I'm finally starting to deal with who I am as a trader. I'm an emotional, inconsistent, and undisciplined trader.
I feel good about my charts. I've changed them several times in the past. For now, that whole routine is over. The charts are not the problem.
In Brett Steenbarger's book, "Enhancing Trader Performance", he stresses the importance of practice and I agree with him. Unfortunately, I'm just too emotional, inconsistent, and undisciplined to practice. I can't stand trading on the simulator. So, I trade with real money and ride the emotional roller coaster.
I want to change who I am and become a disciplined trader, who consistently makes money by keeping the emotions in check. I'm starting this journal with the hope of making that transformation a reality someday.
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I got up early this morning, around 5:30 AM PST. I try to get up early every morning, but I usually hit the snooze button a few times. I had three losing trades in a row. They were about a hundred dollars each. Taking a little break ...
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If I may... I would suggest you record the following for each trade:
1) Screenshot of your workspace, so you can preserve how it looked
2) Why did you enter, why did you exit -- for each trade
This will help you in the long run. At the end of each week, read the PRIOR weeks journal entries plus this weeks entries. It should become crystal clear to you what your strengths and weaknesses are, then you focus on a plan to press strengths and minimize weaknesses.
I deeply ran through both books and I discovered a lot of psychological traps that was preventing me from becoming a "disciplined trader". I really suggest you to take the time to read these books.
The triangles are first draw in yellow. This means they are unconfirmed. If price goes beyond the peak, they change color and are confirmed. However, if price goes beyond the base of the triangle, they disappear. So, an entry signal is not valid until the triangle is confirmed. I should also mention that once a triangle is confirmed it never disappears.
I haven't been trading the triangles very much, but I probably should. I usually try to pick tops and bottoms rather than jump into an established trend. Unfortunately, I tend to bail out of trades that don't immediately go my way. Then I sit back and watch as the market takes off one way or the other without me. I often refer to this as getting "spooked" out of an otherwise good trade.
If I traded the triangles, I could wait until the triangle is confirmed or enter before the triangle is confirmed and then set my stop a tick below the base in either case. At least that would give me some structure for managing my risk.
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Thank you for recommending the books by Mark Douglas. I'm planning to look for them at the local library. I often get distracted during the trading day when things slow down. I'll check my email or even walk away from the computer for awhile. I miss some good trades by doing that and get out of sync with what's happening in the market. It sounds like these books might be helpful. What psychological traps where getting in the way for you? Thanks.
