Yes, no kidding... and I was trading size too. At least for me, it was. Why you ask? Well, a big part of it is you don't think you are as sick as you are... then you are also on drugs (steroids) to make you better, but they have many side affects that you really don't understand at the time. Of course you are trying to provide for your family, etc. It isn't until you are out of that situation that you really start to understand most of what was going on. I remember looking back at my trading account and seeing the decline start to happen almost exactly when I started to take the drugs, and you know what? I said no way, I just want something to blame... I don't want to take responsibility. So yea, gotta fight through this slump. Family members who don't trade, don't quite get what all is happening. However, my wife at the time, was just trying to figure out exactly who she was married to.. because I certainly wasn't the guy she moved there with. And of course, the world financial system was falling apart, so it was easy to blame bad trading on that... So yea, I was humbled. If I had a team behind me, things would have turned out much better. The things us private traders don't really consider until all hell breaks loose. Learned a lot... stopped trading for a few years... but love it too much to walk away.
KP, in theory what you describe makes sense. Yet, you have also touched on what makes this the toughest job you will do for easy money. It is the ability to trust the plan, and execute it consistently in the heat of battle. Everyone struggles with that. Day traders to position traders to swing traders. Then there is the group who automates, thinking that computers will remove the emotional component... forgetting that they are the ones who can override the computers, shut them down, and tweak them. Secondly, the market is always changing which makes it harder because past performance is not indicative of future results. It is organic and all those numbers flashing on the screen are representing traders all around the world... and any single one of them can enter or exit a trade that will invalidate your edge at that moment. It is why, you have to train yourself in the face of uncertainty to do consistent repeatable trading behavior. It sounds easy, because we all plan for driving in sunshine and driving in the rain, but one day it snows... and you don't have a plan for that, but you still have to get home. If you don't have a good base at moments of high stress, then you default to your base condition of action. In regards to the wiggle room... this is the dilemma for me (the deviation), and that is when trades go very well in my favor. Last year, I had waited patiently for the OPEC news, and when it happened I was ready... I went short in my own account (live) and I held it, and held it well... but all of a sudden I am up 300 ticks. I freaking know that I need to keep holding this trade, that this is the trade of the year, BUT that is when sticking to the plan becomes very, very hard to do. Not knowing your style of trading, I can't offer you much advice other than to be certain that your trading system is robust. And I am not talking this voodoo technical analysis stuff that is peddled around like trader crack... An easy litmus test, is that you should be able to see the same thing in any time frame that you look at AND it should work in any market that you trade. Once you get a solid system, then you get the pleasure of working yourself into the elite trader that you can become. That is when the real work starts. There are plenty of trading systems that will make you profitable, it is us driving where the real work comes in. FWIW
I had "unique" upbringing, don't care to go into it though, but very structured, unless you can't get out of bed, you went to school, you went to work, you went. I grew up with many principles they don't have now like prayer in school, God in governments and if people really trying hard in life to make it on their own-ok to give them a hand up. I have had a disease most of my adult life called Sarcoidosis, no cure, causes inflammation, treat the problem all you can do, I have many other problems as well, so what I should do since most of my problems won't go away, sit in corner watching birds fly? See how many dropping on the window? That is like people retiring and waiting to die. I am going to have very hard days till this cancer trails are over, not like it first time for me, just harder as I am in late fifties and been ill almost 7 years. No, I am not stop working, don't play golf, I don't read books other than other people's lives, and I don't care much to be with people. I am set financially, businesses, tax liens interest, rental property, they run automatically, and spent lifetime trading, somebody has to rob others of their money. But thanks all for their thoughts, but way I don't go crazier is to trade, if you don't use your brain.....
Yukoner, Familiarity breeds lackadaisicalness Last Thur / Fri are past..., and won't repeat unless you change your actions - and do something different ================================= Today; This is Your Job Description / This is Your Making Widgets =================================== (1) Take the first trade as per the trading plan; (2) Note the PnL (or ticks). Immediately do a "go/no-go" analysis and disregard the PnL/Ticks -- "go" if your daily stop limit is not hit/surpassed. (2.a) If "go" goto step (3). (2.b) If "no-go", shutdown the computer, and do something else. (3) When you get the signal for the next trade. Skip the trade. Instead, write the trade down in your notebook. Just sit back and observe the trade as it progresses (this is very important). Document (in audio/book) all your thoughts -- the urges to trade, all the self-talk you have, your feelings etc. (4) After the trade in (3) is complete, go back to Step(1) and start all over again. Notes: (1) For any reason, when in step (1), you enter a trade not in plan, close the trade, write it down. Shutdown the computer, and walk away. (2) Do not review the documented emotions as part of step (3) at the end of the day. Instead, review them the following Sunday morning. ================================ Today simply another new day I am the same - You must do something different No matter what happens / we think / we feel / mkt does We work through it / we set it aside / we move on We do our job Screw the results ======================== Absolutely nothing within you has / will change - unless..., and until - you do something different Two days does not a habit - or change make - it must be from this day forward RN
Day 33 (Mo Step #5) - Had a really good weekend, and woke up on Monday refreshed and ready to trade... with one thought, Stick to the plan and do your job. "Seriously, it isn't that hard... you just have to change a few things." So I did. I put on trades, it just seemed like the Mo tick ones were the winners, and I found that frustrating as I wanted to bank those ticks in account. However, I reminded myself that this wasn't my job... my job was to follow those rules. So I did. I did find that talking out loud helped to diffuse any emotion I felt. That was interesting. I also put on some really good trades, and even though a couple of times they had a decent profit of over 20 ticks, I still stuck to the plan of letting them work out. Pleased with that, as in the past I had the worst time cutting my winners short. On the weekend, I implemented a new rule for the month of March, and that was "No adding to winning positions". This was based on keeping it simple and sticking to baby steps. Twice today, I had two excellent opportunities to do so, and yea I was tempted, but I also stuck with the plan and never added. Thanks to all of you for your continued support and suggestions. Mo step #5 - CHECKMARK! -74 +450 Mo Ticks
Good job Yukon. I find it completely ironic how your mo ticks are banking! Lol. Any correlation here? Something to learn? Just an idea. Could also just simply be those were good ones in "a series of trades".
Do you use a time stop? Like checking on average how long it takes your winners so you can get to breakeven plus one tick? I often think there are flaws in you Trading Plan as your profitable days are too small, you very rarely have big huge profitable days, so that tells me to have a Goal of $200-500 per lot then drop down 80% of size or to Mini crude contract so you don't ruin having profitable day? Have you considered?
Called talking to our self (your self) - Good Stuff!!!! Keep that up ====================== Good Job Today Yukoner Get some rest - tomorrow ain't far off RN
Part of it might be the relaxing and speaking out loud the inner conversation... or it could just be the good ones in a series. We will see.
@Handle123 The time stop is something I only employ on the days I trade news. So might be worth while looking at this for other trades too. All though my average loss happens in about 2 minutes. Wins are about 3.5 minutes. You are correct that there should be some big huge profitable days. The flaw in the trading plan has been me, as I was consistently cutting my winners short. I am working on this, and I am seeing an improvement on it. I will consider what you are saying about having that monetary goal, then dropping down in size or to mini-crude. However, thinking about this just had me go back and check my stats, which I now find very interesting: October 30th to November 24th - 16 days traded AVG WIN = $116 AVG LOSS = $43 Total win % = 39% November 25th to December 18th - 14 days traded AVG WIN = $146 AVG LOSS = $56 Total win % = 40% December 19th to February 6th - 14 days traded AVG WIN = $123 AVG LOSS = $71 Total win % = 41% February 9th to March 09 - 18 days traded - current AVG WIN = $126 AVG LOSS = $57 Total win % = 35 Two things that I think will help: 1) Sticking to my new daily loss limit of $400 2) Letting my winners work out a bit more