Little Lex's YM Daytrading Journal

Thanks IronFist, I see what your mean. I think I will try to take that concept a bit further and try not look at the P&L at all.

I have to learn to only focus on the chart and base my trading decisions on price action instead of my personal profit or loss.

Enjoy your week-end,

LL


Quote from IronFist:

Hey,

If you are not comfortable with the psychological stress of trading 2 contracts instead of 1, see if there's a way in your software to change the display to "points" instead of "dollars."

That way you'll see +7 points or whatever and it will look the same with 1 contract as it will with 10. Say you're up 10 points on two contracts, you won't get super excited cuz you're seeing $100 on there. You'll just see +10 points.

It's worth a try.

I've seen a similar phenomenon in weightlifting where someone goes to lift a heavier weight than they've ever lifted before (often when they add another 45lb "big plate" to the bar), and they are unable to complete the lift because they are psyched out. But if they loaded the same amount of weight on the bar using smaller plates, it doesn't look so intimidating and they get the lift.
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Dear Lex,

I hope you read my post.

You must have much larger point gains to win in futures, or else your stops and small profit taking points become big gains for other well seasoned traders.

The way to catch these large 100-500 pt moves is to use a large SMA to find the points of support and resistance. Also try a variable MA for that.

Good luck.
 
Hi Jaytrade,

first of all thanks for your posts. I really appreciate your help. Of course you are right and I agree with your point of view. I am aware that I need bigger winners but I am unable to control my emotions.

For example before a trade I tell myself to be patient. I enter the trade and it moves immediately against me. I then lose faith in the trade and close it as soon as it is positive again, or hits my stop loss. Of course many of the trades that I close with a small profit have a large profit potential.

I know that this way I will never become a successful trader but it is really hard to overcome this psychological problem. Human beings want to be right. I am right more than 75% of the time but in the end I am not making much money.

However I am seriously working on this problem now and I suppose that it only takes one or two large winners to put this issue behind me.

Thanks again Jaytrade and good trading to you,

LL


Quote from Jaytrade:

Dear Lex,

I hope you read my post.

You must have much larger point gains to win in futures, or else your stops and small profit taking points become big gains for other well seasoned traders.

The way to catch these large 100-500 pt moves is to use a large SMA to find the points of support and resistance. Also try a variable MA for that.

Good luck.
More...
 
Good evening everyone,

I took 2 trades today, both in the afternoon session. I did not feel comfortable in the morning. Actually I had the impression the market was on steroids. It just moved to quickly for me.

Here is the graph of my first trade today. It was a 25 point loser. I expected a reversal but I was wrong. Actually the real reversel was 2 minutes later, but by then I was stopped out already.

Reasons for trade:

Resistance (double top) at 8598 (round number)

Reason for exit:

Resistance broken

Any opinions on this trade? Do you think it was a bad trade?
 

Attachments

Now comes the embarrassing part, my winning trade. Still the same old problem. Great entry, lousy exit. Actually lousy is not the correct word. Please look at this chart. I could have made 485 points by simply holding, without ever turning negative. I closed the trade with a 15 point gain.

I start to question whether I will ever be able to hold on to a position for more than 2 minutes. I suppose I need more confidence in my trading. It seems even harder after a losing trade. This is very disappointing.

I "know" it is wrong to close my trades as soon as I have a small profit. But it is very very difficult to get rid of this bad habit.

I will print out this graph and put it on the wall above my screen. Hopefully that will help!

LL
 

Attachments

I understand what you're going through Lil Lex.

As a trader, the only way to grow is to simply force yourself to improve. If you don't, you'll never grow as a trader or as a person.

I like the fact that you're using a journal, and it shows you have the balls to at least allow constructive criticism of your trading, which means you obviously want to be a better trader.

--here's what you need to do/ask--

1. Does the trade meet my system of trading? If not, exit.

2. Does the trade have a good entry to catch a full swing of points? if not, exit.

3. Does my system show me the larger trend? If not, don't trade.


You MUST hold onto the big trades!

Taking a small profit will make you go broke! You won't survive in the futures market unless you are:

1. Emotionally distant (do not let emotion influence decision)
2. Using a profitable system
3. Have enough cash...

Basically, we need an edge to trade well. Then we need to stay emotionally distant and not allow feelings mess up our proven system. If you have no edge, other traders take what you lose. It's a zero-sum-gain (or game :)
Meaning: Your loss is my gain.


I would suggest you stop trading until you can figure out a way to stay in profitable trades...as well as recognizing which situations are profitable and which are TRAPS.


If you know with certainty the trade will work out, there's no reason to exit the trade!

Please tell me what your system is and please tell me what kind of trading rules you have in place.

I will provide some advice on your system when you tell me how you are trading...

..and if you have no plan or indicators or rules, then you have no edge! Which is how all new traders start.
You need an objective system and plan to prevent emotions from "bubbling up" and ruining those great 400 pt trades!


:D I learned from experience
 
You said you use a hard stop on your first post...

Obviously that's not true!


If you stop out AT a profit, it's still a stop.
I suggest you define your system exit conditions. I usually place a stop at my break even point, and I don't move it unless I've got 100pts or more profit running.

I've missed a lot of 100pt gains because I'm not looking to "make a profit" I'm looking to catch the big movements, which means you might need to sacrifice a few 100pt gains to WAIT and SEE if the trade continues before hitting your break even.

Friday pre-market I got short at 8848.
I could have covered for 120pt gain, but instead it ran up and hit my breakeven stop-loss.

That was a good trade because my system allows me to wait and see if the trend either continues or reverses.

Hard stops are set, and not moved.
So if you set a stop, the most you should move it is break-even after a nice profit is showing.

Allow your 15point winners to be 300 point winners :cool:
 
About that trade you took a few days ago:

Double tops are usually good spots to sell.

But sometimes you should wait to see if they push the market higher, to hit your stop.

Market makers love to push a little higher or lowers to gobble up those stops...

Sometimes a predictable chart pattern is TOO GOOD TO BE TRUE! And that's how market makers earn their lunch money.

I don't always short double tops.
You didn't lose many points on that trade, so no big deal. It's just part of the game.

It looks to me that you also predicted the move too soon...sometimes, getting in later is better than sooner...wait for the breakdown and violation of that trend line u drew.
 
Quote from Little Lex:



I "know" it is wrong to close my trades as soon as I have a small profit. But it is very very difficult to get rid of this bad habit.

I will print out this graph and put it on the wall above my screen. Hopefully that will help!

LL
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Dear Little Lex, don't be to hard on yourself....NOT to many traders would of hung on that long...they would of gotten out on the first pull back if not there for sure on the second pull back....what you need is for MACD or some type of lines crossing to TELL you to get out.


<a href="http://s252.photobucket.com/albums/hh9/splash68696/?action=view&current=long_winner_oct_16.jpg" target="_blank"><img src="http://i252.photobucket.com/albums/hh9/splash68696/long_winner_oct_16.jpg" border="0" alt="Photobucket"></a>
 
Hi Jaytrade,

I really appreciate your help. So far I haven't been able to turn things around. I have attached the chart of a short trade I took today. I closed with 4 points profit. That's so damn frustrating and there's no one to blame except myself.

You said I need to ask myself whether the trade meets my system, whether it's a good entry etc. Currently I hit the close button before I even have the chance to think.

Today I partly switched to Simulation Mode and of course there's absolutely no problem to keep a position running.

Here's another thing you said:

You won't survive in the futures market unless you are:

1. Emotionally distant

Looks like I'm in trouble. How do you become emotionally distant?

Thanks again,

LL




Quote from Jaytrade:

I understand what you're going through Lil Lex.

As a trader, the only way to grow is to simply force yourself to improve. If you don't, you'll never grow as a trader or as a person.

I like the fact that you're using a journal, and it shows you have the balls to at least allow constructive criticism of your trading, which means you obviously want to be a better trader.

--here's what you need to do/ask--

1. Does the trade meet my system of trading? If not, exit.

2. Does the trade have a good entry to catch a full swing of points? if not, exit.

3. Does my system show me the larger trend? If not, don't trade.


You MUST hold onto the big trades!

Taking a small profit will make you go broke! You won't survive in the futures market unless you are:

1. Emotionally distant (do not let emotion influence decision)
2. Using a profitable system
3. Have enough cash...

Basically, we need an edge to trade well. Then we need to stay emotionally distant and not allow feelings mess up our proven system. If you have no edge, other traders take what you lose. It's a zero-sum-gain (or game :)
Meaning: Your loss is my gain.


I would suggest you stop trading until you can figure out a way to stay in profitable trades...as well as recognizing which situations are profitable and which are TRAPS.


If you know with certainty the trade will work out, there's no reason to exit the trade!

Please tell me what your system is and please tell me what kind of trading rules you have in place.

I will provide some advice on your system when you tell me how you are trading...

..and if you have no plan or indicators or rules, then you have no edge! Which is how all new traders start.
You need an objective system and plan to prevent emotions from "bubbling up" and ruining those great 400 pt trades!


:D I learned from experience
More...
 

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