Why do We Make Trading so Difficult?

[JMowery1987]

Quote from JangoFolly:

Hi, Flashboy. I've struggled with this same problem, and I think it comes down to priority of focus and/or patience. I'll assume that you're already tracking higher-level timeframes to get a sense of whether the market is trending or not. I find it can be difficult to simultaneously look for both trend and countertrend entries. Since my default style is to buy/sell short-term support/resistance, I tend to miss the great opportunities on trending days when I don't shift my priority of focus from scalping to trading with the trend. Many times I simply can't see past the bias of my default priority in order to consider other opportunities. On days when I determine the market is clearly in a trending mood, I've made a conscious effort to try to shift my primary focus to entries and exits that are appropriate for those conditions (i.e., longer-term trades), and I simply stop trying to monitor countertrend signals.

The patience part of the problem has come in when I've realized that I missed a good entry for a position with the trend, think of the money I could be making, and then impulsively enter countertrend positions just so I'm not missing out. This has been bad for me in two ways. First, as noted above, because my attention is on the countertrend I completely miss the next opportunity that comes around to get on the trend. Second, the risk/reward ratio of countertrend trades on trending days can be very unfriendly to equity. Sitting on my hands to watch and wait patiently for a good entry with the trend is challenging, but ultimately worthwhile.

I'm still working to overcome this problem, although these days it has far more to do with exits than entries. I usually have a hit and run style, which on trending days has me making great entries, closing at the first sign of resistance, and then watching the market continue strongly in the direction I was trading. While these may seem like simple ideas, when I began to actively consider them in the context of my trading actions they took on a new significance for me.

I hope some of this is helpful.


Regards,

If you are trading Equities, why not just set up a watchlist and if you miss opprotunities on one stock, just move on to the other instead of just waiting for something on one specific stock... seems like a wiser thing to do.

If you are trading Futures, well, then I guess that could be a problem.

 

[bitrend]

For excitement and lose money.

Quote from Qyu:

why you're trading, for excitement or to make money?

 

[Qyu]

Quote from bitrend:

For excitement and lose money.

If he's trading for that reason then he's better off going to Vegas. At least you get comped for your stay and meals. Not to mention the girls there are easy on the eyes.

 

[kiwi_trader]

Quote from JangoFolly:

The patience part of the problem has come in when I've realized that I missed a good entry for a position with the trend, think of the money I could be making, and then impulsively enter countertrend positions just so I'm not missing out. This has been bad for me in two ways. First, as noted above, because my attention is on the countertrend I completely miss the next opportunity that comes around to get on the trend. Second, the risk/reward ratio of countertrend trades on trending days can be very unfriendly to equity. Sitting on my hands to watch and wait patiently for a good entry with the trend is challenging, but ultimately worthwhile.

What were you doing looking over my shoulder (and reading my mind)?

 

[nkhoi]

great day for you to show up, no_pm just put out another trading system so I think you have plenty of trading system to follow, thus it must be all in your head, have you try Dr. Maxwell method? http://elitetrader.com/vb/showthread.php?s=&postid=1022347&highlight=maxwell#post1022347

 

[nononsense]

Why do We Make Trading so Difficult?
For losers, it ain't.
Only winning is darn difficult, but that's not a topic to be discussed in a psycho thread.

 

[Flashboy]

What a lousy trading day so far..

Market's basically range bound ..

trying to stay patient..

 

[SizesTrader]

Trading is difficult if you make it difficult. Just go with the trend. The trend is your friend. If the market is strong then you want to find strong stocks to get long and vice versa. Is just how you find the entry/exit point that matters.

 

[Lamont_C]

Quote from Flashboy:

I am probably the biggest offender .. but I sure do make trading difficult on myself and I'm trying to find some answers as to why..

Still with paper trading I am looking for reversals..

I have a plan for reversals as well as a plan for trading with the trend.. but in the last two days all I do is look for places to sell instead of going with the trend..

It's unlikely that you're going to get responses that will be of much help unless you explain your "plan for reversals". The problem is very likely with your plan, not with discipline (though it could be both). If your plan has problems, then your unconscious is likely telling you not to follow it.

 

[bitrend]

Happy to see you back. Since we didn't see your posts during the past weeks, I was wondering whether everything here makes sense or not. But it doesn't seem that everything is ok. Your presence confirms that ET and Market continue having nonsense. That's the reason why we need you (no-nonsense) to correct us from being ridiculous.

Quote from nononsense:

Why do We Make Trading so Difficult?
For losers, it ain't.
Only winning is darn difficult, but that's not a topic to be discussed in a psycho thread.