Trading is not all about practice (live trading), you also need to be emotionally balance.
When we mentioned emotionally balance, you should be ready to put trades with reasons and purpose.
Not trades that are impulsive and no clear understanding in reference with the current market environments.
Putting unnecessary trades will affect you emotionally when at the end of the day you notice the summary of your account is on the negative side.
And you cannot refrain basing from your P&L because trading is all about making a profit.
And as you go along with your journey in trading, the problem of trading technique is not the issue anymore.
Whereas, initially while you are still on the learning stage you are looking for the shortcut to make money.
But after a while, you will realize that putting trades is not the issue.
It's all about the whole picture that includes market environments, minds of the participants, and your own psychology about the market.
It will take years to learn all of these, but through patience and perseverance - nothing is impossible.
Trading is like building a house in an earthquake prone areas, you should have a trading foundation that is solid and strong.
To sum it all, trading is all about your own understanding about the market and your own way of making trades.
It cannot be imposed on you, you have to find your niche and own way to trade.
No one can help you to make money in trading because other traders too are busy making money in their own way.
They cannot (and will never?) tell that to you, even to their love ones?
That's for sure!
Saturday, March 3, 2012
Friday, March 2, 2012
The market did not make any positive move today except that it stays/plays below its previous close.
It formed a small cup with a handle early but it failed.
Then it formed a big cup with a handle around noon time to finish where it opened in the close.
If you're just patient enough to wait for the pattern to emerge, you can make a good trade in the latter.
It formed a small cup with a handle early but it failed.
Then it formed a big cup with a handle around noon time to finish where it opened in the close.
If you're just patient enough to wait for the pattern to emerge, you can make a good trade in the latter.
Thursday, March 1, 2012
The market did not make any big move today, almost similar from yesterday's range.
It surge early in the open and made some slight predictable patterns from thereon.
A saucer pan/cup with a handle at around 11:00 am. ET.
And a little head and shoulder between 1:00 pm. to 2:00 pm ET.
If you are basing on a multiple time frame, you can easily figure it out the formation.
It surge early in the open and made some slight predictable patterns from thereon.
A saucer pan/cup with a handle at around 11:00 am. ET.
And a little head and shoulder between 1:00 pm. to 2:00 pm ET.
If you are basing on a multiple time frame, you can easily figure it out the formation.
Wednesday, February 29, 2012
It is struggling to get off from the 13000 level.
I guess it might struggle further till next week.
A bull trap is in the offing?
That's what everybody is expecting.
The market formed an inverse head and shoulder or a cup with a handle pattern today when it drops at around 11:00 am. ET.
Was expecting the market to rally when it reach the critical level but it failed.
Lots of programs are contemplating on that 13000 level.
So that is where the battle is, let's see who's going to prevail.
Tuesday, February 28, 2012
Trading Performance Evaluations
As I am completing the four week program of the TopStepTrader.com Combine - that allows you to trade in their firm, provided you are going to meet their trading criteria.
Below are my lists based from my performance as I described and evaluated my sub-par performance to the best (or worst?) I can recollect.
Though there are no excuses (as a trader we must be responsible for all the outcomes in our trading), below are my notes as lessons and for future improvement.
1. There is significant emotional effect trading one contract (which I am used to) as compared to three or five contracts and you are tempted to trade more contracts to possibly meet the required profit of $5,000+. Made lots of mistakes in trading big contracts because of the eagerness to meet the criteria and did a lot of scalping which I paid dearly because of (always) getting hit with the stops (and keep on re-entering the market without clear cut plans) that led me to pay more commissions. The lesson here is that I should not pay attention first with the target profit and should just have concentrated in putting good quality trades. This is the most common lessons aspiring traders commits, looking first for the money/profit instead of making a good trade setups.
2. I did not watch myself very well and I traded for the sake of trading which is a big no no in trading. Failure to watch yourself in trading is like "sleep walking in the railroad track" - that will kill/ruin your trading career. This is what you call "over trading", which I partly described in the first list.
3. Staying too much in the market? (partly because I sleep and breath the market)! Problem of not getting breaks in the market is like a "drug addict" looking just for fun and "going to heaven?". I should have learned how to pace myself in the market and make/treat it seriously as a business and not just for (partly) entertaining. Need to learn how to differentiate the market in a businesslike manner. This is what you call "staying balance in the market". I should have treated the program in a calm/relaxation manner (not overemotional and impulsive to make trades 'for the money'?).
4. Failure to adhere to the plans and did not exercise "iron" discipline. Should have stop trading when I should have. This is what you call "know thyself". Not knowing yourself and the limitations you absorb in analysing the markets and pushing yourself (to make more trades) to the limit is like punishing yourself to the fullest extent of your intuitive function (which according to IDT class, our brain function cannot process/perform 100%, just make your own conclusion please)? Also, fighting the tape is included here, like the temptation of putting trades to make it right instead of letting the markets do its 'wants'. Is that the ego?, yes it is wannabe' trader!
5. Not fully focus and motivated to the real purpose of the program, i.e., put some trades that are not necessary and without purpose.
These are the main reasons (seems they are all redundant?) based from my own analysis regarding my performance in the Combine program. I just don't know what my scout would rate my performance and I am looking forward to try it again.
The Combine program is a good challenge for any aspiring traders in improving one's skills. It will help develop your analytic performance in putting trade setups.
All in all, I find my experiences in the program as challenging, helpful, educational and fun.
Below are my lists based from my performance as I described and evaluated my sub-par performance to the best (or worst?) I can recollect.
Though there are no excuses (as a trader we must be responsible for all the outcomes in our trading), below are my notes as lessons and for future improvement.
1. There is significant emotional effect trading one contract (which I am used to) as compared to three or five contracts and you are tempted to trade more contracts to possibly meet the required profit of $5,000+. Made lots of mistakes in trading big contracts because of the eagerness to meet the criteria and did a lot of scalping which I paid dearly because of (always) getting hit with the stops (and keep on re-entering the market without clear cut plans) that led me to pay more commissions. The lesson here is that I should not pay attention first with the target profit and should just have concentrated in putting good quality trades. This is the most common lessons aspiring traders commits, looking first for the money/profit instead of making a good trade setups.
2. I did not watch myself very well and I traded for the sake of trading which is a big no no in trading. Failure to watch yourself in trading is like "sleep walking in the railroad track" - that will kill/ruin your trading career. This is what you call "over trading", which I partly described in the first list.
3. Staying too much in the market? (partly because I sleep and breath the market)! Problem of not getting breaks in the market is like a "drug addict" looking just for fun and "going to heaven?". I should have learned how to pace myself in the market and make/treat it seriously as a business and not just for (partly) entertaining. Need to learn how to differentiate the market in a businesslike manner. This is what you call "staying balance in the market". I should have treated the program in a calm/relaxation manner (not overemotional and impulsive to make trades 'for the money'?).
4. Failure to adhere to the plans and did not exercise "iron" discipline. Should have stop trading when I should have. This is what you call "know thyself". Not knowing yourself and the limitations you absorb in analysing the markets and pushing yourself (to make more trades) to the limit is like punishing yourself to the fullest extent of your intuitive function (which according to IDT class, our brain function cannot process/perform 100%, just make your own conclusion please)? Also, fighting the tape is included here, like the temptation of putting trades to make it right instead of letting the markets do its 'wants'. Is that the ego?, yes it is wannabe' trader!
5. Not fully focus and motivated to the real purpose of the program, i.e., put some trades that are not necessary and without purpose.
These are the main reasons (seems they are all redundant?) based from my own analysis regarding my performance in the Combine program. I just don't know what my scout would rate my performance and I am looking forward to try it again.
The Combine program is a good challenge for any aspiring traders in improving one's skills. It will help develop your analytic performance in putting trade setups.
All in all, I find my experiences in the program as challenging, helpful, educational and fun.
Subscribe to:
Posts (Atom)