Through the Looking Glass

[Instynct]

RN,

After reading what I wrote earlier, I think I might have come off as a know-it-all kind of person. But its quite the contrary as I’m more of an inexperienced trader with plenty of flaws. It’s dumb of me to think that I can approach a business as competitive as trading without a plan. I’m pretty fortunate to have survived this long.

Your advice is appreciated and I’ll be working on a framework that I can trade from.

 

[Instynct]

Illiquid,

You’re very good at explaining things in depth and a lot of what you say resonates with me. I’m going to go back to my notes and add to it as I see fit during market hours. I will use those notes to craft a framework in which I will see to it that I only place trades that are within the framework.

As I understand it here’s what I need to work on:

1. Develop my framework.

2. Separate myself personally from the markets and understand that it’s just a profession, but a tough one albeit.

3. Spend more time outside of market hrs doing things that make me happy.

Btw, one of those things is to volunteer at a residential care facility where my mother resides. The people living there are always happy to see young people like myself come in. When I’m there I get a satisfaction, the kind that money will never provide.

Thanks for starting your journal. With the help of RN, it has shed light into areas that I really needed to work on.

 

[Redneck]

Quote from Instynct:

RN,

After reading what I wrote earlier, I think I might have come off as a know-it-all kind of person. But its quite the contrary as I’m more of an inexperienced trader with plenty of flaws. It’s dumb of me to think that I can approach a business as competitive as trading without a plan. I’m pretty fortunate to have survived this long.

No Sir you did not come off as a know it all – quite the opposite Sir

Quote from Instynct:

As I understand it here’s what I need to work on:

1. Develop my framework.

2. Separate myself personally from the markets and understand that it’s just a profession, but a tough one albeit.

3. Spend more time outside of market hrs doing things that make me happy.

As for this – It is dead nuts on – Great insightfulness on your part


Now – Have the intestinal fortitude to follow completely through with it – you stumble or fall – get back up, dust yourself off, and keep moving forward (we only truly fail when we give up trying Sir)


Fwiw – You have any questions (other than specifics on how I trade) – ask… I’ll do my dead level best to answer them… And the only reason I will not discuss specifics on how I trade is because trading is very unique and personal to each individual – you must find what fits you best… (as we all did)

But I’ll answerer anything else I can – the best I can – or I’ll tell you straight up I don’t know…


Aside

Learning to trade is a journey, not a destination… Along the way - learn, laugh, cry, get pissed off, fall down/ get back up – but mostly enjoy it Sir – and never quit moving forward…



Humbly I submit to you some food for thought…

Go mend fences with your family and friends first…

It’ll instill honesty and humility – two qualities absolutely necessary for a real trader to have... And you can’t fake these either – because the market will always expose every short coming we have – it is truly a mirror of one’s inner self.

Plus without support from your family – your journey will be near impossible

Respectfully
RN

 

[illiquid]

P/L for week 3/19/10: +11k on 260k shares traded

-6, +3, +3, +3, +8

Monday was the tail end of the most recent bender; it was one of those low points that really make you think long and hard about what you're doing. My pattern has always been to do my best trading after a severe drawdown -- I've been there too many times already -- but I think this time, dare I say it, this time was different. With some help from those close to me (along with the kindness of a few internet strangers), I think I've started trading from a different vantage point than before.

For the rest of the week, I really focused on trading tighter and concentrating on being smallest when wrong and biggest when right. Although I didn't make it an explicit rule, I think my best stat was limiting my losses in any one stock to under 4 digits -- for me, that's quite a feat lol. Wed and thurs overtraded, while friday was ideal in that I was just about done by 10:30 ("done" = not necessarily flat but positioned for the rest of day) with shares traded stopped at 28k. One small position held throughout the week contributed to about 4k in gains (this same position had cost me 4k last week), still open.

A good bounce numbers-wise, but I've seen it before -- a few days does not a turning point make. But renewing my confidence in doing things the right way was the best takeaway this week.

 

[Builder17]

This thread is amazing! I dont have much more to add than that praise. It's truly an asset to have decent people sharing the way you all do on here.
Nice week btw.

 

[Instynct]

Quote from Redneck trader:

Fwiw – You have any questions (other than specifics on how I trade) – ask… I’ll do my dead level best to answer them… And the only reason I will not discuss specifics on how I trade is because trading is very unique and personal to each individual – you must find what fits you best… (as we all did)

Absolutely, I agree. If you gave me specifics on how you trade I know for a fact I wouldn't be able to execute it. I have tried it in 2007 and it didn't work out as I realized that I was not comfortable with another person's method. So after a couple thousand hours of staring at one specific market and a few gray hairs later, I have developed my own style of trading. The one thing I'm missing now is a framework(still in the works) that at the very least, will keep me out of loose cannon trades and set me off into a slippery slope. Together with the idea of separating myself personally from the markets is I believe for me the formula for long term success.

 

[illiquid]

Today there was really nothing that cried out clear and loud for an entry, yet somehow I managed to post my highest volume in a week. But actually, this is typical of my trading if I'm not careful; it's only recently I've realized the reason why my volume has a strong negative correlation with my p/l. Even if your best bet is sitting on your hands and doing nothing, being a discretionary trader, your subjective take on any situation has the ultimate say. If there aren't really any premium setups to be found, my mind tends to "work harder" in finding them -- not beer but boredom/frustration goggles. Secondary and tertiary plays suddenly seem like sure things; I throw my equity upon these at two to three times their deserved size, for lack of anywhere else go. With no true confidence in these trades I'll inevitably get shaken out easily, and promptly sucked into the next one even more readily from frustration. A bad vicious cycle to say the least. In contrast, when I'm lucky enough to exhaust my buying power early on in well-timed positions, I find there really is nothing left to do but sit and wait patiently for a decent exit. Volume peters out to nothing, my hands go limp -- I'm spent already. Now if only I could consistently register low volume on days when they really deserve it: when there is nothing to do. Realizing that the bulk of my volume comes from misguided intentions, well, that's something I discovered way too late in the game, and old habits are just that much harder to fight.

 

[ammo]

we think what ever we want and then rationalize it, making it true,losing over and over ,.... we eventually weed out the more painful behaviour or beliefs, assume you have 9 trades per day in your gun,.... choose them wisely ,because this disciplinary game has rules that can't be broken,9 trades ,thats it. Even if you see a tenth ,twelth,u cant take them because your are out of bullets, try it for 2 weeks, you will learn to be very cautious and trade only the setups, you probably wont need more than 3 or 4 trades a day

 

[sheepsucker]

Very good thread, believe I learned a lot. Thanks to all contributors!

 

[Kassz007]

Quote from illiquid:

P/L for week 3/19/10: +11k on 260k shares traded

-6, +3, +3, +3, +8

Monday was the tail end of the most recent bender; it was one of those low points that really make you think long and hard about what you're doing. My pattern has always been to do my best trading after a severe drawdown -- I've been there too many times already -- but I think this time, dare I say it, this time was different. With some help from those close to me (along with the kindness of a few internet strangers), I think I've started trading from a different vantage point than before.

For the rest of the week, I really focused on trading tighter and concentrating on being smallest when wrong and biggest when right. Although I didn't make it an explicit rule, I think my best stat was limiting my losses in any one stock to under 4 digits -- for me, that's quite a feat lol. Wed and thurs overtraded, while friday was ideal in that I was just about done by 10:30 ("done" = not necessarily flat but positioned for the rest of day) with shares traded stopped at 28k. One small position held throughout the week contributed to about 4k in gains (this same position had cost me 4k last week), still open.

A good bounce numbers-wise, but I've seen it before -- a few days does not a turning point make. But renewing my confidence in doing things the right way was the best takeaway this week.

Congrats on last week. Here's to your continued success.