Yukoner's 2015 Psychological Journal

[Handle123]

Day #5 - Slept well, but yesterday and this morning I had a slight struggle with whether I should trade or not. I overcame that, realizing that it is how I act after a setback that is important, and if I was my boss, I would be sending me back in to trade.

But, I also knew that seeing how I was only a few hundred dollars from my loss limit, that I needed to have a better strategy going in. I would have to trade for small gains, and build the account up and then I could open up and try to trade for larger gains.

So that is what I did. Overall I waited for the right areas, but I was also very aggressive with stop placement, and if I got up a bit I was locking in a tick or more. So once I built the account up over $200, then I started opening up and trying to catch larger moves. I know from previous experience, this style of trading generates many more trades than normal, but I was okay with that because any single trade's outcome didn't matter.

At one point, I was up about $240 and considered stopping for the day, but that wasn't the plan as I was trying to catch larger moves now.
(Note: Tempted a few times to add to losing trades, but never did. Stayed disciplined.)

Of interest, the very first trade I did, I felt fear hit, and I started breathing... but after that, I was tense a few times and I felt some fear hit, but I would start breathing exercises or I would talk it out. Then I just got out of that place! And I was just starting to trade. Felt right, but also running out of time in the day.
(Note: When very active trading, I need to monitor for fatigue.)

End of the day, I have to say I did well... the day was a wash... but I did a lot of trading, and I really controlled my risk... and once I build some profit up, I tried to open up and trade for larger moves. Getting to that place where there was no fear feels very good.

-26

I have tried this move before and didn't work and usually screwed myself. If what you doing is working for you, why change? In other words, either be a scalper or go for longer targets, but changing in mid stream doesn't make sense to me, your brain is into one style of trading then flipping switch to something else.....brain was happy. Go for 8-10 ticks half dozen times, get good at taking out like $200 a day min then add size after awhile, ten lot at $200 bucks a contract is good money, most traders give their wives, kids and right nut to make $200 a day.

And it could eventually be you shouldn't trade OPM, what you think you might want to do might end up be just trading for yourself. Trading OPM puts all kinds of added pressures on you. Too much trading seldom works out, often says you in chop and by the time you realize, you have slip/comm eating away, try to have a limit of trades to do in a day, check your profitable day and find the mean of trades.

 

[Yukoner]

Day#6 - Over the weekend, I thought a lot about what some of the posters on this thread had mentioned. I also talked with my psych coach. Decided to continue today with the experiment of static stops and take profits, with two adjustments:
1) Smaller risk and smaller take profits
2) Once I was 50% to my take profit, I reduced my risk by 50%

Now I know that is a big change, however I am not changing my overall strategy for entering a trade. This also forces me to sit through the market and let my winning trades work. Trying to build the right muscle memory.

So that is what I did. My brain would keep wanting to adjust trades, or close them out when I was in a profitable trade, but I wouldn't. Rather I would just breath. I would calm down. I would ask myself, what was the correct thing to do. So my focus was very much on doing the correct thing... even though the P&L kept making me want to close the trade. I never broke today's rules once I was in a trade. Pleased with that.

Overall, It was a good way to trade. Yet, I was pretty cautious. I was looking for almost the perfect entry rather than the perfect area to enter like I normally would. An example was one trade where it traded my entry, but I wasn't filled. Once I saw it go my direction, I knew I should have gotten in... but I couldn't pull the trigger.

I did learn another lesson. End of the day, I saw a trade setup and I wanted to go short... but the fear kicked in. I literally pulled the order at the same price level three times, and each time it would have been filled.... and my profit target would have been easily hit with hardly any heat. However, I realized where the fear was coming from... there were outside distractions that concerned me, and I let that filter over to my trading. Something I need to be more aware of and then just not trade...

+392

 

[satchel]

...I would calm down. I would ask myself, what was the correct thing to do. So my focus was very much on doing the correct thing...

Like this. Detachment. No struggle.

You already have a coach, so the below is really thinking-out-loud, not advice ; - )

If fear dominates: a losing trade doesn't make you a loser - shift that thinking. Not taking all trades is Wrong. Follow the system. Perhaps mentally rehearse taking all trades, losing trades are part of it. What's the opposite of 'this could be a losing trade'... 'what if this trade is a winner?'.

Great journal and play by play. if I'm agitated i have a quick read, to get back from emotion to method. Please continue to share your journey.

 

[Yukoner]

Day #7 - Slept a bit later than normal (about 30 mins), but still went through my regular pre-market routine, even though I felt like I should be downstairs trading. (Kids are both sick, so focusing on trying to stay healthy, which means lots of rest)

Started the day off well, saw a setup happen and just took it. Felt a little pain when it came 2 ticks from my take profit only to watch it retract 10 ticks, but I still stuck with the plan. Then when I saw it start to move my direction, I realized I could move my take profit and get more profit... so that was tempting... but I never did, I stuck with the plan and watched the take profit get hit and the market continue 30 ticks past.

However, like yesterday I was very focused on trying to get the best entry price rather than just getting into the market because the market structure was showing me the area to enter. (The guy who taught me, used to just use market orders to enter... he didn't want to risk, not being in the trade) Part of that focus is due to trading with tighter stops, but I think part of it is still fear of risking some ticks. It does feel weird to not be able to enter a trade, and then adjust it to protect my risk or lock in profit. Yet, this is a good thing because in the past I would cut my winners short based on simple market noise, rather than holding them to target. So now I am forced to sit there and hold them until the target is filled. (On almost all my trades, I am looking at exit targets that are double my risk)

Lastly, I had a trade on and the profit target still wasn't hit. (Had come within two ticks and reversed - twice) I did need to leave for work, and was thinking about just walking away and leaving the trade open... but then I thought... "What would a pro trader do?" Decided the best approach was to just close the trade out manually and leave.

All in all, much better trading when I am focused on "trading correctly" and sticking with the plan, than on the P&L.

+321

 

[Redneck]

went through my regular pre-market routine, even though I felt like......

I stuck with the plan

I was very focused

trying to get the best entry price

trading with tighter stops

It does feel weird to not be able to enter a trade, and then adjust it to protect my risk or lock in profit.

now I sit there until the target is filled.

(On almost all my trades, I am looking at exit targets that are double my risk)

Lastly, I thought... "What would a pro trader do?"

Decided the best approach was to close the trade out and leave.

This is what proper trading looks like Yukoner - you have it in you (these are your words after all)

Now it a matter of filtering out useless - patience..., it does take some time

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


Random thoughts

A RR of 1to2 - makes for a very nice living

Stop should only be placed - just past - where the trade breaks down - closer price is to that when we enter - better all way round it is - patience paying off


Good Job Sir

RN

 

[Yukoner]

This is what proper trading looks like Yukoner - you have it in you (these are your words after all)

Now it a matter of filtering out useless - patience..., it does take some time

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


Random thoughts

A RR of 1to2 - makes for a very nice living

Stop should only be placed - just past - where the trade breaks down - closer price is to that when we enter - better all way round it is - patience paying off


Good Job Sir

RN

Thanks @Redneck! You have the mark of a true professional, because you give both positive and that other positive advice.

Having thought more about it, the error from last week, I was just blind to how an awesome woman could make me feel. Had forgot what that felt like. So now that it is out there, I at least know to be aware of how it will affect me in trading. Also, I am grateful it happened now.

It is interesting, because I am discovering the mood or feeling I am in prior to stepping into the trading environment tends to have influence on me when I am trading.

Secondly, the amount of time in the day that I trade is like drinking some pints of moonshine each hour. Eventually those hours catch up to you, and you start acting in an irrational manner (such as drunk driving) which will definitely affect one's trading. So here is an modified slogan we hear in B.C., "Know your limit, Trade within it".

Good Trades,
Yukoner

 

[Yukoner]

Like this. Detachment. No struggle.

You already have a coach, so the below is really thinking-out-loud, not advice ; - )

If fear dominates: a losing trade doesn't make you a loser - shift that thinking. Not taking all trades is Wrong. Follow the system. Perhaps mentally rehearse taking all trades, losing trades are part of it. What's the opposite of 'this could be a losing trade'... 'what if this trade is a winner?'.

Great journal and play by play. if I'm agitated i have a quick read, to get back from emotion to method. Please continue to share your journey.

Thanks @satchel... you raise good points, and I will try to remind myself of that... "What if this trade is a winner?"
Also, appreciate the encouragement to keep sharing.

 

[Handle123]

Day #7
All in all, much better trading when I am focused on "trading correctly" and sticking with the plan, than on the P&L.
+321

One thing I notice, when you are sitting on your hands more, your posts are shorter, which to me means you sticking to your rules. I believe all traders have a tad of uneasiness when a trade is acting what we believe to be something is wrong, we get into a habit of "time" being too long and we get nervous, that's when you really have to sit on your hands if you don't have rules based on time. Sticking to your rules for entry, doing anything that is different when market is open is changing your system, let the system take the wins and losses, you are to just trade it as it was designed. I hope your method is getting closer to your personality.

 

[Yukoner]

Day #8 - Slept well, but feeling like I am borderline for catching the same flu that my kids have. Even considered maybe I shouldn't trade today.

Day started off with a short trade that went 18 ticks in my favor, and then bounced off support and only two ticks from filling me. I sat there in frustration and watched it retrace back up to stop me out with a 5 tick loss. But I stuck with my plan. Of interest, I would have bought that level but I had no allowance in my planned experiment that would let me close this trade out and get long.

The rest of the day, seemed to get a lot of that, I would be up 10 or 12 ticks only to get stopped out. However, I did make one mistake and that was double clicking the mouse which filled me short two contracts, rather than one. Normally I would have just closed one out right away, but I hesitated because I didn't know if that would violate my plan of using static stops and take profits. So I left it, and sat there and watched it stop me out.
Then I was pissed, because knew I should have just closed one right away. This led to a second mistake, because I put a great trade on, but then I pulled my take profit at 20 ticks expecting it would continue down and I would close out with some more profit. It hit my exit, but then retraced back up only to stop me out on the swing high.

Now I realized that I had made a mistake that led to a further mistake. So I slowed down, took a break, and tried to just settle down and start thinking clearly. I then became very focused on sticking to my rules... which was incredibly hard. I was so tempted to just open up and start more active trading, like I would have in the past. I remember at one point, just speaking out... "Stick to the plan, build the correct muscle memory" as I watched the trade reverse and stop me out. I continued to take trades, and stick with the plan... even though it was hard. Especially when you are negative for the day, and you are up almost 20 ticks and can't adjust your stop to lock in some profit (As per my planned experiment of static stops/take profits).

Finally, I am nearing my loss limit and I put a trade on, very confident I will see a move back down lower. I get stopped out, and now it isn't worth risking anymore or I am in danger of hitting my loss limit, but I was so tempted. Especially when I see the trade start to work... but I never did. Pleased with that! (Trade went 50 ticks in my favor, with only a few ticks heat)

So in summary, I am pleased with the day. I tried to make a go of it. I took trades in the face of adversity. Overall, I stuck with the plan... and when I realized I had made mistakes, I took a break. I came back and didn't make those mistakes again, even though it was tempting. That was a key change for me... I stopped making mistakes and stayed disciplined.

-967

 

[Handle123]

I have developed a "twinch" in my index finger that is used on the DOME, When it first happened a year ago, I didn't notice I was four times amount of my reg size till it was time to get out and was stunned how that happened, but now I notice it clearly when twinching. Whenever it has happened to put me in extra size, I immediately try to get a tick and get out till I have normal size on, cause my side of "luck" has never been good. It not in trading plan, so get out. And that is true of any mistake I make to include screwing up a trade that is not a signal or if I get irritated at something or someone, I just stop.