Why do We Make Trading so Difficult?

Interesting topic!

When I first started trading years ago....I was Wild....many ups and downs. I was on a Roller Coaster. It wasn't until....I was almost broke....that I finally decided to put some Controls....on myself.

I would be up $500 in the morning....down $500 or more (usually more) by the time the market closed. It was killing me emotionally....and I started having health problems because of it.

My charts were so overloaded with indicators....oscillators....bands....etc....that by the time I made a decision to get into a trade....the market would go the other way.

So....I decided to analyze ME. I was my own problem. What I did....finally made me better and consistently profitable trader.

I made up some Strict Trading Rules....for Entering and Exiting trades. I now use "one" indicator....so my charts are easy to read....and my brain doesn't get overloaded. The fact that I am getting older....and don't have that many good brain cells left....made me realize I need to use them wizely. Too much information can be as bad or worse than not having enough information.

Even with my Strict Trading Rules....the Rules are not worth a damn....unless you follow them. The hardest thing to do was to actually follow my own Rules. I had to Teach myself to follow my own Rules....and it was a damn hard thing to do. There is a saying...."rules are made to be broken"....but for my trading....if I break my Rules....I break my Discipline....and I am almost guaranteed to lose.

My motto is: Discipline plus Simplicity equals Success

Since I am a Scalper....for the most part....it has been a good trading day. For Trend traders....maybe not so good.

Sorry about my rambling.

VSTscalper
 
I think the reason some daytraders have trouble going with the trend is the amazing amount of chop that occurs during the week, therefore dulling your mind to when a real trend emerges. For instance, the NAS this week had one clear trending period...from Tues late AM to Wed late pm. (there were actually 2 trends here...a sell-off to support and then a reversal move up to 5 year highs). Other than this 8 or 9 hour period, this week has been total chop, where countertrending generally pays off. So as you get into the habit of countertrending 80% of the time, it is that much harder to go with the trend once it establishes itself.
 
Quote from Chartiste:

I think the reason some daytraders have trouble going with the trend is the amazing amount of chop that occurs during the week, therefore dulling your mind to when a real trend emerges. For instance, the NAS this week had one clear trending period...from Tues late AM to Wed late pm. (there were actually 2 trends here...a sell-off to support and then a reversal move up to 5 year highs). Other than this 8 or 9 hour period, this week has been total chop, where countertrending generally pays off. So as you get into the habit of countertrending 80% of the time, it is that much harder to go with the trend once it establishes itself.
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Chartiste,

I think being a Scalper....I have learned to be a better Trend trader. I know that may sound crazy.

My charts are based on one indicator....drawing Trendlines....and Range boxes. Recognizing when the market is starting to go into a Range has saved me many times....when following a Trend. I have specific Rules for how and when to Enter and Exit a trade. I have no Moving Averages or anything else on my chart. Because I treat every trade initially....as a scalp....I don't have as many problems. And for some reason....which is hard for me to explain....it seems easier for me now....to recognize when the market is actually Reversing and going into a Trend condition....rather than just being a Pullback or Throwback. It is all about Pattern Recognition I guess. I use to have a Serious problem with recognizing whether the market was do a Reversal or Pullback or going into a Range. And I use to Burn myself on a regular basis.

I have Rules set for what I should do....for Range conditions....for Choppy markets....for Trends....etc. I don't try to Predict or Forecast way in advance....what the market might do....because I think traders are setting themselves up for a bad trade when they do that. And believe me....I did enough Predicting in the past....and I came close to losing all my money and going back to work. I hate that word "work". Scares the hell out of me!

Good trading to all!

VSTscalper
 
Quote from Chartiste:

VST,

Congratulations on your trendspotting. But could you elaborate on the concept of a "range box"?
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Chartise

Can I send you chart in a PM....with a Chart....don't even know if that is possible. I don't want to put a chart in this thread....it may not be welcomed. It is easier to show you than explain it.

I can usually spot the Start of a Ranging condition....within 3 Candles (or bars). When I see that....then my Rule for trading "within" a Range automatically comes into play. I trade Tick charts only....say I am trading a 144 tick chart....if I make a decision that the Range is large enough to trade....I will go to a much Faster tick chart to trade it. If the Range is small....then I have a Rule on how to trade the Range Breakout....uP or Dn.

It is really a simple thing. I don't make anything more complicated than I have to....and it works....most of the time. I am old....don't need complication in my life....haha

VSTscalper
 
Quote from VSTscalper:

Chartise

Can I send you chart in a PM....with a Chart....don't even know if that is possible. I don't want to put a chart in this thread....it may not be welcomed. It is easier to show you than explain it.

I can usually spot the Start of a Ranging condition....within 3 Candles (or bars). When I see that....then my Rule for trading "within" a Range automatically comes into play. I trade Tick charts only....say I am trading a 144 tick chart....if I make a decision that the Range is large enough to trade....I will go to a much Faster tick chart to trade it. If the Range is small....then I have a Rule on how to trade the Range Breakout....uP or Dn.

It is really a simple thing. I don't make anything more complicated than I have to....and it works....most of the time. I am old....don't need complication in my life....haha

VSTscalper
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VST,

If you don't mind.. post the chart here.. I'd like to see it also..

Flash
 
Quote from Flashboy:

VST,

If you don't mind.. post the chart here.. I'd like to see it also..

Flash
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Since you started the thread....I guess it is okay.

Sure....here is the Market....the ER....real time. I tried to do this fast....but as I typed....the market started moving a little faster. I am a slow typer....but a very fast scalper.

My indicator and Trendlines help tell me whether I should Enter....when I think it is a Breakout The 2nd Range....with the Yellow and Magenta boxes....my Range within a Range....finally did a Break down....clearing the Range Box....and my Indicator....said it was Real.

VSTscalper
 

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Quote from VSTscalper:

Interesting topic!

When I first started trading years ago....I was Wild....many ups and downs. I was on a Roller Coaster. It wasn't until....I was almost broke....that I finally decided to put some Controls....on myself.

I would be up $500 in the morning....down $500 or more (usually more) by the time the market closed. It was killing me emotionally....and I started having health problems because of it.

My charts were so overloaded with indicators....oscillators....bands....etc....that by the time I made a decision to get into a trade....the market would go the other way.

So....I decided to analyze ME. I was my own problem. What I did....finally made me better and consistently profitable trader.

I made up some Strict Trading Rules....for Entering and Exiting trades. I now use "one" indicator....so my charts are easy to read....and my brain doesn't get overloaded. The fact that I am getting older....and don't have that many good brain cells left....made me realize I need to use them wizely. Too much information can be as bad or worse than not having enough information.

Even with my Strict Trading Rules....the Rules are not worth a damn....unless you follow them. The hardest thing to do was to actually follow my own Rules. I had to Teach myself to follow my own Rules....and it was a damn hard thing to do. There is a saying...."rules are made to be broken"....but for my trading....if I break my Rules....I break my Discipline....and I am almost guaranteed to lose.

My motto is: Discipline plus Simplicity equals Success

Since I am a Scalper....for the most part....it has been a good trading day. For Trend traders....maybe not so good.

Sorry about my rambling.

VSTscalper
More...

Don't apologize your post is one of the better ones I have seen recently. I love that discipline plus simplicity equals success. So true, the more I learn about trading.
 
I wanted to show you another screen shot....real time.

See the Yellow rectangle....above the Yellow type. The candles did Break Down....out of the Magenta Range Box....but there was not a Short. Why? I moved the Yellow type to the Right....and "Extended" the Red Trendline up. Basically....the Trendline is also Support....in this case....which it did not break. And....if you look at my indicator below....it was still on Top and Green....with a smaller Blue dot inside. This told me....Do Not Short....yet.
 

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