Journal XburbX - My Plan

RN, some of this should sound familiar from our old sesh's

The explanations may come across as pure hogwash but it works for me as it's 100% my interpretation:

1. Longer Term Trendlines (daily - monthly charts): Seeing 'smart money' and 'big money' (sometimes dumb money) as two competitors. Big money has VWAP and S&P benchmarks - and a consistent gameplan thru hell and high water. Smart money recognizes these areas and whether big money is right or wrong it provides a backbone for entering and obvious outs. This is short term PA near lines.

2. Supply and Demand (5 min - monthly charts): How is price building on itself, the congruence - triangles, wedges, etc. When it pauses to take a break what is prices true intention? Could breakdown entirely or just be a drop of the book to become congruent again. Tops/bottoms/trendlines give ME clear bullish/bearish points

3. More classic TA: break of 2nd lower high trendline, break of outside bar on 30min TF and above

4. Finally trying to establish a position for the day (5-10 points) near the open utilizing the 'open type' and 'opening price principle'

Being perfectly honest I am profitable, and profitable most days, but tend to give back very large chunks when I'm wrong. And have some nasty habits (reversing a losing position is numero uno)
 
Missing an opportunity not defined in my trading plan is my biggest fear, followed by difficulty creating a plan knowing that the strategy will be a loser at times (exactly as you stated RN)

This means I have very low emotional intelligence - lack of knowing that I have the means to be successful at a future time. So maybe this needs to be addressed separately.

Maybe a good start for me will be:

1. Accountability - Screenprinting the trade when I put it on and again after the trade closed with analysis.

2. Patience - Choosing a stop loss and only taking the trade if I get filled within X tics.

3. Greed - Smaller profit targets until I can size up enough to utilize runners, seeing the big boy splashes gets me 1-2 points pretty consistently, and most of my trades should be scalps (few hundred dollars flashing either way is my boundary, and just as often as price goes vertical it retraces itself)
 
BD

These 3 traits are good that you identified them.

1. No accountability

My experience- Needs to be a full 180 degree turn around. You need to truly understand and believe you are 100% accountable for your own account and trading. At least for me, I found that it was not even an option to have it differently. My background allows this to come easier than some others.

2. Greed, need to be in the market all the time

My experience- Having a good plan helps eliminate the emotions associated with money. If you look at my last week of trading, I am almost the opposite of "being in the market all of the time". For me, that's ok. For you, I don't know. Some people trade that way but it never worked for me.

3. Lazy, At least 10-12 different type trades, too much tracking/journaling

My experience -- I have 1 type of trade. I have tried lots and lots of different things in the past including 5 or 6 different setups with journaling. I didnt realize at the time that I didnt know 1 setup well enough to let alone trade 5-6. Do you know everything about 1 of those 10-12? I wrote out a full page or more on the details of the 1 setup I am trading. For me, thats what worked. I can't say it will work for someone else, but just relaying my experience.
 
X,

May I ask how you came to your conclusion on taking profits and stopping out. Arbitrarily using points doesn't work for me and I tend to exit the same way I enter, real-time, but as I've previously stated it leaves a gaping margin for error.
 
I don't use points or cents. I use price action to tell me where my stop, exits and management are. Really basic price action. I don't think about what I want the market to do. It is more about take what the market will give you and don't let it take from you as best as possible. I used to try to enter and then wait for x amount of points no matter what price was telling me. This was not profitable for me. I was not paying any attention or giving respect to what price was telling me. I have always been able to take a hard stop quite easily. It was one of the first things I was told to do in trading and I know it has saved me a lot of money. I am not saying it is right to do, but it has worked for me. Rn and TO both gave good insight about stop placement. As a recommendation I would suggest you read every post Rn has ever written. I did it. It is worth it.
 
Quote from BobbiDigital:

RN, some of this should sound familiar from our old sesh's

The explanations may come across as pure hogwash but it works for me as it's 100% my interpretation:

1. Longer Term Trendlines (daily - monthly charts): Seeing 'smart money' and 'big money' (sometimes dumb money) as two competitors. Big money has VWAP and S&P benchmarks - and a consistent gameplan thru hell and high water. Smart money recognizes these areas and whether big money is right or wrong it provides a backbone for entering and obvious outs. This is short term PA near lines.

2. Supply and Demand (5 min - monthly charts): How is price building on itself, the congruence - triangles, wedges, etc. When it pauses to take a break what is prices true intention? Could breakdown entirely or just be a drop of the book to become congruent again. Tops/bottoms/trendlines give ME clear bullish/bearish points

3. More classic TA: break of 2nd lower high trendline, break of outside bar on 30min TF and above

4. Finally trying to establish a position for the day (5-10 points) near the open utilizing the 'open type' and 'opening price principle'

Being perfectly honest I am profitable, and profitable most days, but tend to give back very large chunks when I'm wrong. And have some nasty habits (reversing a losing position is numero uno)
More...


Quote from BobbiDigital:

Missing an opportunity not defined in my trading plan is my biggest fear, followed by difficulty creating a plan knowing that the strategy will be a loser at times (exactly as you stated RN)

This means I have very low emotional intelligence - lack of knowing that I have the means to be successful at a future time. So maybe this needs to be addressed separately.

Maybe a good start for me will be:

1. Accountability - Screenprinting the trade when I put it on and again after the trade closed with analysis.

2. Patience - Choosing a stop loss and only taking the trade if I get filled within X tics.

3. Greed - Smaller profit targets until I can size up enough to utilize runners, seeing the big boy splashes gets me 1-2 points pretty consistently, and most of my trades should be scalps (few hundred dollars flashing either way is my boundary, and just as often as price goes vertical it retraces itself)
More...

BD

Several thoughts regarding these two post, but only a couple of main points


First;

Having several winners, then giving it back – is not what I would consider profitable

May I suggest you rethink that one, and accept you are not profitable at this point (by accepting it you’ll be able to change it)


Second;

Out of your string of winners – before the big loser

How many small losers; (defined by exiting exactly where each trade fails…, and being a small % of your account)

Do you have

====================

It’ll either be none.. or a few

If none – that is one issue… if a few, then that’s a different issue

==========================================
==========================================


Time was I would have many… many winners in a row

Some – straight up winners

Others – started out as a loser, which I would add to, then price would come back – and viola a winner

Then would come the trade that simply didn’t come back

I too thought I was profitable, and if not for that one loser – I could be a trader and live the life of riley


I assure you – this is not the way to trade

And no amount of analysis…, better understanding…, better lines…, better approach…, better what ever – will change that


Each trade must have a stop – which would be placed where the trade fails
Each trade will either win or lose
Each time price hits your stop loss – you must exit

There is simply no other way to become consistently profitable – none

(think of this as losing 101/ a fundamental truth/ the very foundation to becoming consistently profitable / whatever - but an absolutely necessary whatever)


Btw; reversing a loser, unless price keeps going – only results in another loser


Note;
I purposely left off anything referencing winning trades - fore until a trader learns to properly lose – winners simply don’t matter…

There is always a losing trade waiting in the wings, that once taken will destroy every winner we've had to date – and more

==================================================

So, how do you think it best you go about changing – that is if you truly want to become consistently profitable?

Stepping back and focusing on one set up (if for no other reason than to clear up your mind)…, while getting the basics of losing under control – may be one?

==========================================================

Btw

Always feel free to disagree with/ pick apart anything I say…. but on this one if you do…., please tell me where I’m wrong


Your Thoughts Sir
RN
 
X,

I was more refering to the process used to determine profit targets and stops (trailing-stops) because we all know it's not a perfect game so ultimately one must 'settle.' You answered it with your response that you let price tell you. But there still must be some sort of exit signal. In fact, I'm sure it's the simpler the better.
 
Bd

I really think you should read all of rn's posts starting with the one he just did. Really study them and understand them. I'm not avoiding your question but it's not the part needed right now. Rn s last post is too important too dismiss.
 
I trade technical setups with definitive areas I don't want to be long/short and respect that. Still blowing a couple points here a couple points there adds up fast.

Attached chart, the gold triangle (bearish wedge), I want to short below the diagonal & horizontal line, long above the horizontal one. Simple. But we only get 1.5 points above it then it ranges below the diagonal before selling off short of my profit target ($138.95 - lower horizontal line)

Very basic example but it shows how you can be right yet lose money by not having a plan. (didn't hit either profit target)

Hopefully we can move past whatever it is you guys think I'm dealing with here and talk shop. Yeesh.
 
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