As a consistent profit day trader...
- Thread starter Leob
- Start date
Not consistent for too long yet, I hope to hit 5 years in 4 years, but if I am in a trade, I am constantly asking if the thesis is still good. If the answer is no, I'm out. A stupid trade is one where I don't ask myself the question or if I ignore the answer. This is not allowed. There are more than enough opportunities to make money, I don't need to worry about FOMO or hope that it goes my way.
Yes. I haven't done a single override of my systems in about a year or so.
No. An important note: losing trades != stupid trades.
No, you shall not accept stupid trades. But you can look at them as cost of education, which eventually you need to stop paying.
Keep yourself accountable and review what your "stupid" trades exactly cost you every month. One of the common mistakes traders make is stopping journalling and doing records keeping when they deviate. But that is precisely the time it is most valuable. So you can look back and remind yourself how stupid those things were and how much that "education" cost you.
If you properly record everything and do monthly reviews you will be forced into deep realizations.
Nice to hear that stupid trades are disallowed by the pros. I initially thought it's OK once in a while, but not even then. What's the point? No point. I may have turned the corner.
I am a discretionary trader and I will give you an honest answer:
I am never satisfied with my level of discipline. Do I see improvement month after month? Most of the time, yes. Will I ever be at 100%? Of course no.
I check all my trades afterwards and I look for perfection.
Do I still have stupid trades because of discipline? Yes! It happens less and less after a losing streak. It still happens once or twice a month when I make a killing, just right before I become the Lord of day trading
I am working on it.
I try hard to not do stupid trades. They are non recurring costs. They never become a high cost of doing trading business.
I just don't accept those trades as "normal" are they should not become my norm.
I am never satisfied with my level of discipline. Do I see improvement month after month? Most of the time, yes. Will I ever be at 100%? Of course no.
I check all my trades afterwards and I look for perfection.
Do I still have stupid trades because of discipline? Yes! It happens less and less after a losing streak. It still happens once or twice a month when I make a killing, just right before I become the Lord of day trading
I am working on it.
I try hard to not do stupid trades. They are non recurring costs. They never become a high cost of doing trading business.
I just don't accept those trades as "normal" are they should not become my norm.
Umm I know several pros who made stupid trades. Some are some REAL BIG stupid trades. Pros certainly aren't perfect and I have yet to find one who ALWAYS executes according to their "proven system." They are skilled humans but because they are human they will sometimes fail and not follow their plan. All pro athletes screw up sometimes. Even the exchanges screw up...
We live in an imperfect world with imperfect humans filled with uncertainties. It is life!In order to be "disciplined", I believe you first need to define what that means. For many people, it's more or less a blanket term that they use blindly. Merely getting your ass out of the bed to trade in the morning can be considered as a discipline. But more rigorous form of disciple requires rules that are time tested IMO.