qwiktrade makes some good points. I'd like to reinforce the idea of taking it one disciplined day at a time. I have been more consistent by taking this attitude, and not letting a good day go to my head. It is a key factor in being successful.
When you Hot, your Hot...
- Thread starter Nicodemus
- Start date
To be the best of the best in this business I truly believe consistency is the way to go. The top ten traders at my firm all average no more than one down day a week in non-summer months, and they almost never ever have a down pay period, forget down months.
And if you take his word for granted, Tony Oz averages 1 down day out of 10 he trades in. Eventually as a trader matures and fully develops his bread and butter style he will achieve that level of consistency.
There is just no excuse for being down on any given day if you had no overnight positions, you play each and every single game to win and there are always enough opportunities to work with. Market is choppy? You should finish with a small up day or at least break even.
That's the level the top tier plays at, and that's the level you have to be at if you want to be the best of the best. The statement you trade to trade well is total garbage, your bottomline determines everything, and you always did something wrong when you finished down on the day or did not capitalize on big day's.
Even my own firm is selling the pipe dream of "1000 a day, just two half a point moves on 1000 shares, that's 250K a year, that's more than many doctors and lawyers", I can't tell you how hard it is to AVERAGE 1000 a day, I have seen many many traders at my firm routinely getting 3-5K day's and even 10K day's every once in a while and still fell a little short of that. CONSISTENCY, CONSISTENCY, without it you will never break into the higher ranks.
And if you take his word for granted, Tony Oz averages 1 down day out of 10 he trades in. Eventually as a trader matures and fully develops his bread and butter style he will achieve that level of consistency.
There is just no excuse for being down on any given day if you had no overnight positions, you play each and every single game to win and there are always enough opportunities to work with. Market is choppy? You should finish with a small up day or at least break even.
That's the level the top tier plays at, and that's the level you have to be at if you want to be the best of the best. The statement you trade to trade well is total garbage, your bottomline determines everything, and you always did something wrong when you finished down on the day or did not capitalize on big day's.
Even my own firm is selling the pipe dream of "1000 a day, just two half a point moves on 1000 shares, that's 250K a year, that's more than many doctors and lawyers", I can't tell you how hard it is to AVERAGE 1000 a day, I have seen many many traders at my firm routinely getting 3-5K day's and even 10K day's every once in a while and still fell a little short of that. CONSISTENCY, CONSISTENCY, without it you will never break into the higher ranks.
Magna
Administrator
The statement you trade to trade well is total garbage
I think it's a useful mind-state to focus on making good trades, sticking to your system, and not focus on the dollars and cents by constantly checking your P&L every 5 minutes. Ultimately, is it the bottom line that counts? Of course. But during the trading day it can be very useful, and relieve a lot of stress, to be consistent in making good, solid, high-probability trades and let the odds take care of themselves and play out over time -- just the way the casinos do it.
I think it's a useful mind-state to focus on making good trades, sticking to your system, and not focus on the dollars and cents by constantly checking your P&L every 5 minutes. Ultimately, is it the bottom line that counts? Of course. But during the trading day it can be very useful, and relieve a lot of stress, to be consistent in making good, solid, high-probability trades and let the odds take care of themselves and play out over time -- just the way the casinos do it.
so have i. except that... all my trading is automated, so this has nothing to do with trading psychology! point is, never underestimate the good old random chance and human ability to memorize (apparently) unlikely events (of consequtive extreme returns). which are actually not that unlikely in the first place, if you'd apply some rigorous stats calculation.
i don't agree. i think trading is gambling, just the odds are better (provided you are properly prepared). so it's quite possible to enter picture perfect setups yet end up in red due to random factors ruining your trades. which is an excellent excuse for being down on given day (or any period for that matter).
- jaan
These are two things I use/read for when I'm in drawdown periods or in win clusters..just a daily thing. It may sound a bit "too out there", but we all have our tricks to get ourselves in the right mindset.
Morning tune-up after winning day
I am relaxed and confident. I carry an optimistic winning attitude from yesterday. I remember this feeling of doing the right things and I am going to repeat it today. I am focused. I can see everything that happens. I evaluate events quickly and precisely. I see myself in control.
Morning tune-up after losing day
Today is a separate day which has nothing in common with yesterday. Today's performance is fresh. It's me who has the power to do the right things. The stock market has no power over me. It's not after me. It has no memory about yesterday and neither do I. I remember how I feel when I win. I am going to remember this feeling of victory. I can identify and execute high probability setups.
I have more for different situations. Don't accuse me of being the brother of Stuart Smalley though please
Respectfully,
Chris
Morning tune-up after winning day
I am relaxed and confident. I carry an optimistic winning attitude from yesterday. I remember this feeling of doing the right things and I am going to repeat it today. I am focused. I can see everything that happens. I evaluate events quickly and precisely. I see myself in control.
Morning tune-up after losing day
Today is a separate day which has nothing in common with yesterday. Today's performance is fresh. It's me who has the power to do the right things. The stock market has no power over me. It's not after me. It has no memory about yesterday and neither do I. I remember how I feel when I win. I am going to remember this feeling of victory. I can identify and execute high probability setups.
I have more for different situations. Don't accuse me of being the brother of Stuart Smalley though please
Respectfully,
Chris
That's why I said no more than one down day a week in non-summer months if you want to be a top intraday trader.
If the "unforeseen" event happens more than that then you simply haven't fully developed your skills yet. I have seen great traders shorting five digit shares into the surprise fed. rate cut and still manages to finish in the black. I have seen people down a few grand and futures looked super choppy and by closing time they are up a few bucks.
Trading is most definitely not gambling, I have seen people going a month or two without a single down day, if you don't carry overnight positions, anything more than one down day a week in non-summer month is too many down days . . .
If the "unforeseen" event happens more than that then you simply haven't fully developed your skills yet. I have seen great traders shorting five digit shares into the surprise fed. rate cut and still manages to finish in the black. I have seen people down a few grand and futures looked super choppy and by closing time they are up a few bucks.
Trading is most definitely not gambling, I have seen people going a month or two without a single down day, if you don't carry overnight positions, anything more than one down day a week in non-summer month is too many down days . . .
well, i'm sure there are people out there who go to casinos and have yet to have a single down day...
i think you misunderstood my point. my point is that assuming that the outcome of every single trade is influenced by random factors (and i don't mean just catastrophic events), then it is a simple mathematical fact that the probability of having an N-day losing streak is greater than 0, no matter how good you are.
- jaan