I have discovered my greatest flaw in trading.

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Rooster34

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I need to be in a trade at all times. So i look for setups that arent really setups. I didnt even realize I was doing it untill just recently. I think it stems from working "normal" jobs. If I'm on the job I need to be doing something. So when I open up a chart I need to be doing something. I suffered a 40% drawdown of my account in a fairly short time. You cant ignore actual money being lost. Demo money...meh...like playing monopoly. But when i realized I had lost over 400 pips in very short order. I re-evaluated everything.
The last 3 trades i have taken I have waited for the perfect setup. Then waited for the next candle after the setup to make sure that was also in my favor. 2 trades closed in profit, and e/u currently long from .3713

Looking back Ive done this every time Ive ever traded. If I had discovered this 17 years ago, maybe things would be different now. Of course Im very happ that I didnt discover it 17 years from now. :smart:
 
I don't think any of us has never thought, "If I only knew then what I know now."

That's what continuous learning is all about. I'm retired and I trade differently than I did at the beginning of this year. We are all a work in progress.

Live long and prosper.
 
Rooster34 said:
I need to be in a trade at all times. So i look for setups that arent really setups. I didnt even realize I was doing it untill just recently. I think it stems from working "normal" jobs. If I'm on the job I need to be doing something. So when I open up a chart I need to be doing something. I suffered a 40% drawdown of my account in a fairly short time. You cant ignore actual money being lost. Demo money...meh...like playing monopoly. But when i realized I had lost over 400 pips in very short order. I re-evaluated everything.
The last 3 trades i have taken I have waited for the perfect setup. Then waited for the next candle after the setup to make sure that was also in my favor. 2 trades closed in profit, and e/u currently long from .3713

Looking back Ive done this every time Ive ever traded. If I had discovered this 17 years ago, maybe things would be different now. Of course Im very happ that I didnt discover it 17 years from now. :smart:
Click to expand...

My impatience is similar. I can only trade mornings, due to other obligations. That means that I do not find the trades I need on hourly TFs, there are only 4 of them, so I go lower. 30M TFs are better, 8, but I still prefer smaller ones. Last week I backtested that I would have been, far, more profitable on the 30M so, this week I am determined not to look at the low ones.
 
Splitlink said:
My impatience is similar. I can only trade mornings, due to other obligations. That means that I do not find the trades I need on hourly TFs, there are only 4 of them, so I go lower. 30M TFs are better, 8, but I still prefer smaller ones. Last week I backtested that I would have been, far, more profitable on the 30M so, this week I am determined not to look at the low ones.
Click to expand...

30 min TFs are a very good reference and in your situation I'd say they're ideal IF you have the patience to sit on your hands on the days you've missed your entries.. But you don't like using *decent* size stops Split, IMHO if you're trading off 20 min TFs you'll need stops way bigger than the 20-25 you prefer...tread carefully...:)
 
Black Swan said:
30 min TFs are a very good reference and in your situation I'd say they're ideal IF you have the patience to sit on your hands on the days you've missed your entries.. But you don't like using *decent* size stops Split, IMHO if you're trading off 20 min TFs you'll need stops way bigger than the 20-25 you prefer...tread carefully...:)
Click to expand...

Thanks for that. I can afford to risk some larger stops just now, so will extend them..if I can. I've got a bit of a "thing" about letting losses get too big, a mental fear. I'll be alright once I get some winners under my belt.
 
Splitlink said:
Thanks for that. I can afford to risk some larger stops just now, so will extend them..if I can. I've got a bit of a "thing" about letting losses get too big, a mental fear. I'll be alright once I get some winners under my belt.
Click to expand...

Sorry bud, my post should have stated 30 min TFs not 20..but you probably got that. I always liked 30 min TFs, the obvious 15-30 min > looking at the higher/lower TF when decision making works beautifully IMHO.

Fwiw and as an aside, there's a mod/tutor of FXCM's on their forums (Greg,) who swears by them and (from time to time) actually uses them for what he considers scalps.

Just do the standard stuff, look for the HH/LL of the session for your stop before you spot the mini-swing, perhaps just stick to the one or two pairs? Beauty of the half hour TF, on for example the Euro, you should only get 4 alerts (on average) per day. 3 losses + 1 win ain't gonna kill ya and that would be a bad bad day..On that time frame you'll get enough head space to make better, more informed decisions...Good luck with that gotta go.. :)
 
I had the same problem until recently when I realised a couple of really burnt in flaws (this being one of them). Now I make a point of really checking things through from weekly all the way down to 15m (less than that I find the lack of context confuses things) and waiting it out.

I also spoke to an oil trader of many years some time ago who told me "What matters is that you can say you've had a profitable day. If you can so that at the end of every day you're doing well".
 
I've only got three flaws when it comes to trading.

Entries, management, and exits.

And money management.

And drinking in the mornings.

Like I say, 5 flaws, that's it. Everything else sweet as yo momma's @ss.
 
FX Bandit said:
I've only got three flaws when it comes to trading.

Entries, management, and exits.

And money management.

And drinking in the mornings.

Like I say, 5 flaws, that's it. Everything else sweet as yo momma's @ss.
Click to expand...

You got it good.. My @ss cramps up every time I open\close or watch a trade..
 
forker said:
You got it good.. My @ss cramps up every time I open\close or watch a trade..
Click to expand...

8 figs, 2 pounds prunes. Handful of all bran. Jumbo box of EX-Lax. Blend until smooth.

Down.

Your ass won't be crampin' nothin'.
 
I'm having these issues too. It definitely stems from the day job i think. I'm paid by the hour at work so not being productive doesn't go down well with my bosses.

In trading, its almost the complete opposite. It pays just to do nothing for 90% of the time. I try to trade stocks and there is a setup a minute if you let yourself get taken in without confirmation from all angles. Most turn out to be just wiggles that stop me out. I'm going to display more timeframes on the screen at once to know where the stock is in terms of the larger picture.

Maybe someone could write a small program that asks:
1) Are you boredom trading?
2) Are you revenge trading?
3) Have you checked all time frames?
4) is the setup according to your plan?
5) Is the trade size according to money management?
6) Do you have your exits for profit & Stoploss already defined?
7) Is there news/key dates for this stock due in the next hour or two?
etc.

Only after clicking yes to all am i allowed to click the "TRADE" button!
 
coopster said:
I'm having these issues too. It definitely stems from the day job i think. I'm paid by the hour at work so not being productive doesn't go down well with my bosses.

In trading, its almost the complete opposite. It pays just to do nothing for 90% of the time. I try to trade stocks and there is a setup a minute if you let yourself get taken in without confirmation from all angles. Most turn out to be just wiggles that stop me out. I'm going to display more timeframes on the screen at once to know where the stock is in terms of the larger picture.

Maybe someone could write a small program that asks:
1) Are you boredom trading?
2) Are you revenge trading?
3) Have you checked all time frames?
4) is the setup according to your plan?
5) Is the trade size according to money management?
6) Do you have your exits for profit & Stoploss already defined?
7) Is there news/key dates for this stock due in the next hour or two?
etc.

Only after clicking yes to all am i allowed to click the "TRADE" button!
Click to expand...

Always try to remember what Jesse Livermore said - it's not the doing, it's the sitting that makes the big money.
 
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