Feedback appreciated. My Journal Begins...

[jsmacksem]

Catching up on your thread JS- your recent comments- and although unqualified- a couple of comments/questions for your consideration-
If trading in SIM, and you hit your "ideal' daily profit target early - why would you simply walk away? Why not continue to test yourself to see if you can indeed select the wheat from the chaff? This would seem to test whether your ability to select the best of trades was just odds- or was it an acquired sense of evaluating the trade condition.?
Why does a predetermined "profit target" suggest that you close the trade? Shut the cash drawer closed? How do you know when your winning trade that meets your expectations will not become the big run higher of the week? If you take the entire position off at target, you are effectively limiting yourself to trading within a defined boundary of limited expectations. It may not occur often- but that bigger winning trade can make up for numerous smaller losers- Perhaps a consideration in your trading plan would consider a trailing stop on a 1/4 position- To see where it might go. If you trail a stop- keep it just below where your profit target was-raise it gradually- and see where it may take you- You will find this partial position will add to your edge over cutting your trades off. While i do not trade as you do- the principle is similar - and is worth trying out IMO.
"Am I not fully accepting the risk of each trade because I want to be right? Probably. I think it’s more than this though. I think there is also a lack of trust in my method, and in myself. Is there something I can do, that will help me to trust my method? The statistics from the 50 back-tested trades were great."
Could it be that you realize that you are indeed trading in SIM- and that is the elephant in the room? One can shadow box, but stepping into the ring with a real opponent is a different condition from a 'sim' condition- and perhaps this is a concern your 'trust'- it is not so much the effectiveness of your method perhaps- but the response of the operator.
While you can criticize and analyze yourself in SIM- some part of your mind realizes it is indeed SIM-at some point, you need to step back into the waters and test them- gingerly.
I personally found it useful to use IB's $1.00 commission/100 costs to take numerous smaller trades during periods I wanted to "test" a strategy- The goal at the time was to "practice" a method of approaching the market- It allowed me to take numerous smaller amount trades with a small commission cost- just to 'practice' without risking a lot- but real $$$ were in play- This may-or may not - be appropriate to your selection- but if your "ta method works" - it should have wider applications
What i am personally finding interesting at this point in the market, is the increased volatility- A method based on the recent past lower volatility periods may not work as well- or perhaps it works better- within a different market environment. You would have to be the judge- but a static approach to the market works as long as that period is uniform.
If you continue to trade SIM, prepare yourself for 2015 with increased market volatility- My personal belief- Just look at today's Price Action!
I think you will eventually succeed when you step back in because you have both the desire, the work ethic, and prudence- And are not seeking to be the home run hitter at your first time back at bat- Get that consistency of average base hits makes great sense.
I don't know that you should not perhaps consider some time in the Triple AAA teams though before stepping up to the big leagues- It is a logical training process- employed by most major sports teams- and what greater Sport is there?
Many would-be traders jump in and bet large- It works until it fails to do so- Markets change-
Do you have a position sizing approach? Do you Risk more than 1-2% on any single trade?
IF so, I would suggest that you are taking on way too much Risk- and are ultimately destined to be a bright but fading Star- that ultimately fails. Knowing that I am not a 'successful trader" I would hope the successful traders on this platform could give you some deeper guidance on this subject- because this is what will assist you in surviving the learning curve- and ultimately allow you to become the success you want to be.
Arrogant statement- but valid- I have caught large portions of this thread- but i do not think I have seen any discussion of appropriate Position sizing -particularly for a newer trader- There has been a lot of the positive psyche stuff going on- but I likely missed the 'backbone' basics page of the mechanics of trading survival 101 - just don't blow out the account- Understand position sizing- trading to learn- before you trade to earn!

Best of Luck to You!- SD

Hi SD. Good seeing ya. Thanks a lot for the advice and especially the recommendations on position sizing. I have a preliminary approach in my plan for position sizing, but that will ultimately be built once my method has enough statistics to determine the appropriate position based on execution.

Right now, position is as small as possible.

-JS

 

[jsmacksem]

1. I fully accept the risk associated with each trade, or am willing to let it pass.

2. Being wrong well and small is right.

3. I wrote a plan for a reason.

-JS

I'm here tomorrow all day. Charts prepped, head ready. I'm still learning to execute well with the above in mind.

Here we go,

JS

 

[jsmacksem]

Another good day today.

1 Trade. 1 W 0 L : +$212.60

Trade 1:

ENTRY: Sell 4150.5

STOP: 4152.5, a breach of range extreme.

Target: Range Height: 4139.75. Managed with a TL.

Notes: Was prepared for a "second mouse" opportunity here as well with a possible zone retest. There was a second mouse, but it didn't get close to my stop.

I went in today with a centered head, focused on being aware of myself and executing well.

Emotionally, trade 1 went great, until price came within 2 points of target. Then, my heart started pounding.

I realized I now shifted from objective, to completely emotional, and this simply can't happen. I was able to remember those couple things I'm working on. Being wrong well and small is actually right. Do I fully embrace/accept the risk of this trade? If so, my expectations should align with the markets, which is that anything can happen. And then BOOM. It hit me, I was actually ok if this trade was stopped out, because I did my job, and it broke down, and the loss was small compared to my winners.

Proud that I followed my plan and halted trading after reaching my daily objective. I continued to watch, and will continue to watch/learn today.

Also from my personal journal, I'm learning more and more that one doesn't have to "embrace/accept" emotional risk, if they are trading from a completely Objective/Neutral perspective like the market's. There won't be emotion. Trade your edge, follow your rules, job done.

--JS

 

[jas_in_hbca]

Nice job , JS.

Do you move your stop to BE or trail it after price has gone X amount in your favor ?

 

[jsmacksem]

Hey Jas. At this point, I don't do any of that. For now, I would say it is because I haven't tested anything like that. Secondly, I have a daily objective target I'd like to reach. Often, this objective is reached before there are any swing points to move a stop above or below.

The BE stop is something I will definitely learn in the future. It's a skill set I do not yet possess.

As I grow, I'm sure this will become a part of the plan. For now, it's entry/stop/target and a focus on objectivity, not hopes and dreams.

-JS

 

[Redneck]

So 1 trade today

You made money - then protected it

Now isn't that a hellofalot better than losing most of it

You feel better..., your emotional capital is intact..., you ingrained correct behavior..., you're ready for tomorrow

No real downside

=========

Would more have been better - certainly..., will more come as you continuing doing the correct things - bet your ass

This is one skill - where one step at a time..., repeated till it second nature - pays dividends

===================================

On another note;

Then, my heart started pounding.

We all been there - let's you know you're alive

I realized I now shifted from objective, to completely emotional, and this simply can't happen. I was able to remember those couple things I'm working on. Being wrong well and small is actually right. Do I fully embrace/accept the risk of this trade? If so, my expectations should align with the markets, which is that anything can happen. And then BOOM. It hit me, I was actually ok if this trade was stopped out, because I did my job, and it broke down, and the loss was small compared to my winners.

Then a very nice recovery..., and great insight

Proud that I followed my plan and halted trading after reaching my daily objective. I continued to watch, and will continue to watch/learn today.

You should be - but - pride is a form of ego

Enjoy it this evening - then set it aside before hitting the sack


Tomorrow it's back to work


Keep on Truckin JS

RN

 

[jsmacksem]

So 1 trade today







You should be - but - pride is a form of ego

Enjoy it this evening - then set it aside before hitting the sack


Tomorrow it's back to work


Keep on Truckin JS

RN

Thanks RN.

Protecting that one trade is hell of a lot better I'd say. It's part of the plan and I'm glad I followed it.

I bet one day, winning days simply become a part of the job/routine, and one simply has to show up and work well. I guess being proud of following one's rules is kind of an oxymoron. They're rules.

Hope you had a good day today, see you tomorrow

-JS

 

[Redneck]

I bet one day, winning days simply become a part of the job/routine,

and one simply has to show up and work well.

Winning or losing is part of the job - it the only two eventualities .., not counting BE..., possible for each trade placed


As for simply showing up - in the normal world - sure

In the trading world - bring yer "A" - game - every day..., every trade - or stay home


True - each trade is following a prescribed routine for that trade

The challenge - getting / keeping everything..., including one's self - in a peak state to do that


Trading is strictly pay for performance

I guess being proud of following one's rules is kind of an oxymoron. They're rules.

Not at all - you made em..., who it easier for..., than you - to break em


Break one - even a tiny bit - it easy for us to think - its okay - or..., I meant to do that

Especially if the infraction leads to profit

Thanks RN.

You Are Welcome Sir


RN

 

[jsmacksem]

5 trades. 4L & 1 W: +$3.00

There is a lot of hard work to be done on today's review.

The TA and MA I'll review this evening, or tomorrow evening as I have to leave for work.

A couple points to journal so that I remember and work on later:

A past trade influenced a trade today. Even though the variables were common, there wasn't an unshakeable belief in uncertainty as I put on that trade. It was not objectively identified as a single/lone trade. These trades need to be consistently objectively identified. Why wasn't it?

I also need to explore why I sold into an obvious demand line. Some ideas are greed, fear of some sort, and losing objectivity. If fear, what fear? If fear losing objectivity, why? A trader's perception needs to be that of the market, objective/neutral, with no room for threatening perceptions, because the market knows anything can happen...if a market "can know". Hope you get my drift.

Positive side note: The day ended BE minus commission. I considered calling it a day/morning, but still didn't hit my max daily loss limit. Another edge was established, I took it, and reinforced that this is a probability numbers game. Also, I don't know if it's a result of my journey towards objectivity/neutrality, but the TA and context I'm using is no longer confusing, and I understand/follow it a lot better then I used to.

Chart attached.

 

[Turveyd]

5 trades. 4L & 1 W: +$3.00

There is a lot of hard work to be done on today's review.

The TA and MA I'll review this evening, or tomorrow evening as I have to leave for work.

A couple points to journal so that I remember and work on later:

A past trade influenced a trade today. Even though the variables were common, there wasn't an unshakeable belief in uncertainty as I put on that trade. It was not objectively identified as a single/lone trade. These trades need to be consistently objectively identified. Why wasn't it?

I also need to explore why I sold into an obvious demand line. Some ideas are greed, fear of some sort, and losing objectivity. If fear, what fear? If fear losing objectivity, why? A trader's perception needs to be that of the market, objective/neutral, with no room for threatening perceptions, because the market knows anything can happen...if a market "can know". Hope you get my drift.

Positive side note: The day ended BE minus commission. I considered calling it a day/morning, but still didn't hit my max daily loss limit. Another edge was established, I took it, and reinforced that this is a probability numbers game. Also, I don't know if it's a result of my journey towards objectivity/neutrality, but the TA and context I'm using is no longer confusing, and I understand/follow it a lot better then I used to.

Chart attached.

2pt SL ? with M5 charts where the M5's are 6-8 pips, your going to get nickel and dimmed to death doing that.

Either 8-10 SL or go M1 which even then, 2pt is kinda tight, think 3-4.