The Evolution of an E-mini Trader

Afternoon Trades

By now I was almost completely demoralized. Looking back at the morning, the nice trend, and I missed it. I'll get'm this afternoon.

Trade 4 - shorting the downside of another correction, but market reversed. The "it'll come back down" bug bit again and I held for a 1.5 loss.

Trade 5 - same thing. Shorted the other side of the correction, and held on too long.

Saw the triple top, and figured the market was gonna continue to drop.

Trade 6 - Another short. Actually had a 2 pt gain, but just at that time my wife came home, I broke my concentration, and ended up with a 1 pt loss. In actuality, I probably would have exited this with a 1 pt gain, as it started to reverse against me.

By now I was tired, grumpy, and ticked off. I saw the lower high (after the triple shortterm top) but just did not trade it. Watched it drop. Didn't chase. Was gonna wait for another correction, but the ones that came were very brief, and I just didn't see them till after the fact.

Trade 7 - ticked off revenge trade. Still can't figure out how it ended up a .5 loss.

:confused:
 

Attachments

The charts are not what I expected. I'll try to figure out something else. I did a screen shot, and posted it as a word doc. I don't think I can save as a jpeg. If anyone has any ideas, let me know. I'm using Advanced Get RT v7 as my charting software.
 
Originally posted by Huios
The charts are not what I expected. I'll try to figure out something else. I did a screen shot, and posted it as a word doc. I don't think I can save as a jpeg. If anyone has any ideas, let me know. I'm using Advanced Get RT v7 as my charting software.
More...

use snagit download from snagit.com to save your screen in gif format.
 
Downloaded both the snagit and the snap program. Better attachments and trading tommorrow.

The rule I have not been following is this...

In a losing game as trading, I shall start against the majority and assume I am wrong until proven correct! I do not assume I am correct until proven wrong(ie stopped out). Positions established must be reduced and removed until or unless the market proves the position correct! I allow the market to verify correct positions.

I am assuming I am right instead of wrong and that the market will come back in my favor. When it doesn't, I panic, hesitate, and get out, usually right before it turns around. This is what is causing my larger losses. Sometimes I recognize I am wrong and get out right away (scratch to .5 losses), but the problem is I still am thinking I am right - and waiting for the market to prove the trade wrong by stopping me out, instead of thinking I am wrong - and waiting for the market to prove the trade correct.

Of course, this sets me up for being wrong alot, but being wrong small. That in itself, is another giant to slay.

Tommorrow is another game.:)

P.S. I did have a personnal best in my 3 mile walk/jog this morning!!!!!
 
That's a mouthful for a rule.

Sounds complicated. Perhaps that's why you aren't following it.

a rule doesn't work for you, try a new one on. Best to make up your own, or adapt.
 
Originally posted by spectre
That's a mouthful for a rule.

Sounds complicated. Perhaps that's why you aren't following it.

a rule doesn't work for you, try a new one on. Best to make up your own, or adapt.
More...

Yeah, maybe a simler rule... hmm..

1. Only initiate a trade when you have an edge.

2. Reduce risk whenever possible.

3. If any doubt, see rules #1 and #2.

Those work for me.
 
Originally posted by spectre
Sounds complicated. Perhaps that's why you aren't following it.
More...

It is a simple concept, but very difficult to grasp, and even harder to incorporate into your being.

Trading is not a favorable game. It is a minus sum game. Say we have a bet for a buck. If I lose, I don't just lose a dollar. I lose more due to commissions. You don't win a dollar, you actually win less, due to commissions. In a minus sum game, normal thinking does not work. Me thinking I am right is normal thinking.

Therefore, I assume I am wrong, and let the market prove me right, instead of assume I am right, and let the market prove me wrong.

Ahhhh...but we human beings, love to be right. So therefore, we have to be proven wrong, ie stopped out.

Why not start out as the ultimate contrarian, and assume I am wrong, until proven right!!!

The question then becomes... what is/are the criteria for the market proving me right? The trade immediately moving in my direction? If so, by how much, and in what time frame?

That is another post, another day.
 
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