The Million $$$ Quest 2006
- Thread starter Ripley
- Start date
Day 46
Breakdown...
I need to stay on top of things. I should've changed my symbols after the rollover date, so that I would've saw the losing trades I am bag holding to. Automatically assuming someone else, did this or that is not the right thing to do. I must believe it only till I see it with my own eyes. I need to FIND it all out myself, and never automatically assume anything.
Breakdown...
I need to stay on top of things. I should've changed my symbols after the rollover date, so that I would've saw the losing trades I am bag holding to. Automatically assuming someone else, did this or that is not the right thing to do. I must believe it only till I see it with my own eyes. I need to FIND it all out myself, and never automatically assume anything.
Day 47
C O N T R O L
I have to STAY in CONTROL. I cannot let the market get hold of me and my emotions. I must RUN RUN RUN away from impending danger, that is the Market. Me gotta stay in control of myself, and hold my ground.
I must hold onto WINNING trades as long as can. I must RIDE the winners, I must spend a lot more time with the WINNERS, like the winner that I am. I cannot miss the chance to be with the WINNERS at the expense of holding onto losers anymore than what I have to.
C O N T R O L
I have to STAY in CONTROL. I cannot let the market get hold of me and my emotions. I must RUN RUN RUN away from impending danger, that is the Market. Me gotta stay in control of myself, and hold my ground.
I must hold onto WINNING trades as long as can. I must RIDE the winners, I must spend a lot more time with the WINNERS, like the winner that I am. I cannot miss the chance to be with the WINNERS at the expense of holding onto losers anymore than what I have to.
one thing i would like to add is that (imo - and many others) - focusing on how much money you will/'can make is a recipe for disaster for most traders.
i am paraphrasing here, but newbie traders think "how much money can i make on this trade/day/week/yr" etc.
pros think "how much risk i am willing to take on in this trade, and am i protecting my capital?"
concentrate on your setups, and as mentioned by others - your stops
my rule with TRADING (i strongly differentiate my trading account from my investments account. investments i will often double down when good stocks take a price hit, because i like to buy on weakness and be a contrarian and it works for me) is that i
N*E*V*E*R*
widen my stop, and my stop is always set ON entry.
period.
if u aren't thinking about your exits when u enter, u are waiting too long
stops can be moved in manually, or automatically (a la trailing stops) but NEVER widened.
if u stick with this rule u will be better off.
you can always rationalize/emotionalize reasons/feeling for widening a stop.
do
not
do
it
also, i am well aware of these traders who use "mental stops" because they think the MM's are gonna gun for their stops etc. if t hey don't
whatEver
unless you are trading some serious frigging size, don't worry about it
risk management aka money management is the most important part of trading. NOT your setups, or your entries.
these rules have served me well, although like most traders, i had to LIVE the old columbian proverb "one learns best with blood"
i am paraphrasing here, but newbie traders think "how much money can i make on this trade/day/week/yr" etc.
pros think "how much risk i am willing to take on in this trade, and am i protecting my capital?"
concentrate on your setups, and as mentioned by others - your stops
my rule with TRADING (i strongly differentiate my trading account from my investments account. investments i will often double down when good stocks take a price hit, because i like to buy on weakness and be a contrarian and it works for me) is that i
N*E*V*E*R*
widen my stop, and my stop is always set ON entry.
period.
if u aren't thinking about your exits when u enter, u are waiting too long
stops can be moved in manually, or automatically (a la trailing stops) but NEVER widened.
if u stick with this rule u will be better off.
you can always rationalize/emotionalize reasons/feeling for widening a stop.
do
not
do
it
also, i am well aware of these traders who use "mental stops" because they think the MM's are gonna gun for their stops etc. if t hey don't
whatEver
unless you are trading some serious frigging size, don't worry about it
risk management aka money management is the most important part of trading. NOT your setups, or your entries.
these rules have served me well, although like most traders, i had to LIVE the old columbian proverb "one learns best with blood"
Day 49
MONEY OUT...
I must take MONEY OUT of my account. Not put more and more in for the market to feast on. I must contain risk even when the whole world is against you. You do this taking ONLY the very best trades where the probability of getting stopped out is small. Thus, it would be easier for you to get STOPPED OUT when the stop is eventually hit.
Must pre-define each trade, amount risked, my exists etc before I execute a trade. I must stay on TOP. THINK.... and fight for each tick, penny.. and point each and every single second.
MONEY OUT...
I must take MONEY OUT of my account. Not put more and more in for the market to feast on. I must contain risk even when the whole world is against you. You do this taking ONLY the very best trades where the probability of getting stopped out is small. Thus, it would be easier for you to get STOPPED OUT when the stop is eventually hit.
Must pre-define each trade, amount risked, my exists etc before I execute a trade. I must stay on TOP. THINK.... and fight for each tick, penny.. and point each and every single second.
Weekly Thoughts:
You cannot let COMPLACENCY creep in as a substitute for exactness and a well-timed trade. You can never be successful using inconsistent and adversely tilted risk/reward parameters. NEVER means UNDER NO CIRCUMSTANCE. More than anything else, you have to be CONSISTENT in this endeavor. You cannot let being on your toes, doing the best you can do be lazied out by being ignorant and complacent. You cannot let the market grab hold of you, your account or your future.
You cannot let COMPLACENCY creep in as a substitute for exactness and a well-timed trade. You can never be successful using inconsistent and adversely tilted risk/reward parameters. NEVER means UNDER NO CIRCUMSTANCE. More than anything else, you have to be CONSISTENT in this endeavor. You cannot let being on your toes, doing the best you can do be lazied out by being ignorant and complacent. You cannot let the market grab hold of you, your account or your future.
Missed: Day 4
Such a Great Day to Trade
....a perfect day for my style of trading: Low volume with good enough movements. Blame it on my extremely poor time management skills. Why couldn't I get DONE with things on WEEKEND, and not when I'm supposed to trade.
This is UNACCEPTABLE, and I need to find a solution soon. I need to GET FOCUSED on what matters.
Such a Great Day to Trade
....a perfect day for my style of trading: Low volume with good enough movements. Blame it on my extremely poor time management skills. Why couldn't I get DONE with things on WEEKEND, and not when I'm supposed to trade.
This is UNACCEPTABLE, and I need to find a solution soon. I need to GET FOCUSED on what matters.
Just curious how many setups in particular are you using? I haven't really combed across your entire journal but thought I could list a few suggestions:
Focusing on just one setup
If you're using too many of them? Working on just one till you're consistently profitable using it. Also understanding how it plays out in different market conditions. I think narrowing your focus will help a lot. I think there was a saying that goes something a long the lines of "being a jack of all trades and a master of none." The focus on one setup will pay huge dividends down the road if it has a statistical edge. Try to work on your consistency.
A plan
Putting into writing what your setups are exactly with definitions in way of how you'll enter a trade. What is your criteria? What has to happen for you to enter a trade. Write down the steps and then when you see something looking like it might setup go over your list.
How many contracts/shares (not sure what instrument you're trading) you'll be trading. How you'll exit a trade and where you'll be exiting if the trade goes sour. What your schedule will be like for the day. What time you'll get up, what time you'll do your research for the day, when you'll take breaks during the day.
Journal
I'm not sure if you currently list everything in way of trades. Time of trade entry/exit. How many contracts/shares on the trade. Try also printing out your charts for your trades mark them up with your own personal notes thoughts of the setup etc. Also perhaps writing down your feelings when you put on trades. Alot of the time this will be an eye opener. If you're journaling your feelings when you take trades you'll start to see a pattern after reviewing it later on. I know this helped me quite a bit and still does. You might also include how you're feeling for the day (i.e. sleep, feeling tired, other events going on) I believe trading takes a lot of focus and having your attention divided and split amongst other responsibilities will make trading a bit difficult. If you're stressed due to problems outside of trading or you haven't gotten enough rest then perhaps just passing on the day would be a good idea. When reviewing this journal don't be too hard on yourself since that's detrimental to your trading development.
This actually falls in between your plan and the journal section. It's in regards to money management. If you have a statistical edge then the numbers should play itself out. If you lose money at the end of the day go back to your journal and review it.
I usually ask myself the following at the end of the trading day if I've lost money.
If I lost money today did I lose it the correct way or the wrong way?
Correct way meaning I followed my plan and lost money but I know that the numbers will play out so those trades were ok and warranted. So this is fine you'll make money in the end.
Wrong way I was careless and did not follow my plan and had an itchy trigger finger and just traded anything that moved. Too many of these and you'll be looking at a pretty big draw down and the eventual destruction of your account.
My suggestions are a bit out of order but I figured I would share some of the things that have helped me in my trading. Also maybe a list of books some you may or may not have or read.
Reminiscenses of a stock Operator - Edwin Lefevre
Pit Bull - Marty Schwartz
Trading in the Zone - Mark Douglas
The Psychology of Trading - Brett Streenbarger
The Trading Athlete - Doug Hirschorn
Any of the market wizards books -Schwager
I'd have to say those are some of the top books in my library that have helped shaped my trading. Rome wasn't built in a day and like other professions such as the education involved in becoming a professional in another field trading is the same. The road is a long and tedious one. Look at the Doctors, Lawyers, Dentists, etc.. they didn't get there in a few months of study. Treat tradint the same way. Treat it like a business. If you're planning on doing this for a living for the rest of your life remember it's a journey and not a destination. One last piece of advice keep your head up and know that with persistance you'll be able to do it.
Good Trading,
Qyu
Focusing on just one setup
If you're using too many of them? Working on just one till you're consistently profitable using it. Also understanding how it plays out in different market conditions. I think narrowing your focus will help a lot. I think there was a saying that goes something a long the lines of "being a jack of all trades and a master of none." The focus on one setup will pay huge dividends down the road if it has a statistical edge. Try to work on your consistency.
A plan
Putting into writing what your setups are exactly with definitions in way of how you'll enter a trade. What is your criteria? What has to happen for you to enter a trade. Write down the steps and then when you see something looking like it might setup go over your list.
How many contracts/shares (not sure what instrument you're trading) you'll be trading. How you'll exit a trade and where you'll be exiting if the trade goes sour. What your schedule will be like for the day. What time you'll get up, what time you'll do your research for the day, when you'll take breaks during the day.
Journal
I'm not sure if you currently list everything in way of trades. Time of trade entry/exit. How many contracts/shares on the trade. Try also printing out your charts for your trades mark them up with your own personal notes thoughts of the setup etc. Also perhaps writing down your feelings when you put on trades. Alot of the time this will be an eye opener. If you're journaling your feelings when you take trades you'll start to see a pattern after reviewing it later on. I know this helped me quite a bit and still does. You might also include how you're feeling for the day (i.e. sleep, feeling tired, other events going on) I believe trading takes a lot of focus and having your attention divided and split amongst other responsibilities will make trading a bit difficult. If you're stressed due to problems outside of trading or you haven't gotten enough rest then perhaps just passing on the day would be a good idea. When reviewing this journal don't be too hard on yourself since that's detrimental to your trading development.
This actually falls in between your plan and the journal section. It's in regards to money management. If you have a statistical edge then the numbers should play itself out. If you lose money at the end of the day go back to your journal and review it.
I usually ask myself the following at the end of the trading day if I've lost money.
If I lost money today did I lose it the correct way or the wrong way?
Correct way meaning I followed my plan and lost money but I know that the numbers will play out so those trades were ok and warranted. So this is fine you'll make money in the end.
Wrong way I was careless and did not follow my plan and had an itchy trigger finger and just traded anything that moved. Too many of these and you'll be looking at a pretty big draw down and the eventual destruction of your account.
My suggestions are a bit out of order but I figured I would share some of the things that have helped me in my trading. Also maybe a list of books some you may or may not have or read.
Reminiscenses of a stock Operator - Edwin Lefevre
Pit Bull - Marty Schwartz
Trading in the Zone - Mark Douglas
The Psychology of Trading - Brett Streenbarger
The Trading Athlete - Doug Hirschorn
Any of the market wizards books -Schwager
I'd have to say those are some of the top books in my library that have helped shaped my trading. Rome wasn't built in a day and like other professions such as the education involved in becoming a professional in another field trading is the same. The road is a long and tedious one. Look at the Doctors, Lawyers, Dentists, etc.. they didn't get there in a few months of study. Treat tradint the same way. Treat it like a business. If you're planning on doing this for a living for the rest of your life remember it's a journey and not a destination. One last piece of advice keep your head up and know that with persistance you'll be able to do it.
Good Trading,
Qyu