I'd like to become a better trader

  • Thread starter Thread starter PO
  • Start date Start date
Hi friend.........
my personal experience is that for a person who want a good trader
he must have to work too hard.
A real business man is one can play with costumer thinking,
a costumer come with own think for a item, but a trader can change it.
what he want to sell.

Nancy
 
Today was a very choppy Trading Range day till 2:30. I took only 2 trades and was very happy that I was disciplined today and didn't get chopped as I usually would have. It prove again, that discipline pays off.

After today I know that I can do this - I can be patient and trade only the best set ups , but I also know that it's hard and I shouldn't get overly confident for tomorrow.

It often happens that after a good day, I get overconfident, so I need to be vigilant for tomorrow.
 
Quote from covetusx3:

Hi friend.........
my personal experience is that for a person who want a good trader
he must have to work too hard.
A real business man is one can play with costumer thinking,
a costumer come with own think for a item, but a trader can change it.
what he want to sell.

Nancy
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thanks, I guess?
 
Quote from ammo:

nor being a columnist,1st order of biz is a setup,,one was an impatient and two was a greedy,neither a setup,with a setup ,you have a probable winning percentage,without you have a 50/50,those trades drain your acct,or give back your profits,keep watching,you will eventually see something that works repeatably,trade that ,sit on your hands as you are still a student.leave the plane in the hangar til you can fly it without risking your life,livelihood,watch more than one market,you have the time,get adept at monitoring 3 or 4,so it becomes secondhand,the s/r's will work together like a herd or they won't,when the do,you will have more confidence in a trade and go in with confidence and learn to hold it,knowing from your hours watching that the likelihood of your target is high percentage due to the action, ,confirmation ,in the multiple markets..this columnist stint stills smells of an ego needing that hasn't been squashed,check that out
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Ego is not the end all, there are other things involved. It's more like multiple personalities disorder. It depends on what personality is in charge, the rational or not.

To be a successful trader, you have to obtain a mindset that following the rules is pleasurable and breaking the rules is painful.
 
Quote from Redneck:


Yeah PO – absolute discipline – is absolutely necessary – when trading….

Best you get some – then never lose sight of it

RN
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thanks and welcome back :)
 
Quote from asynchronous:

Hello PO

1) Limit your daily trading losses - stop trading, walk away - no more for the day - regardless of what the market is doing.

2) Maintain your Gain - once you make your allocation - stop trading, walk away - no more for the day - regardless of what the market is doing.

3) Try like hell to codify your system - the more that your computer does for you the less chance you have of doing stupid things.

Good Luck!
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thanks for your suggestions, but automating my system is not possible for me now.
 
We have rejected the high of last week twice, so the odds are we are going to trade down to at least last weeks close and gap at 1244 and potentially 1230 area, which is the top of the huge gap and weekly PP.
Last year's close is also around 1245 and we tested it overnight last night, but did't test it in RTH yet.

the other scenario is to close the gap above at 1275, I think this less likely, but still possible so I need to keep that in mind.
 
Quote from NoDoji:

PO, you keep analyzing the market conditions at a given point in time and using phrases like "probably will", "often results in", "most likely", "less likely", "should", "could", etc.

Anyone with some basic analytical experience can look at the chart leading up to the hard right edge and provide a description of the price action environment in one's trading time frame at that point in time.

Let's say it's 5 minutes from the market open this morning and I look at a 5-min chart and describe the PA environment:

The overnight session traded in a 10-pt range, broke the lower trend line following the jobs news release, but printed a swing low slightly higher than the previous swing low. The original lower trend line is currently acting as resistance and the new adjusted lower trend line is holding as support.

What you're missing, PO, is a battle plan based on the analysis of current price behavior.

Cutten posted here some time ago:

"What is the bull scenario, the bear scenario, and the neutral/ranging scenario? How would the market act under each scenario? How will the market act if it transitions from one scenario to another? How do I identify each scenario or transition, and how should I best respond in each case (bull, bear, neutral/ranging, transition)?"

By answering these questions, you lay out your plan! Don't consider putting on a trade until you've laid out the scenarios and your best response to each of them. Your responses are either long, short, or wait for more clarity. Part of the plan involves projected price targets and stop loss placement so you can assess the risk:reward opportunity of the setup.

Once you've answered those basic questions, you're ready to trade without emotion getting in the way.

Back to this morning's chart just before the open:

The overall trend is up, making longs favorable until a previous pivot low breaks with some conviction and lower resistance is then established.

A weak break through the new lower trend line followed by a push through the 1244.00 high of the current consolidation range is a long trigger. Reason: A weak break through the LTL shakes out the weak longs and attracts the early shorts. If price then moves back up through the range high, the shorts buy stops will trigger and the shaken out longs will chase back into their positions. A minimum profit target in this scenario will be a test of last night's 1249.50 high.

A break through the range low of 1241.50 places the bulls on alert. A subsequent failure to test the high of the range would print a lower high and via a break of a previous bar's low and set up a shorting opportunity for a test of the overnight low.

Now we have a plan. Not the greatest plan because frankly the PA leading into the open this morning is choppy action in a fairly narrow range, but it's a plan nonetheless.

The market opens, price breaks the LTL, but 1241.50 support holds to the tick. A buy stop @ 1244.25 (one tick above the high of the range) means a minimum survivable stop loss is 1241.25. If 3 pts stop is too much for me I can either trade smaller, or wait for a second entry setup using the 1-min chart for guidance on placing a tighter stop if I get a second chance to enter at that price.

With a minimum profit target of 1249.50, a 3 pt stop isn't that bad, so I take a first entry in case it's a strong break out of the range. Price eventually breaks through 1249.50 and I tighten my stop to lock that in as my minimum profit, and am stopped out at that price.

Do you see the value of having an advance plan? It eliminates having to make decisions in the heat of the battle. There are clear lines in the sand for entry, risk management, minimum profit targets. Although you recognize the larger trend is up, you're prepared to trade without bias, allowing yourself to trade to the short side if the price action signals that the bulls are relinquishing control to the bears.

When you turn on your system and evaluate the price action, note your plan in writing (use abbreviations so you can work quickly) until you get to the point you do it all in your head without messing around with it, then trade the plan.
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NoDoji, thanks for the comments, what you are saying makes sense. I need to think about this and work on writing more detailed plan of action.
 
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