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Zen & the Art of The Small Account

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  #701 (permalink)
 PandaWarrior 
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And one step back.

I gave all but a little bit of yesterday's profit back today in the chop earlier in the morning. It was ugly, got stopped to the tick a couple of times....funny thing was, I saw the chop setting up....but discipline to stay out was hard to come by today.

I've been reading @MWinfrey's 5Min Odyssey thread lately. There is some good stuff there. I have been using the range charts for over a year now and I recognize they can be noisy. But I gave up on time based charts because I could never figure out how to enter a trade....was it a limit order at S/R? If so, how big of a stop do you use? Or the close of a bar that triggers your signal? Again, how big of a stop? And @MWinfrey answered this question for me finally. So I started using the 5M chart as a filter and trying to trade in the trend direction using range bars. Yesterday was good, today a disaster, I think it was because I was unwilling to put the stop in the location the 5Min chart said to.

Secondly, The range chart can give you lots of signals and I need to trade less.....with bigger targets. I am thinking of moving to 5Min charts exclusively. I will download the last few days of data and practice on them. At double or triple speed just to get used to the patterns. I am under no delusions that a different chart will make me a winner, but it will cut down on the number of trades I take and that is a good thing.

What I did right today:
1. Not much. But I did quit inside yesterday's profit. I guess that counts for something.
2. I sized up and down depending on my perception of the quality of the set up.

What I did wrong today:
1. I lacked patience.
2. I traded to often
3. I put my stops in the wrong place almost every time.

I'll make some notes about my sim trading on the 5 min chart in the days and weeks to come and hopefully the reduced number of trades along with money management will increase my profitability.

Simplicity is the ultimate sophistication, Leonardo da Vinci


Most people chose unhappiness over uncertainty, Tim Ferris
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  #702 (permalink)
 trs3042 
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aztrader9 View Post
And one step back.

I gave all but a little bit of yesterday's profit back today in the chop earlier in the morning. It was ugly, got stopped to the tick a couple of times....funny thing was, I saw the chop setting up....but discipline to stay out was hard to come by today.

I've been reading @ MWinfrey's 5Min Odyssey thread lately. There is some good stuff there. I have been using the range charts for over a year now and I recognize they can be noisy. But I gave up on time based charts because I could never figure out how to enter a trade....was it a limit order at S/R? If so, how big of a stop do you use? Or the close of a bar that triggers your signal? Again, how big of a stop? And @ MWinfrey answered this question for me finally. So I started using the 5M chart as a filter and trying to trade in the trend direction using range bars. Yesterday was good, today a disaster, I think it was because I was unwilling to put the stop in the location the 5Min chart said to.

Secondly, The range chart can give you lots of signals and I need to trade less.....with bigger targets. I am thinking of moving to 5Min charts exclusively. I will download the last few days of data and practice on them. At double or triple speed just to get used to the patterns. I am under no delusions that a different chart will make me a winner, but it will cut down on the number of trades I take and that is a good thing.

What I did right today:
1. Not much. But I did quit inside yesterday's profit. I guess that counts for something.
2. I sized up and down depending on my perception of the quality of the set up.

What I did wrong today:
1. I lacked patience.
2. I traded to often
3. I put my stops in the wrong place almost every time.

I'll make some notes about my sim trading on the 5 min chart in the days and weeks to come and hopefully the reduced number of trades along with money management will increase my profitability.

Secondly, The range chart can give you lots of signals and I need to trade less.....with bigger targets.

Hey AZ,

Take a look at a 13 Range chart. Less noise and fewer setups. Just a thought.

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  #703 (permalink)
 redegenerated 
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we have to accept to have a bad day or a bad stick...we can't be always right, unfortunately ...so i would not start to change the plan and the chart....i was not in tune with 6E today, i realized that soon this morning, so i just close my chart and plan to come back tomorrow...may be you could set a daily stop, like big mike.... with this i don't mean to stop to perfecting the trading plan ....just trying to help...

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  #704 (permalink)
 tderrick 
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Sorry for the tough day, my friend


AJ
Nashville, Tennessee


"Life On The Edge of SR"
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  #705 (permalink)
bwasi
Kuala Lumpur, Malaysia
 
 
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2 weeks ago I wanna to tell you that trade CL with range chart is tough, but I deleted the post becoz I didnt want to disturb your setup...

most CL trader have standard 5 min chart, but I prefer 2 min chart as the prime chart

you may wanna keep your range chart side by side with 5min/whatever chart for a while before you made another transition/decision

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  #706 (permalink)
 PandaWarrior 
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Today is confession day:

I've gotten so much better these last couple weeks of just waiting for my entry to set up. Trouble is, another problem has reared its ugly head. I am fighting like crazy to avoid moving my stop to soon. For instance, I enter a trade....it goes my way a few ticks, enough that there an intermediate swing behind which to move my stop to.....so I do, and I get taken out to the tick....and the trade goes on to win without me.

I've made this error several times the last couple of days....its worse than picking a good trade that goes bad. At least you can say it was one of the statistical losers...part of the losing percentage you know you will have. But this, it totally sucks.

Had a long talk with my wife about it today. She does not get it to the extent she would like. But she knows a scared chicken when she sees it.....and I have been a scared chicken.....afraid to lose I think is what its called.

I told her a story about the time I cut the end of my left thumb off in a table saw.....couldn't play golf for what seemed like forever. It was really about two weeks but I was playing every day at that point. Handicap was getting close to 8-10 and things were good. Then the accident. No golf. Bummer. I still went and drove the cart for my buddies.....that sucked....but I did it. And then after a couple weeks, I decided enough was enough and I grabbed a club, wrapped my hands around the handle and instead of using the classic golfers grip where the left thumb is nestled between the club and the right hand, I let it hang out below the club and I swung with just the 4 fingers on the left hand. I knew I could not play competitively so I just swung easy, tried not to bump the thumb on anything and what the heck....I started playing even better golf than before. That thumb was in a bandage for over a month and then a smaller one for another month......I played golf every day after that and shot better golf than I ever had before....To this day, when I am having a bad round, I stick that thumb out there and sure enough, I start playing better. Who knows what the significance is to this story....

Except that playing with a handicap forced me to stop thinking about winning and just concentrate on that shot...I had to hit it perfect and I had to swing with much less force than before if I was to have any hope of a decent round. So I did.

My handicap is fear. Fear of loss. I want to minimize risk to soon. How to over come this is the new question on my mind at this point. I can recognize a good entry and I know when I am in chop most of the time. Now if I can over come this almost overwhelming desire to get to break even as fast as possible, things would be much better.

This little problem cost me a bunch of money today. On several really nice trades, I moved the stop to soon, got stopped out and then watched it go my way....and on the 2-3 statistical losers I had a full stop out. No way to get rich in this business.

The chart shows three trades. That's not all of them but its just a representation of what happened today. The short move down right after the open was a classic higher time frame pull back but with plenty of room for a lower time frame trade....no problem here. Rules followed almost to the letter.....except I moved my stop to soon.

I've ordered the book, Golf is not a game of perfect. Don't know if there is any help there but I've seen it recommended now by several traders so gonna read it.

Tomorrow, I have only one goal, Don't move the stop. Its either a full target or full stop.

Simplicity is the ultimate sophistication, Leonardo da Vinci


Most people chose unhappiness over uncertainty, Tim Ferris
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  #707 (permalink)
 PandaWarrior 
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My goal from yesterday was to take my trades and not move the stop.

I did that today very well. I did not move a single stop. I paid for it as well.....at least early, I took a couple decent size stops early on and was down quite a bit. Then a couple more trades got me to flat, then another stop out and was down $500 at that point.

Then a really great setup appeared, I loaded up and rode it twice for a total of 40+ ticks. Ended the day +35 ticks I think.

Anyway, it was really hard to SOH during the trades. But I did it. And sitting through the larger moves was tough as well but I began locking in profit once I had quite a bit on the table. But not so much that I was in danger of getting stopped to soon on the trade.

So good day today. All goals achieved today. The chart does not have the stop outs on it, just the nice winners.....the stops were real early and so I didn't really have the room on the chart without squeezing to tight to read.

Simplicity is the ultimate sophistication, Leonardo da Vinci


Most people chose unhappiness over uncertainty, Tim Ferris
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  #708 (permalink)
 PandaWarrior 
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I didn't make that much money but did everything I needed to do except one thing.

What I did wrong:

1. I took a about ten trades today. They were fast and furious. I selected a you tube video today to illustrate how fast it was. The ten trades was not the issue. I did get cut up a bit in the indecision area (chop) but not to bad. Was still up after the chop.
2. Holding the winning trade was the issue. I selected a wonderful long trade today...see chart...and sure enough it was the one I was hoping for. BUT I bailed after 4 ticks when it stalled just a bit longer than I wanted. Then my original target of 25 ticks was filled a minute or so later.

What I did right:
1. I was fearless in entering trades.
2. I took my stops like a man...or woman...depending on your perspective.
3. I got pretty decent trades for the most part.
4. I ended positive....although much less than I had potential for.

See the chart for the last entry I bailed on.....

Here is the video....this is about how fast I wasted my bullets today!



Simplicity is the ultimate sophistication, Leonardo da Vinci


Most people chose unhappiness over uncertainty, Tim Ferris
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  #709 (permalink)
TriggerShy
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aztrader9 View Post
My goal from yesterday was to take my trades and not move the stop.

I did that today very well. I did not move a single stop. I paid for it as well.....at least early, I took a couple decent size stops early on and was down quite a bit. Then a couple more trades got me to flat, then another stop out and was down $500 at that point.

...


Yes interesting; getting punished (financially) for doing the right thing and similarly getting rewarded for doing the wrong thing is what makes it difficult for me to consistently pull the trigger when I should.

That's great that you continued to follow your goals for the day. Good job.

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  #710 (permalink)
 PandaWarrior 
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TriggerShy View Post
Yes interesting; getting punished (financially) for doing the right thing and similarly getting rewarded for doing the wrong thing is what makes it difficult for me to consistently pull the trigger when I should.

That's great that you continued to follow your goals for the day. Good job.

Theres only one cure for this issue. Define rules, follow them doggedly. Take every one. IF you have a statistical edge...( you do have a spreadsheet with ALL your trades in it that calculates your edge right?) then taking the trades regardless of the outcome of each individual trade, will lead to profit. The hard part is taking every one. Thats why its called discretionary trading and the discretion part thrrrrrrrows the statistical edge off and can create hesitancy. This is why I try to just take trades that I really like the set up on. Its not perfect and never will be but I am getting more and more comfortable with losses....not happy comfortable but comfortable in the sense that losses are part of doing business. Nothing more.

Good luck

Simplicity is the ultimate sophistication, Leonardo da Vinci


Most people chose unhappiness over uncertainty, Tim Ferris
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