I'd like to become a better trader

[Laissez Faire]

Quote from PO:

Laissez, why do you want to switch? You had a great day today trading ES, I've seen your trades, you seem to be doing ok.

from my perspective you seem to be on the right track.

Yesterday was only one trading day and I`ve done far worse on my losing days. But like you, I don`t believe that`s because of the ES market, but because I lack both market experience and discipline. Discipline without doubt being the biggest factor for my losses.

I did consider switching markets when I encountered my first losing streak and we went through a period where there were nearly no volatility in the market.

The main reason I chose the ES in the first place is that I live in Europe and may only trade the closing hours on a consistent basis. Crude oil attracted me, but that market seems to die out by the time I`m seated. The stock markets usually have some action leading into the close. That`s why I chose the ES.

And lately, I`ve grown quite fond of the ES. I believe we might be a good couple down the road.

But I`m still intrigued by Ghost of Cutten`s statement. It`s one I`ve heard time and again from other people as well, but it never made sense to me.

 

[PO]

Back to trading after a break for studying and reading a lot of Al Brooks. It's not an easy read and it's going to take a while to digest it, but if/when I do, I'm sure it will take my trading to a totally new level. It seems like a revelation.

P&L for today -1.5 points.

Missed the last drop because I got tired of waiting

Made a few mistakes that cost me, but overall I was happy with my trading in this tight range day. Normally I would have lost much more on a day like today. So a little progress

Will try to be more precise tomorrow in exiting at targets and when I see signs of reversal.

 

[PO]

was talking only long trades in the afternoon. Closed the one short right away.

got stopped out on 2 of them. 1st stop out was a premature long, didn't wait for the second leg of pull back before going long.

also, made a mistake in the morning: went long without waiting for second signal and had a stop too close.

P&L: a break-even day.

Read the price correctly for the day, but had bad execution. I need to keep a small position till close for days like today.

 

[PO]

today so far is a mess for me:
failed upside breakout
then failed downside breakout
then failed "failed falure"
gap days like today usually lead to a trend day (Up or Down), but we are not trending so far...

the only thing that I saw and ignored was that NQ wasn't cooperating with ES from the start. May be I should incorporate this into my analysis - When NQ is not leading, stay out.

 

[emg]

Quote from PO:

today so far is a mess for me:
failed upside breakout
then failed downside breakout
then failed "failed falure"
gap days like today usually lead to a trend day (Up or Down), but we are not trending so far...

the only thing that I saw and ignored was that NQ wasn't cooperating with ES from the start. May be I should incorporate this into my analysis - When NQ is not leading, stay out.

Anybody home?

 

[PO]

For the most curious emg, I just hope that you are not looking for schadenfreude.

I'm still in the study mode. I was trading in the sim with moderate success for the last week or so and then moved to real money. It was good for a few days and then I fell off the wagon - yesterday I've violated my rules of stop losses and adding to a losing position. The market can't get up 20 points overnight, right?

This was one time in the last couple of months and the first time since I started this journal, it so happened that this was a bad time to brake my rules... so I'm back at the simulator now.

I don't even know why I did it, I was so disciplined for months...
May be it's because I thought that this time was different, I was so sure we were going to get a pull back and there was no way we will trade to 1330 without a pull back and many traders I respect agreed with me
Or may be I didn't want to take a loss
Or may be revenge trading for a few losing trades in a row.
Probably all of the above.

I thought I was over being smarter then the market, but apparently I wasn't. I hope I've learned my lesson, for it cost me a lot of money.

I don't know how else to engrain this in my head to always have stop losses, no excuses ever, because most likely when you need an excuse for your stop loss is when you need to have it most.

May be mistakes have to be learned on a visceral level, not intellectual.

The only good thing was that I closed it this morning and didn't add even more to the losing position. It's just my luck that this had to be a huge gap overnight, but I fully take responsibility for my actions. One should never assume anything in the market or expect it to behave in a certain way.

 

[PO]

I feel like I need to say it again - I take full responsibility for my actions and realize that one time exception of the stop loss rule can cost a lot of money, stress and mental capital.

There is never a need not to have a stop loss - you can always reenter, the market is going to be there.

 

[PO]

The reason I don't post every day is that it takes a lot of effort that I can spend on studying. the blog helped a lot to identify my weaknesses and I'm planning to get back here soon.

 

[emg]

Quote from PO:

For the most curious emg, I just hope that you are not looking for schadenfreude.

I know u will not win this game. The reasons are:

-no risk capital (minimum $500K to trade for a living. $100K is equal to $5000)
-you don't have a system. you can study all u want and it will not work. no matter how hard u try and let everybody know u want them to feel sorry for u. That is obvious in this journal that u want people to feel sorry for u.

To become a success trader, u must know WHY more than 90% of small traders lose!

The house is winning. If the house is winning, join them! Most successful traders begin their career working at the HOUSE and not these 90% LOSERS searching for the holy grail in google search and studying alone in his/her house creating a holy grail system. It is like saying this, Charle wants to become a medical doctor and wants to self learn without going to school. Will Charles become a successful medical doctor? Would u like charle to be your doctor?

After 5 yrs learning how the house trades and establishing network of other successul traders within the house and other house which is why new york city and london are the best place live to make friends with other successful traders, he/she is ready to go on to the next level which is to become a sole independence trader or within the 10% successful trader and be able to move another city like florida, california or warm weather or whatever. That is successful trader!

U,on the other hand is no difference than those 90% losers are doing. I look at the 90% losers as homeless people wondering why these these people will not share money, share their home, share, share, share!

U really should give up trading. But if u want to become a successful trader, join the house.

U are a nice guy PO. I can tell by reading this thread, but u will not make it in this trading world the way u are doing right now.

Good Luck

 

[PO]

Quote from emg:

I know u will not win this game. The reasons are:

-no risk capital (minimum $500K to trade for a living. $100K is equal to $5000)
-you don't have a system. you can study all u want and it will not work. no matter how hard u try and let everybody know u want them to feel sorry for u. That is obvious in this journal that u want people to feel sorry for u.

To become a success trader, u must know WHY more than 90% of small traders lose!

The house is winning. If the house is winning, join them! Most successful traders begin their career working at the HOUSE and not these 90% LOSERS searching for the holy grail in google search and studying alone in his/her house creating a holy grail system. It is like saying this, Charle wants to become a medical doctor and wants to self learn without going to school. Will Charles become a successful medical doctor? Would u like charle to be your doctor?

After 5 yrs learning how the house trades and establishing network of other successul traders within the house and other house which is why new york city and london are the best place live to make friends with other successful traders, he/she is ready to go on to the next level which is to become a sole independence trader or within the 10% successful trader and be able to move another city like florida, california or warm weather or whatever. That is successful trader!

U,on the other hand is no difference than those 90% losers are doing. I look at the 90% losers as homeless people wondering why these these people will not share money, share their home, share, share, share!

U really should give up trading. But if u want to become a successful trader, join the house.

U are a nice guy PO. I can tell by reading this thread, but u will not make it in this trading world the way u are doing right now.

Good Luck

thanks for your comments, but I really don't want people to feel sorry for me, there is nothing to feel sorry about. I'm on the path to success. Trading is like any other difficult job, you need practice and experience and lots of both. It doesn't happen overnight, it took many people years to get there.

As a matter of fact the journal is for me to figure out my issues, not to get some sympathy or encouragements.

I do agree that being undercapitalized is why many traders fail, but I don't think you need 100k per contract and many traders who are successful at it don't have 1/2 mil $.

If your comments were in the beginning of this journal, I would be really upset and worked up about it, I would have attacked you, ripped your lack of logic apart, said that you have no proof of anything you are saying, or that you don't make money yourself in ES... etc.

But Iv'e changed and learned a lot. One thing I've learned from this journal is to let go of my ego more, to care about my life and what I do, not what other people are saying, not to take everything as a personal attack. I don't have to defend myself and always be right. I think it's a big accomplishment for me, it will help me in my life regardless of my success or failure in trading.

Now I realize that you may believe what you are saying, or you may just say it to piss me off, or we may just misunderstand each other, it really makes little difference in my life because I'm on the path that I've chosen and happy with my choice. I just walk this path until the situation changes and I change the path. Right now I believe I'm on the right path - trading Sim and learning price action.

Or, btw, I used to live in NY and knew traders there, most of traders in Big houses trade totally different from independent traders, most of them just do bid/ask spreads or front run the clients, very few are successful price action traders.

Now I live in Florida on the beach and don't go to medical doctors because I think medical community (except for performing some surgeries and emergency treatment) is largely misguided in its overprescription of meds, but that's a totally different discussion.

And what about Al Brooks, who changes his carrier as a doctor to become a successful trader? That's just funny

Best of luck to you Emg, keep posting and commenting.