Psychological Journal

Once again I found myself reading the Reminiscences of a Stock Operator on the subway. I have read this book nuimerous times and each time new meanings seem to surface. It seems all answers are hidden within this book.

After the losses I had and after reflecting on my strategy, I now realized what exactly is wrong with my chaotic system. Even though the risk and reward is good for each trade, as a whole the system has a sub-par risk and reward ratio.

I am still not sure what or how my next system should be, but I will ponder on why some investors (like my boss for example, is able to ride Google from from $400 all the way to $700+) are able to time their entry so well.

Regardless, I know right at this moment, the first thing I need to do is filter out all the useless information that confuses my mindset. I will now toss Trading in the Zone and Trade Your Way to Financial Freedom to the miscellaneous book pile where all my Motely Fools books are.

Pension_Admin
 
Quote from IndexSwing:

We have the same goal. Study those who have made it. Have you read Market Wizards? If not do so, it helped me to see how the real winners think.
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I have read many investments and trading books. The Market Wizards series is good. I especially like the interview with Michael Marcus and Steven Cohen.

I also enjoy Reminiscences of a Stock Operator. It's a classic!

Pension_Admin
 
Quote from pneuma:

Have you actually backtested your "chaotic strategy" and historically verified that it has some potential of making a profit? Flipping a coin and adding some form of money management IS NOT A STRATEGY.

No wonder you can't concentrate at work, you don't have anything solid to put your faith in.

pneuma
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You are absolutely right! You know what exactly I am going to do? I am gonna link all the fundamental, time frames analysis, order flow analysis, and technical analysis together and form a new system.

The objective will be to enter a trade like an investor, ride it like 1999, and then exit like a daytrader.

Pension_Admin
 
pension, read a book on how to pic up chicks,or how to make your marriage work, or how to become a millionaire,try any of those and see how it works,same with your system,you are the system,what works for them doesn't work for anyone else,study ,trial and error,winners stay ,losers go,make your own system and you will know when it works and when it doesn't and you will have confidence when to use it, reduce your doubt by building your own system
 
I lost my internet connection for about a week now and I haven't made a trade since. I am taking this time to think about my new strategy and different scenarios, risk-to-reward, etc.

While thinking about my strategy, I decided that my new goal will be to ride the winner as long as possible. That would mean I will get shake off a few time before I could truly get on whatever that I'll be riding. Money management strategy and carefully placed stop losses will have to be utilized. Leverage will have to be actively managed in order to preserve my capital and to maximize my profit.

I believe this is the true Holy Grail, but it is extremely risky that even though everyone knows about it, few dare to venture into this.

Pension_Admin

http://www.youtube.com/watch?v=FSbGur1dz9k
 
Regardless, I know right at this moment, the first thing I need to do is filter out all the useless information that confuses my mindset. I will now toss Trading in the Zone and Trade Your Way to Financial Freedom to the miscellaneous book pile where all my Motely Fools books are.
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Yea, it does seem confusing but after some time the useless stuff moves further back in your mind and if you keep reading, good stuff takes up a larger space in the front in the brain. It almost seems like reading bad information would pollute your brain and add to the confusion but this is not really the case. Piece by piece, info gets confirmed (just as it does with experience) the creme rising to the top.

You'll soon recognize what belongs in the trash pile re books.
 
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