Hi Jas
Since we started trading about the same time, we may be at similar issues...
I can tell from some of the responses I have a long ways yet to go.
Where I'm at currently is breaking down my decison process.
I set up a spreadsheet with a 'why what where when how' down the side and my set ups going across. I am filling in the answers for each of my set ups. I've gotten it this far:
Why think about it this way, do this spreadsheet? To approach the possiblity of 'no losing days'... a concept NoDoji talked about.
First daily question I ask is 'What kind of trading day is it?' Trending, consolodating, or are my trade places in time like Econ reports? [in the spreadsheet I sort my set ups across the columns to fit the type of trading day, first my trending day setups, etc.]
then down the rows I continue with:
Where and when to enter. There are several things to sort thru here. First there is an area of interest... the set up.
Next each set up has a catch or trick or issue unique to it, to make it work. Like is it really a pullback in a trend?
To deal with the issue... I look for inviolable filters... high standard filters that can produce 'no losing days'. If they are not there, I don't take the trade.
Set ups often have optional confluence typical to that set up. Take note of them.
Then I specify the premise of the trade.
Then I look to where to place the stop... where it disproves the premise of the trade.
Then Where to place the Tgt... generally at the next S/R.
And is it a scalp, day, swing or open Tgt?
Having a stop and Tgt, is the R:R good?
Based on the above and my confidence... the confluence, etc., What is my position sizing?
Having done all the above, Then choices about
HOW to enter.
Limit
stop
braket
all in, all out, or fade in or out.... in all the combinations.
Next:
How to handle the trade not going as expected, choices:
Flat/scratch
widen stop (whoaaaaa)
move stop to lock in B.E. or a scalp
Trailing stop (and when to use, as in high volitility)
When to get out and reverse
How to handle the trade going as expected:
Exit at Tgt...all out or fade out?
Adjust stop and tgt?
Hit tgt, is there an immediate follow up trade?
......I realized I was making the above decisions in a hap hazzard manner, and applying them ...inapporpriately to various setups. Some choices were working for one set up but I couldn't figure out why they didn't work the next time I applied them to the next set up. **hair pulling and frustration... crys of 'wheres the consistancy!!** And of course some of the choices above I shouldn't be making at all.
By putting this in a spreadsheet and thinking about how this process of decision making... and the various choices fit or didn't to each set up going across the spreadsheet,
Some things became clear.
My sucess rate and consistancy has improved a lot.
I would guess that after awhile these decisions can be made in seconds. I'm sure there are other choices, these are just the one's I was commonly making.
This whole thing starts with the observation [based on a year of after hours analysis of each day] that I don't have to lose. Period. It is possible to have no losing days. Of course losing trades, but no losing days. I've heard several seasoned people on ET say can become the rule for you. I'm re-thinking everything in light of that. The above is a step in that direction...
Wish us all the best!
Since we started trading about the same time, we may be at similar issues...
I can tell from some of the responses I have a long ways yet to go.
Where I'm at currently is breaking down my decison process.
I set up a spreadsheet with a 'why what where when how' down the side and my set ups going across. I am filling in the answers for each of my set ups. I've gotten it this far:
Why think about it this way, do this spreadsheet? To approach the possiblity of 'no losing days'... a concept NoDoji talked about.
First daily question I ask is 'What kind of trading day is it?' Trending, consolodating, or are my trade places in time like Econ reports? [in the spreadsheet I sort my set ups across the columns to fit the type of trading day, first my trending day setups, etc.]
then down the rows I continue with:
Where and when to enter. There are several things to sort thru here. First there is an area of interest... the set up.
Next each set up has a catch or trick or issue unique to it, to make it work. Like is it really a pullback in a trend?
To deal with the issue... I look for inviolable filters... high standard filters that can produce 'no losing days'. If they are not there, I don't take the trade.
Set ups often have optional confluence typical to that set up. Take note of them.
Then I specify the premise of the trade.
Then I look to where to place the stop... where it disproves the premise of the trade.
Then Where to place the Tgt... generally at the next S/R.
And is it a scalp, day, swing or open Tgt?
Having a stop and Tgt, is the R:R good?
Based on the above and my confidence... the confluence, etc., What is my position sizing?
Having done all the above, Then choices about
HOW to enter.
Limit
stop
braket
all in, all out, or fade in or out.... in all the combinations.
Next:
How to handle the trade not going as expected, choices:
Flat/scratch
widen stop (whoaaaaa)
move stop to lock in B.E. or a scalp
Trailing stop (and when to use, as in high volitility)
When to get out and reverse
How to handle the trade going as expected:
Exit at Tgt...all out or fade out?
Adjust stop and tgt?
Hit tgt, is there an immediate follow up trade?
......I realized I was making the above decisions in a hap hazzard manner, and applying them ...inapporpriately to various setups. Some choices were working for one set up but I couldn't figure out why they didn't work the next time I applied them to the next set up. **hair pulling and frustration... crys of 'wheres the consistancy!!** And of course some of the choices above I shouldn't be making at all.
By putting this in a spreadsheet and thinking about how this process of decision making... and the various choices fit or didn't to each set up going across the spreadsheet,
Some things became clear.
My sucess rate and consistancy has improved a lot.
I would guess that after awhile these decisions can be made in seconds. I'm sure there are other choices, these are just the one's I was commonly making.
This whole thing starts with the observation [based on a year of after hours analysis of each day] that I don't have to lose. Period. It is possible to have no losing days. Of course losing trades, but no losing days. I've heard several seasoned people on ET say can become the rule for you. I'm re-thinking everything in light of that. The above is a step in that direction...
Wish us all the best!
