A Beginner's Mind
- Thread starter Huyang
- Start date
Week 34 Friday
I really like the insight shown in the below on small stop (low risk stops) and low risk trading (TR break out or TR trading).
Originally Posted by Redneck in Jas_in_hbca's journal on 5/22:
Several thoughts here Huyang
That trade busted through 2⦠of the 3 possible lower risk stops â the next would have been a breach of the range â and way too much loss
By noting the DT.. and price didn't breach it â I was highlighting just how ugly that PA was
==================
Now realize â using a 50% level of a range â is only applicable once price breaks out of that range - which in this tradeâs case â price had broke out & down â then pulled back within the rage (for a test) - then resumed the move down
The potential entries (whenever price pulls back (and either up or down) back into a range) = another BO..., LH / HL....price respecting a DMTL / UPMTL..., DT / DB
On the other hand.....
If price in a range⦠and respecting that rangeâ¦.
Then range trade it (which is a completely different trade) â assuming the range wide enoughâ¦,
I would be trading priceâs traverse from one boundary to the other (and typically holding through the 50% level)
However..., I would still never enter when price was in the middle of this range (simply too damn risky)
RN
Low risk
When the PA clean⦠so to should the entry signal
When the signal narrow â so too should be the risk
And a breach of that signal â the stop
When the entry signal wide â such as a 123
Pick apart the entry signal and find a low risk stop
Price â by design â will act as if it could go either way
But at some point â it will make clear which way it intends to go
Have the patience to wait till things become clear⦠then seek out the entry signal
===========================
Conversely;
When the PA dirty â so too will the entry signal be
When the entry signal dirty â the stop is nebulous
And the risk high
Stay away from these trades â take no dirty signals
==============
Side note;
I dare say all valid entry signals (momentum trades not withstanding) are typically accompanied with supporting PA (which include separate supporting entry signals)
Examples
DT to LHs
PB to a DMTL â then LHs
RBOU â a PB test â move resumes with HLs
Bounce off a zone â failed retest
On and onâ¦.
========================
As for the ability to act real time - THAT IS every trader's challenge... and why so many fail
The ability to keep a clear head.... read the signals... always act appropriately
Those who can - are successful traders - those who can't - and unwilling to to change - fail - its that simple
And why I keep repeating... and repeating...
Trading is 3-5% skill...., & ..., 95 to 97% mental
Successful trading comes from within - period
Adapt or die
RN
I really like the insight shown in the below on small stop (low risk stops) and low risk trading (TR break out or TR trading).
Originally Posted by Redneck in Jas_in_hbca's journal on 5/22:
Several thoughts here Huyang
That trade busted through 2⦠of the 3 possible lower risk stops â the next would have been a breach of the range â and way too much loss
By noting the DT.. and price didn't breach it â I was highlighting just how ugly that PA was
==================
Now realize â using a 50% level of a range â is only applicable once price breaks out of that range - which in this tradeâs case â price had broke out & down â then pulled back within the rage (for a test) - then resumed the move down
The potential entries (whenever price pulls back (and either up or down) back into a range) = another BO..., LH / HL....price respecting a DMTL / UPMTL..., DT / DB
On the other hand.....
If price in a range⦠and respecting that rangeâ¦.
Then range trade it (which is a completely different trade) â assuming the range wide enoughâ¦,
I would be trading priceâs traverse from one boundary to the other (and typically holding through the 50% level)
However..., I would still never enter when price was in the middle of this range (simply too damn risky)
RN
Low risk
When the PA clean⦠so to should the entry signal
When the signal narrow â so too should be the risk
And a breach of that signal â the stop
When the entry signal wide â such as a 123
Pick apart the entry signal and find a low risk stop
Price â by design â will act as if it could go either way
But at some point â it will make clear which way it intends to go
Have the patience to wait till things become clear⦠then seek out the entry signal
===========================
Conversely;
When the PA dirty â so too will the entry signal be
When the entry signal dirty â the stop is nebulous
And the risk high
Stay away from these trades â take no dirty signals
==============
Side note;
I dare say all valid entry signals (momentum trades not withstanding) are typically accompanied with supporting PA (which include separate supporting entry signals)
Examples
DT to LHs
PB to a DMTL â then LHs
RBOU â a PB test â move resumes with HLs
Bounce off a zone â failed retest
On and onâ¦.
========================
As for the ability to act real time - THAT IS every trader's challenge... and why so many fail
The ability to keep a clear head.... read the signals... always act appropriately
Those who can - are successful traders - those who can't - and unwilling to to change - fail - its that simple
And why I keep repeating... and repeating...
Trading is 3-5% skill...., & ..., 95 to 97% mental
Successful trading comes from within - period
Adapt or die
RN
Week 34 Friday
Today i did try to practice what RN described in the above. Hope by repeatedly doing the same thing, i could make it my own. I was using 5ps stop but today i managed to use 2.5ps stop. The trading steps (using 5m and 1m):
(1) find out the direction;
(2) find out R/S which market may PB to
(3) find out stop and zone for entry; then wait PB to reach that zone and then submit limit entry if there is demand for long or supply for short.
Attached 5 charts:
(1) 15m pre-market
(2) 5m at open with first trade
(3) 1m at open with first trade
(4) 5m the last trade (red arrow entry was a mistake; trying to long but used sell order)
(5) 1m the last trade
red arrow: short entry
blue arrow: long entry
purple arrow: exit entry
Today i did try to practice what RN described in the above. Hope by repeatedly doing the same thing, i could make it my own. I was using 5ps stop but today i managed to use 2.5ps stop. The trading steps (using 5m and 1m):
(1) find out the direction;
(2) find out R/S which market may PB to
(3) find out stop and zone for entry; then wait PB to reach that zone and then submit limit entry if there is demand for long or supply for short.
Attached 5 charts:
(1) 15m pre-market
(2) 5m at open with first trade
(3) 1m at open with first trade
(4) 5m the last trade (red arrow entry was a mistake; trying to long but used sell order)
(5) 1m the last trade
red arrow: short entry
blue arrow: long entry
purple arrow: exit entry
Week 35 Tuesday
At week 32, after thinking carefully about the purpose of posting in the journal. I decided not to post until i i have made real progress in making advice received in this journal my own --- consistently following it without effort. Getting advice is just the first step; only making it my own will make a difference.
By now, I believe i have had real progress in making it my own ----- NoDoJi's advice on not widening stops. Once stop is in, i have no interest to widen it or even think of it anymore. My next goal is to do the same thing again and again --- consistently following the plan. In order to achieve the goal, i have to be able to do the hard work on my own; otherwise any teaching would not help me much.
Many traders have generously helped me directly by answering my questions and giving me advice or indirectly by sharing insights or wisdom which i have been reading and learning from. I am very grateful for all those great teaching! In the below i will post trades of today and yesterday and will post occasionally in the summer. Wish you all a great summer!
5/27: 6 trades; one winner. A great advantage of small stops is to motivate me to wait patiently for good timing entry without worrying about missing opportunities, since without good timing, being on the right side may still be stopped out constantly.
5/28: one trade; one winner.
At week 32, after thinking carefully about the purpose of posting in the journal. I decided not to post until i i have made real progress in making advice received in this journal my own --- consistently following it without effort. Getting advice is just the first step; only making it my own will make a difference.
By now, I believe i have had real progress in making it my own ----- NoDoJi's advice on not widening stops. Once stop is in, i have no interest to widen it or even think of it anymore. My next goal is to do the same thing again and again --- consistently following the plan. In order to achieve the goal, i have to be able to do the hard work on my own; otherwise any teaching would not help me much.
Many traders have generously helped me directly by answering my questions and giving me advice or indirectly by sharing insights or wisdom which i have been reading and learning from. I am very grateful for all those great teaching! In the below i will post trades of today and yesterday and will post occasionally in the summer. Wish you all a great summer!
5/27: 6 trades; one winner. A great advantage of small stops is to motivate me to wait patiently for good timing entry without worrying about missing opportunities, since without good timing, being on the right side may still be stopped out constantly.
5/28: one trade; one winner.
Week 36 Friday
A good entry requires good PA reading. Following the plan consistently requires discipline. Managing the trades requires good PA reading and trading what I see but not i hope --- only the price chart and nothing else. Having been practicing how to improve, I feel i have made a small progress in terms of following the plan consistently. In the below please find the sharing which has helped me a lot and the trades on 1m of today (in general 5m charts but so small range switch to 1m chart). Wish all a great weekend!
Advice by schizo in my journal:
And here's food for thought. Speaking of analysis, a good entry* shouldn't require a large stop. It's usually the bad entry that requires the largest stop. That is, where you get in will either make or break your bank account. *Good entry is based on good timing. Even if you technically get into a great setup, you could still lose money if your timing is either too early or too late.
Insight by RN In jas_in_hbca's journal:
Each trade plan contains 3 components
Signal / entry price
Breach of signal / stop price
Way of managing / target price
But also
Each trade contains 2 stages
Enter / set a stop loss
Then Manage / exit (assuming it goes in out direction)
Weâre merely combining the first two (entry/ initial SL) in our thinkingâ¦, AND by our actions
Then setting them aside (assuming the trade moves favorably)
We actively managing / exit
A drawback of our (the human) mind â it can only focus on 1 thing at 1 time
How often do you find (or have you found) yourself releasing the here and now â and diverting your focus back on where your initial stop is / what should you do with it
We absolutely must keep in mind where we entered and initially set our stop lossâ¦
But.., After the trade moves in our direction â we need to set those two in the background â and immediately & completely focus our attention/ action on reading PA / managing the trade In real time â meaning right here / right now â and keep our self in the here and now
The big deal (and I canât yet explain so you will appreciate how big a deal it is)
Is a mindset A mindset that will gain you access to the zone... so that you are able to enter and remain in the here and now
In a nutshell;
Enter / set an initial SL
Trade moves favorably â set aside the entry / initial SL
Actively manage the trade.., exit
A good entry requires good PA reading. Following the plan consistently requires discipline. Managing the trades requires good PA reading and trading what I see but not i hope --- only the price chart and nothing else. Having been practicing how to improve, I feel i have made a small progress in terms of following the plan consistently. In the below please find the sharing which has helped me a lot and the trades on 1m of today (in general 5m charts but so small range switch to 1m chart). Wish all a great weekend!
Advice by schizo in my journal:
And here's food for thought. Speaking of analysis, a good entry* shouldn't require a large stop. It's usually the bad entry that requires the largest stop. That is, where you get in will either make or break your bank account. *Good entry is based on good timing. Even if you technically get into a great setup, you could still lose money if your timing is either too early or too late.
Insight by RN In jas_in_hbca's journal:
Each trade plan contains 3 components
Signal / entry price
Breach of signal / stop price
Way of managing / target price
But also
Each trade contains 2 stages
Enter / set a stop loss
Then Manage / exit (assuming it goes in out direction)
Weâre merely combining the first two (entry/ initial SL) in our thinkingâ¦, AND by our actions
Then setting them aside (assuming the trade moves favorably)
We actively managing / exit
A drawback of our (the human) mind â it can only focus on 1 thing at 1 time
How often do you find (or have you found) yourself releasing the here and now â and diverting your focus back on where your initial stop is / what should you do with it
We absolutely must keep in mind where we entered and initially set our stop lossâ¦
But.., After the trade moves in our direction â we need to set those two in the background â and immediately & completely focus our attention/ action on reading PA / managing the trade In real time â meaning right here / right now â and keep our self in the here and now
The big deal (and I canât yet explain so you will appreciate how big a deal it is)
Is a mindset A mindset that will gain you access to the zone... so that you are able to enter and remain in the here and now
In a nutshell;
Enter / set an initial SL
Trade moves favorably â set aside the entry / initial SL
Actively manage the trade.., exit
11/11/2014
Long time i have not written anything in the journal, but i have always been learning. What i read in the summer have changed my learning: the reason why you have not traded well is very simple ------ you do not really know how to read the market. Therefore, during the past several months, i have been trying to learn how to read the market. I am still a beginner and will always be a student of the market, but i know i have improved. After having not traded NQ several months, yesterday and today i started to trade it again to just know how i could be trading again and have no plan to trade it actively by the end of 2014 because i still need to learn more on how to read the market.
During the learning how to trade journey i have received generous help from many of you: direct advice or learning from your posts. i am very thankful for all the help i have received. Two excellent traders have kindly helped me but also have directly told me in their posts that they have no intention or no energy or no time to coach me. It was painful to read these two posts at that time although soon the feeling was gone like wind and i stay focused on learning from valuable advice they have given to me and given to others. It must be my fault if i have made both traders to believe that i would like them to coach me and the fact is while i have had every intention to ask all traders here for advice but i have had no intention to bother any of you to coach me in a strict sense. On the other hand, many of you have shared your insights generously in helping others or answering my questions directly; i have treated all who have helped me in many different ways to be my coaches in a broad sense. Thank you all!
Attached please find the trade log and two charts. Just break even, but i have felt that i have approached the market and traded NQ from a totally different mindset, just following the simple plan. This is my last post in 2014.
Best Wishes to all of you in both life and trading!
Happy Holiday Seasons!
Long time i have not written anything in the journal, but i have always been learning. What i read in the summer have changed my learning: the reason why you have not traded well is very simple ------ you do not really know how to read the market. Therefore, during the past several months, i have been trying to learn how to read the market. I am still a beginner and will always be a student of the market, but i know i have improved. After having not traded NQ several months, yesterday and today i started to trade it again to just know how i could be trading again and have no plan to trade it actively by the end of 2014 because i still need to learn more on how to read the market.
During the learning how to trade journey i have received generous help from many of you: direct advice or learning from your posts. i am very thankful for all the help i have received. Two excellent traders have kindly helped me but also have directly told me in their posts that they have no intention or no energy or no time to coach me. It was painful to read these two posts at that time although soon the feeling was gone like wind and i stay focused on learning from valuable advice they have given to me and given to others. It must be my fault if i have made both traders to believe that i would like them to coach me and the fact is while i have had every intention to ask all traders here for advice but i have had no intention to bother any of you to coach me in a strict sense. On the other hand, many of you have shared your insights generously in helping others or answering my questions directly; i have treated all who have helped me in many different ways to be my coaches in a broad sense. Thank you all!
Attached please find the trade log and two charts. Just break even, but i have felt that i have approached the market and traded NQ from a totally different mindset, just following the simple plan. This is my last post in 2014.
Best Wishes to all of you in both life and trading!
Happy Holiday Seasons!
Attachments
Happy New Year to All of You!
The first post of this journal talked about my biggest challenge being not exiting when i should. At that time, i thought the reason for that is because i was not disciplined. After one and half years, i finally realized that the fundamental reason is that i was not able to follow the rhythm of the market ---- i was selling when the market was about to go up and i was buying when the market was about to go down. Once getting better on how to read the market, it is much easier to build up discipline.
Learning how to read the rhythm of the market is the key to have the consistent performance, i believe. I am glad that i have been focusing on learning the market in the past several months. I am still a beginner although i know i have progressed. To all those beginners who may think having discipline issues just like me, prob better to spend precious time on learning how to read the market before worrying about discipline issues.
Yesterday: i had 4 trades, the first one was stopped out, the other 3 reached the target.
Today: i had 5 trades; the 2nd one had perfect entry but i did not want to risk 3ps so exited manually; after 2 longs were stopped out, i took the last short. it was difficult not to exit earlier during those PBs but i trusted my reading of the market.
Prob most of time now i exit when i should ---- prob have resolved the issue written in the first post. Now i always use limit entry.
Although i follow price action, i do use EMAs now which saves me from drawing trend lines. So as long as it is helpful for your performance, then ok to use those indicators you like, just having as less lines as possible.
On both yesterday and today, i was trading with discipline, patience and following the plan consistently, and most importantly, with good luck. i know i am still a beginner of the market, and the goal of 2015 is to trade well consistently.
From now on, i will just post in my journal from time to time. Thank you all who have helped me generously! Wish you all a prosperous 2015!
The first post of this journal talked about my biggest challenge being not exiting when i should. At that time, i thought the reason for that is because i was not disciplined. After one and half years, i finally realized that the fundamental reason is that i was not able to follow the rhythm of the market ---- i was selling when the market was about to go up and i was buying when the market was about to go down. Once getting better on how to read the market, it is much easier to build up discipline.
Learning how to read the rhythm of the market is the key to have the consistent performance, i believe. I am glad that i have been focusing on learning the market in the past several months. I am still a beginner although i know i have progressed. To all those beginners who may think having discipline issues just like me, prob better to spend precious time on learning how to read the market before worrying about discipline issues.
Yesterday: i had 4 trades, the first one was stopped out, the other 3 reached the target.
Today: i had 5 trades; the 2nd one had perfect entry but i did not want to risk 3ps so exited manually; after 2 longs were stopped out, i took the last short. it was difficult not to exit earlier during those PBs but i trusted my reading of the market.
Prob most of time now i exit when i should ---- prob have resolved the issue written in the first post. Now i always use limit entry.
Although i follow price action, i do use EMAs now which saves me from drawing trend lines. So as long as it is helpful for your performance, then ok to use those indicators you like, just having as less lines as possible.
On both yesterday and today, i was trading with discipline, patience and following the plan consistently, and most importantly, with good luck. i know i am still a beginner of the market, and the goal of 2015 is to trade well consistently.
From now on, i will just post in my journal from time to time. Thank you all who have helped me generously! Wish you all a prosperous 2015!
Attachments
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