This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
Grade: F. I made four trades today, so I exceeded my limit by two. Right now I’m not as concerned with the PnL as I am with taking impulsive trades.
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
September 5th, 2007 at 1:39 pm
Seems like you do not fear the consequenses of a failing grade enough. What if I told you that the F was going on your Permanent Record?
And, more seriously, why not grade yourself on how many impulsive trades you made, rather than the total? I mean, if it sets up four times, it sets up four times… no need to fail yourself for catching them all.
September 5th, 2007 at 3:14 pm
i’m not really sure richard…there definitely aren’t any consequences for the failing grades…trading 3 or 4 times per day is still much better than what i was doing
posting my PnL each day doesn’t seem to make much difference either…not sure what to do at this point
i’m just hoping that looking at straight Fs will jar my senses
HCPG’s comment on prospectus’ post hit home…i need to think about a few things, and see where i stand
September 5th, 2007 at 11:31 pm
BAT - why don’t you post your trades in real time to wallstreak. Don’t just post your entries & exits, but post your rationale as well. Give your reasons and justify them. Talking through your trade may help since it will force you to articulate the reasons and so it’ll help you stick to your rules, and it’ll hopefully let you figure out which trades you should take and which you shouldn’t.
I’ve heard this from a lot of other people and it has helped me a lot. Take that for what it’s worth :)
September 6th, 2007 at 1:05 am
i’m trying to kick the wallstreak habit…remember your analogy about trading v. driving…that’s how i see it…wallstreak provides a distraction when i need every bit of concentration i have…i find that i actually trade more when i’m logged in…after i get more experience i’ll prolly be back
truthfully, i’ll be back b4 that…i’m addicted to wallstreak
September 6th, 2007 at 2:43 am
Hey BAT,
I was going to suggest that you consider using a loss of X points as your criteria for stopping trading for the day. But that probably is not enough to address the root cause of your trading problems. Impulse trading may have become a habit, so it would take a conscious effort inside the head to undo that habit. I already know that I will succumb to a bout of overtrading some time this month. But I have made a decision to do something about it, and that change in attitude alone along with the heightened awareness just may be what I need to overcome this problem of mine.
I am not quite sure that I understand the purpose that is being served by taking only 2 trades per day. You could take 2 impulse trades each and every day and still technically qualify for your “A.” In my opinion, addressing the problem of impulse trading by forcing yourself to take only 2 trades per day is like using a band aid to stop internal bleeding. If I sound blunt, it is because I can relate to the problem that you are going thru. There is a better approach. The triumvirate at HCPG said it best - you need to have a system, because that will help to prevent the impulse trades which are inevitably outside of the system.
What I have done is to write out a list of the setups that I have used successfully in the past, and only take a trade from that list. That has more or less been the crux of my system.
Remember on Wallstreak when you said that you had one of your best days trading QM? Maybe you can start by describing the trade setup that gave you those good days.
September 6th, 2007 at 9:48 am
phileo: i agree with everything u say with the exception of the need to limit my trading…two trades may not be the answer, but i believe it helps in breaking the cycle - breaking the habit if u will
as far as HCPG advice, i’m seriously taking that to heart…it will take too long to write it all here, but your advice, richard’s on prospectus’ post, hcpg’s and and something tyro said in another post have been very helpful…i’m trying to piece it all together…in a nutshell, not having just one system is a major problem
this weekend i will reevaluate how i grade myself…i think i may grade each individual trade for the day, and then come up with an overall grade…shooting for two a day has helped, but you’re right…that’s just a bandaid…but when your account is bleeding, a bandaid is in order