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Just one thing


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Just one thing

  #11 (permalink)
Legendary Market Wizard
Calgary, Alberta
 
Experience: Advanced
Platform: NinjaTrader 8
Broker: Kinetick
Trading: ES
 
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Blue Eagle View Post
I don't disagree with ANY of what was said.. BUT it's the actual, in practice, "sticking to the plan" part that calls in the need for other so called "psych" aspects. I know and have read of many people who have had a "plan" and then suddenly find themselves in a trade that is not in their plan. What happened? One of the many mental twists that humans are capable of happened. Mark Douglas talks about many of them that traders fall for. Not newbies, not stupid people... but people who have studied markets and traded for quite a while. Thinking Fast and Slow is another book that talks about the basics of the human brain and how we make decisions (good and bad)... and what can happen to make it look like we are "changing our mind" only to pound the desk later asking, WTF was I thinking?
If only, if only, it was just having a good plan... that's my experience anyway. The good part for me is that in studying all this stuff to help trading I have grown in all areas of my life for the better...
Craig

I agree.

Implementing a Trading Plan and then sticking to a Trading Plan can be a complex barrier to overcome, especially if you start to feel shackled by its restrictions. For example, a daily loss limit of $1,000 was part of your Trading Plan, but 20 mins after the RTH open you were flat and down $1,050. Do you sit out the rest of the day and play Subnautica or do you continue to trade? Your Trading Plan infers you sit the rest of the day on your hands (or XBOX controller) whilst that little guy on your shoulder is telling you there is plenty more time to make up the loss. (or make it worse).

So what do you do?

Of course, there will be times when you veer away from your trading plan. You might get into trouble, or you might not, but at least you have something in place to nudge you back onto the highway so to speak. (I knew a trader that traded Forex and he would have a daily loss limit lockout attached to his account by his broker) - it is better than having absolutely nothing in place. If a trader decides ďto hell with the planĒ on a regular basis, then I think there is a bigger issue overall that goes beyond this thread.

An example from my personal trading. I have a particular type of trade that I take and I keep taking, no matter what. I have conditioned myself to take it when the setup comes along. Sometimes the context is not ideal but the setup is still valid. In binary speak, it is a 0 or a 1. If I donít take these trades, history tells me that I will end up taking a sloppier one down the road that isnít even part of my plan.

So yes, a good Trading Plan is not going to stop you veering away from it. Nor is a good Trading Plan going to make you profitable, but at the very worst a Trading Plan should aid in stopping you blowing up your account.

At the very best (once it is lock step with your trading) it can literally be the difference between keeping a profitable day, profitable and keeping a losing day in check.

Failing all the above, a trader should blow up 3 accounts of $25k first and then develop a plan. That sounds facetious, but a Trading Plan is how many of us ended up not blowing up a 4th.

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  #12 (permalink)
Legendary Amateur Trader
Hanover, Germany
 
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JonnyBoy View Post
I agree.

Implementing a Trading Plan and then sticking to a Trading Plan can be a complex barrier to overcome, especially if you start to feel shackled by its restrictions. For example, a daily loss limit of $1,000 was part of your Trading Plan, but 20 mins after the RTH open you were flat and down $1,050. Do you sit out the rest of the day and play Subnautica or do you continue to trade? Your Trading Plan infers you sit the rest of the day on your hands (or XBOX controller) whilst that little guy on your shoulder is telling you there is plenty more time to make up the loss. (or make it worse).

So what do you do?

Of course, there will be times when you veer away from your trading plan. You might get into trouble, or you might not, but at least you have something in place to nudge you back onto the highway so to speak. (I knew a trader that traded Forex and he would have a daily loss limit lockout attached to his account by his broker) - it is better than having absolutely nothing in place. If a trader decides “to hell with the plan” on a regular basis, then I think there is a bigger issue overall that goes beyond this thread.

An example from my personal trading. I have a particular type of trade that I take and I keep taking, no matter what. I have conditioned myself to take it when the setup comes along. Sometimes the context is not ideal but the setup is still valid. In binary speak, it is a 0 or a 1. If I don’t take these trades, history tells me that I will end up taking a sloppier one down the road that isn’t even part of my plan.

So yes, a good Trading Plan is not going to stop you veering away from it. Nor is a good Trading Plan going to make you profitable, but at the very worst a Trading Plan should aid in stopping you blowing up your account.

At the very best (once it is lock step with your trading) it can literally be the difference between keeping a profitable day, profitable and keeping a losing day in check.

Failing all the above, a trader should blow up 3 accounts of $25k first and then develop a plan. That sounds facetious, but a Trading Plan is how many of us ended up not blowing up a 4th.

As often in life, I kind of took the long winded road and jumped around looking at and using different stuff until I had the technical stuff more or less internalized. So I must admit that I am not trading off of a written trading plan.
Where I am 100% with you however is the daily loss. In fact, that is currently my one and only written rule - to stop trading at -x$.

When the account with my new broker is set up (NT Brokerage) I will have them implement a liquidate-only switch at that daily loss limit. (A little before actually, so that I don’t enter a new trade although I am just a few $$ from the limit.)

In a Perfect World, I would not need that and just stick to the limit myself. Being human however, I appreciate the possibility. And I also think that it takes some pressure off my trading, because I don’t have to worry in the back of my head about the possibility of that one huge screw-up where I loose the majority of my account. And when you had such a day (I had) this can become a really frightening thought...

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  #13 (permalink)
Australia
 
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Trading: CL ES DAX
 
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CLNymex View Post
Brainwave entrainment and related audio technologies helped me evolve from a trading system developer to real trader.

Sorry I didn't see this before; thanks. Which product did you use?

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  #14 (permalink)
Mumbai, India
 
 
Posts: 15 since May 2018
Thanks: 0 given, 14 received

@OMWF First brainwave entrainment, etc is known to work for about 85% humans (research). Second there is trial and refine involved because you don't have an EEG/MRI wired up; for that matter you may not have the correct association of EEG/MRI patterns with desired thoughts. Bottomline is you know internally if it is working for you, and if it is working for you, please continue. But don't overdo brainwave entrainment. Once a day for one session is usually sufficient.

In this backdrop what I have found most effective are

1 Sine Isochronic Entrainer...thats an Android app (sorry no iPhone) where you can locate some free presets. Its done by a bright young but wise guy.

2 vitaltones.com by a bright young sound engineer; they also do custom tracks.

3 flow state and vaporizing performance anxiety tracks by iawaketechnologies

4 Marc at brainwave-entrainment.com he does custom tracks and I think he is the most trained, experienced etc among the above; but the above three are also effective

5 another bright young guy in Germany who I have lost touch with now (I only have his email address) he did a few tracks for me last year.

I suggest you go by your gut feel as to what is working for you and then stick to it for a month at least (you may get results sooner) but you will need to be patient if progress looks too slow.

All the best!


Last edited by CLNymex; July 26th, 2018 at 09:10 AM.
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  #15 (permalink)
Legendary Market Wizard
Portland, OR
 
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Massive l's Avatar
 
Posts: 1,905 since Mar 2011
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Everyone has a plan until they get smacked in the mouth. - Mike Tyson. This is true in trading as well. It comes down to skill and experience. Adapt or die. Instruct your mind to do something and it will do it. Repeat it enough and it becomes habit. That's how you're going to tune into not only your own psyche but a collective psyche known as Mr. Market.

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