Disciplined -The PAMM Account

I have always loved wise words from profitable traders:

Whenever you try to get all your losses back at once, you are most often doomed to fail. That is true in everything – investments, trading, gambling.
-Marty Schwartz

Enjoy!

Another successful week passed.

Let us all think about the below quote:

I am more scared now than I was at any point since I began trading, because I recognize how ephemeral success can be in this business. I know that to be successful, I have to be frightened. My biggest hits have always come after I have had a great period and I started to think that I knew something. -Paul Tudor Jones
Please vote on how you think I could improve my trading. Maybe we could learn from each other.

I'm done for the week!
I have achieved my monthly target. It gives me a feel that trading is easy!!! I know its false emotion. From yesterday night after I achieved the target till now so many times I was tempted to enter in the market just to cool down this feeling!!! I have resisted all of them. I'm taking the time off the market & will enjoy the results some where else than being in the market having a loosing position because of false emotions. This thread has been very useful for me to be disciplined. It is also like a board to look at very insightful queries about trading.

As always: A professional trader ONLY trades according to a predetermined plan. I believe doing so makes the difference & its not easy at all maintaining it in the long term.

Thank you!

Now on weekly results:

02.06-08.06/ 2013 ==> +1.89%
09.06-15.06/ 2013 ==> +13.27%
16.06-22.06/ 2013 ==> +7.09%

June 2013 = 23.59% (so far)

well done! been following your journey for a while .....very impressed

Thanks for stopping by Jon.

I'm done for this month, the results speak for themselves:

June 2013: 29.61%

-Also I have reviewed my trading, it seems that if I allow my trades more time; maybe allow one more hour, the results will improve significantly. I will try to increase profits without increasing my risk.


Now lets have some food for thought:
Yesterday I was reading WMD's post on his thread "Trading with Deadly Accuracy" I liked these quotes:


Someone asks him:
... Does the same price movement occur on any time frame (5 min and 15 min)?

I strongly believe what is said above are basics to success in trading on any time frame. Chart patterns are there and the best tool that you already have without any delay is your educated mind. Our mind needs 10,000's of hours to fully learn price reading & get educated.

Regards,

Hello There,

IF you are following my trading here you will see that I have raised a question: How could I improve my trading?

I have put a lot of thinking on how I could do it better. I have tried to think & remember my feelings when I was making my trading decisions. I have come up with the below:

I believe there are two elements in "Risk of Ruin" for a trader like myself:

1. Taking a loss --> Getting emotionally --> doing stupid things and taking another unnecessary loss (This will make recovery harder and harder)
2. You have a position and it goes in profit --> You feel fear of losing of what is on the table --> Closing the position in small profit. (Not allowing the trade to mature, Fulfilling your desire to be right more often,...)

Both of these elements will increase the risk of ruin of a traders account. They are from emotions; mainly fear and the sense of anger because of a loss. Although these emotions are good in life but in order to succeed in trading you need them to be in control of your mind logic. So how is this possible?

For me the best solution that I have found is: Always in all conditions when you are trying to make a trading decision ask yourself this question:

Why am I in this trade?

Good trading is: Plan your trade, Trade your plan.
Now before I open a trading position I make my mind clear on all aspects of it. "Plan your Trade". Now when in the trade by this question I could "Trade your plan" more efficiently.


Regards,

More reading on this subject: here and here.

good performance.
I hope we might have cooperation in future.
Best regards,
SourceCode Trading Technology Corporation

Skype: SourceCodeFX
E-mail: [email protected]
Website: http://sourcecodefx.com

Can you talk about your thoughts during this drawdown period? TPOTrader fell into steep decline and so did several other long time traders with live TradeExplorers. How do we get back into confidence and still believe that the next trade will work? In your case, how do you handle worried clients to the PAMM service?

Hi MMaker,

There were some reasons for this DD:

1. One investor, invested more than 5 times of the account size. It took some time for me to handle it. Now I'm OK.
2. I had by mistake "Over-Confidence" on my abilities & I lost my patience for waiting for the right setup.
3. After the first day mistake as the result of the loss, I lost my best conditioned "Mind Set". (About "Mind Set" you could search FTI posts)

After these issues, I realized what was wrong. The most important thing is that you should realize what is wrong in the first stages of going under water and stop it. Than in the previous week I did the below:

1. I once again reminded myself that loss is part of the game here. The key is managing it so it will NOT get out of control.
2. I cut my position size by half.
3. I aimed to get out of this DD not in one day but till the end of this month hopefully or even till the end of next month. What is mostly important is the ROI (Return On Investment) per annual not one day or one week or even one month.
4. I tried very hard to get my trading mind set back. I've achieved it back by writing down my correct thinking progress when I start the trading day. After that repeating it again and again so that it is re-installed. I will refer to FTI post on this:

How to handle worried clients:
The best way is that me as the trader don't get worried & do not doubt my trading abilities. That's the key.

Regards,

My new understanding of Market: It's changing all the times.

You see I had found some new patterns that were almost 100% correct when they happened! Yes, it worked for around 4 months with this account but than market changed. That's why we as traders shouldn't use high leverage because nobody knows when it will change and when it changes you will go in DD. Low leverage helps you don't go deep. It takes time to find new patterns, also consider the efficiency of obeying the rules, having discipline, .... . This is in all time frames ONLY the time frame of the "Change in Market" is differs.

I've been talking to a friend of mine who has decades of profitable trading history (He is very very OLD). He says:

1. Use leverage ONLY in limits of yourself. meaning only that much that you can control yourself and your emotions. He suggests to start with no leverage at all!
2. Be nimble, know how to be obedient and follow!
3. Be patient, cut your losses as soon as it is clear your entrance was wrong and let your profits run till more than your normal losses = R:R>1
4. He says 95% of traders couldn't follow these!

Regards,

Hi,

Yes, still continuing & growing steady but I have decided to not show my progress for a while here to unload the unnecessary stress. I will put trade explorer in the future.

Thanks & Regards,
Mohammad