Passing up successful trades

[NoDoji]

Quote from trader198:

the truth is most people spend less time on understanding the markets and themselves. the market sometimes trend, sometimes not, its baehavior is not consistent, in different phases, different strategies need be properly applied. behind teh market is people. people has emotions, you can see those emotions on those bars.

Agreed. That's how I trade; my trade entries and trade management rules are based on "those bars", which provide as much of the emotional story as you need to trade.

Quote from trader198:

Mark douglas propsed rules and sytems. but the reaility is you need break rules to win.

YOU may need to break the rules to win; I need to follow them!

 

[trader198]

$300/day? that is a rule?

treat trading like a regular job, come on. better find a regular job and forget about trading. lots of ordinary jobs can privide this number, plus with benefits such as healthcare insurance, 401k match, sick days,personal days....

often I laugh, when I see somebody posted rules like that.

I do not follow those rules.

Quote from NoDoji:



YOU may need to break the rules to win; I need to follow them! [/B]

 

[tomahawk]

Quote from NoDoji:

"Trading in the Zone" is one of the finest guides available for developing a trader's mindset, which is the one absolute requirement for success.

How would you define what constitutes a "Trader's Mindset" if you had to whittle it down to a sentence or two?

 

[HSbF6]

The fact has been, is, and always will be: Spectators can't play the game.

 

[NoDoji]

Quote from trader198:

$300/day? that is a rule?

often I laugh, when I see somebody posted rules like that.

What kind of rule is that? Maybe $300/day is a benchmark for someone based on the statistical analysis of their trading plan, but how the heck could that be a "rule"? Would that mean if you were up $3000 on the day, you'd have to giveback $2700?

:eek:

 

[NoDoji]

Quote from tomahawk:

How would you define what constitutes a "Trader's Mindset" if you had to whittle it down to a sentence or two?

I believe a trader's mindset is the ability to follow one's trading plan without allowing the outcome of any individual trade or series of trades to cause one to deviate from the plan or change it mid-stream.

I had the opportunity to watch two traders for about a year exercising a trader's mindset. That doesn't mean they never ever made a mistake, but the one guy was as close to perfect as I could imagine.

He'd get signals for what to watch, and as soon as a setup formed, he'd determine the technical level where his stop loss had to be placed, calculate position size based on the price and stop size, place a buy stop or sell stop at the price level that would trigger a valid trade according to his plan, place a hard profit target twice as far away as his stop, and leave his initial stop and target no matter what. If price came within .01 of target and then eventually stopped him out for a full loss, it was on to the next trade without a worry. I saw him trade five signals one day and every trade was a losing trade. He had no more difficulty putting on the 5th trade following 4 losers than he did putting on the first trade of the day. The next day he went straight to work doing exactly what he did every day.

THAT is a trader's mindset in action.

Also, Ammo is a daily example of what a trader's mindset looks like in action.

 

[tradin4profits]

Quote from ammo:

bingo, get over the fear because over half your trades will go against you the minute you are filled,accept ti as part of the game and roll with it,become good at losses,this is how one builds an acct, making money is easy, hanging on to it is hard,becomes easier as you get better at managing losses

+1 You nailed it right there!

 

[tomahawk]

Quote from NoDoji:

I believe a trader's mindset is the ability to follow one's trading plan without allowing the outcome of any individual trade or series of trades to cause one to deviate from the plan or change it mid-stream.

I agree, in the context of having a proven profitable strategy.

And I think it's funny that when Douglas describes all the things traders do to manifest a lack of this mindset, what he's really describing are traders who have no edge. So I feel like his target audience is really very very small, that is - traders who actually have an edge but fail to execute.

 

[ogarbitrage]

www.brettsteenbarger.com/How to Take a Loss.doc

 

[halfwaythere]

Quote from trader198:

mindset is not the key. only losers try to dig and figure out they are losing because they think they are mentally not tough enough.

the truth is most people spend less time on understanding the markets and themselves. the market sometimes trend, sometimes not, its baehavior is not consistent, in different phases, different strategies need be properly applied. behind teh market is people. people has emotions, you can see those emotions on those bars.

when something is wrong, they think there is some reasons. in reality, there is any no reason, just wrong. sinc ethe market is not in your hand.

top trader martin schwartz adimitted he is nervous. when he bought and picked bottom, the market did not move, he danced on the desk table to release his pressure.

when read through Market wizards, you will notice top traders are nervous in trading, or emotional too.

the key is they know they have emotions, and take advantage of them.
human being is different from other animals, just becuase we have so many emotions.

take advantge of them.

Mark douglas propsed rules and sytems. but the reaility is you need break rules to win.

if two countries will fight a war, do they first announce the rules how they fight, then each of them follow those rules? most likely each side tries to hide their intention as much as possible, know the opposite as much as possible, use nasty ways to defeat the opponent.

those naughty things really decide who wins.

those braves are killed first even with high discipline. courage need be backed by proper knowledge and how to apply.

Sorry, but no.