Success favours the patient and courageous trader.
It's all in the psychology, how much pain can you see and take, how long can you wait?
Can you control your emotions? Trade to win, not trade just to open a trade and be in the market.
When you open a trade, you need to be sure that the trade you just made is a profitable one, you want to be a sniper, not a machine gunner.
A sniper, waits for the correct set ups, and everytime he "shoots" he gets the kill.
A machine gunner, just shoots in hopes that he'll somehow hit the target.
A novice trader would look for reasons to trade, while an experienced trader look for reasons not to trade.
It's all in the psychology on whether you become successful or not.
The following user says Thank You to Nasdin94 for this post:
Thats the wonderful thing about trading, We all know what the rules are, but the rules go against our basic human nature of the comfort in numbers. If I dont feel sick to my stomach when taking a trade, it wont be the best entry.
Do you know how hard it was today to short the 3rd greed push (on the retest 2or3 ALWAYS) while close to weekly highs (lots of buy stops) on news that the The IMF was going to double the rescue fund.
The reason was that the volume in each push was lighter and the second test of the first wick had lower depth and the buyers ran out of gas.
Here is a little tidbit to watch and test. If you come to a bottom or top and the DOM resistance is very thick and the market orders give up and price retreats. I will take profits early because More than likely, price will return to finish the fight.
Do you notice that the people who do read tape will only look at either T&S or the DOM.
I note down the volume and the depth on each test. It may be 2 hrs later when it tests again but it helps.
Thats why I am here at BM, to find some tools that will graphically display and the DOM & T&S together.
I will gladly pay whatever for it. My eyes are going, slowly
Its Peter Steidlmayer talking about his new market visualization tool called "volume strips" - the idea is exactly like what you're calling "clusters" - same idea of how to trade it too. I think the yearly license on the product is $300 but it is platform specific.
Seek freedom and become captive of your desires. Seek discipline and find your liberty. - Frank Herbert
The following user says Thank You to Surly for this post:
I can't comment on what works for specific individuals, but overall, for the majority of traders, feeling sick to your stomach when you take a trade is not the sign of a good entry or a bad entry. For most traders, it is sign into their trading psychology. It says they either do not fully trust their method, or they are under capitalized (trading scared money).
For experienced traders, a trade is a trade is a trade, your account value should not be majorly affected by one trade, your courage should not be tested by any trade, your performance as a trader should not be judged by one trade, your self worth should not be affected by one trade, one trade should not make you anxious, happy or sad. Most traders who cannot overcome the majority of the above, will probably not be in this business for long.
Last edited by monpere; December 7th, 2011 at 04:27 AM.
The following 7 users say Thank You to monpere for this post:
feeling sick when I go to trade is just putting the mental tug of war into perspective. Meaning that the best R/R trades are the ones that are the hardest to do.
Before I place a trade, I do all my mental stressing and self doubting as the the range is setting up that I want to get in. (not jump in and then stress). Then when orderfow agrees, I jump in. Within 3 min, I am either out, or have a cushin.
I have trained my high emotions to work with me, not against.
I love to hear people say that I am not like most traders. It tells me I,m still on the right track.
long time ago, i thoght really smart individuals they do have some SIMILAR characteristics, individualities and what not.
then, when my great-great-grandson went to take a qualifying exam into a first class govt prep school and passed and was accepted.
my knowledge and understanding of human behaviors changed completely.
those attending freshmen class, there were only 600+ that year out of about 10,000 applicants nationwide.
his classmate came in all sizes, truly amazing. many physically looked like they still belonged to upper elementary schools--so small and tiny in physical appearance. then there were those 6 footers, both male and female, so very tall and slender like bamboo sticks.
and many weighted no more than 40 kg. yet some looked like wrestlers, sumo type....
@Init @mompepe, don't we agree that HOW we trade and WHAT we feel individually really does not matter at all.... just so each and everyone of us would consistently hear each and every time.... target filled.... target filled and more targets filled....
@Init @mompepe.... cheers and happy new year, everyone.
In the real world I walked a different path thru the forest from the norm which has been very beneficial to me. But when I started trading a year and half ago I learned the same trading path as most other traders, I do not have to say anymore. So I am now sorting out my trading path.
Thanks again for sharing.....Your info was very informative
Init -- Thank you for your contribution to this forum. It's refreshing to have someone who actually shares reasonable info with the group. Most here come across (to me) as quite paranoid about such things -- as if they really want to believe that revealing a personal startegy or set-up is going to change the course of market history! Are you kidding me --- most traders come across as so self-absorbed that they wouldn't believe the "Holy Grail" assuming *someone else* posted it!
Jstnberg (sorry-sp) I have always enjoyed your posts and contributions and have followed them since I became a 'simple' member. (Sorry I am not an ELITE or some other 'credentialed something or another member') Thank you for sharing what you share and I have tremendous admiration for your ability to acknowlege your weakness (in screen trading) after such a successful career on the floor. You're a really cool dude!
Privatebanker (if you are still on this thread ) -- Thank you as well. Like Jstnberg -- your posts are very important in my learning process.
Lastly, Tigertrader -- You have no idea how much I respect your opinions and posts -- yet at the same time -- the manner in which you often choose to address people while sharing your opinions are, in my opinion, just not a nice way to treat people or get your points across. If I wanted to come to you for advice or guidance, I wouldn't feel comfortable about doing so. Why? Because I don't care to be addressed arrogantly or be belittled when all I am doing is asking for help? And if you are not here to help me --then why are you here? If you have any intention of replying to me on this --please refer back to the first line of this paragraph before pressing "send"
The following user says Thank You to Paige for this post: