Smacking the ER2

Quote from jessop:

TNG,

"Another quick point... and this is possibly just me, but the psychology of using language like "wimps out" might be important too. If you start refering to it as making the wrong decision, rather than wimping out, or even making a rash, or uninformed decision, you might find a mental shift towards profitability."

Yes that was a negative reference indeed - point taken

"And as for the poster who recommended walking away for a few minutes, I'm a little torn on that advice. On one hand if it's the only thing that works for you, I guess it's ok, but on the other hand, I've never seen a pro trader (and I've been around a lot) that you could PRY from his machine while they had a trade on. Just something to munch on...."

Agree. I am currently working on controlling certain subconcious fears and as an interim measure it calms me down. But yes this isn't my planned 'pro trader' end game for sure.

Thanks again
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Just to be sure... I'm not really the "call you're kid fat, and he'll end up fat" kinda guy, but I do think that at times our language can give indicators into our thinking.

When you were trading this system in sim, were you looking at the same data sources? ie news channels, oil prices etc?

-The New Guy
 
For both siming and live I used Briefing.com and Econoday as my references on the news events.

When I have the times of the news events for the day I just put a blue line on my chart for the time the news is announced.

I don't look at the details of the news announcements, although I may look at the 'talking heads' spin later on during a quiet spell. Even though I did economics at University, I couldn't care less what the numbers are to be honest.

I better not start on oil price because that has totally hypnotized me in recent weeks and I'm trying to ween myself off the QM chart being around when I make a trade. I never looked at the oil price when I was Sim trading.

Cheers
 
When people say that you can’t trade when you are tired and grouchy …. listen to them. The last two days I have just started a new freelance IT contract in the mornings and have been trying to survive on 5 hours sleep and Red Bull. This doesn’t mix very well with newbie trading.

S1 - failed to take – it was a screaming long on 5 min & 2 min and I just wouldn’t press the button – my fear of loss too much today !!
S2 - failed to take – ditto – except screaming short this time
Decided to walk away and chill.

Plan to Sim tomorrow (another 5 hours sleep day) and then go back live on Friday because that’s my day off…..

Entries – none
Exits – none
Points today $zilch (not including comms)

Onwards …..to bed
 

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Well a pretty good Sim day - but they should be shouldn’t they really!!

I gave most signals a go – and got a few nice results on the new 5Min only chart setup. The speed of the 5min candle printing is a bit tricky for me at the moment after my usual 1-2min charts. However, on the flip side of the coin I’m finding certain continuation signals are very solid in 5 Min mode (eg. S7, S8), after I binned them in 2 min and definitely 1min TFs. So that is a real bonus.

However, my assumption that moving to 5min from 2min with the same signals was a minor tweak to the trading plan is proving flaky. There are a few new signal setups and a new indicator (which I’ve always wanted to use but it looked like it was on acid in 1& 2 min TFs and so got on my nerves) So it is a major update of entry & exit rules in the plan. Anyway enough of that……

S0 – signal in premarket – from new setup - didn’t take in though
S1 – nice entry if a little late 650.8 (14:38) – couldn’t believe the speed of the drop but maybe that’s just me and 5min candles – exit at 647.3
S2 – entry at 651.8 (15:20) – stopped out at 650.8 – but thought the signal was still valid so went in again at 651.8 (15:30) but managed to get stopped out at 650.9 in same 5min candle – it then kicked in for a 1.5 pt rise
S3 - entered at 652.20 (15:46) and got out at 650.80
S4 – the entry for S4 was the exit point for S3 – but reversing is not a strong point at the moment – entry at 651.30 (16:11) – exit at 651.60 as buying dried up
S5 – entry at 650.2 (16:47) – buying tailed off and down for stop out 649.2
S6 – at lunch so I missed the reversal and big buying
S7 - nice continuation signal – entry at 652.0 (18:32) and great exit at 654.3
S8 – another continuation signal – but took it very late - 653.4 (19:39) out at 653.8 – a bit early given the breakout was a hot favourite – but you had to hold thru the PB to test 653.6

Given the update of the trading plan 5min entry and exit rules and my timing of 5 min candles I’m Siming tomorrow …..

Entries – mostly good – but timing a bit off
Exits – mostly good – but S8 was way too early
Points today +5pts (not including comms) – one of my best days (Siming of course) but 5Min is also keeping me out of a lot of rubbish I use to take…..however, it reminds me how my trading challenges are 90%+ mental ones !!

Onwards and upwards……….
 

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Well 7 hours sleep and following my simple exit signals paid off in Siming terms in the morning session – the afternoon was patchy to say the least.

I’m still getting use to the 5min candle printing – need to concentrate on not surfing in gaps etc. I’ve got a better ‘simple exit method’ that should keep me in two thirds of a move and stop me bailing out too early. It was a shame that there was no signal on the slide down from the open…..but that’s real nit-picking.

I think a shorter lunch period next week too…because I missed signal S5 and with 5min charts the signals don’t come along too often.

S1 – nice entry 650.1 (15:01) – exit signal got me out at 652.20 which was pretty good

S2 – great entry signal at 651.6 (15:49) – I almost bailed a couple of times – then closed at exactly 2pts (653.6) – my exit signal was 1.1 pts higher !!

S3 – entry at 654.1 (16:49) – good exit at 654.7

S4 – didn’t take - Lunch

S5 – didn’t take – still at Lunch (back at 6:30 – but too late for any of those pts)

S6 – didn’t take – family crisis – my daughters hamster has disappeared !!

Back to Live trading 1 contract on Monday.

Entries – three nice ones am – a few misses pm
Exits – mostly good – need to trust exit signal a bit more S2 was 1.1 pts early
Points today +4.7pts (not including comms) – but this is just to get my timing right with 5min charts – next week is live….

Onwards and upwards……….
 

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jessop -

there has been lots of advise given to you on this thread.

some of it good, some of it not so good.

but you always respond with 'i agree...'

this could be creating a lot of conflicts, indecision and confusion that you no longer know which way is up.

my advise is to create a SOLID plan and dont deviate from it.
 
No seriously ……. a valid question ……am I chopping and changing my methods based on the trading advice given.

Here is a quick summary of what advice I have agreed with and how it has changed my trading plan.

1) Steve

I agreed with his general assessment of my situation. I also agreed with him that Sim trading is vital to get a trading method fine-tuned to the market but not much else. But no change to my trading plan….

2) Quah
I agreed with Quah’s point that to take 100% of my signals was the real objective. I was just pleased I was making progress but agreed that there are no acceptable excuses. But no change to my trading plan….because it already states take all signals etc.

3) The Student

Just agreed that Sim trading has a certain time and place in any trading education. But no change to my trading plan….

4) Thruline

Agreed with Thruline because I do need to spend more time on my exit strategy than on constantly researching reviewing entries/signals to death....I’ve worked on one new simplified exit signal and have updated my trading plan. The walking away from the PC is something I do on occasions just to clear my head. Its not a tactic I plan using on every trade.

5) Ozzy

Agreed that automation would be nice but not possible with my edge. But no change to my trading plan….

Also agreed that I was getting too many signals to handle – I have subsequently moved up to 5 min charts and feel more relaxed so far – but it is early days. I have updated my trading plan

6) Your post on M.Douglas

I agreed with you that the end of the trade exercise must be when there is a really ingrained belief in probabilities. But no change to my trading plan…. because it already states take all signals etc.

7) Dman

I agreed that taking signals should get easier with real live trading experience. But no change to my trading plan….


8) Macaw

I agreed with Macaw that sometimes you just need to dig deep to work through emotional issues etc. But no change to my trading plan….

9) Macaw 2

Agreed that letting winners run is the real mental challenge. But no change to my trading plan….
10) Macro,

Agreed with Macro that keeping with the trend and a higher TF view was beneficial. My trading plan already states the trend rules and I have moved upto 5min TF as said early.
11) The New Guy

I agreed with TNG’s first point that to take 100% of my signals was the real objective. But no change to my trading plan….

I also agreed that not seeing P/L was beneficial. But no change to my trading plan….

12) The New Guy 2

Agreed that saying ‘wimps out’ is not language a top trader would/should use.
But no change to my trading plan….

Agreed that walking away from the screen is not a standard tactic any trader should resort to long term.
But no change to my trading plan….


In summary, I have certainly ‘agreed’ with a lot of the excellent contributions to the thread to date.

However, I have only made two physical updates to my trading plan. Significant enhancements I agree, but then again the people contributing have a lot of experience to learn from.

The rest of the contributions have got me to think about the emotional side of things more than anything.

Your last point “to create a SOLID plan and don’t deviate from it” is very true. Because I know a lot of newbies are tempted to keep tweaking their system and can potentially end up watering down their edge and/or confusing themselves with too much trading info/signals etc.

Thanks for the feedback
 
Quote from jessop:

Fred,

Well what can I say apart from……….. I agree.

J
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lol - i thought that would come

:)

after reading your other later post, i can see your point and, well i hate to say it, but i agree!!!

if you want to learn to take every signal, try this.....

calculate how many valid signals you get in a day. find the lowest, medium, and highest number of signals in any day.

week 1. commit to taking the first signal you see. when you have taken it, stop trading for the day win or lose.

week 2. commit to taking the first 2 signals you see. when you have taken them stop trading.

week 3. commit to taking the first 3 signals you see. when you have taken them, stop trading for the day.

week x. continue doing this until you are at the week corresponding to the LOWEST number of signals you have ever had in any day. this is designed to stop you taking or trying to take signals that are not valid or forcing trades.

ive never done this. just a though that may help.

personally though, i dont worry about missed trades. im not perfect! i used to just beat myself up over missing them. this is no good. i think its unrealistic to expect to be in every trade. it can also lead to overtrading imo.

also remember that there is no such thing as a mistake. if you could have, you would have.
 
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