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This thread is about improvement, not here and there, but consistent, constant, and perpetual.
I've come to believe that this is not a requirement just for trading success, but for success in life in general.
When we don't improve, we stagnate. And when we stagnate, we deteriorate. That is true mentally, physically, and spiritually.
But success isn't the only reason to constantly improve. The other reason is FUN. Improving is worthwhile in itself, being intrinsically rewarding. The fun of pushing against your boundaries, and see yourself being able to do things that you thought were impossible.
I will try to post new materials here every trading again.
Today we start with a reminder from Tom Wiswell:
"Before every game say the following: I can defend myself from my opponent, but who will defend me from myself?"
Trading version: "Before every trade say the following: I can defend myself from the market, but who will defend me from myself?"
I thought about this one a lot. You cannot trade with a distrust of yourself as strong confidence in your judgement is necessary... but at the same time, one has to be aware of one's weaknesses. How do you walk that line?
To answer, the only thing that CAN defend me from myself is my absolute commitment to follow my trading plan. No deviations, no tilt. Periodic review of my trading plan, BUT never while trading.
You are never in the wrong place... but sometimes you are in the right place looking at things in the wrong way.
"I can stand falling into someone else's trap, but to lose by my own play is unbearable."
Trading version: "I can stand falling into market's trap, but to lose because of my own poor trading is unbearable."
I have a setup and a plan.... I trade it, and if I lose today, so be it. That is part of the game. (No trading method has a win rate expectancy of 1.)
But if I lose because of my poor trading, not following my plan, breaking rules, doing stupid shit....etc. That's another matter. Two completely different things.
And of course, the greatest damage we do to ourselves as traders is when we break our plan... and win. That way, we condition ourselves to disregard one of the most essential components of success: consistency.
You are never in the wrong place... but sometimes you are in the right place looking at things in the wrong way.
"The search for a foolproof system is always in vain." -Tom Wiswell
Trading version: "There is no holy grail in trading."
How many traders waste years looking for it, switching from approach to another, changing things constantly, trying to tweak their way to success?
I know I did.
So, if there is no holy grail, what is there?
There is an edge, a higher probability of one thing happening than the other, or lower probability but much higher potential reward. Recognizing those spots and being able to trade them is what trading success is. And there are approaches that make it easier than others, IMO.
In any case, as this thread is about CNI, I will be posting updates on improvements in my own life. There are two reasons for that: 1. a sort of public accountability, 2. it is a way to see and track my own progress.
I will include things outside of trading, as trading never happens in isolation, but is a part of one's life, inter-connected with everything else.
Today's Personal Development
Meditation - anapana 15 minutes, went well, clarity and peace N-Backing - Position-Color dual 5-back. Still tough going as my brain is massively challenged to expand its capacities. Best score today 75%. Notable positive effect on my mood, as always after N-backing Inspiration - Tony Robbins, reviewing sections of Unlimited Power on anchoring Physical Development - 1 hour of ping pong, focus on staying the moment, playing each serve and shot as separate events, detachment from outcome of games...etc. Pre-Trading - visualization of plan execution prior to trading, seeing the setup, pulling the trigger with ease and clarity, managing the trade according to the plan. Feeling very confident after. Trading - super entertaining day on ES, both due to PA as well as OF. Interesting setup long right off the open, reversal, and then a good down move. I executed well.
Have a great weekend everyone!
PS Fun post coming up tomorrow.
You are never in the wrong place... but sometimes you are in the right place looking at things in the wrong way.
Loved this documentary. I can see lot of similarities between being an order flow trader and a Tetris player. Total commitment, focus, fast decision making, discipline, and endless practice and improvement.
The one difference might be that mastering Tetris gets you a t-shaped trophy (if that). Mastering order flow carries somewhat more substantial rewards. Having said that I think Tetris is !@#$ing awesome.
You are never in the wrong place... but sometimes you are in the right place looking at things in the wrong way.
"If a move is inviting, natural, and looks strong, it's a good move or a good trap - and sometimes it takes a good player to tell the difference." - Tom Wiswell
Trading version: "If a trade is inviting, natural, and looks strong, it's a good trade or a good trap - and sometimes it takes a good trader to tell the difference."
Exercise
Divide the trades you took in the last month into 'good looking' and 'not so good looking'. Which were more profitable? (or less losing, if you are not profitable yet?). The answer may surprise you.
Personal Self-Improvement
Pre-Trade - did anapana and visualizations prior to trading. Felt good. Trading - executed the plan well, but I think I jumped the gun slightly on the first trade, will have to review the video. The second trade was executed perfectly, for a fantastic and strong move up. Physical - rest day, after yesterday's brutal calisthenics. Mental - will do 5-back right after this post, and looking forward to backgammon after that.
Trade well out there.
You are never in the wrong place... but sometimes you are in the right place looking at things in the wrong way.
As much as I want to do another Wiswell proverb, today I want to discuss a popular question:
What role does psychology play in trading success?
There are 3 basic views:
- None. You need a technical edge, not good psychology.
- Some. You need patience to execute your strategy.
- All. Your psychology determines your success.
I advocate the view that
Trading is 100% psychology.
How can that be???
I hear some traders objecting: "When you don't have an edge, psychology is worthless."
Yes, that is true... BUT you will never find a real trading edge without the right mental attitude. And even if you do, without psychology, you will not be able to execute it.
The truth is that the technicals and their execution in the market depend on psychology.
Without a strong mental foundation, you will never find or realize your edge.
TRADING IS A MENTAL GAME.
Today's Self-Improvement Fasting: it is my weekly 40+ hour fast. Things are going well in that department, I feel good. Physical: 1 hour ping pong, slow start, but then got into it. Perpetual improvement with drills. Pre-Trade: I prepared today by listening to 80s disco and reading Jack Kerouac's delight (and popular) "On the Road". Visualization pre-open. Trading: Took a single trade, managed it as I always do, and got stopped out for a 1 tick loss, only to see the market take off (would have been a nice 4 point winner, as it usually is these days). Despite following my plan, I felt quite annoyed after that. As I don't trade in negative mental states, I closed the shop for the day. The market will be there tomorrow. I know better than to trade when I feel f!@#ing annoyed with the market. Post: The Sedona Method releasing on my feelings.
Trade well out there.
You are never in the wrong place... but sometimes you are in the right place looking at things in the wrong way.
