Working on Consistent Profitability

[killingtheta]

Quote from tlow:


I understand that what I want isn't going to happen tomorrow...its more of "keep an eye on the prize" type comment. Everything I've ever done in life has been goal oriented...I know that sounds kinda generic, but what does it take to meet the goals? What do I have to do day in and day out to meet the goals? Do I still remember what those goals are once I start doing the work day in and day out? Things I like to remind myself of..

[/B]

Tlow, I don't know how old you are, but consider yourself very fortunate to have this sort of mindset. It has taken me a LONG time to develop this in myself, not just in trading, in all aspects in life. You're gonna make it. I'm sure. There was a time when I could not say that about myself. A mindset like you have will enable and empower you beyond your imagination. Personally, thinking like this has changed who I am. Okay, now I'm sounding a bit weird, but I think you can get my point. Keep up the great journal.
.T.
In the near future, I am expecting to retire from my career and I fully intend to shorten my swing trading time frame and daytrade. By then I'll be asking you for pointers.

 

[tlow]

Mega frustrating day...My skin is just crawling with frustration because of my lack of concentration today. Its hard to say I learned something today because I missed so much and it was all due to lack of concentration and focus. I guess I learned that I need to figure out how to stay focused and how to concentrate on what Im doing but what a joke...Im just so mad at myself. I feel like with all the aspects of trading, concentrating should be one of my stronger suits and its turing out not to be and maybe that is why I am so frustrated. For me, its one thing to miss a trade, trade poorly, go long when should've gone short, etc...those are learning events. Not concentrating is being a bonehead.

So there's my vent.

Now, what am I going to do to fix this? Maybe I need to address the monitor situation and get at least another monitor up so there is always a chart on "a" screen. I completely missed the breakout trade in the morning because I was dilly dallying and messing around on the internet. Just not paying attention. Really there's no excuse other than lack of focus. The second trade I missed, I was on the phone with a buddy and let the trade slip by because I was too focused on my phone conversation, should've just told him I would call him back in an hour. I think its unrealistic to be competely focused the whole market day, especially during these midday doldrums but I need to figure something out. It may be as simple as moving rooms...

So lets go through the trades I missed real quick:

Missed trade 1 at 7:04, made a higher low and was looking like a really good breakout...was looking to enter at 1126.00-.25...missed out on minimum 3 points, probably more like 4-5. Bummer#1

Missed trade 2 at 9:31...looked for support at 1129.50-1130.00, both as a R1 and new low channel area. Entry should've been 1130.75-1131.00...missed the elevator to the 10th floor...missed out minimum of 6 points..Bummer#2 I further missed the breakout at 1133.75 because I was grabbing something to eat...lapse in concentration.

Lastly, I hesitated getting on board at the 1135ish level, that was really the only "pullback"/pause area and I just hesitated hoping it would pull back further, but within a minute or two it was pretty obvious that it was stuck at the 1135 level. Bummer#3

Real Trade #1:

11:56- Long 1137.00 Stop 1135.00 Target 1140.00
12:21- Move stop to 1136.00
12:39- Move stop to B/E
12:41- Sell at 1139.00

+2.00 pts

Should've held on to this one a bit longer...I can't really fault myself for taking some profits because at this point I was really frustrated with myself and just wanted to walk away with a bit of profit. I would say this was the hardest thing...deciding to stay in the trade or sell. Obviously, my earlier missed trades directly reflected my anxiety to exit.

Total Trades: 1
Winners: 1
Losers: 0
B/E:0
Total Points: 2.00
Avg. Win: $100.00
Avg. Loss: $0
Total Win: 100%
Total Profits: $100.00

 

[pcp198]

tlow, you might find it helpful to see what other ES traders are doing, I follow traderguynw and mangist on twitter.

 

[deaddog]

Quote from tlow:Mega frustrating day... I think its unrealistic to be competely focused the whole market day, especially during these midday doldrums but I need to figure something out. It may be as simple as moving rooms...

Try audible alerts.

 

[tlow]

Quote from deaddog:

Try audible alerts.

Ya thanks. I think this may be the best idea...just need to make sure I set the alert properly so Im not too early and space out again or too late and miss the entry

 

[NoDoji]

Quote from tlow:

I completely missed the breakout trade in the morning because I was dilly dallying and messing around on the internet. Just not paying attention. Really there's no excuse other than lack of focus. The second trade I missed, I was on the phone with a buddy and let the trade slip by because I was too focused on my phone conversation, should've just told him I would call him back in an hour. I think its unrealistic to be competely focused the whole market day, especially during these midday doldrums but I need to figure something out. It may be as simple as moving rooms...

The lack of focus could be real (day trading requires a lot more focus than the average person is used to) or it could be self-sabotage, something Mark Douglas addresses in Trading in the Zone.

Self-sabotage can come in the form of missing trades because you lose focus and do other things, or hesitating when you see a setup and missing your entry on the trade.

What would be a reason for this? Well, it's comforting and ego-boosting to realize that you would've been right if only... You feel like you have a good read on the market and if only you'd been focused you would've had this great trade. There is no risk, no loss, no "being wrong" involved in missing a trade, having an excuse, but seeing how good you are to have chosen the right place to trade, if only...

There's a long-running joke here on ET about how whenever I step away from my desk a strong market move transpires without me. I finished reading The Zone for the 3rd time a couple weeks back and it occurred to me that I might be self-sabotaging in two ways: 1) taking breaks or checking emails, etc. at a point where things had been boring for a while (knowing full well that out of these sleepy times come the good moves), and 2) hesitating to put on a trade when a valid signal was there and then watching price jump away from me before I could get my order in.

One thing to help stay focused without going insane is to find some like-minded traders and Skype together. It provides a second set of eyes so you can afford to lose a little focus knowing someone else in the group will be there to say, "breakout level in play soon," or "second lower high if the bar closes like this," etc.

Another way to solve the problem is to choose a price at which a valid long or short entry would be triggered and place a stop order at that level in advance. There've been times where I nearly forgot I had an order sitting out there and suddenly I glance back at my DOM and see it's about to be triggered and I've no excuses, I'm going to be in that trade now! This helps you make the decision early and keeps you from hesitating, prevents you from missing out if price suddenly blasts through your entry trigger, etc.

 

[tlow]

Nod,

The lack of concentration is definitely real and not just a phase...Going through some of my notes from the past weeks, there is definitely a trend of lack of focus. The midday doldrums most notably. I think that is another reason why I got so frustrated...I missed the trade in the morning due to lack of concentration, haven't done that yet, then compounded it further during the doldrums. Further, as I stated before, I usually concentrate/focus really really well, but trading is a different animal so maybe I need to adjust my concentration scale

I don't think its self sabatoge at this point...I really don't mind being "wrong" because I usually learn something when I am wrong. But lack of focus just inexcusable for me. I think it may be complacency more than anything...I see the set-up developing, know what I have to do, then just kinda space out because I have a bit of time before I need to pull the trigger.

For sure I need to fix this and understand why its going on. I am wondering whats more important...to figure out the root cause or just try different things to fix it? IE audible alerts, online chats, etc to see what sticks.

 

[NoDoji]

Quote from tlow:

I think it may be complacency more than anything...I see the set-up developing, know what I have to do, then just kinda space out because I have a bit of time before I need to pull the trigger.

Agreed, this is very often a problem for me and placing stop orders in advance solves the problem. You see the potential setup developing and place the stop order to get you in when price hits X and then if you space out at the moment price triggers, no worries, you're in.

 

[Tonkadad]

I haven't read your whole journal so I may be missing some things, but regarding lack of focus, maybe limit time in front of computer. Just first 1 1/2 to 2 hours of morning action until you can stay focused.

Since we can all agree discipline is key to being successful in this business, focus on the discipline.

Remember 1 step at a time.

Best of luck to you.

Bruce

 

[volente_00]

Quote from NoDoji:

Agreed, this is very often a problem for me and placing stop orders in advance solves the problem. You see the potential setup developing and place the stop order to get you in when price hits X and then if you space out at the moment price triggers, no worries, you're in.

bracket orders are your friend.

Takes a lot of the emotion out.

The hardest part is letting the trade run it's course once they are triggered.