A Beginner's Mind
- Thread starter Huyang
- Start date
boskop: i agree with you about the advice from section 15. I read the section 15 again and plan to read it again and again. Thanks a lot.
Week 22:
Started to forward test the plan. The goal is to follow the plan consistently. Today took one long being stopped out. Made one mistake in following the plan: seeing 6:30 bar moving down so fast after break above TTR top 89.75, should have prepared to trail the stop below double bottom 86.5 or another reasonable price level, it is part of exit management in the plan. If wait until its close, it is too late for action.
Great advice by DB in TIF:
"Accountability" is not about here's a trade I took this morning (or last night or yesterday) and posting the (alleged) results of these (alleged) trades, whether one does it every day or only occasionally, whether the results were positive or negative, regardless of how "good" the trade "felt" or "looked" or "seemed".
True accountability is about posting a plan for the coming trading session, whenever that might be, trading that plan, then reviewing the results according to whether or not the plan was followed and, if the plan was followed and the results were negative, if the plan needs to be revised. If one doesn't do this, he can expect to have to deal with impatience, overtrading, revenge trading, and a variety of other "emotional issues" that plague traders who have no trading plan (preferably one that is consistently profitable).
The trading plan can be as simple as (1) here's resistance and here's what I plan to do if and when we get there and (2) here's support and here's what I plan to do if and when we get there. The only reason not to follow the plan is, if and when price reaches one of these levels, the trader is not ready to assume the risk. If he is not ready to assume the risk, then the trade is off, and he can later determine why he was not ready to take the risk.
Started to forward test the plan. The goal is to follow the plan consistently. Today took one long being stopped out. Made one mistake in following the plan: seeing 6:30 bar moving down so fast after break above TTR top 89.75, should have prepared to trail the stop below double bottom 86.5 or another reasonable price level, it is part of exit management in the plan. If wait until its close, it is too late for action.
Great advice by DB in TIF:
"Accountability" is not about here's a trade I took this morning (or last night or yesterday) and posting the (alleged) results of these (alleged) trades, whether one does it every day or only occasionally, whether the results were positive or negative, regardless of how "good" the trade "felt" or "looked" or "seemed".
True accountability is about posting a plan for the coming trading session, whenever that might be, trading that plan, then reviewing the results according to whether or not the plan was followed and, if the plan was followed and the results were negative, if the plan needs to be revised. If one doesn't do this, he can expect to have to deal with impatience, overtrading, revenge trading, and a variety of other "emotional issues" that plague traders who have no trading plan (preferably one that is consistently profitable).
The trading plan can be as simple as (1) here's resistance and here's what I plan to do if and when we get there and (2) here's support and here's what I plan to do if and when we get there. The only reason not to follow the plan is, if and when price reaches one of these levels, the trader is not ready to assume the risk. If he is not ready to assume the risk, then the trade is off, and he can later determine why he was not ready to take the risk.
Pages 6-7 of section 15: when we see that the lateral movement beginning at L is stretching out to the right at M, we are able to decide in advance that any material rally, developing out of this sidewise movement at its right-hand extremely, would have the effect of pushing the price up through our previously established down trend supply line D-K. Such a break-through would imply a change of stride of some importance since the stock has been hovering dangerously close to a critical support level ( the line of 30s) and appears now to have reached a position from which it must soon show ability to rally, for otherwise it will be vulnerable to a bearish attack. If however, it is able to rise through the supply line with some degree of power, that is, either with increasing volume, or by a material gain in price, or both, we shall have a fairly conclusive indication that the force of demand generated in the range of 30 to 35 is finally being released -- that a worth while upward move is probably beginning.
It is important to note that we are able to anticipate just such a break through before it is actual occurence and to take a long position before the advance begins because our study of the stock's behavior in the formation A to M has already led us to conclude that is was in preparation for a substantial rise.
It is important to note that we are able to anticipate just such a break through before it is actual occurence and to take a long position before the advance begins because our study of the stock's behavior in the formation A to M has already led us to conclude that is was in preparation for a substantial rise.
Week 22:
Yesterday late exit made me miss the short because not anticipating possibilities in advance. Today i did anticipate, learned from yesterday. Although late entry for the short according to the plan, i made a small progress. One small progress is not significant at all but consistently making small progress again and again will definitely make a big difference in the end. Still consistency is the foundation. My goal is to follow the plan consistently. In order to follow the plan consistently, i have to anticipate possibilities in advance.
Yesterday late exit made me miss the short because not anticipating possibilities in advance. Today i did anticipate, learned from yesterday. Although late entry for the short according to the plan, i made a small progress. One small progress is not significant at all but consistently making small progress again and again will definitely make a big difference in the end. Still consistency is the foundation. My goal is to follow the plan consistently. In order to follow the plan consistently, i have to anticipate possibilities in advance.
Huyang,
I read you comment in chat about me being such an inspiration for you, and you almost falling in love with how cool I am. All I can say is just take it easy and you'll get there. You're building new habits. Once the habits are in place they are hard to get rid of. Imagine developing the habit of doing it correctly, whether it ends up in a win or a loss.
And yes, feel free to gloat about how awesome I am and how much better and positive my comments are compared to Db's. While most here are focused on the straight line method, I have been teaching Db the curved lip method of appearing happier. He is working on the back testing right now and identifying what kind of smile gives what message. :eek:
Gringo
I read you comment in chat about me being such an inspiration for you, and you almost falling in love with how cool I am. All I can say is just take it easy and you'll get there. You're building new habits. Once the habits are in place they are hard to get rid of. Imagine developing the habit of doing it correctly, whether it ends up in a win or a loss.
And yes, feel free to gloat about how awesome I am and how much better and positive my comments are compared to Db's. While most here are focused on the straight line method, I have been teaching Db the curved lip method of appearing happier. He is working on the back testing right now and identifying what kind of smile gives what message. :eek:
Gringo
What I wrote was supposed to be a joke, and yes I knew what you were saying. I just, how do I put it, stretched the praise a bit, and added unnecessary information that was purely intentional. Db's lawyer has already contacted me for libel.
Gringo
Week 22
Today one long and one short; both were stopped out. Although two losing trades, it was ok in terms of following the plan although not exactly.
(1) Long: entry was late. If miss the entry based on the plan, then just wait for the next opportunity.
(2) Short: entry was following the plan, but stop was not. Stop should be 1ps above swing high or 5ps.
(3) Need to take the third long based on plan but since i need to leave around 7:30 so i did not take it. From now on, i may let OCO order work for me around 7:30.
Today one long and one short; both were stopped out. Although two losing trades, it was ok in terms of following the plan although not exactly.
(1) Long: entry was late. If miss the entry based on the plan, then just wait for the next opportunity.
(2) Short: entry was following the plan, but stop was not. Stop should be 1ps above swing high or 5ps.
(3) Need to take the third long based on plan but since i need to leave around 7:30 so i did not take it. From now on, i may let OCO order work for me around 7:30.