Matcha's Dow E-mini Journal
- Thread starter Matcha
- Start date
Engineers don't make good traders.
I know. I am one. Or used to be one for 20+ years.
Because engineers by training need to know "why? why? why???" before they take action. You need to ditch this part of your training/personality in trading. There is no "why". There doesn't need to be a "why". When prices move, TRADE! No asking why!
The "why" is not important. And the true *may* eventually come out.
Each trading instrument is different. Observations are very important. You need to examine a given instrument over a period of time. e.g. a couple of months. The intraday day movements. You will get a pretty good feel for the wiggle size, or "rip" size. Some call these "noise" in the price movements. For S&P the typical rip size is about 2 points. So if one sets the trailing stop as 2 points below, there is a good chance of being ripped out, or wiggled out, then the price resumes the original direction. To counteract that: #1) you can increase your stop size. (But this would increase your risks. #2) once you have your direction bias (long or short), you wait until you see price probably has reached the end of the rip before you enter your position, then set your typical stop. This is saver. The down side is you may miss a break out/down. A trade off. Between missing a break, or being ripped.
For Dow (YM) that is typically 20 Dow points I would imagine.
I think one can intermix live with SIM tradings (for as long as needed). That's what pilot trainings do.
You progress like:
Sim, sim, sim, sim, sim, live, sim, sim, sim, sim, sim, live, sim...
Sim, sim, sim, live, sim, sim, sim, live, sim, sim, sim, live, sim...
sim, sim, live, sim, live, sim, sim, live, sim, sim, live...
live, live, sim, live, live, sim, live, live, sim...
etc.
to gradually build up. Nothing like the pressure and psychological effects when real money is on the line. But Sim will test your theory and understanding in forward tests not backward tests.
Quote from Bolimomo:
You should think that you must have done something really awesome in this life!
You treat other people with courtesy and respect. Others, hopefully most, will return in kind. And some may even surprise you.
And maybe WentFishing will pay your grocery bill.
I am already very surprised since the first day I posted the tread!
I am a huge believer in Karma.
My grocery bill is a bit big.. Eat too much... too much....
I heard engineers and lawyers are bad traders. Becuase they want "certainties". In trading, there are only "high probabilities".
I studied art and fasion. Worked in fashion retail for some time. I hope I can make as a trader. As long as I don't let the emotion get in my way... Put my right brain to sleep while trading! zzz....zzzz...
Trading is very much like fashion.
Fashion: product life cycle
Trading: price life cycle
Fashion: Buy whole sale price, mark up, sell retail price
Trading: Buy at whole sale, sell at retail
Fashioin: mark down , get out inventory
Trading: take small loss, get out of the trade
Fashion: suply and demand
Trading: supply and demand
Fashion: color story, pattern
Trading: series of candle colors, indicator color change, patterns.
Fashion: Forcast, Sesonal planing, exit strategy
Traing: trading plan
Quote from ~~~:
sweet naughty matcha ... i don't need a channel bathing suits coz with my body i look great & sexy with any brand of bathing suits (tips to you girl---work on your body and you will look great even you wear a no brand clothes!)
hehe, sis
I wouldn't mind to put the snobbish outfit on!
Oh, I don't like working out at all. Now I just started to go to the gym. Metabolism is slowing down. haha
Good for you! I have darker skin tone. Everytime I am in Hong Kong and China, I feel really weird. All the girls there are so tiny and pale...
Quite a few people to my knowledge with engineering background became very successful when they decided to switch to trading as their full time job. The reason I think is because normally people from science and technology background (if they succeeded in their profession) got very good training in analyzing, designing and testing different models/strategy and figure it out what would work with solid math background; Of course, execution in trading is a different issue and it is probably involved with personality thing. But I think some people with solid engineering training do have an edge in coming up with unique strategy and successful and functional system.
You are absolutely right that profitable trading is all about trading on what you see but not what you think and follow your chart but not your guts.