Once you realize that you have an edge it changes everything. it is not until you find your own edge that you can begin tweaking that edge and or trying new ways to scael and or execute better on your edge.
If you sit down everyday and think.. oh man i hope i make money today then you do not have an edge. if it stresses you just thinking about trading then you dont have edge.
If i lose 5k by following my systems edge it hurts way less than losing 500 outside of my system when i do something dumb or on a whim! stick to the plan!
I would say to figure out what you want to do in the mkts. that is your first task. just slow down. figure out where or how you want to fit in and then focus on just that one thing over and over and then expand it. there is enough money in every single futures market to make an incredible living why get bogged down with thinking about world or trade domination.
BABY steps. i ran my system in demo for 6 months straight adhering to risk principles and i had a friend i reported daily results to which kept me honest but if i wasnt honest then why am i going to do this trading by myself in the first place. what are your weakenesses the mkt will find those and exploit them.
You see this often when you are in a trade and you think.. crap.. they have me trapped. then the mkt runs even more against you and you say wow they are trapping everyone now ! and yet they dont stop the selling and you are long and you are in a trance connected to this losing trade even more now and then finally you think. holy shit this could keep dropping what it its a flash crash a 1987 what the hell is going on here. you search news you look at other mkts you arent thinking rationally at all at this point and so you finally click. . exit all at mkt. BOOM! the algos see that and guess what .. they run it the other way immediately and why?
Because they know you wont sell at a small loss because you are human and it hurts and it hurts and deep down you want to feel good. so the more it hurts in the trade the better it will feel to exit when you do.. like holy shit i lost a ton of money but i am out now.. it feels great then later that day you look and it puts in an acute onset of mild depression because you were right but you lost!
if you get out at a loss of 10 dollars you move on
if you get out at a loss of 100 dollars you are happy you got out
if you get out at a loss of 1000 dollars you are happy you got out but verey upset at what you did.
for me it is about how much work is going to be involved if I am wrong and lose a lot to get it back TODAY! and how much opportunity cost is being stuck in this loser costing me over the next 3 to 4 hours.
there is no right or wrong anser for all of this but define what and where what time fram you want to trade in and do just that and do not stray from it. once it clicks you will know it and then finally you can work on nuance moves and postion sizing to make more money with less risk.
It is not easy you are playing against the smartest people and fastest machines in the world who have unlimited margin and information and everything they do is small for them when everything you do is huge for you. do you see the difference. it is humongous.
Good luck.
If you sit down everyday and think.. oh man i hope i make money today then you do not have an edge. if it stresses you just thinking about trading then you dont have edge.
If i lose 5k by following my systems edge it hurts way less than losing 500 outside of my system when i do something dumb or on a whim! stick to the plan!
I would say to figure out what you want to do in the mkts. that is your first task. just slow down. figure out where or how you want to fit in and then focus on just that one thing over and over and then expand it. there is enough money in every single futures market to make an incredible living why get bogged down with thinking about world or trade domination.
BABY steps. i ran my system in demo for 6 months straight adhering to risk principles and i had a friend i reported daily results to which kept me honest but if i wasnt honest then why am i going to do this trading by myself in the first place. what are your weakenesses the mkt will find those and exploit them.
You see this often when you are in a trade and you think.. crap.. they have me trapped. then the mkt runs even more against you and you say wow they are trapping everyone now ! and yet they dont stop the selling and you are long and you are in a trance connected to this losing trade even more now and then finally you think. holy shit this could keep dropping what it its a flash crash a 1987 what the hell is going on here. you search news you look at other mkts you arent thinking rationally at all at this point and so you finally click. . exit all at mkt. BOOM! the algos see that and guess what .. they run it the other way immediately and why?
Because they know you wont sell at a small loss because you are human and it hurts and it hurts and deep down you want to feel good. so the more it hurts in the trade the better it will feel to exit when you do.. like holy shit i lost a ton of money but i am out now.. it feels great then later that day you look and it puts in an acute onset of mild depression because you were right but you lost!
if you get out at a loss of 10 dollars you move on
if you get out at a loss of 100 dollars you are happy you got out
if you get out at a loss of 1000 dollars you are happy you got out but verey upset at what you did.
for me it is about how much work is going to be involved if I am wrong and lose a lot to get it back TODAY! and how much opportunity cost is being stuck in this loser costing me over the next 3 to 4 hours.
there is no right or wrong anser for all of this but define what and where what time fram you want to trade in and do just that and do not stray from it. once it clicks you will know it and then finally you can work on nuance moves and postion sizing to make more money with less risk.
It is not easy you are playing against the smartest people and fastest machines in the world who have unlimited margin and information and everything they do is small for them when everything you do is huge for you. do you see the difference. it is humongous.
Good luck.
