Getting my act together

Gutsy,
I'm rooting for you here. I'm also rooting for myself as I share some similarities with your plight. Family member health issues, drastically reduced income and scared money. Not sure if it will help, but I'm compelled to try and offer my observations.

You must change your psychology with regards to fear and money. I have the same problem. Never focus on the money when in a trade, focus on your execution. Just try and follow the rules and let the probabilities play out. It's hard, but one MUST realize...at a gut level... that fear is debilitating when it comes to trading successfully. Fear is our enemy.

I don't believe you or I can ever become a successful trader so long as losses are meaningful in the psyche. They must become irrelevant, temporary situations that didn't play out. You will always make it back because there's always another trade.

To make a poker analogy, play pocket ace's and kings only....even though from time to time they'll get cracked.

Good Luck
 
Gutsy, I hope the best for you as well. This thread is very informative! Could you please post more things that you remember the trader said (about trading)? Even small things might be helpful.

I have been wondering about strategy and I think studying what he said very closely will help me a lot. One question, what did he need so many screens for? What kind of information did he need simultaneously? What kinds of software did he use?

Do you know exactly what his assistant did (such as what kinds of analysis)? Like I said, I think even small details might be helpful.
 
Quote from nkhoi:

write down your goald , break out it down to whatever time frame you are comfortable with, repeat it out loud every day to make it happen -Napoleon Hill

and never say never :)

look like we have a little ecry club here all we need is waitting for 40yotrader to show up
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Yes, goals are important for measuring progress. Only problem is I don't have total control on the outcome of my trades (who does?). I wish achieving goals was as easy as building a to-do list and putting in the hours to complete the task.
 
Quote from HeSaidSheSaid:

Thanks for sharing your story!!!

Would you tell how you check for the institution activity ? I guess you analyze the data from ESignal service ? Thanks
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It took me about a month of screen time to really get it. Here's the 5 min. version for seeing if institutions are setting up to buy.

All this has to take place in the same time frame (6 sec.).

1). Look at last two bars of NYSE declining issues volume. Do you see a large increase from the previous bar? If yes, go to 2.

2). Look at $tick chart. Do you see a significant drop in the tick value versus the previous bar? If yes, go to 3.

3). Look at the ES price chart. Do you see a increase in price?
If yes, go to 4.

4). Check out the level of $prem. Make sure it's not near a sell point. If it's neutral, buy ES contracts NOW.

The declining volume indicates baskets of securities are being sold on the exchange. The corresponding tick decline indicates the volume is taking out bids and moving securities prices lower.
The ES price increase indicates the institutions are buying the futures in anticipation of buying back not only the shares they sold but also whatever additional securities they plan on buying. As long as index arbitrage isn't going to kick in, you then buy to get in front of the coming buying in the securities. It's anyone's guess how far it will move, but you'll at least be riding with the calvary from the start.

If large specs are moving the market you won't see activity in the advancing/declining volumes. Nor will the tick be moving around very much. Usually you'll see prem move because they're focusing on executing futures contracts. With practice it's fairly easy to figure out who's moving the market throughout the day.
 
Quote from riaamaan:

Gutsy,
I'm rooting for you here. I'm also rooting for myself as I share some similarities with your plight. Family member health issues, drastically reduced income and scared money. Not sure if it will help, but I'm compelled to try and offer my observations.

You must change your psychology with regards to fear and money. I have the same problem. Never focus on the money when in a trade, focus on your execution. Just try and follow the rules and let the probabilities play out. It's hard, but one MUST realize...at a gut level... that fear is debilitating when it comes to trading successfully. Fear is our enemy.

I don't believe you or I can ever become a successful trader so long as losses are meaningful in the psyche. They must become irrelevant, temporary situations that didn't play out. You will always make it back because there's always another trade.

To make a poker analogy, play pocket ace's and kings only....even though from time to time they'll get cracked.

Good Luck
More...

Some days I wish I could become Mr. Spock. I don't know how to overcome fear. If I did and there was a process, I'd have completed it by now. I tried many things with varying degrees of success. Deep breathing doesn't work. Sex before trading doesn't work. Entering a trade and using stops doesn't work. Reading books by Douglas and trying to apply his stuff doesn't work. A hot shower and a low cal balanced breakfast doesn't work. Taking a prescription tranquilizer before trading DEFINITELY doesn't work. Pretending to not care about the money doesn't work. Trying to visualize all the things that can happen once in a trade and imagining I'm doing my trading calmly doesn't work.
Trading when physically exhausted doesn't work. So like Edison, all I need to figure out is "what does work?".
 
Quote from j_wentz1:

Gutsy, I hope the best for you as well. This thread is very informative! Could you please post more things that you remember the trader said (about trading)? Even small things might be helpful.

I have been wondering about strategy and I think studying what he said very closely will help me a lot. One question, what did he need so many screens for? What kind of information did he need simultaneously? What kinds of software did he use?

Do you know exactly what his assistant did (such as what kinds of analysis)? Like I said, I think even small details might be helpful.
More...

I think you have the wrong impression as to why I started this journal. The whole purpose is to help ME get from where I'm at to where I need to be to become a trader. I print out the journal weekly and review it and try to figure out how to solve this puzzle called trading. I posted some material to give people a feel for the types of stuff I'm doing so they can give me some useful feedback. I don't mind answering questions but please don't expect me to try and be a educational source while I'm banging my head against the wall.

Screens? I gave a example of buys and what to look at. Similar process for sells. Additional charts for vix, 30 min. price with bollinger bands.

Software? Esignal feed + Street Trader chart software

Assistant? As far I could tell all she was doing was adjusting positions in different markets. Maybe changing trailing stops. She never talked about putting on or taking off positions. I'm sure when I wasn't around she did other things. But what? I don't know.

You need to understand I had no clue what they were doing. I was doing all I could to understand the little crumbs of information that were parsed out. I didn't say "that seems dumb" even if I thought it at the time. I never look a gift horse in the mouth and was thankful for the limited time I had access to him.
 
Tried to use stops today. As in the past, I had mixed results.
Came into the day physically and emotionally drained. Spent most of my night working through yesterday's trading. Didn't get any good sleep before work.

I sat in front of the computer and waited for the first ten minutes of trading to happen. Found myself dozing off. Woke up and tried to get into trading. I couldn't and feel asleep for the first hour of today. When I woke up I got a pepsi to help stay awake and tried to get into trading. Noticed a short setting up and went short at 1346.00. Trade was immediately profitable. I put a protective short above the high of the day. When the trade was ahead by more than a point I moved the stop to 1345.75. Market dropped down to 1344.25 and bounced around there. Since I had the protective stop on, all I was looking for was a exit to the position. Wasn't looking for a reversal and missed it when it came. My stop saved me from a loss, but because I wasn't as attentive, I missed out on making about $70 on the trade.
Second trade was just stupid. I was bored and the market hadn't made a new high for a while. I decided to take a shot thinking the market could reverse over lunch. I shorted at 1348.50 and put a stop at 1350.50. There was no signal, just my desire to try and make something happen. Maket stayed above my entry for awhile. When it finally came down I didn't like the market action as it couldn't break through yesterday's high. I guessed that had become a support level and exited the trade at 1348.00. Three minutes later the market took off and set another high for the day.Once again I shouldn't have shorted the market above the previous days high.

I'm beat and need some rest.

+25.42
 

Attachments

Trying to visualize all the things that can happen once in a trade and imagining I'm doing my trading calmly doesn't work.


Gutsy

Have you tried self hypnosis. You need to imprint some strong suggestions into your subconscious.

Look at this site.

http://www.bcx.net/hypnosis/self-hypnosis-start.html

Detail your list of positive suggestions and spend 15 minutes doing it.

Before you go to sleep when lying in bed go through your suggestions and lastly how your going to have a great relaxing sleep and awake feeling refreshed, energized and positive about the day.

Lastly before trading spend 10 minutes doing your routine and visualize your profit for the day and how you will achieve it. How you will come back form a losing trade and how you will stay focused and act decisively when you see your setups.

Also cut out the Pepsi and sugar, drink water and fruit juice. I will write some things on diet and other stuff on the weekend.
 
Gutsy

Your family has had its share of bad luck.

Do you feel bad luck is just around the corner just waiting to hamper your next advancement ?

Do you have issues of self worth? This can run deep and is a reason why people seem to make no progress when they have the tools and knowledge to do so. There is always a reason, unfortunate event or excuse for the lack of progress. When there is progress events unfold that always bring you back to the start.

Having a running start and ending in the current position you are in is a characteristic of this.

You lost your 200k job and have been doing night shift at the store for 2 years. These events may have shaped your outlook and reinforced some subconscious thoughts (self worth) you are having. You also are looking at a big rig license as a fallback.
Is there a reason why your trading profits dont seem to pass your daily job pay? What type of job and pay do you deserve?

Just some things to ponder and if you think they may be applicable we can discuss it further. I am no expert on any of these points but since no one else has asked ....
 
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