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Spydertrader's Jack Hershey Futures Trading Journal
- Thread starter Spydertrader
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Hi all,
Bundle's post about looking for an FTT AFTER you've found a point three got me thinking and I know what I have been doing wrong. I share it because maybe others are also experiencing this.
I forgot to count until three.... Amazing. Been working on this for months and I was still not getting the basics.
Yes, that's all it takes: counting until three. 1..2..3.
I did not pay enough attention to the fractal nature of the markets and was in general caught by the retrace of a retrace.
Every move has its own 1,2,3, even within one bar. A dominant move from 1->2, a retrace from 2->3 and then continuation in the dominant direction (or at least an attempt). Like elevators within elevators. What we don't know of course is how far these moves go and how much time there is between these points. We must always expect 1,2,3 and every moment of the day ask ourselves the question: where are we now? That's all. I was looking for FTT's too early.
regards,
Ivo
Bundle's post about looking for an FTT AFTER you've found a point three got me thinking and I know what I have been doing wrong. I share it because maybe others are also experiencing this.
I forgot to count until three.... Amazing. Been working on this for months and I was still not getting the basics.
Yes, that's all it takes: counting until three. 1..2..3.
I did not pay enough attention to the fractal nature of the markets and was in general caught by the retrace of a retrace.
Every move has its own 1,2,3, even within one bar. A dominant move from 1->2, a retrace from 2->3 and then continuation in the dominant direction (or at least an attempt). Like elevators within elevators. What we don't know of course is how far these moves go and how much time there is between these points. We must always expect 1,2,3 and every moment of the day ask ourselves the question: where are we now? That's all. I was looking for FTT's too early.
regards,
Ivo
As a beginner learning to recognize proper points of change and continuation, what should someone do to manage their risk when the market moves against them? In other words, if I make the mistake of recognizing a flaw as an FTT, and get on the wrong side of the market, where do I look to get out of my position as I watch it move against me? I know you will probably say "if you're on the wrong side of the market..get out." But as a beginner, is there a good way to calculate my risk and know when 'enough is enough' when it comes to a losing trade.
As soon as you realized it is a mistake, get out at market.Quote from Failure2Travers:
As a beginner learning to recognize proper points of change and continuation, what should someone do to manage their risk when the market moves against them? In other words, if I make the mistake of recognizing a flaw as an FTT, and get on the wrong side of the market, where do I look to get out of my position as I watch it move against me? I know you will probably say "if you're on the wrong side of the market..get out." But as a beginner, is there a good way to calculate my risk and know when 'enough is enough' when it comes to a losing trade.
There is always another opportunity coming your way.
Edit notes:
But... as a beginner, according to Spyder's instruction, beginners SHOULD NOT begin trading from the outset. You shouldn't even be simming.
You should devote your time to observe the traverses, note the flaw before the FTTs, and how a FTT turns into BO or FBO... etc.,
and understand why Mr Gaussian is your friend and guardian angel...
If you have done that, by the time you start simming, you won't even need to ask the question above.
Welcome to the journey.
Quote from Failure2Travers:
As a beginner learning to recognize proper points of change and continuation, what should someone do to manage their risk when the market moves against them? In other words, if I make the mistake of recognizing a flaw as an FTT, and get on the wrong side of the market, where do I look to get out of my position as I watch it move against me? I know you will probably say "if you're on the wrong side of the market..get out." But as a beginner, is there a good way to calculate my risk and know when 'enough is enough' when it comes to a losing trade.
Get out or reverse as soon as you notice you are on the wrong side. This does not mean that price must has moved against your position already. It's just that something occurs that should not occur had you been on the right side.
If you reverse quickly you will make up for any lost ticks (providing you were correct in your analysis.) However, I personally really prefer to sideline so I can empty my head and start again. It's just not fun when you find out you were right the first time, you reversed and then have to reverse again etc etc etc. Things will get messy then.
Ivo
Quote from Failure2Travers:
As a beginner learning to recognize proper points of change and continuation, what should someone do to manage their risk when the market moves against them? In other words, if I make the mistake of recognizing a flaw as an FTT, and get on the wrong side of the market, where do I look to get out of my position as I watch it move against me? I know you will probably say "if you're on the wrong side of the market..get out." But as a beginner, is there a good way to calculate my risk and know when 'enough is enough' when it comes to a losing trade.
Let me paraphrase what Spyder has said about this....
The market can NOT move against you. Thinking such is a mental construct on your part. Thinking the market can move against you is a mental state that will hurt you, because your focus is in the wrong place. The market is not your enemy, it is your friend. Get in synch with it. Change....continuation.... change.... continuation; that's how you get in synch with it. Forget about fighting with the market, forget about competition with other traders.
As a beginning you shouldn't even be looking to manage risk. Managing risk and trade execution are separate skills from recognizing change/continuation; and should be left for after you can handle change/continuation in an almost unconscious fashion.
Quote from Failure2Travers:
.. what should someone do to manage their risk when the market moves against them? ..
But as a beginner, is there a good way to calculate my risk and know when 'enough is enough' when it comes to a losing trade.
if you feel there is risk then you shouldn't get in the trade. That is not to say there is no risk but try to steer your focus from risk to wash and MADA instead.
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