What are your Trading Breakthroughs?

[777]

1)Switched from trading Stocks to trading Futures.

2) Realizing that trading Futures is gambling. Just using probabilities and entries where the trade makes sense. Define strategy and measure the set-up and exit according to plan.

3)Understand that I will lose more often and lose less $ compared to my winning trades and $. It is possible to be profitable with a 30% win rate.

4) The discovery of MAE and MFE.

5) This one most of all.......Stop Caring.


Michael B.

Why do you prefer futures over stocks?

 

[777]

to realize that time to learn all there is to know about market, to read all books about market, to ask all question about market, to chase a 'greener' pasture is over because you just keep chasing the rainbow. Then it is just matter of picking out a single set up that tell you something and after awhile you start to realize 'hey, this stuff work' check out jademaster for some thought http://www.elitetrader.com/vb/showthread.php?s=&postid=1166863#post1166863 and it's simple and why everybody else doesn't do it became a real mystery for variation of this theme read http://www.elitetrader.com/vb/showthread.php?s=&threadid=75166

to realize that time to learn all there is to know about market, to read all books about market, to ask all question about market, to chase a 'greener' pasture is over because you just keep chasing the rainbow. Then it is just matter of picking out a single set up that tell you something and after awhile you start to realize 'hey, this stuff work' check out jademaster for some thought http://www.elitetrader.com/vb/showthread.php?s=&postid=1166863#post1166863 and it's simple and why everybody else doesn't do it became a real mystery for variation of this theme read http://www.elitetrader.com/vb/showthread.php?s=&threadid=75166

Skeptical. I am curious if this poster still trades.

 

[Bugsy]

1) Continuously study the charts. If price action reverses look across the chart at that exact price point to understand why. Follow that price point high or low or close across the chart. What happened at that exact price point earlier on the chart? Was is support/ resistance? Breakout? Is this a rule of thumb? How often has this "rule" occurred?

2) Never keep your P/L on screen. If you are using risk management and trading your plan then seeing a loss or gain can only hurt you psychologically. Determine your risk. Determine your entry. Determine your exit. Make an OCO trade. If you are making longer intraday trades either move your stop to break even or manually trail your stop to a profit point and let the trade run.

3) Be reactive, not predictive. My biggest losses have occured when I knew the market was going to do something even though the probability was only about 50/50 or less, all because the market played me for a fool and I operated outside of my rules. It's one thing to fade a breakout with a proper stop, it's another to bet on a breakout because two amazing trend bars push right up to the prior high only for it to subtly reverse over a multitude of bars making it appear it might still break out while slowly boiling me like a frog. You made rules for a reason. Stick to them.

4) Trading based solely on patterns like Head and Shoulders, Cup and Handles, etc. is a sure way to lose money. I remember reading Technical Analysis of the Financial Markets years ago and thinking I was a TA genius now that I knew all of these great setups. Blew up my entire account in a month. There's more to trading then knowing chart patterns and setups.

 

[MotionX]

1) Continuously study the charts. If price action reverses look across the chart at that exact price point to understand why. Follow that price point high or low or close across the chart. What happened at that exact price point earlier on the chart? Was is support/ resistance? Breakout? Is this a rule of thumb? How often has this "rule" occurred?

2) Never keep your P/L on screen. If you are using risk management and trading your plan then seeing a loss or gain can only hurt you psychologically. Determine your risk. Determine your entry. Determine your exit. Make an OCO trade. If you are making longer intraday trades either move your stop to break even or manually trail your stop to a profit point and let the trade run.

3) Be reactive, not predictive. My biggest losses have occured when I knew the market was going to do something even though the probability was only about 50/50 or less, all because the market played me for a fool and I operated outside of my rules. It's one thing to fade a breakout with a proper stop, it's another to bet on a breakout because two amazing trend bars push right up to the prior high only for it to subtly reverse over a multitude of bars making it appear it might still break out while slowly boiling me like a frog. You made rules for a reason. Stick to them.

4) Trading based solely on patterns like Head and Shoulders, Cup and Handles, etc. is a sure way to lose money. I remember reading Technical Analysis of the Financial Markets years ago and thinking I was a TA genius now that I knew all of these great setups. Blew up my entire account in a month. There's more to trading then knowing chart patterns and setups.

Well said mate!

 

[TradingDrills]

Hi mmm,

Great topic! My biggest breakthrough came from research on Human and Market Cognitive Emotional Mismatches. We have created videos addressing two major issues that helped me and other traders:

1- Human-Market Cognitive Emotional Mismatches - Performance Pressure

2- Human-Market Psychology Conflicts - Loss Aversion

I hope these videos will be helpful.
Happy trading!

 

[murray t turtle]

Nonsense. It is an intentional walk and always has been.

%%
Good practical profitable points;
but requires realizing that since I'm not a mind reader, some intentions may not be known by me.
Actually once in my lifetime I thought I had a random move spotted.
But my friend, loved to shop for produce, so the goal was spending time doing that + she simply did that,without making logical shopping moves like many men do.