on my hands to watch and wait patiently for a good entry with the trend is challenging, but ultimately worthwhile. I'm still working to overcome this problem, although these days it has far more to do with exits than entries. I usually have a hit and run style, which on trending days has me making great entries, closing at the first sign of resistance, and then watching the market continue strongly in the direction I was trading. While these may seem like simple ideas, when I began to actively consider them in the context of my trading actions they took on a new significance for me. I hope some of this is helpful. Regards,
I don't think successful traders are bored. Every successful trader I have seen has a passion and enthusiasm for trading. It is simply that we are supposed to be enthused about the process and not worried about the money on that particular trade. [/B][/QUOTE] When I mentioned boring I was referring to not looking for excitement. Don't get me wrong there's nothing like putting on a trade and having it work in your favor knowing that you followed your plan. I'd have to agree with you passion and enthusiam is important especially if you're looking to be in this business for the long term. Good Trading, Qyu