Yukoner's 2015 Psychological Journal

NoDoji said:
Most of the setups today fulfilled criteria in either direction. Felt more like gambling than trading...pick a color, red or black :D
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I know most of the books and you will say long time chop is sideways and can go either direction, but I am horrible at trading both sides unless I have rules for the trade am doing, I find the S/R trades are best after an extended move, but stats won't let me to forgo S/R with trend, same with H&S patterns, the BB failures are always counter-trend and for me supersede all other trades for number of bars. But I always have strict rule there is a trend of one direction and can take counter-trend trades.

I am just not much of trend trader cause losing percentages/or not fulfilled enough to go to second target.

What many traders don't take into account, if you lost near one's limit, you have also lost TIME and best trades often in first third of the day, so to make up the losses, one would have to make it up in the worst parts of the day session where there is less volume and momentum pushes.
 
Yukoner said:
Day #4 - Slept well, and went into the day feeling okay. However, I just have way too much on my plate right now with my business. (Partner has had surgery, so pulling double duty) It was obvious when my phone starting lighting up at 6:30 am.

Today, again I was just dealing with fighting stupid old trading behavior. I could just feel it creeping in, and stopping me from being impartial. It is that I just keep being worried about losses. I really need to overcome that and change my thinking.

So yea, I fell into that trap for a bit, caught myself... took a break... then went what the heck, just trade what you know to do. I was down for the day. I put two subsequent trades on, and left them alone to just work out. Both winners. Exactly as per plan. I stopped after that, and just called it a day.

When I get into that relaxed mode, I trade well... because I see the market state so much clearer. I just have to stay in that mode AFTER having a couple of losing trades, because then I get worried about my losses... and that deviates me from the trading plan. Another thing, is I often can see the market much better after the first couple of hours of trading... so maybe this is something I need to consider.

Lastly, right now I really need to monitor my psych capital, and only trade if I am rested and able to focus on the market. The work stuff can get to you...

-226
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YK,

Some of my thoughts based on real experiences, in no particular order - if you take something of vale then good for you, if not, so what.

Every trade is a loser - I must accept this before I put on a trade. If I start wishing and hoping then I am just going to become one of the many fools out there.

I MUST have identified my loss exit price for each trade, and how much it is going to cost me (acceptable % risk of trading capital) to see if I can win some money.

I should have a profit exit price identified should the trade make money, but I may change this value depending on market conditions - a limit order to lock in profits.

If I trade the larger time frames then I need larger stops - no sense in me trying to think I can beat those who have billions behind them and can handle large draw-downs.

If I keep losing on most of my trades (over a certain time period that I choose) then I need to look at changing something - if I keep doing the same thing then I will just get the same results.

Indicators are derived from the underlying price - so best I understand what the price movements may mean, and not fool myself into thinking that a certain indicator is going to reveal where price is going to go next.

It is my hard earned money I am risking, so I need to make sure that I do not listen too seriously to other people who may cause me to lose more of my risk money than I had initially set aside for trading - no matter what they might think they know.

There is always room for improvement in what I am doing - to improve I must first recognize what is wrong and then address the root cause of my problem/s.

Trading is a fools game - all I need to do is be a little bit smarter than the other fools out there and I will be ok.

J_S
 
ubo said:
Hi Yukoner, I hope you don't mind me posting an off-topic question for redneck as he appears to be most active in your thread.

Hi redneck sir, I hope you could elaborate further on some comments you made on another thread. I was waiting for your response on the other thread but you never did and that's why I`m hoping you could shed further light.

In particular, it was the following:

k p said:
with enough careful analysis, you can see which trades require a bigger stop,
k p said:
High win rate and small profits per trade are almost the exact opposite strategy of low win rate but a high profit per trade.

Both these statements are inaccurate KP

RN

Especially for the second statement, I had assumed it was true but I have ever.read.someone. whom I respect.say.that.she.has.a.high prob setup where reward is several times the risk.

I would.appreciate if you could give more details.

Thanks.
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Hey Ubo

I didn't not respond back to KP - as continuing the conservation would not have been germane to what he was discussing at that time - and he's on a good roll

I'll ask him - and if he agrees - I'll respond there

it not...,

Maybe YK will say yes..., but this journal is really about psychology


Other options;

I can PM you my thoughts.., or I'll create a thread in chit chat and respond there

No matter - I'll share my thinking with Ya Sir

It'll be tomorrow - about ready to leave for a wedding (NOT MY OWN :eek: :D)

RN
 
Redneck said:
Hey Ubo

I didn't not respond back to KP - as continuing the conservation would not have been germane to what he was discussing at that time - and he's on a good roll

I'll ask him - and if he agrees - I'll respond there

it not...,

Maybe YK will say yes..., but this journal is really about psychology


Other options;

I can PM you my thoughts.., or I'll create a thread in chit chat and respond there

No matter - I'll share my thinking with Ya Sir

It'll be tomorrow - about ready to leave for a wedding (NOT MY OWN :eek: :D)

RN
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@Redneck , you just feel free to share anything you like in here! It is all really valuable. If there is a part to tie it all in with psychology, then that is helpful too. Thanks

YK
 
Weekend update - Today is the first day off I have had in about three weeks. What was a simple surgery for my business partner, turned into blot clots, allergic reactions to medicine and was suddenly pretty complicated... he is out of commission for a while.

I'm the kind of guy that has always worked harder, longer, smarter, or pushed my limits until I got something done. That is fine in the business world, when a crisis demands you step up... however, looking back over the last two weeks that is exactly what I tried to do in trading. And that won't work in trading... you can't push your limits... you can't try to "make it happen"... the market doesn't respect any of that.

Yet considering stopping trading for a week feels like a failure, like a setback... What am I supposed to do with my mornings, my routine? Still wake up like clockwork with no alarm at 5:23 am... then what?
Shouldn't I be pushing myself to follow my trading plan perfectly without any deviation, even in a tired, stressed out state? Or is it more of a triumph, more the right thing to do, to just pause... stop trading for a bit.... relax, no pressure.... and then pick it up again when life is a bit more normal?

What would a professional trader do.....

My morning musing as I catch up on my journal.

YK
 
The professional trader you want to become has a state of mind that is consistent.

This comsistency is built of very simple beliefs about the market. These beliefs need to be adopted, and they need become a fully functioning part of you.

If you TRULY believed that Anything Can Happen, or that Every tick/moment is unique, you wouldn't have to "push your limits", you wouldn't have to "strive for discipline".

It would be who you are. When you truly believe something, you couldn't think of acting any other way. Your beliefs align and your behavior proves it.

Your fears--faulty beliefs---are in direct conflict with Consistency.

All this to say, instead of fighting, pushing, stressing...have you considered your beliefs in market--specifically beliefs about losing, being wrong, missing a move, leaving money on the table----to be in conflict?

-JS
 
Yukoner said:
What would a professional trader do.....
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You know good and well what a pro would do

Real question is; what are you going to do -> be a pro..., or revert back to old habits

Mkt will be there..., when you are ready


RN
 
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