Why Is The Obvious Not So Obvious?

This is a discussion on Why Is The Obvious Not So Obvious? within the Psychology, Risk & Money Management forums, part of the Methods category; Originally Posted by Lúidín You can actually post without using pictures Yes, it can be very addictive, but you should ...

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Old Dec 10, 2015, 10:10pm   #9
 
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Originally Posted by Lúidín View Post
You can actually post without using pictures

Yes, it can be very addictive, but you should not let it take over your life once you have worked out a way to make some money consistently.

If I was to get paid $5 for all the hours I have spent gaining the experiences, I would never need a margin account and could daytrade SPY and AAPL all day without any concerns about buying power.

We are all different, but we should all look for the least risky way to trade, that takes up the least amount of time.

I had to go full circle, before I realized that the best way for me was the way I was first interested in..what a dope I was, and I now feel real silly when I look back at all the years, and money, I wasted.

Lúidín
Hi, can you please tell me if you are consistently profitable each & every day ?
I will tell you that I am not.

This game changes everyday, the flow is different everyday, the opportunities vary greatly every single day.

The psychological aspect of this game (fear & greed) can be grasped fairly quickly, much in the same way that "price levels/areas of interest" are grasped fairly quickly.

But just because it hits my blah blah level, it doesn't necessarily make that area of interest tradable.

You speak as someone who is perhaps consistently profitable & my hat's off if you are, but I've been at this long enough on a part time level to know the craic.

If in the daily arena it is a wage made, or a wage lost (or worse) no amount of psychology is going to help us when we have a runner & it turns back, profit is profit.
No amount of psychology is going to help us if it goes all Donald Trump & we end up babysitting the position for 4 hours because the trap door fell open before we could jump to the side...... it's flown & out of your hands, then a pure gamble.

Sure the game is psychological, but it is also very mechanical, instinct & a degree of discretionary thought also plays a part.

Hard way to make a consistent wage, or is it ??
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Old Dec 11, 2015, 1:28am   #10
 
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Originally Posted by tokyojoe View Post
Hi, can you please tell me if you are consistently profitable each & every day ?
I will tell you that I am not.

This game changes everyday, the flow is different everyday, the opportunities vary greatly every single day.

The psychological aspect of this game (fear & greed) can be grasped fairly quickly, much in the same way that "price levels/areas of interest" are grasped fairly quickly.

But just because it hits my blah blah level, it doesn't necessarily make that area of interest tradable.

You speak as someone who is perhaps consistently profitable & my hat's off if you are, but I've been at this long enough on a part time level to know the craic.

If in the daily arena it is a wage made, or a wage lost (or worse) no amount of psychology is going to help us when we have a runner & it turns back, profit is profit.
No amount of psychology is going to help us if it goes all Donald Trump & we end up babysitting the position for 4 hours because the trap door fell open before we could jump to the side...... it's flown & out of your hands, then a pure gamble.

Sure the game is psychological, but it is also very mechanical, instinct & a degree of discretionary thought also plays a part.

Hard way to make a consistent wage, or is it ??
To be honest, no, but I don't trade every day at the moment due to personal circumstances. Let's just say I am returning to full time trading

Your post is very good, in that it asks many relevant questions, some that many might find hard to associate with.

As in all business ventures, there are always opportunities presenting themselves, which of course all will not see and act on, for variouys reasons - hence why we have a small few who make big money, as they have a knack for seeing and acting - take R.Branson for instance.

If you know the craic, then you will know that the mental aspect comes first, followed by the mechanics, of which some are far better than others, again, some of which can be seen and acted on by a few to make some good money, while most never see them for whatever reasons.

As for things going wrong, the only things that goes wrong is when the trader does not react to what is actually happening, which, is governed by his/her mental make up.

If your strategy keeps you in a losing trade for too long, then it is not a good one.

If you can not identify a strategy that allows you to exit a loser with a small loss, and have winners that are multiples of your losers, then you have not enough experience to differentiate between good and bad opportunities.

In order to achieve consistent profits, you must have a consistent strategy.

Lúidín
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Old Dec 11, 2015, 6:27am   #11
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I agree with Joe, only the right mindset will not help, of course is very important like in any endeavour we undertake but if we cannot read the charts the chances are very tiny, yes anyone can trade or have a run of successful trades, but the key lays in consistency, consistency is reached by skills, experience and also proper mindset.

Not sure if my mind or my thinking has helped me much in trading, initially the less I used it the more money I was making, the more I used it the more emotions was bringing into my trading.

“It was never my thinking that made the big money for me, it always was my sitting.” Livermore.

I think many will identify themself with their thinking and not only in trading to reinforce their trap.

"I Think Therefore I Am". Descartes

I think this last quote is full of BS, we are not what we are thinking and it can take sometime before we realise that.

Last edited by Fugazsy; Dec 11, 2015 at 12:11pm.
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Old Dec 11, 2015, 1:20pm   #12
 
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Originally Posted by Lúidín View Post
To be honest, no, but I don't trade every day at the moment due to personal circumstances. Let's just say I am returning to full time trading

Your post is very good, in that it asks many relevant questions, some that many might find hard to associate with.

As in all business ventures, there are always opportunities presenting themselves, which of course all will not see and act on, for variouys reasons - hence why we have a small few who make big money, as they have a knack for seeing and acting - take R.Branson for instance.

If you know the craic, then you will know that the mental aspect comes first, followed by the mechanics, of which some are far better than others, again, some of which can be seen and acted on by a few to make some good money, while most never see them for whatever reasons.

As for things going wrong, the only things that goes wrong is when the trader does not react to what is actually happening, which, is governed by his/her mental make up.

If your strategy keeps you in a losing trade for too long, then it is not a good one.

If you can not identify a strategy that allows you to exit a loser with a small loss, and have winners that are multiples of your losers, then you have not enough experience to differentiate between good and bad opportunities.

In order to achieve consistent profits, you must have a consistent strategy.

Lúidín
Thanks for your honesty Lui

Keep an eye on the pace mate, it will keep you out of trouble, you sound like you know what to look for.
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Old Dec 11, 2015, 2:46pm   #13
 
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Thanks for your honesty Lui

Keep an eye on the pace mate, it will keep you out of trouble, you sound like you know what to look for.
If you mean Time & Sales, yes, it can be helpful to finetune entries and exits, and even more so if you plot the bid/ask with the last to see when large prints are going off above the bid, or below the ask.

I just happen to have my own T&S with tick chart of bid..ask..last..and bottom chart for volume..just upgraded my hard disk to ssd to try and improve on speed issue..as I use a laptop..which has limited processing capabilities compared to a desktop.

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Old Dec 11, 2015, 3:12pm   #14
 
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Originally Posted by Lúidín View Post
If you mean Time & Sales, yes, it can be helpful to finetune entries and exits, and even more so if you plot the bid/ask with the last to see when large prints are going off above the bid, or below the ask.

I just happen to have my own T&S with tick chart of bid..ask..last..and bottom chart for volume..just upgraded my hard disk to ssd to try and improve on speed issue..as I use a laptop..which has limited processing capabilities compared to a desktop.

Lúidín
Good move, solid state is fantastic, been using for a long time, super quick.

Just for clarity I use SB as a vehicle (for a number of reasons).

I use a confluence of tf's, done away with the indicators & lines etc. The lines draw themselves when you've been looking at charts long enough.

By pace I mean just that (pace or speed) of the print. I do from time to time ensure my latency is second by second in tune with what is being sent from the SB server.

Without getting into my method, I'm just simply saying I keep an eye on the pace, too nutty & it's overtrading territory, too slow & it's chop. I have a certain pace that suits my style, & it is actually a faster pace that I prefer.
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Old Dec 12, 2015, 12:09am   #15
 
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Originally Posted by tokyojoe View Post
Good move, solid state is fantastic, been using for a long time, super quick.

Just for clarity I use SB as a vehicle (for a number of reasons).

I use a confluence of tf's, done away with the indicators & lines etc. The lines draw themselves when you've been looking at charts long enough.

By pace I mean just that (pace or speed) of the print. I do from time to time ensure my latency is second by second in tune with what is being sent from the SB server.

Without getting into my method, I'm just simply saying I keep an eye on the pace, too nutty & it's overtrading territory, too slow & it's chop. I have a certain pace that suits my style, & it is actually a faster pace that I prefer.
You must be using IG's API

When I have time I do some work on my own setup, as I have a plan to use my own trading setup with data feed via IB Gateway. There are some issues with IB in relation to data, so I might switch to TDA in the new year, as I plan to do a good bit of option trading, but have not made up my mind fully yet about TDA.

This is a test I done lately on the T&S section, and where the hard disk speed issue showed up with lag between volume shift..have changed the disk to ssd, but need to do some more testing now, which requires live data feed, as T&S section only works with live data.

I have a feeling the laptop will be too slow for normal trading, but it is fine for development and testing with small risk, as I have a good PC and several monitors for later on.

What are you trading btw?

Lúidín
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Old Dec 13, 2015, 7:18pm   #16
 
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Originally Posted by Lúidín View Post
You must be using IG's API

When I have time I do some work on my own setup, as I have a plan to use my own trading setup with data feed via IB Gateway. There are some issues with IB in relation to data, so I might switch to TDA in the new year, as I plan to do a good bit of option trading, but have not made up my mind fully yet about TDA.

This is a test I done lately on the T&S section, and where the hard disk speed issue showed up with lag between volume shift..have changed the disk to ssd, but need to do some more testing now, which requires live data feed, as T&S section only works with live data.

I have a feeling the laptop will be too slow for normal trading, but it is fine for development and testing with small risk, as I have a good PC and several monitors for later on.

What are you trading btw?

Lúidín
There is another switched on trader called f2calv you may be interested to speak with, he is into Options & is going through the motions of the in's & out of it now.

I only trade Dax, my interest re data feed is twofold : is the price on my screen the same as being pinged from the SB server at exactly the same time ? & how far from the dma is the sb price feed ?

I am only dealing with the SB internally & not the open market, but my only ally after the position is taken is momentum in the open market, the SB will shove the price to shake me out, but can only go so far from the dma as arbitrage traders will take advantage of them otherwise, this is why I can only trade in high volume scenarios.

I keep my set up simple on the data side, so the machine is more than enough, the SSD is a great thing to have, makes the standard disc seem prehistoric.

So it is a fine line line, if shakeout turns into real momentum & I'm on the right side, all good, but shakeout while on the wrong side turning into momentum

The hardware is not my problem, it's the software in my head that need re booting from time to time

Good luck tomorrow.
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