To go away from the screen after putting on a trade for the first half hour (or reduce the charts and do something else). Those first few ticks after putting on a trade can be real ball breakers, and more often than not try to trick you in getting out of a good position. If it's not a regular trade but a pre-big announcement trade and the trade is put on a few hours before the announcement - then I take 2-3 hours off (with the trade on) and come back when the announcement is made. Probably this makes more sense to fx traders.
What are your Trading Breakthroughs?
- Thread starter mmm
- Start date
You are welcome - for me, it is the truth. I understand others need more "discipline" but in my case it was causing errors.
I also had trouble in the regular working world for the same reasons. After much self-appraisal, I found out that I am a good businessman but a crappy employee - too "A" type and arrogant, I suppose.
When I saw something attempted that I viewed as inefficient or absurd, something in my mind snaps shut and I can't get behind it. I'd rather just do what works best in my experience.
Mark Douglas says it best: "The Now-Moment Opportunity Flow"
I don't want to give the impression that I have zero rules - I have a few. But they are for money-management, size, etc. and not really for picking entries or exits. That is based on "the flow".
Best wishes to all and thanks for one of the best threads in recent memory.
It is amazing when humans share experience, strength and hope.
Paul
My biggest trading breakthough happend when I had the realization that by helping other traders succeed I would increase my knowledge of the markets to the greatest degree possible, at that current level of understanding ...
... and that by continuing to do so, my understanding of the markets would continue to increase.
Best Regards,
Jimmy Jam
... and that by continuing to do so, my understanding of the markets would continue to increase.
Best Regards,
Jimmy Jam
Quote from Razor:
Nice thread.
slapshot, what is DOM ?
Thanks
DOM = Depth Of Market - such as the price-ladder setups that are included in most software these days, like TT, IB, TS, Ninja etc.
It is important to note that just seeing the depth on 5 levels means nothing and is often misleading - it is the prints that go off on bid vs. ask and the pace at which bidders chase the last price to get in or that sellers scramble to get out/ pound down that gives the clues as to the immediate 'pressure' on prices.
In my mind that is the only true leading indicator for the next few minutes or even seconds.
Along with divergences, and some trendlines/support/resistance and the price action as those levels are tested, those are the only criteria I need to trade with. But this is after a few years of watching it.
I found out that indicators are just a poor lagging substitute for what is really happening.
It is important to note that this learning was greatly influenced by veteran traders of this board such as dbphoenix and his old price/volume thread. One time on PM he challenged me to learn what the price action vs. volume actually meant (supply/demand). I owe a lot to folks like him that helped me cut through the fog.
So I guess to define it, I have become a "tape-reading, discretionary momentum trader".
Best wishes,
Paul
My "breakthru moment" (in the eminis specifically) came after one-too-many straight trend days where I fought it and fought it and fought it seeking the big reversal. There was none, and I got eaten alive.
That particular day wasn't the first one... it had happened many times before. I'd have stretches of profitability for weeks at a time, only to give back huge chunks of profit while fighting trend moves.
I asked myself the same question that countless others had posed before me: "Why didn't I just keep trading with the trend? I'd have made +$$$$$$ instead of losing -$$$$$ in little pieces all day."
**
Maybe no one here tried buying dips on Jan 20th, 2006. Perhaps no one in this forum tried selling into July 19th, 2006. Thankfully, I long ago accepted the fact that trading with market action instead of fighting = fading against it is where the easy(er) money exists. I shorted the former all day and bought the latter all day... especially in each afternoon period
That goes for selling into Friday 8/18 morning drop and buying into the afternoon upward bleed. Selling an emini market going down while buying an emini market going up is much more fun than any other mode I've ever seen.
Flowing with the market direction = big pros instead of fighting against it in vain along with the "retail herd" was my breakthru moment between tumultuous emotional = equity swings and methodical equity curve ascent.
One too many days of figthing instead of hugging the market was enough to consciously change my course of trade results forever :>)
That particular day wasn't the first one... it had happened many times before. I'd have stretches of profitability for weeks at a time, only to give back huge chunks of profit while fighting trend moves.
I asked myself the same question that countless others had posed before me: "Why didn't I just keep trading with the trend? I'd have made +$$$$$$ instead of losing -$$$$$ in little pieces all day."
**
Maybe no one here tried buying dips on Jan 20th, 2006. Perhaps no one in this forum tried selling into July 19th, 2006. Thankfully, I long ago accepted the fact that trading with market action instead of fighting = fading against it is where the easy(er) money exists. I shorted the former all day and bought the latter all day... especially in each afternoon period
That goes for selling into Friday 8/18 morning drop and buying into the afternoon upward bleed. Selling an emini market going down while buying an emini market going up is much more fun than any other mode I've ever seen.
Flowing with the market direction = big pros instead of fighting against it in vain along with the "retail herd" was my breakthru moment between tumultuous emotional = equity swings and methodical equity curve ascent.
One too many days of figthing instead of hugging the market was enough to consciously change my course of trade results forever :>)
Something that I know that has helped me the most has been the book "Mind Over Markets." Its all about how to use the market profile. I looked at the markets a lot differently after reading and soaking up the knowledge in that book. I use Ensign for charts now, and they have the Volume Histogram, which is basically a Market Profile. I like this tool a lot, it really helps me see what I feel are the true "internals" of a market. I recommend reading Mind Over Markets.
Also, I have been trading so much better now that I do not rely on ANY outside sources for price levels, ideas, anything like that. I do my own analysis and trust my knowledge and perception. This is very important. I have been meditating in my life for a few years now, and recently I have started to meditate for 5 minutes in the morning before the open. This has helped me focus on MY intuition and has also helped me stay centered and AWARE (of the market, of my intuition, and of my emotions).
Also, another breakthrough is not trading big ger than normal when I am down!! I have felt terrible stress before when I used to do this, a lot of times the losing days would get worse and worse, and I would feel terrible. Now I have a longer term perspective, and am OK with taking small losses, and know that winning days, no matter how big, add up nicely.
Also, I have been trading so much better now that I do not rely on ANY outside sources for price levels, ideas, anything like that. I do my own analysis and trust my knowledge and perception. This is very important. I have been meditating in my life for a few years now, and recently I have started to meditate for 5 minutes in the morning before the open. This has helped me focus on MY intuition and has also helped me stay centered and AWARE (of the market, of my intuition, and of my emotions).
Also, another breakthrough is not trading big ger than normal when I am down!! I have felt terrible stress before when I used to do this, a lot of times the losing days would get worse and worse, and I would feel terrible. Now I have a longer term perspective, and am OK with taking small losses, and know that winning days, no matter how big, add up nicely.