Quote from rustrader:
Suppose you are mistaken and confuse FTT with hitch for example. What would you do? Exit? Reverse to new move? Trading mistakes causes either overtrading or big losses and this is the biggest problem for me.
I do not see 'overtrading' as your biggest problem.
It is important for you to understand the value of making errors at this point. I have intentionally handicapped everyone by
only discussing the most basic tool set at present. Why? Because learning to work through the errors provides a better education for the future. From a logic standpoint, which makes better sense? All of us will one day trade in an error free environment,
or we will continue to make the occasional error (as all humans do) and therefore need to learn how to quickly fix those errors.
The system, thus far, has but three rules.
FTT to FTT (reverse)
FTT to FBO (exit)
FTT to BO (hold)
If at any time, a trader breaks those rules, the trader needs to fix what they broke. A trader does
not return to the information gathering stage, the analysis stage or the decision making stage. When breaking any of the above three rules, a trader proceeds
directly to the taking immediate (and appropriate) action stage in an effort to fix the problem.
If a trader thinks they have an FTT only to realize they had a flaw (Hitch, Dip, Stall, etc.), then the trader has
not correctly followed the above rules. They have taken action when they should not have done so, and therefore must take the appropriate action to fix the problem placing the trader back on the right side of the market.
It does not matter if a small loss results from following the prescribed solution. The mistakes made it this level provide a framework for learning to avoid a repeat performance in the future. The learning process assumes mistakes in input analysis will be made. In fact, It counts on them.
I encourage anyone who still struggles with confusion on this point to review this thread - starting from page one.
- Spydertrader
