How to develop decisiveness and quick reaction time?

[tiddlywinks]

Success in day trading is all about precision and timing. However, when I spot multiple opportunities during live trading, sometimes I get the "deer in the headlights" reaction and by the time I snap out of it the stock has already taken off without me in it.
Besides more screen time and practice, I am looking for ways to improve my reaction time and decisiveness so I don't miss opportunities.
Any suggestions or book recommendations are welcome.

@rin4et

Precision and timing are pieces of YOUR trading system, methods, and techniques. But that is significantly different than your statement. Answer(for yourself) the age old question of which is more important, entry or exit. Topics abound about random entries and trade management too. Point being again, precision and timing are pieces of YOUR trading system, methods, and techniques. It is the DISCIPLINE to follow your signals that will AUTOMATICALLY bring whatever precision and timing are within those signals.

I read somewhere you are a computer programmer(or program architect, engineer, or whatever title you or your industry use). I too, have a like title in my background. You'll get this... 1 + 1 = 2
Some people see it as the whole, a simple mathematical expression. Other folks will see two constants and a sum. A programmer might see it as 2 constants, 1 arithmetic operation, and a statement of equality. (examples are non-exhaustive). For trading, discipline is similar in that it can be broken down into mind function and actual doing.

The late, eccentric, controversial, ET icon, Jack Hershey called the process MADA.
Monitor, Analyze, Decide, Act... All 4 phases are necessary to have a complete structure of discipline. And it is repeated again and again and again, as dictated by your trading system, methods, and techniques.

Armed with this idea, you can determine at which phase you are failing. Most likely you think it's the last phase, Act. But I'll suggest that the fail is in your decision phase. You decide not to act. So the question is why? The answer to that (regarding trading) is somewhere within your monitoring or analysis phase, you are doubting what you are doing or looking at. Perhaps you do not understand why your signal is signaling, aka second guessing. These are just extemporaneous thoughts, I have no idea who you are, how you trade, or anything else about your situation. But I think you get the idea of how to start looking to get to the answer, for you. A yoga session during trading hours is probably not a good use of time.

Maybe something here sparks something that helps you out.

Trade On!

 

[rin4et]

When you freeze, what are you doing? You're thinking, right? What are you thinking about? Are you analyzing this setup that you know works 90% of the time? Are you doubting or questioning the setup? Are you thinking "What if......"? Are you looking for confirmation that the setup will work? Are you looking for a reason not to buy? Are you bias to a larger time frame?
Do you fear that this is a trap? Are you thinking "But it might......"?
Determine what you're doing in your freeze mode and than ask yourself if it's necessary with a setup that works 90% of the time. And do that at the time it occurs.

I am usually analyzing which one is a better deal. The setup I see in stock A or stock B. Since I am a beginner I like to manage one position at a time. But when I see multiple opportunities I have a split second to decide which has greater potential before placing the trade and that is when I freeze. I guess it is the paradox of choice.
I think the solution might be to split my position in half and take both the opportunities. That would involve managing multiple positions at once which is something I need practice with.

 

[Stocktracker]

Success in day trading is all about precision and timing.
Besides more screen time and practice, I am looking for ways to improve my reaction time and decisiveness so I

1) Adhere to the rules of your trading strategy, and do not take a trade unless all the conditions of your strategy are in place.
2) Manage your position size. Do not go all in at once.
3) Do not trade everything under the universe. Pick 5 to 20 stocks and watch and study their behavior day in and day out and trade only those stocks.

Good luck

 

[maxinger]

I am usually analyzing which one is a better deal. The setup I see in stock A or stock B. Since I am a beginner I like to manage one position at a time. But when I see multiple opportunities I have a split second to decide which has greater potential before placing the trade and that is when I freeze. I guess it is the paradox of choice.
I think the solution might be to split my position in half and take both the opportunities. That would involve managing multiple positions at once which is something I need practice with.

Your problem is similar to mine.


During trading, this is what I do :

I must consciously put effort to remember to pull trigger everytime I see the signal.
I also tell myself in case of doubt, must also pull trigger with reduced quantity.

Remember it is the unhealthy part of subconcious mind that is going to destroy us.
So we want to 'over ride' the subconsious mind by conscious thinking.
subconscious mind is telling us not to trade because if we trade, we are going to lose money.
our subconscious mind is formed through our experiences in early stage of our lives.



conscious thinking / mindfulness extremely important during trading.

 

[tommcginnis]

You want to get rid of Deer_in_Headlights Syndrome?

Have a plan.

 

[rin4et]

Your problem is similar to mine.


During trading, this is what I do :

I must consciously put effort to remember to pull trigger everytime I see the signal.
I also tell myself in case of doubt, must also pull trigger with reduced quantity.

Remember it is the unhealthy part of subconcious mind that is going to destroy us.
So we want to 'over ride' the subconsious mind by conscious thinking.
subconscious mind is telling us not to trade because if we trade, we are going to lose money.
our subconscious mind is formed through our experiences in early stage of our lives.



conscious thinking / mindfulness extremely important during trading.

This is exactly how I feel! Remember when you were a teenager and had just learnt to drive. Driving required your full concentration because even though you knew how to drive aka "had a plan" you were operating entirely from your conscious mind. If a car came out of nowhere your reaction time was slow because it was entirely conscious. After years of experience and practice driving becomes a sub conscious activity and your reaction time is quick.
Similarly with trading having a plan is not enough. It needs to sink into the subconscious mind so that our reaction time becomes quick. This takes years of practice for it to sink into the subconscious mind.

 

[tomorton]

Essential post from tommcginnis. Have a plan.

After that, its like anything else that demands skills, decision-making and practical application - practice, practic, practice.

 

[maxinger]

This is exactly how I feel! Remember when you were a teenager and had just learnt to drive. Driving required your full concentration because even though you knew how to drive aka "had a plan" you were operating entirely from your conscious mind. If a car came out of nowhere your reaction time was slow because it was entirely conscious. After years of experience and practice driving becomes a sub conscious activity and your reaction time is quick.
Similarly with trading having a plan is not enough. It needs to sink into the subconscious mind so that our reaction time becomes quick. This takes years of practice for it to sink into the subconscious mind.

haha. good to see you get my point.

having an excellent trade plan is useless unless we can execute it.
some part of our subconscious mind is 'bad' eg it keeps on telling it is dangerous to pull the trigger.

This bad subconscious thinking will be there forever till our last breathe.
So only way to reprogram the 'bad' subconscious mind by regular consistent persistent
conscious thinking.

 

[learner2007]

I am usually analyzing which one is a better deal.

You're not buying bananas in a grocery store. So rather than compare one stock with another, just buy the one that most closely meets the requirements of the setup in your plan.

I have a split second to decide

If you are trading stocks, this would be a questionable approach. Try to enter when the price comes to you, and not the other way around. Then you won't have to make such split second decisions.

 

[Chris Mac]

Success in day trading is all about precision and timing. However, when I spot multiple opportunities during live trading, sometimes I get the "deer in the headlights" reaction and by the time I snap out of it the stock has already taken off without me in it.
Besides more screen time and practice, I am looking for ways to improve my reaction time and decisiveness so I don't miss opportunities.
Any suggestions or book recommendations are welcome.

Rin4et, you are asking yourself the good questions. You are on the right track for successful trading!

Basically, there are two successful ways :
1 Bottom up approach
You focus on a short list of names / futures / assets you master.
2 Top down approach
You look at everything, score and trade what is trendy, skip what is not trendy.

The reality is that people & wannabe traders tend to do the contrary :
1 they focus on everything and change their mind every minute
2 they look at a short list of names but get bored and don't trade or overtrade.

Of course, the top down approach is the hardest, because you need to find a systematic approach / plan / process, in order to be able to skip or not a trading opportunity whatever the context, timing, asset. In less than 1 min, you should be able to say go, no go, wait.
Personally, I developed my own tool which is good (but not perfect), but it took me years of hard work !

CM