five years later (the previous 5), still struggling!
- Thread starter momoNY
- Start date
I see exactly similar problems, but I don't see any solutions!
For you 5 points, they relate more to your strategy than to discipline. You should have an exit strategy, I use a two bars break (5mns) to get out, or the low of the 15 minutes bar, whichever occurs last.
Missing a signal is really tough to address. Chasing or not chasing is the question.
In theory my solution is to use a smaller time frame to get in, in theory that is, in practice...
For you 5 points, they relate more to your strategy than to discipline. You should have an exit strategy, I use a two bars break (5mns) to get out, or the low of the 15 minutes bar, whichever occurs last.
Missing a signal is really tough to address. Chasing or not chasing is the question.
In theory my solution is to use a smaller time frame to get in, in theory that is, in practice...
It started getting better for me when I stopped trading for a tiny profit and started trading for an intraday swing. I lowered my exposure to the point where I was comfortable with my predetermined potential loss. Now I think 'fuck it! it's a small loss', if I feel the squeeze. I never jettison until I'd planned to. I don't get all emotional anymore. I am far more objective. I have learn't to see the bigger picture and try to be in sync with the market sentiment through my news feeds and daily bar analysis etc. I am still nimble if problems suddenly pop up. The big players WILL try and shake you out of your trade, just accept it. I don't hold positions overnight. I simply try and figure out which way the market is likely to head and get out if I'm wrong. I try and get in as early as possible but stay in as long as I can. This, for me, is the hardest part and I often take much less than I could. Everyone needs something to work on though.
On a psychological note: the markets can fuck you up big time. I've been there. They can potentially destroy you if you let them. IMO you have to feel as relaxed as possible with what you're doing. See the bigger market structure, the sentiment for the trading day and take what you can. Scalping noise will drive you literally insane and that's why the bots do it now. I also think some markets are better suited to taking decent trendy moves than others which are more dominated by machines.
On a psychological note: the markets can fuck you up big time. I've been there. They can potentially destroy you if you let them. IMO you have to feel as relaxed as possible with what you're doing. See the bigger market structure, the sentiment for the trading day and take what you can. Scalping noise will drive you literally insane and that's why the bots do it now. I also think some markets are better suited to taking decent trendy moves than others which are more dominated by machines.
On what do you base this statement?
momoNY,
Yeah, that's a serious discipline problem you have via taking that many additional trades that's not valid trade signals via whatever trade method you're using. In addition, that many trades outside your trading plan should only be perform by veteran profitable trades that use market experience as an addition to their valid trade signals. I sometimes refer to such as intuition trading by veteran profitable traders or as random trading by struggling losing traders.
Regardless to being profitable or losing, too many such types of trades that's not a valid trade signal is addition and that addiction must be treated if you want any longevity in the business of trading.
I gave you solutions to your discipline problems via my prior messages...find other traders in your area to trade together in person in an office like environment...peer pressure to stick to the trading plan. You should also get professional help (e.g. psychologist) to help find out what's causing (most likely not related to trading) your addiction or fear of missing a price move along with giving you solutions. Simply, we at this forum called Elitetrader.com do not know anything about your trading environment where you're at nor about any problems you're not disclosing...all that stuff that has a direct impact on the trade results of most discretionary traders.
Once again, you have solutions. The issue, are you willing to put in the effort involving such solutions ???
Only true for those that don't use an automated or mechanical trading system. Also, if you don't have confidence in your trade method or you're not prepared for a drawdown or losing streak...
A weak mental game will prevent or make it very difficult to recover from a drawdown or losing streak. Simply, it's not a realistic comparison to a 99% profitability because we don't know how a discretionary trader will react (discipline and all that mental stuff) if they had such a system...a system that does not exist.
The few profitable discretionary traders (those not using automated or mechanical systems) out there are most likely between 60% - 75% profitability range and not all of that is due to the trade method alone because other variables are important (e.g. market experience, capitalization, money management, proper trade environment, stress management, costs of trading et cetera).
Mark