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  • #641
  • Feb 10, 2016 1:29pm Feb 10, 2016 1:29pm
Quoting cat
{quote} That sounds like 100% certainty to me, not of winning, but of taking the trade?
meant this way, yes... 100% certainty to take the trade. I witnessed on my skin what does it mean to think whike on the point to enter the trade; a big mess. There is a time for thinking and a time for taking action.
  • #642
  • Feb 10, 2016 1:33pm Feb 10, 2016 1:33pm
Quoting cat
{quote} I wrote about this above awhile ago. For me routine is a must. I'm up early to do an hour's yoga. I'm at my trading desk by 06.30, which gives me time to analyze the markets before the German open. I have a snooze mid-morning during the usual lull. I usually go for a bit of a walk before New York open, though this depends on the activity of the day. I tend not to trade the final hour or so of trading, even though there are some good moves, but it's very volatile and I'm usually too tired of the screens by then....
I appreciate this: mental focus must be our first concern; also a regular life helps a lot.
  • #643
  • Feb 10, 2016 4:12pm Feb 10, 2016 4:12pm
Quoting cat
{quote} That sounds like 100% certainty to me, not of winning, but of taking the trade?
Exactly. Anything lower than 100% certainty makes your mind psychologically vulnerable to lots of exploits (our mind is like a computer) that can take advantage of this vulnerability to destroy your confidence.

That is why it is necessary to demo trade. demo trading reveals your psychological vulnerabilities.

If you begin live trading with some vulnerabilities in your psychological system, sooner or later something will take advantage of these vulnerabilities and use them against you. That something can be a series of losing trades. Losing is painful and your subconscious tries to avoid pain. So it chooses the fastest way: questioning the trading system.

Murphy's Law :"Anything that can go wrong, will go wrong."
  • #644
  • Feb 10, 2016 5:48pm Feb 10, 2016 5:48pm
Quoting cat
In answer to my own question above before I turn in for the night, for me a decision to trade has to be no less than 100% commitment, anything less and I don't take thr trade. This commitment can only happen if you have a system which gives you the signal to enter the trade, so as the poster above wrote, it's not something you should even have to think about, the thinking is over, and you either have the correct set up to take the trade or you don't. Trades that are taken with only partial commitment are a gamble and tend to produce more lowers...
These are some great tips. I should have watched my cat more closely and learned from her

about time frames- I had this idea to show all time frames on the chart in like a pyramid. look at the attached [very rough] draft.

anybody know how this can be done?
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.jpeg Size: 18 KB
  • #645
  • Feb 11, 2016 1:23am Feb 11, 2016 1:23am
Quoting pulke
Can anyone describe their order of daily trading? for instance for me it is something like: 1.wake up a little before the london open 2. read some news, and analysis 3. go over the charts to see trends etc 4. mark currencies\pairs to watch today. ....
1. Up at 6 am
2. 20 minutes of active, athletic, qigong
3. Breakfast
4. At screens around 7 am
5. Go over charts to assess situation
6. Take the setups
7. 30-60 minutes of qigong and a walk or spin class around lunch
8. Back at it
9. After cash close, at the latest, more qigong to let go of the day and recharge, then relaxation/meditation exercise

I find physical and mental training absolutely essential for trading at my best, and for being completely relaxed during and after trading.
  • #646
  • Edited 3:27am Feb 11, 2016 1:44am | Edited 3:27am
Quoting cat
One more thing of huge importance for trading is that I see my trades forming in advance, which is why my ff name is cat..I watch patiently to see if the price is going to do what I'm expecting it to do based upon pattern formation, and if everything falls into place, supported of course by the higher time frames, I'm ready to hit the button.
Completely agree. So there's a strategic aspect to it, which involves some slow thinking, then fast execution without thinking.

For me, one important aspect when it comes to both confidence and execution is that I use stop entry orders. This has a number of advantages, for example:

1. When filled I have momentum on my side and am typically a couple of points in profit immediately
2. It reinforces disciplined, rule-based, trading
3. It reduces stress, and eliminates having to be on alert to push the button. No late entries due to manual error
4. It makes trade entry objective, rather than based on my thinking or judgement
  • #647
  • Feb 11, 2016 2:03am Feb 11, 2016 2:03am
Country & Western trading wisdom

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  • #648
  • Feb 11, 2016 2:10am Feb 11, 2016 2:10am
Quoting medici
{quote} Completely agree. So there's a strategic aspect of it, which involves some slow thinking, then fast execution without thinking. For me, one important aspect when it comes to both confidence and execution is that I use stop entry orders. This has a number of advantages, for example: 1. When filled I have momentum on my side and am typically a couple of points in profit immediately 2. It reinforces disciplined, rule-based, trading 3. It reduces stress, and eliminates having to be on alert to push the button. No late entries due to manual error...
How mechanical or discretionary is your system ?
If Cat is reading the same question goes for him.

From what I have read or seen on here FF and elsewhere. Most successful traders are mostly mechanical than discretionary.
But there are some that prefer to "feel" the market than to leave it up to set of strictly mechanical rules.

How do you go about finding the right balance ?

In my view, I don't think sticking with one and only is the most suitable approach for me.
The last two weeks of me back and forward testing a revised version of my older system that had inconsistency because I enjoyed far too much freedom in making decisions. So this time around I was set to make it more mechanical. But I quickly realised (in the first place that's why I chose to be discretionary) market wasn't behaving how its supposed to on every single occasion regardless of how big the sample was. ( I tried to track every kind of pattern that could form) There was always an inefficiency to certain extent. Now I'm stuck in between.

Any advise ?
...
  • #649
  • Feb 11, 2016 3:41am Feb 11, 2016 3:41am
Quoting Piquant
{quote} How mechanical or discretionary is your system ? If Cat is reading the same question goes for him. From what I have read or seen on here FF and elsewhere. Most successful traders are mostly mechanical than discretionary. But there are some that prefer to "feel" the market than to leave it up to set of strictly mechanical rules. How do you go about finding the right balance ? In my view, I don't think sticking with one and only is the most suitable approach for me. The last two weeks of me back and forward testing a revised version of my...
Hi,
in my opinion there is no system able to work correctly on any market condition, as they are rigid: meaning they cannot adapt to the changes of market.
Only a method is able to do this, right because is not a system.
A method is something that allows the trader to see what is happening, like a road map; thereafter it must have a set of objective rules which allow the trader to make its decisions without thinking: the thinking process must be done before the "battle" in reading the road map with the purpose to understand the general picture, and this is what will make the trader to stay on the right side of the market; the set of rules is referred to the action and is meant to provide setups for entries and exits accordingly to the road map, avoiding any kind of thinking process.
This way you can say your trading is no more discretional but is also resilient with the market.
Just my two cents
  • #650
  • Feb 11, 2016 4:23am Feb 11, 2016 4:23am
Quoting strongtrader
{quote} Hi, in my opinion there is no system able to work correctly on any market condition, as they are rigid: meaning they cannot adapt to the changes of market. Only a method is able to do this, right because is not a system. A method is something that allows the trader to see what is happening, like a road map; thereafter it must have a set of objective rules which allow the trader to make its decisions without thinking: the thinking process must be done before the "battle" in reading the road map with the purpose to understand the general picture,...
I'd concur with that. Mechanical trading works when market conditions are clear, and then one can trade one's setups mechanically. But some of the time there's more noise than information, and some of the time the picture is more difficult to read. In the strategic "roadmap" reading is where experience and market understanding come in - knowing the structure of trends and reversals, ranges/accumulation/distribution, etc.

More briefly put - with well organised market knowledge one will know when to mechanically take one's setups and when not to.
  • #651
  • Feb 11, 2016 4:50am Feb 11, 2016 4:50am
Quoting medici
{quote} I'd concur with that. Mechanical trading works when market conditions are clear, and then one can trade one's setups mechanically. But some of the time there's more noise than information, and some of the time the picture is more difficult to read. In the strategic "roadmap" reading is where experience and market understanding come in - knowing the structure of trends and reversals, ranges/accumulation/distribution, etc. More briefly put - with well organised market knowledge one will know when to mechanically take one's setups and when...
I couldn't have put it better, so I won't try.
  • #652
  • Feb 11, 2016 4:51am Feb 11, 2016 4:51am
Quoting medici
{quote} I'd concur with that. Mechanical trading works when market conditions are clear, and then one can trade one's setups mechanically. But some of the time there's more noise than information, and some of the time the picture is more difficult to read. In the strategic "roadmap" reading is where experience and market understanding come in - knowing the structure of trends and reversals, ranges/accumulation/distribution, etc. More briefly put - with well organised market knowledge one will know when to mechanically take one's setups and when...
Good synthesis
  • #653
  • Feb 11, 2016 5:17am Feb 11, 2016 5:17am
There are three main things that make the crowd of traders to struggle:
1 - understanding what really is a trend;
2 - recognizing which kind of market is in place: consolidation, down trend or up trend;
3 - they do not realize that meanwhile trading in consolidation or in down trend is almost the same, the up trend is a particular beast which has its specific behaviour and must be traded differently from the other two.
  • #654
  • Feb 11, 2016 5:48am Feb 11, 2016 5:48am
Quoting strongtrader
There are three main things that make the crowd of traders to struggle: 1 - understanding what really is a trend; 2 - recognizing which kind of market is in place: consolidation, down trend or up trend; 3 - they do not realize that meanwhile trading in consolidation or in down trend is almost the same, the up trend is a particular beast which has its specific behaviour and must be traded differently from the other two.
Very interesting observation.
Can you please elaborate on each point you made, and maybe give some tips?
  • #655
  • Feb 11, 2016 6:14am Feb 11, 2016 6:14am
Quoting strongtrader
{quote} Hi, in my opinion there is no system able to work correctly on any market condition, as they are rigid: meaning they cannot adapt to the changes of market. Only a method is able to do this, right because is not a system. A method is something that allows the trader to see what is happening, like a road map; thereafter it must have a set of objective rules which allow the trader to make its decisions without thinking: the thinking process must be done before the "battle" in reading the road map with the purpose to understand the general picture,...
...
  • #656
  • Edited 6:37am Feb 11, 2016 6:17am | Edited 6:37am
Quoting medici
{quote} In the strategic "roadmap" reading is where experience and market understanding come in - knowing the structure of trends and reversals, ranges/accumulation/distribution, etc. More briefly put - with well organised market knowledge one will know when to mechanically take one's setups and when not to.
Thanks guys. Strongtrader & Medici.

I can recognise a trend, reversal and a range when I see one. But I don't think I have studied accumulation much at all. I'm doing my homework now on the subject. But I would appreciate if you explained a bit more.
...
  • #657
  • Feb 11, 2016 6:46am Feb 11, 2016 6:46am
More Country & Western trading wisdom This one about taking losses.

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  • #658
  • Feb 11, 2016 7:15am Feb 11, 2016 7:15am
I'll just leave this here.

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  • #659
  • Feb 11, 2016 7:39am Feb 11, 2016 7:39am
nice songs Medici.....

Pulke
Very interesting observation.
Can you please elaborate on each point you made, and maybe give some tips?

Piquant
I can recognise a trend, reversal and a range when I see one. But I don't think I have studied accumulation much at all. I'm doing my homework now on the subject. But I would appreciate if you explained a bit more

They already are good tips and material for thoughts: going deeper on each point would mean to go public with what I discovered in 5 years of very hard work, and I won't ever do it; there literaly is my blood in all this.
Why don't you try to make your comments about them?
What I can add is that you have to look beyond your charts, very far beyond them, but to do this you must, first of all, change the way you think: our western culture and way of thinking are the main limit to the understanding of trading and of life too.......

BTW interesting your Nick, Piquant
  • #660
  • Edited 8:38am Feb 11, 2016 8:25am | Edited 8:38am
Quote
Pulke - Very interesting observation. Can you please elaborate on each point you made, and maybe give some tips?

Piquant - I can recognise a trend, reversal and a range when I see one. But I don't think I have studied accumulation much at all. I'm doing my homework now on the subject. But I would appreciate if you explained a bit more.

I would suggest that you take a look at the book by Adam Grimes, mentioned many times here. The first five chapters will give you a thorough introduction to all these topics.

Then the bad news is...based on that, you will have to do your own research

And different markets behave differently, so focus on one asset at a time.
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