Up early at my trading station this morning. Tried to prepare by going over my strategy for trading, determined to follow my own rules. And was waiting for after 8:30 on the 6E. Well, what a move! 250 ticks? Missed the whole thing.
Of course, my strategy dosnt fit a move like that, so I wait.Only a minute. And I anticipate that there is likely some more momentum to the the upside, a higher high...What am i looking for? 8 ticks on 1 contract. So i jump in, make 8 ticks, then another 8 ticks. One more for 4, becauuse it looks right. Thats it... Finished.
Now its sideways, so i am likely finished for the morning. Have errands to run.
Read BM simple strategy for trading. EMA 20, a few simple indicators....thats it. The plain and simple approach appeals to me as well. Too many things to look at is far to confusing for me. I am an auditory learner, not a visual one, so too many charts disturbs my thinking.
Trading the 6E, thats all i trade. Took Big Mikes advise and reviewed a couple of webinars about stops, and how not to place them so tight. Death by 1000 cuts, if they are too tight.
10 trades 6 winners, 5 losers. Down 50.00. Today. Maybe there is a grid for this kinda post for simplicity.
Finished for this week. Up 675.00 for the week. 68% efficiency. 50 trades, 34 winners, 16 losers. Traded 1 contract on the 6E.
The stuff i did right. had a strategy, tried to not trade emotionally. really focused on the phsychology side of trading. trading without fear, trading with confidence, embracing losses, not changing the strategy at every little turn. etc.,. Tried to cut losses when they were obvious, and tried to let my profits run. mostly small trends i was trading.
Was trading with a potential small point gain, 4 points, with a wider stop, say 12. but when it was heading down, I would shut it down, because i didnt like seeing down 10 ticks with only 4 tick potential. At that juncture, I have to gain 14 on the up just to get my target. Seem like way too much stress. So i have reevaluated. now I go for much more ticks, with longer charts and much wider stop. I feel better with that approach. And i dont feel like i am missing a potential gain. 4 tick gain and 8 tick stop was wittling my account down. The wins were depressing, the stops were irritating me.
I feel much better. Still a lot to learn. But I feel I made some significant progress this week.
The following 2 users say Thank You to VinceVirgil for this post:
I am a beginnner trader, so please excuse me if my terminology is not right. I am still learning, and i suspect that all traders continue to learn.
It takes time to get good at this. And like any worthwhile endeavor, you get out what you put in. This past week is and example. Must have spent 10 hours a day reading and studying, around 2 hours a day trading. Its all so new, and even tho I have spent years in teh investment business, the futures market was completely alien to me. Had to pass the securities test about options and futures, but because brokers in Canada are tightly regulated, there are no discretionary accounts, except in hedge funds. Only answered the questions to pass, never p[;laced any orders in options or futures. Canadian system not really set up for it.
So thanks to everyone here, trying to read and digest all the information oj this site. Its a lot. the webinars are very helpful.
Thanks to you Big Mike for your continued operation of this excellent forum, and as well as your messages of encouragement.
Maybe, one day, i will be able to post valuable information for other to use.
The following user says Thank You to VinceVirgil for this post:
What a difference a day makes. I was a reverse indicator today. First 4 trades were losers. Entirely my fault, take full responsibility for it. Pulled the trigger too fast, didnt squeeze it slowly so as to hit the target. I yanked the trigger back, and messed up. First 4 trades were total losers. lost 10 pips + per contract. Would have lost more, as it was, if I hadnt shut them down. What can I say? Seems my head wasnt quite right.
What did I learn today?
Tried to force the trade (forced intellect) to do what i wanted it to do, instead of take what it would give me. I am reminded of the game of golf...never ever follow 1 bad shot with another bad shot. If you hit a ball into a tough spot, play the highest percentage shot to get you safe to cut your lose. you likely already lost a stroke, dont double it, or worse. Never try to hit the ball through the 12 inch square window. It wont work.
Well, today gonna review what I did wrong and forget about. I am going to spend more time on re-enforcing what i did right.
But, I cant say i am happy with my performance today.
13 trades, 5 winners, down 887.50. 4 losers at first, then traded winners vs losers...
New rule.. Stop trading after 3 losers... And if the 1st trade is a loser, no more trading that session. that way i will be more carefull of my first trade....very sure, so as not to injure my account first thing.
Had a meltdown yesterday. Mostly self inflicted. Even though its paper trading, still getting too emotional, so this morning, I prepared by calming myself down. Some deep breathing exersizes, tried to mentally rehearse my setups and my trades before I took them.
It seemed to work...1st 2 trades were winners. Only took 8 pips total, but at least I saw positive numbers. Unfortunately, I wasnt 100% on my setup signal on my trading chart, but i was still successful. the old impatience gene overreacting i suppose. I am using a 2 minute, 5 minute and 15 minute chart. Trading on the 2 minute, but using the 5 and 15 to confirm my setup.
Then...tried to take another bit at the apple. instead of being happy and patien, tried to take it further...and fllunked out. Followed 2 winners with a loser, then 2 more winner with a loser.
Trading 1 contract, and only, and doubling to 2 on continued strength and momentum. But only looking for small gains. Learned my lesson yesterday for trying to take too big of bites, when i am not psyschologically ready.
The word for the day PATIENCE...there is always always always another trade. Nave to get used to the idea that i may only get a correct setup only 1 or 2 times a session. Trading is similar to being and airline pilot. Hours of mind numbing bordom, interspaced with moments of shear terror.
The following 4 users say Thank You to VinceVirgil for this post:
Saw the replay on An Afternoon with Big Mike from March 19, 2011. Certainly gained much insight into Big Mike's trading approach as well as personal information. Mike certainly let it all out there. it was very interesting to hear him speak about trading in general.
I have to admit, hearing his journey to becoming profitable, I have to admit it seems overwhelming. Big Mike says that trading is the hardest thing he has ever done, but he will never do anything else. Could easily write 10 pages of notes.
Take away...no more than 8 trades per day, in the morning for 3 hours 5 trades and evening for 2 hours only 3 trades....hold oneself accountable on a journal...ask for help in a thread. And around 100 other good points.
So for today... Didnt follow my own rules 100% today. After yesterday, I was determine to look for smaller profits. Was only looking for 3 tick, and was determined to follow my rules 80%. but waiting for them all to line up 100% is near impossible and was too anxious.
Trade 1and 2 9:12-9:14
had everything lined up except ADX falling which can indicate chop. Was staring at my screen for 30 minutes and had missed a nice setup at 8:20, and another at 8:40 so I pulled the trigger. Go long at 1.3636. Runs down and I close out at 1.3626. Figure I was just early after the 10 pip loss, so i go long again. Chicken, and as soon as I am down 3 pips, i close it out manually.
Whipsawed on my first 2 trades.
Trade 3 9:52
I again dont follow my rules. I am only looking for 3 pips...how hard can it be? Hit chop ...down 8 pips. stopped...3 trades down 21 pips.
Trade 4 10:32
Again, not follow my rules, and I go short. Does and about face and I close out after 8 pips. -29 pips
Trade 5 10:48
...last trade for this morning, so I am determined to do this right. Go short after getting most of my signal...lack 2 on the chart for taking the trade, but it works. Get my 3 pips...barely...
Then I see a 90% setup...the only one since I sat down. And it runs 21 pips...But...I didnt take it...Why? I already had my 5 trades.
Gonna take baby steps from now on.
Follow your own rules. And I need a lot more practice. Going live now completely useless, unless my goal is to lose money quickly. I have done that before, and I dont like it very much.
Ahh...a new trading day! What an opportunity to improve. Every mistake takes me one step further to profitability! So today I was determined not to repeat them.
Yesterday it not turn out as well as I expected. Didnt trade my plan, therefore, wasnt successfull. I have written in my trade journal, but to suffice to say, I am too embarrassed to type it out here. Besides, it would be a short story, and I dont type so well. If there was a verbal recording function, I might do that... the gory details
11 trades, (3 more than I planned) 2 winners, 9 losers i see, from my notes and from the chart, where every one of mistkes are. even my wins were a mistake, I just happen to win.
Reviewed a couple webinars, and tried to simplify my mind.
Trading a 5 minute chart...the 2 minute was upsetting as things were not going well. thats my one change of the 2 I have alowed myself for the next 2 weeks.. nothing else...otherwize how am I going to gain confidence in my system?
Followed my plan, determined not to shoot myself in the foot.
2 trades with 100% rules. Both winners...45 minutes later, still no signal, so I shut it down.
Made 8 ticks... Cant beleive how good i feel about this! Likely, to many of you expereinced tarders, it is a paltry amount. Alright, my name isnt exactly being submitted to the discresionary trading hall of fame comittee for consideration.
I am celebrating a tiny victory. Think I'll have a beer.
For the week, i made 53 trades, 26 winners, 27 losers Down $ 737.50 on my account.
But, today was my best day so far. Not based on profit, but based on discipline and sticking to my plan.
Maybe I'll have 2 beers.
The following 3 users say Thank You to VinceVirgil for this post: