Trading with a "plan"

February 11th, 2011, 03:20 AM

Print out post #7 and read it before you ever plan anything and yur way ahead of the pack believe me . Im very familiar with douglas' book and you gotta read it a few times as you are gaining experience in trading and after you say to yourself "ooooooh! now I get it" you have arrived . Douglas specifically describes having a plan that leaves you free to receive info that the market sends you and not lock yourself out of being creative . With that your plan contains rules like placing stops and abiding by them and taking profits where you should . Remember that trading rules should protect you not deny you opportunities so be careful what you use as rules and keep them flexible enough so you dont shackle your hands and miss out on exploiting price moves .

Your rules keep you from flying through the windshield in case somehing unexpected happens , like a seatbelt , but a seatbelt only helps you if you use it every time . You dont drive around with your airbags deployed even though that would make driving even safer since it would keep you from driving safely now wouldnt it ?

February 11th, 2011, 02:27 PM

I also wanted to mention that Matt from Optimus Futures did a webinar recently that may be beneficial to you:

Webinar: How to develop a methodology

Hi Guys, on Jan 15, 2011 (Sat) at 11AM Eastern i am conducting a Webinar about developing a basic methodology in trading.
Please use this thread to ask questions and/or have suggestions for the webinar.

I look forward to seeing you all there.

Ma …

Mike

February 11th, 2011, 02:37 PM

josh

TMFT, thank you for your post. After doing a bit of research, I've taken your advice and tried to switch my discretionary brain over a bit more to the mechanical side, and today developed some entry methods based on common indicators that will at least give a bit more guidance and a bit more mechanized approach. If I can get a reliable signal based on technical analysis, followed by using these signals at key levels based on my volume analysis, and finally by confirming with price action like I like to do, then I should have a much higher probability. Again, thanks for the advice, and I hope you didn't take my post as too much in-your-face, I'm just very direct. By the way, when is your book coming out? Any chance I can get an advance copy? :-) Maybe I'm pushing it but it never hurts to ask--please let me know when it's available so I can purchase.

Please do not misunderstand; trading your plan does not mean forgoing common sense .

February 11th, 2011, 02:56 PM

ThatManFromTexas

Please do not misunderstand; trading your plan does not mean forgoing common sense .

In what way, what do you mean?

February 12th, 2011, 06:50 AM

josh

In what way, what do you mean?

If your plan gives you an entry signal during the "flash crash" you may want to skip that signal...

Trading with a "plan"

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Trading with a "plan"