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Maintaining discipline
- Thread starter nimble
- Start date
He couldn't come up with proof here. Ran like a little girl.
http://www.elitetrader.com/vb/showthread.php?s=&postid=1894175#post1894175
http://www.elitetrader.com/vb/showthread.php?s=&postid=1894175#post1894175
I think its helpful to look at when a particular issue occurs. I am surprised at how I repeat the same patterns. One thing that is helping me is hypnosis. I have meditated but prefer hypnosis as its more structured, and I find a deeper experience.
I would also like to state that there are always 2 ways of approaching things.
Many traders have a math background of some sort. This uses the right brain...well, the other part of the brain works much differently, and is messy. I think this is where the art of trading comes in. Perhaps this is OK. All I know is that there is a flow to the markets which one must experience. When we compartmentalize our trading, and break it down to excel sheets/profit loss statements I think we somehow miss the boat.
I have certainly learnt alot from my mistakes, and reviewing trading records. But I'm not sure that one must be a slave to them.
Just my 2 cents.
I would also like to state that there are always 2 ways of approaching things.
Many traders have a math background of some sort. This uses the right brain...well, the other part of the brain works much differently, and is messy. I think this is where the art of trading comes in. Perhaps this is OK. All I know is that there is a flow to the markets which one must experience. When we compartmentalize our trading, and break it down to excel sheets/profit loss statements I think we somehow miss the boat.
I have certainly learnt alot from my mistakes, and reviewing trading records. But I'm not sure that one must be a slave to them.
Just my 2 cents.
Quote from nimble:
I have realized for many months that lack of self discipline is my biggest problem in becoming a consistent trader.
By nature, I am a very adaptable, flexible, and forgiving person. Somewhat a risk taker, and like to try out new things. Always curious.
As you already can tell, I have a predisposition that makes it hard for me to maintain discipline.
General wisdom says I should find a job that is suited for my personality and talent. Well, I am attached to the potential of monetary reward, and flexible hours of a trading career. I am working towards making trading my second/retirement career.
I have traded actively for 1.5 years now. Made a whole lot in a very short time and lost it all. Possibly I will finally find that trading really isn't my thing. At this point, I am not giving up. Not yet.
My main focus for the next many weeks, months, years is to train and maintain discipline. I will post in this thread readings or tools I have found regarding self-discipline, as well as my plan and progress.
I hope this thread and compilation will be useful to myself and others on the board.
Comments, suggestions or simply moral support or beating are very welcome!
discipline is key in this game. You have to find out what breaks it. Do you get angry? are you tired? get bored? are your emotions out of balance. And then address it.
I went back on topic here and if you want baron check the ip address and let that poster know what is going on in his situation.
I never get angry at the market or blame the market. Always on myself. Here are some larger issues:
Not wanting to take a loss for the day. Again, not every day, but I only need one of those stupid days.
I can have a $200-$500 for 20-25 days , and that one stupid trade where I keep average a loss that will cause me 2 week's worth of work. I have done this climb many one steps forward and set back 10 steps many many times.
Perhaps the next time I embark the 10 step gamble, I should remember time is a cost also....
Second problem is I always want to be in the game(looking for excitement?). Rarely do I have NO position. My system tells me which days to avoid, but I wouldn't listen.
That's why I am doing things to break my routine and habit right now. I think I need to break the physical environment and routine.
Writing in this Journal itself becomes a constant reminder that I must force myself to change. If I write how I broke my rules every single day, I will start getting embarass, stupid, and irresponsible and finally... maybe I will change...
So how did I do today?
Broke 2.
Broke "no overnight rule" and held over AAPL and AMZN earnings, and broke "no averaging at a loss rule".
Not wanting to take a loss for the day. Again, not every day, but I only need one of those stupid days.
I can have a $200-$500 for 20-25 days , and that one stupid trade where I keep average a loss that will cause me 2 week's worth of work. I have done this climb many one steps forward and set back 10 steps many many times.
Perhaps the next time I embark the 10 step gamble, I should remember time is a cost also....
Second problem is I always want to be in the game(looking for excitement?). Rarely do I have NO position. My system tells me which days to avoid, but I wouldn't listen.
That's why I am doing things to break my routine and habit right now. I think I need to break the physical environment and routine.
Writing in this Journal itself becomes a constant reminder that I must force myself to change. If I write how I broke my rules every single day, I will start getting embarass, stupid, and irresponsible and finally... maybe I will change...
So how did I do today?
Broke 2.
Broke "no overnight rule" and held over AAPL and AMZN earnings, and broke "no averaging at a loss rule".
Broke 2 again today
"adhere to stop loss rule"
"no averaging at a loss rule"
Gave back what I gained from breaking the two rules yesterday.
Am I starting to see a pattern?
Starting tomorrow, I am putting in my stop. And no averaging.
Why do I think I can do it tomorrow? 'Cos I am exposing my stupidity to the public and the embarrassment is starting to seep in.
"adhere to stop loss rule"
"no averaging at a loss rule"
Gave back what I gained from breaking the two rules yesterday.
Am I starting to see a pattern?
Starting tomorrow, I am putting in my stop. And no averaging.
Why do I think I can do it tomorrow? 'Cos I am exposing my stupidity to the public and the embarrassment is starting to seep in.
Quote from nimble:
Broke 2 again today
"adhere to stop loss rule"
"no averaging at a loss rule"
Gave back what I gained from breaking the two rules yesterday.
Am I starting to see a pattern?
Starting tomorrow, I am putting in my stop. And no averaging.
Why do I think I can do it tomorrow? 'Cos I am exposing my stupidity to the public and the embarrassment is starting to seep in.
Get some post it's and put them on your desk. Remind yourself of the things you do that hurt your trading and DON"T do them. Follow the rules don't break them. Stay within yourself and take things trade by trade.
Trading is not hard after you understand the markets. What is hard is following the rules and keeping control of your emotions. Winning is habit forming as is losing.
the big problem with you is you do not trust yourself, you are not tough enough. if you shorted a rally and think it will go down, then calm down and sit there tight, even against you, if hit margin call or hit your loss limit, get out. ok, no problem, next time, see a huge rally, just do it again, trust yourself, not every time you will get hit, market extreme does exist, but will not last very long. I once bought BSC in the biggest drop, and lost 60% of my account, but I rebounced quickly from buying biggest drops like WM, ABK, cal, VNDA...., shorted HYPE like VMW, JOYG, ICO, even shorted WAVE today, who cares " catching the falling knife, buck the trend, avoid the opening, avoid earning..." all those wisdoms are just sheep's wisdom (doomed to be a loser).
rules are not necessary, the most important thing is you must trust yourself, you must know what you are doing, know when to get out either wrong or right.
rules are not necessary, the most important thing is you must trust yourself, you must know what you are doing, know when to get out either wrong or right.
Friday 4/25
Broke 2,
"No stop"
"Average down"
trader_david, I was quite positive we are going to try the 1390s so I bought high 1380s. So I did like I usually do, hold till I get a profit. I have seen this too many times. This is also why I like averaging, 'cos many times I will turn out correct after taking a loss.
In my first 9 months of futures trading, I went into margin calls many time holding onto loss. The progress is I have not had a margin call for 5 months now.
Future's leverage is large compared to stocks so if I want to stay in this game, I cannot simply "trust or be confident" with my instinct and keep holding to a loss.
Broke 2,
"No stop"
"Average down"
trader_david, I was quite positive we are going to try the 1390s so I bought high 1380s. So I did like I usually do, hold till I get a profit. I have seen this too many times. This is also why I like averaging, 'cos many times I will turn out correct after taking a loss.
In my first 9 months of futures trading, I went into margin calls many time holding onto loss. The progress is I have not had a margin call for 5 months now.
Future's leverage is large compared to stocks so if I want to stay in this game, I cannot simply "trust or be confident" with my instinct and keep holding to a loss.