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Technical Analysis Fallacy

  • #28,321
  • Oct 28, 2011 2:29am Oct 28, 2011 2:29am
Quoting N_Trader
Hi Folks,

I can't stop thinking about making back my losses from the past 3 years of trading... and I think it's the scorpion in me.

Any suggestions on how I can cope with it?

Regards
Jonathan
Many ways...following i have used....

 

  1. Tuition
  2. Cost of doing business
  3. Good exercise to tame the ego
  4. Be a man take a loss...
  5. Fk t u knwo TAF you can make it back...


V

  • #28,322
  • Edited 3:01am Oct 28, 2011 2:33am | Edited 3:01am
rethink what went wrong: MM? Risk exposure - VAR? Greed? Fear? Complacency?
reanalyze the situation: Why was it bullish/bearish on that time, and why was i wrong?
recycle your mindset: Banish and exile bad thoughts, get good ones, this is important to the cycle of failure towards success.
its just a loss of money, you can make more in the future. acceptance of failure means that one is ready to not make that mistake, and knows that what he has done is in fact a mistake.
every success is one step closer to failure, every failure is one step closer to success.
let failure build you stronger.

that is why i admire failure more than success.

admire yours

as long as you learn from it
Have I got something on my face, SOLDIER?
  • #28,323
  • Oct 28, 2011 2:44am Oct 28, 2011 2:44am
Quoting N_Trader
Hi Folks,

I can't stop thinking about making back my losses from the past 3 years of trading... and I think it's the scorpion in me.

Any suggestions on how I can cope with it?

Regards
Jonathan

Hi Jonathan,

I guess we are all bale to learn from our expriences and take some advantage out of it. So be honest with you and ask yourself:

Has it ever worked out successfuly for you to trade with that idea of making it back in the long run?

Or has it much more often lead you to ...
.... take more risk in your posiitons sizes as usual?
.... take more riskier trades?
.... fall back into gambling mode?
.... to base your decisons more on hope and revanche than on proper decision making?

You need to have control over yourself.
You have to dance when you feel right and not when the situation seems to force you. You are bilnded then by your expectations. No chance to see the real market then ...

All the best!
Niels
  • #28,324
  • Oct 28, 2011 2:47am Oct 28, 2011 2:47am
Quoting N_Trader
Hi Folks,

I can't stop thinking about making back my losses from the past 3 years of trading... and I think it's the scorpion in me.

Any suggestions on how I can cope with it?

Regards
Jonathan
Is the mind that is restless like a monkey, just learn to be aware of it and watch it, it will come down.

Your mate
mla
"The Heart is the hub of all dances; go there and chill out"
  • #28,325
  • Oct 28, 2011 4:05am Oct 28, 2011 4:05am
Quoting N_Trader
Hi Folks,

I can't stop thinking about making back my losses from the past 3 years of trading... and I think it's the scorpion in me.

Any suggestions on how I can cope with it?

Regards
Jonathan
First post in FF. Firstly a million thanks to FTI for his great contribution to this thread and to those who has contributed in no small ways.
I have certainly benefited after i ditched my indicators.and started dancing with the candles. Even got me top trader with a 5k prize money
All is well until i became god (the scorpion in me) and lost the half of my hard earned money. Have since gone back to reread from page 1 and is now controlling the scorpion and remembering the old man story.
N Trader just wanted u to know i bled badly in my first 2 years of trading and now treating the loss as a bloody expensive tuition fee and moving on.otherwise we will always want to get even with the market and it will swallow u up.

Regards
joseph
  • #28,326
  • Oct 28, 2011 4:15am Oct 28, 2011 4:15am
Quoting N_Trader
Hi Folks,

I can't stop thinking about making back my losses from the past 3 years of trading... and I think it's the scorpion in me.

Any suggestions on how I can cope with it?

Regards
Jonathan
@V
Thanks for the advice and for not flaming me.
Even if you did, I would probably take it like a man

@Buma
Thanks my friend, I think you've really grown in character...
it's really great what this thread is doing for me

@Niels
I haven't had the chance to say that you are wrong. And I doubt I ever will...
Thank you my friend

@mla
I think it came from the planet of the apes Tame it, I will.

Thanks people, I know what I did wrong and I know what I should do next...

You guys are awesome! I hope that one day, I can be on the giving end too.

Good trading to all

Regards
Jonathan
  • #28,327
  • Oct 28, 2011 4:22am Oct 28, 2011 4:22am
Quoting N_Trader
@V
Thanks for the advice and for not flaming me.
Even if you did, I would probably take it like a man

@Buma
Thanks my friend, I think you've really grown in character...
it's really great what this thread is doing for me

@Niels
I haven't had the chance to say that you are wrong. And I doubt I ever will...
Thank you my friend

@mla
I think it came from the planet of the apes Tame it, I will.

Thanks people, I know what I did wrong and I know what I should do next...

You guys are awesome! I hope that one day, I can be on the giving end...

that reminds me! planet of the apes! i forgot to download a torrent on that! thanks mate, ure already giving!

take care, ill be hanging out here for also some input on my side
Have I got something on my face, SOLDIER?
  • #28,328
  • Oct 28, 2011 4:23am Oct 28, 2011 4:23am
@mla
I think it came from the planet of the apes Tame it, I will.

We are all from there.

No need for thanks anyone.

Need to thank yourself, for having the courage to admit it.

mla
"The Heart is the hub of all dances; go there and chill out"
  • #28,329
  • Oct 28, 2011 4:26am Oct 28, 2011 4:26am
Quoting mla
@mla
I think it came from the planet of the apes Tame it, I will.

We are all from there.

No need for thanks anyone.

Need to thank yourself, for having the courage to admit it.
mla
that is spot-on correct.
mla is probably one of the best sources of hidden-advice. he says in a puzzled tongue sometimes, but once u make sense of it, its priceless.
Have I got something on my face, SOLDIER?
  • #28,330
  • Oct 28, 2011 4:31am Oct 28, 2011 4:31am
Quoting bumapatria
that is spot-on correct.
mla is probably one of the best sources of hidden-advice. he says in a puzzled tongue sometimes, but once u make sense of it, its priceless.
Juice, you never keep quite.

Where is Redlion? I have not heard from him for a while. Has he run far away from somebody? Of course that could not be you

mla
"The Heart is the hub of all dances; go there and chill out"
  • #28,331
  • Oct 28, 2011 5:33am Oct 28, 2011 5:33am
Quoting N_Trader
Hi Folks,

I can't stop thinking about making back my losses from the past 3 years of trading... and I think it's the scorpion in me.

Any suggestions on how I can cope with it?

Regards
Jonathan
- avoid stimulants

Inserted Video


bad; it is for weekend only;
- avoid targets(really, rate won't reach dunno what arbitrary figure that you need to be reached in order to make... x% this week. You'll just waste a possible good trade because you're holding without much logic, just to prove the market a point - guess what, the market isn't a sentient being and noone gives a damn about your awesome point proving)
- I cover my p&l while trading with another window and just keep a mental score; looking at the chart too much can be mind boggling, looking at actual figures running around is even worse(if you're trading the majors you should know where they stall pretty much by heart, so too much look at the chart will just screw your eyes).
- you're not right, you're not wrong; just pick a direction. As euro bear, I managed to make some money even in this 1k pips rally(ok, I was long too, but not very much). Sure, it'd been better to be on the other side, but hey, on the other hand I liked last month quite some, tyvm.
Since you're neither right, nor wrong, we're back to 1. There's nothing heroic in this endeavor. It's some money management and patience; hardly reason to be proud of yourself and bask in some invented glory(or beat yourself up too much and wanting "revenge" - revenge on what, huh? You crash the market and the market cries and you're avenged? Really...). Goes up or down... stay calm, add when in profit, reavg. when in loss, rinse and repeat, take breaks when you get bored with it.


just trade... don't pay too much attention to the balance sheet except for readjusting position size with balance sheet variation.

That if you're a good trader and you can actually make money - if your losses come from simply doing it badly... just stop trading because it has nothing to do with the mental aspect. Be honest with yourself on this - life is hardly about trading, so if you can sleep at nights even if you're crap at... dunno, basketball, you should be perfectly able to sleep at nights because you're crap at trading(it's not the alpha and omega of life, 99.9% of ppl. don't trade at all and live perfectly fine).

my soon to be even more worthless .02$...

p.s. - don't sweat too much if you don't manage to do the above
I keep telling myself those for... quite some time and there are still plenty of moments when I'm not able to follow them.

p.p.s - God this retrace is anemic... usd trully feels like the crap it really is. Should've stayed e/g but I hate that pipette ballet...

p.s... [3] - not mechanical, just without "passion". Save passion for research/analyze part.
  • #28,332
  • Oct 28, 2011 5:47am Oct 28, 2011 5:47am
Quoting snowly
There's nothing heroic in this endeavor. It's some money management and patience
Very well put and I think this is the key. I've noticed over time that market moves don't put me in a bad position, I put myself in them. If you don't overextend yourself and don't trade in sizes that are too large for your account then you won't get stuck in a hole. Playing too big narrows your margin of error and reduces your ability to respond to prices changes.
  • #28,333
  • Oct 28, 2011 6:01am Oct 28, 2011 6:01am
Quoting Lkc
First post in FF. Firstly a million thanks to FTI for his great contribution to this thread and to those who has contributed in no small ways.
I have certainly benefited after i ditched my indicators.and started dancing with the candles. Even got me top trader with a 5k prize money

Regards
joseph
Hi Joseph,
Congrats on your achievement! I only hope that I'm not feeding that scorpion of yours Thanks for the candid sharing. Honestly, I did not at expect to find so many kind people on FF. Yes. I am narrow minded. Lol. But it's a real eye opener for me. Now I feel like I am a free man. I cannot explain it clearly, but I guess confession does help in a great way. Something like what mla said. Knowing and admitting my faults.

Hope to see your post more often

Regards
Jonathan
  • #28,334
  • Oct 28, 2011 6:12am Oct 28, 2011 6:12am
Quoting mla
@mla
I think it came from the planet of the apes Tame it, I will.

We are all from there.

No need for thanks anyone.

Need to thank yourself, for having the courage to admit it.

mla
yes. It took me quite a fair bit of struggling before I pluck up the courage to post my true thoughts. It's like, you try not to like ppl know that you scre wed up... Lol. I will rem your advice.

Regards
Jonathan
  • #28,335
  • Oct 28, 2011 6:39am Oct 28, 2011 6:39am
Quoting N_Trader
yes. It took me quite a fair bit of struggling before I pluck up the courage to post my true thoughts. It's like, you try not to like ppl know that you scre wed up... Lol. I will rem your advice.

Regards
Jonathan
Do not be hard with yourself mate, This is a hard job, only a few can do it.

Is not only a job, it make you deal with the hidden part of yourself, just be aware that mr ego is going to make it hard for you as much as he can and anytime he has got a chance. We all have to deal with it one way or the other because is part of us, but knowing that is there will give you an edge.

That part of you is no all of you, and do not get lost in all his details, rather focus on the good things about yourself, like the passion that lies in your heart that you showed in your previous post where you did excepted your frustration without been ashamed of it.

Also I agree with one of the prior advise, you cannot loose money if you use proper MM, (you are not going to make any, but not loose).

Your mate

mla
"The Heart is the hub of all dances; go there and chill out"
  • #28,336
  • Oct 28, 2011 6:54am Oct 28, 2011 6:54am
Hate your ego. banish it. Be an optimist, not a pessimist. keep good thoughts, do good actions, be logical, dont let greed and fear taint your head with negative thoughts. stay pure, be harmonic with her. be one with her. be like water, be fluid, be flexible, at times u wil lfind ur self not dancing with her, as you used to, but you will find your way only if YOU will it. we will our successes and failures. we make money because of us. we success because of us. we fall down because of us.
God has influence to this too, but in this world i believe that most of our doings are willed by us.

will you will your success through this failure?

its up to you N ill be with u if u need me.
im on ff 24/7 except GMT 1-2pm on fridays and tuesdays , jiujitsu
Have I got something on my face, SOLDIER?
  • #28,337
  • Oct 28, 2011 6:54am Oct 28, 2011 6:54am
Quoting ukmanthailan
Very well put and I think this is the key. I've noticed over time that market moves don't put me in a bad position, I put myself in them. If you don't overextend yourself and don't trade in sizes that are too large for your account then you won't get stuck in a hole. Playing too big narrows your margin of error and reduces your ability to respond to prices changes.

Hi Mark,

you are spot on.
From my experience the follwing seems to be true:

With really awesome chart-reading skills and an excellent feeling for the market, but with bad Risk- and Money-Management, you will most propbably not survive in the middle and long term.
But with excellent MM and RM, and weak chart reading skills you probably will keep your book safe. And then there are these times, when you are just at the right side at the right time, when you can not avoid to make money ...

CU,
Niels
  • #28,338
  • Oct 28, 2011 7:14am Oct 28, 2011 7:14am
speaking of mm, and rm, i do not trade with stop losses if i am losing implement rescue trading with as much logic and precision i can, and yesterday i was like net 120 pips down underwater. didnt bother me, it was only floating around -3% at most of equity or 5 of initial investment. on current balance it was at 1%. i had a feeling she dont really feel of dancing that way, and i was loading up my force around there with 2 more orders. i am absolutely not overleveraged, i think im underleveraged hahahaha, and its cool the way i trade now. redlion, i thank him so much for introducing this kinda style of trading. he didnt teach me TA or FA, he taught me trading.



i miss him. hes in Las vegas
Have I got something on my face, SOLDIER?
  • #28,339
  • Edited 7:41pm Oct 28, 2011 7:58am | Edited 7:41pm
Quoting snowly
- avoid stimulants
- avoid targets
- I cover my p&l while trading
- you're not right, you're not wrong; just pick a direction.

That if you're a good trader and you can actually make money - if your losses come from simply doing it badly

p.s... [3] - not mechanical, just without "passion". Save passion for research/analyze part.
Hi Snowly,
Your advice are very candid. I like your style
By stimulants I hope you are not referring to coffee, coz I drink 2 cups a day. Lol.
Yes. I need to avoid targets. I kept telling myself 1% a day. And I think it distracts me from my trading.
I just found out the evil about p/l yest. Oanda shows you your realized p/l all the time. And it's highlighted in red! Nothing works better to distract your trading then those numbers from the past... So I created a new account to start on a clean slate. I will only look at margin used this time round.
I wouldn't dare say I am able to trade v well even if I am profitable and less so in my current state. However, I did make some pips using fti's method for sometime. In fact, never a red day. Then I got cocky. I held my shorts position yest, knowing that GDP data was coming up. Of coz I got hit by the on coming train. To make matter worse, instead of scaling down my position to attack when the enemy is weak, I snowballed my position to a point that rescue became almost impossible. All I could do was to wait for another retracement and cut my losses. Hope I'm not being too wordy. Lol. Anyway, I truly believe that I can and want to be a trader. When I talk about fx trading to my friends, I can feeling the passion burning inside me. I'm not an old man, but I'm also not at the age where little toys excites me anymore. I don't know many things for sure, but I know I am destine to take this path.. Like what Steve Jobs shared, "we can only connect the dots looking back."

Thanks for speaking frankly and boldly. It's actually 2mil worth btw

Regards
Jonathan
  • #28,340
  • Oct 28, 2011 8:06am Oct 28, 2011 8:06am
Quoting bumapatria
Hate your ego. banish it. Be an optimist, not a pessimist. keep good thoughts, do good actions, be logical, dont let greed and fear taint your head with negative thoughts. stay pure, be harmonic with her. be one with her. be like water, be fluid, be flexible, at times u wil lfind

will you will your success through this failure?

its up to you N ill be with u if u need me.
im on ff 24/7 except GMT 1-2pm on fridays and tuesdays , jiujitsu
Thanks mate! You are actually v lovable. Lol. I must confessed that I had the wrong impression of you from the onset. And I sincerely apologize for it. I see why Niels spoke about open mindedness. It's meant for me. hope to see you around more often.

I'm sure I will need you. Lol.
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