NexusFi: Find Your Edge


Home Menu

 





Finally Turning the Corner, tha "its 80% Psychology" thing...


Discussion in Psychology and Money Management

Updated
      Top Posters
    1. looks_one TropicalTrader with 106 posts (511 thanks)
    2. looks_two joe s with 14 posts (15 thanks)
    3. looks_3 Sandpaddict with 8 posts (16 thanks)
    4. looks_4 Big Mike with 8 posts (52 thanks)
      Best Posters
    1. looks_one Grantx with 8.3 thanks per post
    2. looks_two Big Mike with 6.5 thanks per post
    3. looks_3 josh with 5.7 thanks per post
    4. looks_4 TropicalTrader with 4.8 thanks per post
    1. trending_up 61,553 views
    2. thumb_up 971 thanks given
    3. group 599 followers
    1. forum 241 posts
    2. attach_file 12 attachments




View Poll Results: Do You Even Scalp Bro?
Nope 63 27.39%
Nope
63 27.39%
Yea, under 10 round-turns a day 95 41.30%
Yea, under 10 round-turns a day
95 41.30%
Yea, avg 10-20 round-turns a day 46 20.00%
Yea, avg 10-20 round-turns a day
46 20.00%
Yea, over 20 round-turns a day 26 11.30%
Yea, over 20 round-turns a day
26 11.30%
Voters: 230. You may not vote on this poll

 
Search this Thread

Finally Turning the Corner, tha "its 80% Psychology" thing...

  #221 (permalink)
 
cory's Avatar
 cory 
virginia
 
Experience: Intermediate
Platform: ninja
Trading: NQ
Posts: 6,098 since Jun 2009
Thanks Given: 877
Thanks Received: 8,090


Powdrpig View Post
. . gb007 ..

Those Were The Days!

Reply With Quote
Thanked by:

Can you help answer these questions
from other members on NexusFi?
The space time continuum and the dynamics of a financial …
Emini and Emicro Index
Futures True Range Report
The Elite Circle
Are there any eval firms that allow you to sink to your …
Traders Hideout
Exit Strategy
NinjaTrader
My NT8 Volume Profile Split by Asian/Euro/Open
NinjaTrader
 
  #222 (permalink)
 
Powdrpig's Avatar
 Powdrpig 
Bend, Oregon
 
Experience: Advanced
Platform: Sierra Chart
Broker: Edge Clear
Trading: MNQ/NQ
Posts: 41 since May 2011
Thanks Given: 621
Thanks Received: 66


cory View Post
Those Were The Days!

That they were . . gb007 . . a classy gentleman!!!

Reply With Quote
  #223 (permalink)
masterelf1
Roanoke
 
Posts: 5 since Apr 2017
Thanks Given: 0
Thanks Received: 10


Trading, like golf, is mostly a mind game against oneself. I have learned to shift my impulse trades to writing them down only.
THis way I get to see if I was correct and do not risk my account on impulse trades. I only use my proven edge with my real money.
I think it is always best for newbies to start with a tiny account with real money than using demo trade accounts. The trader never feels the sting of loss in a demo account. Anyway demo accounts are only for getting the feel of how to place and close trades on the platform. You may wish to use them to try out "new" strategies and prove an edge. That would also be an acceptable use of a demo account. In fact, a mentor of mine gave me an exercise that proved quite interesting. He told me to use my edge in reverse to , on purpose, lose 1/3 of a demo account. I thouht that would be a breeze, given my past track record. But you know it turned out to be more difficult than I thought! Once done, he had me use the same edge properly to restore the account back to its original starting value. THis exercise helped me learn to trust my edge. Much like fire fighters learn to trust the smoke mask by removing it in a smoke filled test chamber and then putting them back on. So for me, any trade that is not part of my edge, is deemed an impulse trade and is recorded in a journal that I analyze later (after hours). I want to know the motivating factors behind my impulse trades (greed, fear) so I can learn to identify them on a real time basis.

Reply With Quote
  #224 (permalink)
 
SBtrader82's Avatar
 SBtrader82   is a Vendor
 
Posts: 587 since Feb 2018
Thanks Given: 222
Thanks Received: 1,333


Powdrpig View Post
SBtrader82 . . That's a very good question regarding excessive noise drilling down too far in time. Personally, I doubted I could ever trade this low. I was using pretty much same system on a 2min but I was just getting tired waiting for trades. If I tired expanding to other contracts, I could never get a feel for them or they just had something that didn't meet my needs, For example, I would like to trade gasoline since system works great, but the volume is low which I think subsequently causes the wide spreads. In terms of the NQ, I thought it would be perfect but in that case there is too much volatility for me to trade. My stops would be beyond the threshold I would find acceptable. In that case, yes, noise would prevent trading that contract. My stops would be even larger in using a 2 min time frame. I do sometimes look at the Russell but the volume isn't that great. It was an excellent future to trade when it was the TF, then they sold their soul to ICE. Exchange fees plummeted due to nobody wanting to deal with ICE. Now they are back as RTY with CME but volume never returned. The YM just never feels right to me . . maybe it's just because there are fewer stocks in the index.

I think a lot of how your system will perform just depends on what you're trading. The ES provides everything I want. It has great liquidity and huge volume plus almost always a one tick spread. I also like the fact that it has an unquenchable thirst for size. Scalability in unmatched other than bond market. It will gobble up 1000 lots and not even hiccup. Also the volatility has greatly increased for the ES over the past few years. Previously, it was difficult to get any move greater than 6 ticks most of the time. Now I get nice runs even using a 30s chart. Although on those types of runs, I'm switching to a higher time frame for exits.

I think a lot of the indices have much more volatility than a few years ago and there are all sorts of different traders these days. That is probably why I like really short time frames. The volatility helps me since it promotes faster moves. Most of my trades are around a minute. For this past week, 57% of my trades were for 8 or less ticks. But that that's okay . . elephants get fat just eating peanuts. I'm trying to utilize my longer time-frames more so Friday was just 32%.

It's difficult trying to quantify volatility in the market. Each week I look at my Sierra charts stats to determine my stops for the next week. It gives an open trade average loss for the week which I add usually 2-3 ticks. I've been down to a 4 tick stop at time but usually it's 5 or 6. Friday's average loss was 1 tick. Sometimes you get lucky.

Bottom-line is I think noise is difficult to fight. For traders, there is an unending battle between balancing noise and lag with indicators. Somehow I've been either lucky or too stupid to have quit searching in finding a system. But then I have been at this since mid-80s. My occupation was as an economist so I suppose I just like fiddling with numbers and formulas for entertainment. It just takes a long time to fit everything together . . if you're not willing, then go find something else you enjoy.

thanks a lot for the reply, wow 4 ticks average loss is really nothing, my average loss is around 5 point per contract. I tried to scalp in the past but it's not my style. I loved the phrase "elephants get fat just eating peanuts", I will definitely use it to avoid taking one small loss after the other it often happens to me and I build an "elephant size loss".

Follow me on Twitter Visit my NexusFi Trade Journal Reply With Quote
Thanked by:
  #225 (permalink)
 
Powdrpig's Avatar
 Powdrpig 
Bend, Oregon
 
Experience: Advanced
Platform: Sierra Chart
Broker: Edge Clear
Trading: MNQ/NQ
Posts: 41 since May 2011
Thanks Given: 621
Thanks Received: 66

I should clarify that I have not scalped that long using the 30sec chart. I have over the past few years primarily used the 2 and 3 minute charts . . I suppose that is scalping as well but not to the same degree I am trying now. Also I showed the 30sec chart earlier since it more clearly showed my trades. Although I look at both setups and signals on that chart and enter trades on that time frame, the 1min chart is also just as important to my setups. I also use the 90sec/2min/3min charts to determine my possible exits and sometimes entries. I use the one with the longest time frame that has provided a setup to determine my exit. Thus, I am hoping to maximize my holding period and profit on runners.

My orders are all-in with a limit order and a 1 tick chase. My first target is 6 ticks and the second is at 8 ticks and if using additional lots at 12 ticks. I never change my first target unless the trade has stalled or hit my stop. My stop level is usually set at 5-6 ticks and goes to -1 once price hits 5 ticks and goes to breakeven +1 after first target hit. Rarely is my stop moved . . only if I get a signal on a higher time frame then no more than two ticks if price is supported by S/R level. My target levels are all market orders. I will move my stops higher with price if signal has been generated on a higher time frame. Those higher time frame indicators will determine my exit level. A lot of times, I will just flatten the trade if those exit levels are hit. I don't add to a trade since I really never get another signal during a move.

Although I primarily trade the ES, I also now trade the MES at times depending on circumstances. Prior to the ES, I usually traded the Russell (TF) until it was hijacked by ICE. At that time I switched over to the ES. I have mostly traded the ES the past ten years until just recently.

Early summer I had emergency surgery for an aortic aneurysm with 50/50 chance of survival . . I had skied the week prior with no symptoms. I survived with 3" of new piping and then had some aortic stents installed this fall. I don't feel or have any trouble with them. But I did get some vertigo and dizziness that prevented me from using the computer for months. Five weeks ago I saw a neurologist that gave me a drug that cleared my brain. I have started back trading but I am using the MES to get back to trading mode. I think I will be able to finally get back to ES by next week . . hopefully.

In the Chris Cady video that TropicalTrader posted prior, Cady speaks of coming into the trading day with a sense of gratitude. Believe me, I can definitely relate to that 100%. I'm still alive, still trading, and now still skiing. Life is good . . be grateful !!! Trading is like life . . the future is always unknown.

Reply With Quote
  #226 (permalink)
 TropicalTrader 
Vancouver Canada
 
Experience: Intermediate
Platform: Sierra Chart
Broker: EdgeClear Rithmic
Trading: MES
Posts: 125 since Feb 2016
Thanks Given: 241
Thanks Received: 552


masterelf1 View Post
Trading, like golf, is mostly a mind game against oneself. I have learned to shift my impulse trades to writing them down only.
THis way I get to see if I was correct and do not risk my account on impulse trades. I only use my proven edge with my real money.
I think it is always best for newbies to start with a tiny account with real money than using demo trade accounts. The trader never feels the sting of loss in a demo account. Anyway demo accounts are only for getting the feel of how to place and close trades on the platform. You may wish to use them to try out "new" strategies and prove an edge. That would also be an acceptable use of a demo account. In fact, a mentor of mine gave me an exercise that proved quite interesting. He told me to use my edge in reverse to , on purpose, lose 1/3 of a demo account. I thouht that would be a breeze, given my past track record. But you know it turned out to be more difficult than I thought! Once done, he had me use the same edge properly to restore the account back to its original starting value. THis exercise helped me learn to trust my edge. Much like fire fighters learn to trust the smoke mask by removing it in a smoke filled test chamber and then putting them back on. So for me, any trade that is not part of my edge, is deemed an impulse trade and is recorded in a journal that I analyze later (after hours). I want to know the motivating factors behind my impulse trades (greed, fear) so I can learn to identify them on a real time basis.

I like how you phrased that! "a mind game against oneself".. That's great how you shifted your impulse trades!

Interesting approach from your mentor to lose money on purpose. Thanks for your comments!

Follow me on Twitter Started this thread Reply With Quote
  #227 (permalink)
 TropicalTrader 
Vancouver Canada
 
Experience: Intermediate
Platform: Sierra Chart
Broker: EdgeClear Rithmic
Trading: MES
Posts: 125 since Feb 2016
Thanks Given: 241
Thanks Received: 552


Powdrpig View Post
I should clarify that I have not scalped that long using the 30sec chart. I have over the past few years primarily used the 2 and 3 minute charts . . I suppose that is scalping as well but not to the same degree I am trying now. Also I showed the 30sec chart earlier since it more clearly showed my trades. Although I look at both setups and signals on that chart and enter trades on that time frame, the 1min chart is also just as important to my setups. I also use the 90sec/2min/3min charts to determine my possible exits and sometimes entries. I use the one with the longest time frame that has provided a setup to determine my exit. Thus, I am hoping to maximize my holding period and profit on runners.

My orders are all-in with a limit order and a 1 tick chase. My first target is 6 ticks and the second is at 8 ticks and if using additional lots at 12 ticks. I never change my first target unless the trade has stalled or hit my stop. My stop level is usually set at 5-6 ticks and goes to -1 once price hits 5 ticks and goes to breakeven +1 after first target hit. Rarely is my stop moved . . only if I get a signal on a higher time frame then no more than two ticks if price is supported by S/R level. My target levels are all market orders. I will move my stops higher with price if signal has been generated on a higher time frame. Those higher time frame indicators will determine my exit level. A lot of times, I will just flatten the trade if those exit levels are hit. I don't add to a trade since I really never get another signal during a move.

Although I primarily trade the ES, I also now trade the MES at times depending on circumstances. Prior to the ES, I usually traded the Russell (TF) until it was hijacked by ICE. At that time I switched over to the ES. I have mostly traded the ES the past ten years until just recently.

Early summer I had emergency surgery for an aortic aneurysm with 50/50 chance of survival . . I had skied the week prior with no symptoms. I survived with 3" of new piping and then had some aortic stents installed this fall. I don't feel or have any trouble with them. But I did get some vertigo and dizziness that prevented me from using the computer for months. Five weeks ago I saw a neurologist that gave me a drug that cleared my brain. I have started back trading but I am using the MES to get back to trading mode. I think I will be able to finally get back to ES by next week . . hopefully.

In the Chris Cady video that TropicalTrader posted prior, Cady speaks of coming into the trading day with a sense of gratitude. Believe me, I can definitely relate to that 100%. I'm still alive, still trading, and now still skiing. Life is good . . be grateful !!! Trading is like life . . the future is always unknown.



Thank-you for sharing your trade management techniques! That's really lucky you survived, I'm happy to hear you're doing better. That's shocking how it happened so fast without any symptoms..

Yes, gratitude is strong medicine! That's a good reminder for me to dust off the gratitude journal I started a while back and make some entries.

Thanks for sharing your wisdom with us.

Follow me on Twitter Started this thread Reply With Quote
Thanked by:
  #228 (permalink)
 TropicalTrader 
Vancouver Canada
 
Experience: Intermediate
Platform: Sierra Chart
Broker: EdgeClear Rithmic
Trading: MES
Posts: 125 since Feb 2016
Thanks Given: 241
Thanks Received: 552

This was my favorite trade of the year so far and one great reason why learning and watching the profile is valuable. I saw that Dax had quite a rise yesterday and was in a range. I noticed that as dax dipped below the range the other indices were holding their positive % change. Dax went right to the point of control area from yesterday and there was also confluence with the high from 3 days ago, then it made a W on the 1 minute chart and I got in knowing very clearly where I was wrong and where the target was (top of range). This was an excellent opportunity to pyramid and get some major R factor on the trade.


Follow me on Twitter Started this thread Reply With Quote
Thanked by:
  #229 (permalink)
 TropicalTrader 
Vancouver Canada
 
Experience: Intermediate
Platform: Sierra Chart
Broker: EdgeClear Rithmic
Trading: MES
Posts: 125 since Feb 2016
Thanks Given: 241
Thanks Received: 552

Wow! Just got a second opportunity for the same trade. With a little luck Dax will squeeze those stops above the range.


Follow me on Twitter Started this thread Reply With Quote
Thanked by:
  #230 (permalink)
 joe s 
sacramento ca us
 
Experience: Intermediate
Platform: Ninja Trader,Trade Station
Trading: es
Posts: 163 since Aug 2015
Thanks Given: 133
Thanks Received: 105


TropicalTrader what is the indicator in the middle below price on post 228 telling you not sure what it is for

thanks

Reply With Quote




Last Updated on April 13, 2021


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts