Discussion in 'Psychology' started by novice, Aug 27, 2009.
What the new guys need to learn fast, is that price does indeed have structure, which by definition yields its predictive behavior, or predictive mode within a specified range of movement.
One of the things you repeatedly stated in your video was that you "expected" price to come to 'this' or 'that' range and if it did, you would normally execute. On an earlier trade the day before, price never made it to that range and then pulled in the 'expected' direction. One day later, she pulls down into 'that' range and then pulls out to the target area.
One of the things that based all of my earlier research on was price behavior and the mathematically established variance at the boundary of what was the ATR. many people know about ATR and use it. Not many people understand how to establish historically significant and empirically relevant boundary layers both above and below the tops and bottoms of the ATR. I use a unique algorithm for figuring this out and because of that, I can't talk about it much, but I would simply say that combining such a boundary layer with an upper and lower parameter in conjunction with a mindset or rule that simply says, "If, price enters region X under Y conditions, then Execute trade, Else, No Trade." Or, something along those lines (it is a very basic idea).
You do this right now, based on what I saw in the video, but you are missing the strict logical protocol that could have netted a significantly positive trade, absent the mental gymnastics. I get the flexibility part and being able to move on the fly, quickly and without delay. But, I was just suggesting the establishment of certain harder protocols around those areas of your trading that will enable you to capture more doable trades and thus, increase the steepness of the revenue curve over time.
It won't capture all of them, but it will reduce the number of missed approaches forcing a go-around and repositioning on the entry glide-slope, so to speak. It is a similar approach to the way pilots fly precision instrument approaches to a landing. If they have to declare a missed approach, there is no crying over spilled milk (happens all the time all day long across the world of aviation). They just fly the missed approach procedure and get back on glide-slope for another entry to the decision height.
Anyway, that's how my mind works in terms of the engineering of some of the logical parameters of my own trading. Everybody has their own way, however. To each his own, they say.
Thanks again for the vid and I'm sure that newcomers can learn from it.
Let me give you some encouragement. Maybe 4 years instead of 5.
I wish I could tell you otherwise, but would not be telling the truth. Everybody is different. Some people only have to hear or read or experience something one time and boom, just like that, they are doing exactly what they are supposed to be doing, "getting out of their own way."
Others, such as myself, are hard headed. My Mother used to say that a hard head makes a soft rear-end and she was right in more ways than one. Only in trading, a hard head can make a tiny account balance - I should know.
It took me literally years to learn that little lesson. Getting out of your own way is not easy because of the ego factor - YOU have to be right and darn what the market says, right - wrong. The market is never wrong and we would all do well to learn what the market has to teach us, whether a Fundamental trader or a Technical trader.
For me, it came down to really doing the hard core research, learning what works consistently and what does not work consistently, creating a protocol driven trading system, gaining real world experience by using real money and losing real money, then learning how to trust the system. Eventually, all successful traders learn to get out of their own way. I don't think there is a "get out of your own way gene" that anyone is born with. It takes both time and the right kind of experience - there are no short cuts - at least not for me.
Trading is exactly like the golf swing in SO many ways. Developing a repeatable golf swing that is playable takes years of development. Developing a trading system or methodology that is repeatable takes years of development. No one can strike the golf ball consistently playable without getting their body out of the way of the golf club! You must allow the hips to clear out in front of the shoulders, arms and hands. The hips have to get out of the way, or the golf club will get jammed at the top of the swing and at over 100 mph club head speed, there is no way on earth to re-direct that club in time on a consistent basis by manipulating it with your hands at the bottom.
Similarly, the trader has to get his mind out of the way during execution and simply do what he's been trained to do. If the mind is in the way, those thoughts moving at 100+ mph will never allow the trader to square up his decision just before impact/execution.
Patience is also key in golf, just as it is in trading. Tiger, wins a lot more than anyone else, not because he's that much better physically, but because he's that much better mentally most of the time. He's patient and several others here have waxed eloquently on the proper use of patience as a trader - allowing the trade to come to you, instead of trade hunting. Know what set-ups work the best for you and then patiently wait for the market to conform to that particular set-up and then get the mind and ego out of the way to allow the trade to square-up at impact.
I love the golf analogy. It works really well for me personally. But, it does take time.
First of all and so far missing, is, what is a set of rules meant to do? To be unsuccessful, obviously not. But how many are there, trying to abide by a set of rules without becoming really successful?
So lets set the aim. Is the aim to 'trade for a living'? All the time this seems to come from lips of most who want to be successful in the markets.
However the correct aim is to make yourself rich. In 'trading for a living' where you are spending gains, you are using up the seedcorn for your success. Gains must be retained to back up the expanding positions you will need to play. If of course your methodology is too flawed then you can neither build your cashpile effectively nor 'trade for a living' very effectively.
A set of rules will not overcome insufficient market knowledge, inadequate savvy or an insufficient methodology. You can start by 'paper trading' or better still use a good online demo package where either way you are testing your methodology. Before a set of rules, testing, testing, testing and checking, checking, checking gets you started on the long road towards real success.
advice is nice, but you don't learn till you learn the hard way. you will read it and think "thats a nice platitude" but you won't "get it" without the experience. if you're anything like me, I guess, but I'm not special.
like how you can hear a love/pain/etc song as a child and sing along, but you won't "get it" till you have the experience that you could write it yourself.
Personal hygiene is important.
Never trade in your pajamas without showering and shaving.
Just because we do not have a boss and we work from home does is no excuse to let ourselves go.
If you think what I am saying is foolishness, then I advise you to rewatch The Shining with Jack Nicholson.
He may not have been a trader, but he worked out of his place of living and did not have a boss, which evidently was his downfall.
When I sit down to trade the opening in the morning, I ALWAYS smell good and my hair is NEAT.
LOL! I love it! No kidding, this was spot on in bizarre sort of way nonetheless. You are correct. I think this would fall under "Discipline" - talked about earlier by others, just not in the same way you did here.
Oh, the imagery stuck in my head now - what have you done! I can see Jack right now sitting behind his machine getting ready to take a position when all of a sudden: "Heeeeeeres Johnnnny!"
Here it comes... the scam that begins with ATR and results in his "TCD"
Boundary layer BS:
Dozens of aliases banned from T2W and dailyfx. Veyron states he's not any of these aliases, but the scam is verbatim.
"7thSignalTrader" knows more than either of us, denies it's his alias:
Atticus, you must be the biggest joke on the net. Somebody must have really hurt you as a small child, or as a new trader. You see somebody selling something almost everywhere you go. Yet, you never produce a single sales slip or show proof of anything offered to anyone at any time. You turn a perfectly fine personal story, into the marketing campaign of the century - all in your own mind.
All you have are hallucinations and you don't care how many good threads you destroy with your childlike, remedial outbursts of insanity. You've declared that other people are "other people" before on this forum and it would not surprise me if you play forum police, or a one man SWAT team on other forums, given your behavior that is clearly identifiable right here on ET.
Get help, seriously. You need it.
Separate names with a comma.