I'd like to become a better trader

[PO]

Quote from ElecEquity:


At least you're positive! You can't feel sorry for yourself dude. The market will NEVER EVER console you. Be positive and expect good things. If you expect negative outcomes, psychologically you will find things in each trade to confirm your negative thoughts...I guess it works both ways. But if you manage your risk, it won't hurt you at all to expect positive outcomes on each trade....in so many ways you almost have to expect positive outcomes or otherwise why the hell would you take the trade in the first place?

Btw...I do understand that your statement was meant to be somewhat self-deprecating. But I also think on some level you actually believe it.

thanks for your comments. I did buy a pullback today, so that was a good step in a right direction. the only problem for me today was that RTH trend was up, but ETH trend was down, so it was a bit confusing...

and because I again had expectation of a rally, I didn't take my short signal, but I did take the second short today.

I need to work on being able to change my mind and flip from long to short when the market does so.

 

[PO]

Quote from NoDoji:

CornixForex also posted a very nice piece that echoes this:

"Making money is about trading well. When you trade well, you make money. If the money is your concern, you will lose focus on what matters. The market."

Here is his post:

With regard to the psychological training of professional athletes, particularly professional shooters: To limit stress (which is fatal factor for any serious competition), professional shooters give themselves the right to make mistakes.

More exactly, they set their goal to make a correct shot technically, not to hit the target. They even inspire themselves that outcome is not that important at all, but correct technique is what only matters.

And that little trick leads to great results. Shooter stands, focuses on the pleasure of the technically perfect shot and does it literally without stress, being focused on the process, not the outcome. Ironically, the chance of target being perfectly hit increases dramatically in such a case.

If pro shooter's mental focus was to hit the target, he would get overstressed and likely have the opposite result vs. desired.

This is a proven technique used by pro shooters, power lifters and in most other kinds of sport to limit stress during the competition.

NoDoji, thanks as always. I'm going to try to make this my goal for the weak. Focus on the process , not the money.

 

[PO]

Laissez Faire had a great post on impulsive trading in his journal. I was thinking about it and here are the things that he mentioned that ring a bell for me.

Another reason is that the desire for profits interrupts your clarity of observation. You may be tired of not making money or maybe you are making money, but not at the pace you`d like. Thus, you jump aboard without a clear target, "hoping" that the market will somehow give you a profit.

Another obvious cause is revenge trading which is completely irrational. It was a defining moment for me when I lost 50% of my daily profits near the close on a normal trade and was able to walk away, not entering a frenzy of over trading and losing it all and then some. This has happened too many times, but I was tired of it. I knew I would get a second chance tomorrow and a much higher probability one at that.


Another thing that may help you is a rule about not entering any trades until 30 minutes after you`ve seated. and I'd like to add to this - take very few trades between 11:30 and 1:30

Obviously, greed is also a big reason for being impulsive. That`s the reason you enter trades, right? To make money? Well, the secret is that you really need to forget about the money and trade the market. Making money is about trading well. When you trade well, you make money. If the money is your concern, you will lose focus on what matters. The market.

 

[PO]

P&L -2 points today

It wasn't a good day so far and I'm done for the day because I have to go.

I've made too many mistakes today, was hesitant and closed a few of my trades that would be profitable because I was doubting myself.

Tomorrow is another day.

 

[PO]

P&L -1.6 points

The first couple of shorts got stopped out - moved my stop loss too close even though got correct direction

Then tried to go long too early - my rule is if there is a new low made in 11 am slot, don't go long till 1pm. I got too emotional because of the early losses.

 

[Laissez Faire]

Have you considered getting rid of those MAs?

Personally, I use a 20-EMA, but it`s just a thin white line on my grey charts, so it does not really dominate my chart at all. Just enough that I`m aware of it.

I would drop the VWAP. It`s enough to have this value in the back of your head if anything. Giving it that much space on your charts may not be worth it, IMO. It may confuse you a lot more than it helps you.

I`m saying this because your charts looked a little confusing to me.

Just my opinion....

 

[PO]

P&L 1.2 points for yesterday

Again, my first short was stopped out - I moved my stop loss too soon. But I've reentered it as soon as I realized it was a trap.

Then I flipped short and closed the trade because I was doubting myself. I was expecting gap fill and couldn't believe what I saw.

and then I got so tired and missed the long that I was anticipated all morning. I know I need to take all the set ups and I did take it, but then closed the trade because I was doubting myself again.

I'm still working on it. It's only human to make mistakes, I need to learn from them.

 

[PO]

Quote from Laissez Faire:

Have you considered getting rid of those MAs?

Personally, I use a 20-EMA, but it`s just a thin white line on my grey charts, so it does not really dominate my chart at all. Just enough that I`m aware of it.

I would drop the VWAP. It`s enough to have this value in the back of your head if anything. Giving it that much space on your charts may not be worth it, IMO. It may confuse you a lot more than it helps you.

I`m saying this because your charts looked a little confusing to me.

Just my opinion....

I have 20-ema and 81 WMA, they are for reference point only. I rarely look at them, but sometimes they help me visually determine the direction of the market - up, down or mix. I'm used to them, so they don't crowd my field of vision. thanks for your advice, but I don't think i'm ready to get rid of them just yet.

 

[PO]

P&L +5.3 points

I took fewer trades today, less impulsive trading.

And another point I need to address - I still trade what I think, not what I see. It's OK to think, but if i do that, I need to think it multiple possibilities, not one.

For example today I was thinking it's a gap and go day and I was refusing to believe that we may have a reversal and fill the gap. That's why I missed a few good trades.

I need to think in multiple possibilities and trade my set ups, not try to outsmart the market:
1. Gap and go day
2. Gap fill
3. 1/2 gap fill

 

[PO]

P&L +6.2 points for this week

I know I need to take all the set ups but I find it difficult because I'm still second guessing and doubting myself. There is only one way to get over it, practice, practice and practice.

Another recurring thing through out the week was impulsive trades caused by greed and desire to finally make money. Which is the opposite of what I should be focusing on.

I've addressed them both in comments through out the week.
First step to improvement is to admit your mistakes.

And another point - I still trade what I think, not what I see. I need to stop expecting things to happen and just trade my setups.