Yukoner's 2015 Psychological Journal

[Handle123]

Day #21 (Baby Step #2) - Slept well, and woke up ready for the day. It was interesting pre-market as I had felt pumped about trading... but then a part of me felt bored about trading. So I feed that part that was bored. I wanted to be good and bored about trading.

Standard routine prior to trading. Then went through the day, check mark, check mark, check mark. I fat fingered a trade and that almost was enough to disqualify me from trading, but I reacted well and that was the correct thing to do. Check mark!

I caught myself during the day with a serious bias to the downside... and once I was aware of that, I kept asking myself what was the market trying to show me and what was the correct trading process to do... and that slowed me down enough to reconsider. Once I had done that, I was able to see much more clearly.

Now the next thing I had to fight with, was the desire to trade when I couldn't be at least 85% present. And that sucked, because I could see what was starting to happen and I didn't want to take a small loss for the day (which makes no sense, but that is an old habit), so I repeated like a mantra to myself - Don't trade unless you can be completely focused. I then felt that emotion start to leave, and I closed down my trading platform and called it a day before I endangered my routine any further.

-$110

You are far better than me thinking something is 85%, even with all the back testing I have done, it comes down to 50/50, your Trading Plan have firm rules? It either is or is not a trade, anything in between is silence and sitting on hands.

I see progress, maybe there is hope, but I am leaning on the 50/50.

 

[wrbtrader]

Ok, after I calmed down from wanting to reach through the monitor and grab you by the throat... and 48 hours have past, and I read your post a few more times... first, let me say thank you. I am grateful for your advice.

What you are talking about is accountability. I get that. It is an intriguing idea. I live in one of the retirement destinations of Canada, so for sure there would be a bored old timer around who would love to learn how to daytrade oil. My concern is what happens in the future when that old timer isn't there? Is the new behavior instilled going to work in times of high stress when there isn't any oversight from others? Will I have instilled the discipline that will protect the trading plan?

Believe me, I am fucking serious about what I am trying to accomplish. For months I have been getting up at around 5:00 am following a routine, honestly journaling what I am doing, and trying to learn and improve.... then I go run a business and work a full day, and raise two teenagers single handedly... but each night before I go to bed I do my market homework and plan out the next day's trading. This isn't a video game for me.

For now, I am back to the basics. I am not a trader. I am a rookie. I don't deserve to trade OPM. I am not qualified right now to even trade my own money.
Trading 101, and I am taking baby steps. Each day, I just want to focus on this new routine in my trading behavior.... "Perfect execution of the process of that single trade", and then put a check mark in my trading journal.

Good Trades (and thanks),
Yukoner

Yes, I'm obvious talking about having someone there in person to ensure accountability to ensure there's no discipline problem relapse after several days of following the trading plan...

Especially when the trading plan is being followed but the profit results aren't being realized. That sets up the discipline problem relapse.

Yeah, many of us too are supporting families along with managing other things in our lives.

Treat you trading like a business...easy to do if you're already doing such elsewhere. Thus, if you're concerned someone you've hired dies off, moves, gets sick consistently or whatever that prevents them from helping you...hire a new person to help you develop new behavoirs while trading until it becomes "instill" in you so that you no longer need that person.

Just be careful because if you're consistently failing...it will eventually have a negative impact on your quality of life especially if trading is more than just a hobby. By the way, you are not a rookie trader because you've been at this for a long time but I do understand your comment was not to imply you're "new" at this trading thing.

 

[Yukoner]

Day #22 (Baby Step #3) - Good nights rest, and woke up ready for the day. However, prior to trading this morning (and last night) I was really considering what @Redneck had written and I quote:
"And what are you doing to quiet them..., to get / keep yourself in a centered / unbiased frame of mind

Any bias we develop - always originates from hindsight (it impossible to have a bias about something we don't know / can't know)

Whenever you find yourself reverting to the past - acknowledge it..., then draw yourself back into the present - and direct your focus on the present - to assist with remaining in present"

I realized that he was bang on, and needed to be more aware of staying in an unbiased frame of mind and not getting biased. So I didn't have any exact strategy on how to do this, but I just tried to stay humble and of course stick with exactly what my trading plan was telling me to do. Trade #1 - Checkmark!

One of my best friends just moved back from Europe this past weekend, and he is a very good trader, and had skyped me in the morning right around the open. I ended up screen sharing my trading platform with him, and was just casually explaining my methodology real time and while that was happening had a trade signal which I took. So I am now forced to explain to him exactly what the next steps are and how I am supposed to exit. It was an unplanned exercise, but I found it very calming and reinforcing why I was trading this methodology. He watches a few trades and says, "So what is the problem?"

Another trade - write in journal - check mark. Stay focused on the process. Another trade - check mark. Then I put a trade on going into the close, that was good entry and went my direction a few ticks... but then I am suddenly hit with this fear of losing. My heart starts racing, my hands are shaky (WTH I only have 10 ticks at risk)... but as soon as I realized my emotional state, I manually closed the trade and stopped trading for the day. (No check mark on that one) I hadn't felt like that at all during the previous trades. Need to do some thinking tonight about what might have caused that.

+493

 

[monoid]

Need to do some thinking tonight about what might have caused that.

Or, you could find tools that will help you acknowledge that thought and let it go when you are in the trade -- no need to dissect it later. Try to understand what Redneck meant by bias in a broader context -- closing a trade due to recognizing presence of emotion is also a bias! Look at it this way: If you are a swing trader initiating a position which you expect to hold for a week, would you close a trade after you put it on because you "felt" afraid that your stop might be hit?

We all have thoughts, and what we do with them is all that matters.

Looks like you had a good day. Great job on execution on T1,T2, and T3. On T4 (last trade before close), the ideal would have been to acknowledge that thought, let it go, and re-focus the mind on the PA to determine the correct exit location as per plan -- not to close the trade. But, we all have room for improvement.

Keep chugging. All the best.

Regards,
Monoid.

 

[samuel11]

He watches a few trades and says, "So what is the problem?"

------------------------------------------------------------------

but then I am suddenly hit with this fear of losing. My heart starts racing, my hands are shaky

Trust yourself.

 

[Redneck]

Echo what Monoid posted..., and reiterating the unbiased piece

Unbiased not only about mkt direction... but all of it - A to Z when trading

You have the plan established for each trade - so step back and allow it to come to fruition

No fiddle farting with it

=======================

soon as I realized my emotional state, I manually closed the trade and stopped trading for the day

But.., this is a damn good second choice - personally I give you a check mark - and call it a Job Well Done Today

=================

Okay..., and I trust you're keeping a running tally of the "modified" loop elements

Yesterday.., couple of things were added to the "modified" loop

eta - for reference from yesterday

I kept asking myself what was the market trying to show me

what was the correct trading process to do

closed down my trading platform and called it a day

Here are two more to add to it

The underlined is #1;

"And what are you doing to quiet them..., to get / keep yourself in a centered / unbiased frame of mind

Any bias we develop - always originates from hindsight (it impossible to have a bias about something we don't know / can't know)

Whenever you find yourself reverting to the past - acknowledge it..., then draw yourself back into the present - and direct your focus on the present - to assist with remaining in present"

I didn't have any exact strategy on how to do this, but I just tried to stay humble and of course stick with exactly what my trading plan was telling me to do

Every day the mkt is a new day..., and a blank canvas - open up and let it speak to you..., let it reveal its intentions to you - head down..., mind clear..., open..., and unbiased


This #2 to add;

"So what is the problem?"

When you start seeing your emotions / thinking running amuck..., ask yourself this question - then..., and more importantly - answer it

============

3.5 days out of 4 (only giving you a half for yesterday)

Remainder of your career to go

Good Job Today

Tomorrow = do your job

Easy as pie - LOL (it really will be though one day)

RN

 

[Yukoner]

Or, you could find tools that will help you acknowledge that thought and let it go when you are in the trade -- no need to dissect it later. Try to understand what Redneck meant by bias in a broader context -- closing a trade due to recognizing presence of emotion is also a bias! Look at it this way: If you are a swing trader initiating a position which you expect to hold for a week, would you close a trade after you put it on because you "felt" afraid that your stop might be hit?

@monoid , I appreciate the advice. I will find those tools to help acknowledge that, but in the meantime if I feel that emotion highjack me then I have to shut it down... or it is too easy for me to TILT. My only real edge is myself... and if myself isn't functioning, then I shouldn't be trading. (Back to baby steps... and protecting capital will always be the utmost concern)

Love the line..."closing a trade due to recognizing presence of emotion is also a bias"... I am going to reflect on that.

Only two more days to go, and it will have been a week of trading with inserting this new routine. Thanks for the support!

 

[Handle123]

Day #22 (Baby Step #3) -

Another trade - write in journal - check mark. Stay focused on the process. Another trade - check mark. Then I put a trade on going into the close, that was good entry and went my direction a few ticks... but then I am suddenly hit with this fear of losing. My heart starts racing, my hands are shaky (WTH I only have 10 ticks at risk)... but as soon as I realized my emotional state, I manually closed the trade and stopped trading for the day. (No check mark on that one) I hadn't felt like that at all during the previous trades. Need to do some thinking tonight about what might have caused that.

+493

Many traders perceive this as a "No check mark" event, I on the otherhand think it was your best trade of the day. You realized you lost concentration, you reacted and closed trade and done for the day. This is a Mega check mark. Wasn't it last week or one before you were staying into a problem which snowballed into more non rational trading? It takes time to build up stress levels, you showing your friend advanced your stress level, it is like the note on the door, no salesmen welcome? Unless you going to open the door wide, keep friends outside till you not trading, he could tell you his opinion of what s going on and mess up your next trade.

You doing much better, you doing better consistency, homerun traders seldom made it year after year, traders who hit singles with occasional double are here decades. If you not losing or losing much, which direction do you think it heading?

But don't pat on your back, report comes out today cause of holiday, it's a new day.

 

[monoid]

@monoid
... but in the meantime if I feel that emotion highjack me then I have to shut it down... or it is too easy for me to TILT.

Yukoner:

Thought to add a point of clarification.

In my earlier post, when I commented on T4 (last trade before close), I used the word ideal. What I meant was "the goal we must strive for". I, in no way, disagree with your need to shutdown when your emotions highjack you; but, I want you to be aware that this action of closing the trade due to emotions is not part of the trading plan and, hence is not a long term solution.

Rooting for you. All the best.

Regards,
Monoid.

 

[Yukoner]

Day #23 (Baby Step #4) - I slept fitfully last night, kept waking up for some reason. So this morning I was a little cautious on trading, because I know if I am tired then it is easy to take on more risk.

I had slept a bit past my regular time of getting up, which in no way violates my rules, but I still went through my regular pre-market routine prior to sitting down and trading. I put the trades on, and followed the process... check.

About 40 minutes before the news release, I suddenly felt very tired. It was like I had been focusing so much on doing the correct trading process that I was fading. Once I realized that, I first considered shutting down for the day, but my first step was to take a break. So I did, and I went outside for a bit... I ate some more breakfast... and I waited until I felt back to normal.

Then after the oil news, I had an entry signal exactly as per my strategy, and took the trade even though I felt like I would get stopped out. Stopped out. Perfect. Check!
I was pleased with that trade, because I put it on even though I thought I would be stopped out.

But then this is where I really screwed up... and I am not happy about this. I saw another trade setup about 15 mins after the one I was stopped out on. It was classic for me, and I put an order in to get long... but then I got scared and pulled the order... and then I considered again getting long off that area. 3 minutes after pulling my order and virtually no heat the market rallied about 140 ticks in my direction... but I wasn't in for any of it. No check mark.

The only thing I remember at the time was that I was trading with wider stops because of the market volatility, and proper stop placement, which was exactly the correct process to do... but I became worried about the potential loss of 20 ticks. Which really shouldn't matter... all week I have been trying not to focus on P&L, but I did then and that violated my plan.

Later in the day, I really wanted to trade again, because there was just so much opportunity... but I didn't, because I wasn't qualified... I am done for today.

+157