I'm Taking a Break

I am not disciplined enough to trade.. and I'm just about out of capital.. This is the 4th time I've blown my account.. I've managed to lose $4,500 since the 18th of July.. one month basically

I think you might starting out each time without enough money. I think you might be too hard on yourself.

If you truely love trading then it is important to survive. Next time you come back, try to have enough money to set your stops risking just 1% of your bankroll, if you trade futures.

Michael B.
 
Quote from newtoet:



Jeff - there are a few books that you need to read, that will help with your "psychological" problems - and how deep inside you feel you can never be successful.

This was written several years back, but is still applicable today. And, it is free on the net. Read it - it will change your life if you let it:

http://website.lineone.net/~jamesallen1/think.htm

I have a few others. But start there, it is probably all you need. Best of luck.

:)
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That was the most inspired, eloquent, insightful book I have ever read. Amazing!

Thank you newtoet for sharing that. Just what I needed.

regards,

Bruce Hawkins
 
Quote from dbphoenix:

I posted this elsewhere a day or so ago. It may be helpful, particularly if you remember that even though you may have experience trading, switching to a different type of trading, while not the same as starting from scratch, still presents many of the pitfalls that the usual newbie will encounter:


If you're still trying to "find your way", I suggest you forget about discretionary trading for the time being as it requires a certain subjectivity that new and newish traders just aren't capable of indulging in.

First, find a profitable strategy that has tolerable risks and drawdowns. If you find a great ES strategy that requires 10pt stops and potential 50pt drawdowns and the thought of that makes you sick, then you need to keep looking for a more compatible strategy.

Second, once you've found that strategy, test it yourself, not by "backtesting", but by going over old charts using the bar interval you plan to trade, bar by bar, maintaining a log of your "hard right edge" trades and noting any problems.

Third, if everything still looks good, paper-trade it until you show consistency in trading. Don't worry about the money. If the strategy is right and you're consistent in trading it, the money will be there. If you end up trying to second-guess the strategy or "feel" the trades, go back to step one.

Fourth, trade it for real. Here's where the discipline issues will come up, either because you get bored or because you haven't nailed down the rules or because you think you're better than the system. Work them out. Go back to three if you have to.

Only when you've achieved complete discipline, are able to execute your system flawlessly, are completely consistent in your trading, and can be objective about what you're doing will you be ready to introduce subjectivity into your trading. But, even then, if you get into trouble, you need only back up a step and return to your "comfort zone".

You can force discretion into your trading, of course, but you will most likely just postpone that day when you will be completely at ease with your trading. Take the time to build a foundation of discipline and confidence and you'll leave most of your peers in the dust.
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Great advice,.....thank you for taking the time to write this down...
 
Quote from newtoet:



Jeff - there are a few books that you need to read, that will help with your "psychological" problems - and how deep inside you feel you can never be successful.

This was written several years back, but is still applicable today. And, it is free on the net. Read it - it will change your life if you let it:

http://website.lineone.net/~jamesallen1/think.htm

I have a few others. But start there, it is probably all you need. Best of luck.

:)
More...

Newtoet,

Thanks for the site. Will read it ASAP..

I've read some other books in this area..

Napolean Hill's .. Think Rich or something like that

Tony Robbins..

Mark Douglas's 2 books focus on this area as well.. read those..

They haven't seem to help.. but when I think about it.. I've never followed through on the exercises.. usually about a week or so..

I definitely need to work on this.. and need to make it my first priority..

In the process of setting up my life to remind myself of these things..

Thanks to all for the responses and advice..
 
Quote from Flashboy:

I've read some other books in this area..

Napolean Hill's .. Think Rich or something like that

Tony Robbins..

Mark Douglas's 2 books focus on this area as well.. read those..

They haven't seem to help.. but when I think about it.. I've never followed through on the exercises.. usually about a week or so..
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As you've figured out, reading this stuff isn't enough. If the contents of these books (I'm familiar only with Douglas) struck no chords, opened no windows, then even "studying" them wouldn't do much good. What is more likely is that you're just not ready to "hear" what's in these books. When you are, you'll wonder why you didn't see all this before.
 
Quote from dbphoenix:

What is more likely is that you're just not ready to "hear" what's in these books. When you are, you'll wonder why you didn't see all this before.
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Absolutely true... more insight in what DB says than first meets the eye!


IcE
:cool:
 
Thanks to all who've responded.

Its reinforced some of my thinking..

I have a problem. but the good thing is that I know what it is.. I see it.. I've acknowledged it and now its time to figure out how to correct it..

I KNOW that once I have my discipline issues intact I will be a profitable trader...

I overtrade.. take trades that aren't in my system out of boredom.. just like someone mentioned..

when I start again I need to realize that I do not need to be in the market everyday..

Also, I need to stick to my plan..

A great example.. if you look at the Emini today..

My system would have shorted that gap up bar that closed negative..

And I would have most likely closed that postion out prematurely once those bottom tails started to form after the 3rd or 4th bar instead of holding and leaving my original stop at the high of the entry bar.. which resulted in a good move..

Hope everyone has a good trading day.. I know I will. No losses..

Jeff
 
Hi Flashboy,



you are saying that you have discipline issues that block you to become a profitable trader.

You also recognized that you overtraded and were in trading stress each day and each minute.

But you have a plan and system.

Can you system be applied to different time frames? Are you willing to tell us about your system, starting today and adding more infos every day at a specified time?
 
Quote from gg12:

Hi Flashboy,



you are saying that you have discipline issues that block you to become a profitable trader.

You also recognized that you overtraded and were in trading stress each day and each minute.

But you have a plan and system.

Can you system be applied to different time frames? Are you willing to tell us about your system, starting today and adding more infos every day at a specified time?
More...

Hi gg,

Yes.. its simple.. I've posted it in my journal titled "Flash's Self Improvement Journal"

The Emini,

I'm only going to describe one side.. of course the opposite applies to go short or long as well..

these are based off of 5 minute charts..

Gap up 5 pts or more.. short if reversal down bar forms.. like the one today....
If mkt doesn't show reversal bar and doesn't fill gap within 5 bars look to go long.. only if the bars being formed do not show significant top tails..


Pullbacks the the 20 Exp. movg. avg.. when prices is trending up and pulls back the the movg avg. and then forms small range bar, hammer bar or engulfing bar.. go long..

Reversals.. if market trending down.. stochastics is oversold.. and reversal bar forms.. i.e. hammer, engulfing bar, doji.. go long..

I also like the three little Indians pattern described in Rashke's street smarts book.. always looking for the reversal on these

Currencies,

Using 10 minute chart.. look for pullback to the 20 EMA.. many times price will ride the movg avg. then take off.. only trde with the trend..

Thats it.. if you have any questions let me know.. any criticisms. please send also.. I like to hear outside views...
 
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