Nowler's Trading Journal

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Old Dec 4, 2017, 7:08pm   #161
Joined Sep 2017
Nowler started this thread So decreasing the amount of leverage I use from my broker increases the amount of margin I need to offer up? Is this correct?

I also deposited a little bit more money onto the account but I can't see how that'd be the cause. It's the reduced leverage, right?
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Old Dec 4, 2017, 11:22pm   #162
Joined Sep 2017
Nowler started this thread December Challenge:

OK...
I noticed that on a number of occasions I blamed my first 3 months of learning how to trade for my lower than hoped for account statistics.

I have decided that for December I will limit myself to strategies/plans that I am best at, no trying out new things...markets...software...etc

The objective here is to actually prove what I can (or can't) do.
I have attached a screenshot of some account statistics and from this we can judge performance.

I'm not off too a good start this month (6 trades) but I think i'll come right
Attached Thumbnails
december-challange.png  
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Old Dec 6, 2017, 3:54pm   #163
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Nowler started this thread Note to self:

Stop adding to positions that have not really moved in your favour.
Perhaps...MAYBE...Limit it to 1 re-entry under these conditions if I truly believe that the market is just offering me a chance to get in at better value.

The re-entries were very low percentages of my account, but when they get knocked out, it destroys my win/loss ratio
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Old Dec 7, 2017, 4:48pm   #164
 
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Quote:
Originally Posted by Nowler View Post
Note to self:

Stop adding to positions that have not really moved in your favour.
Perhaps...MAYBE...Limit it to 1 re-entry under these conditions if I truly believe that the market is just offering me a chance to get in at better value.

The re-entries were very low percentages of my account, but when they get knocked out, it destroys my win/loss ratio

One thing that you might notice in your research which may relate to this post.

There are certain sentences that I have come up with over the years that are always in the back of my mind.

This is one of them:

The opportunity to get the very best price in the market is often very limited.

Now,what do I mean by that and how does it help us to trade better?

If you look at each trading day there is a high and a low. There has to be really doesn't there? But what you'll find is there are some statistics on where these prices tend to appear most often.

Once you determine where the H/L's most often appear during a trading session you'll be happy. You will have answered a couple of important questions.

Q- Is the market random?

A- Apparently not.

Q- How should I exploit this repeating pattern?

A- Fill in the blank.

The second thing you'll note is that, often price will hit the low/high of the day and never go there again for the rest of the day.

And, in fact, look at the S&P500 now (15:43 pm) A probable case in point. Then look at my journal post p294 updated at 3pm. That will give you an indication that it is possible to identify the H/L more often than the' voices of trading' say is possible.

So TIME is an important element.

Which brings us back quite nicely to your 'bad habit'

If you find yourself adding to a position at a similar price, you are almost certainly building a position that is not going to move quickly in your favour.( Because remember, the best prices reverse quickly and are rarely revisited during the same session)

So, to conclude. You are probably adding because it is human nature to believe that your goals are best achieved by being busily employed. So you're attempting to work hard to produce the results.

It's difficult to iron out the human weak points in trading. Takes time. I think it helps if you tell yourself (after verifying the stats yourself) that working hard in this way is counter productive.

I'll end on another one liner. This one is not of my own invention. It was something I read an another forum a few years ago. So I'm not able to link or give a credit. But it does tie in with the theme and sounds like a good ending:

'I only do trades that I would literally run down the road to my broker to put on'

Last edited by David Knight; Dec 7, 2017 at 7:25pm. Reason: spelling
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Old Dec 8, 2017, 5:22pm   #165
Joined Sep 2017
Nowler started this thread
Quote:
Originally Posted by David Knight View Post
One thing that you might notice in your research which may relate to this post.

There are certain sentences that I have come up with over the years that are always in the back of my mind.

This is one of them:

The opportunity to get the very best price in the market is often very limited.

Now,what do I mean by that and how does it help us to trade better?

If you look at each trading day there is a high and a low. There has to be really doesn't there? But what you'll find is there are some statistics on where these prices tend to appear most often.

Once you determine where the H/L's most often appear during a trading session you'll be happy. You will have answered a couple of important questions.

Q- Is the market random?

A- Apparently not.

Q- How should I exploit this repeating pattern?

A- Fill in the blank.

The second thing you'll note is that, often price will hit the low/high of the day and never go there again for the rest of the day.

And, in fact, look at the S&P500 now (15:43 pm) A probable case in point. Then look at my journal post p294 updated at 3pm. That will give you an indication that it is possible to identify the H/L more often than the' voices of trading' say is possible.

So TIME is an important element.

Which brings us back quite nicely to your 'bad habit'

If you find yourself adding to a position at a similar price, you are almost certainly building a position that is not going to move quickly in your favour.( Because remember, the best prices reverse quickly and are rarely revisited during the same session)

So, to conclude. You are probably adding because it is human nature to believe that your goals are best achieved by being busily employed. So you're attempting to work hard to produce the results.

It's difficult to iron out the human weak points in trading. Takes time. I think it helps if you tell yourself (after verifying the stats yourself) that working hard in this way is counter productive.

I'll end on another one liner. This one is not of my own invention. It was something I read an another forum a few years ago. So I'm not able to link or give a credit. But it does tie in with the theme and sounds like a good ending:

'I only do trades that I would literally run down the road to my broker to put on'
Thanks for the input mate.
Helpful indeed and has provoked a thought or two.
I read it yesterday and am going to digest it for another few trading days.

I know that what I am doing is problematic, which at least is good that I'm aware.

That final line is a nice one. I get it's point and will keep it in mind the next time I think about adding to a position that's pretty much in the same place as my initial entry.
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Old Dec 10, 2017, 12:54pm   #166
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Quote:
Originally Posted by David Knight View Post
. . . If you look at each trading day there is a high and a low. There has to be really doesn't there? But what you'll find is there are some statistics on where these prices tend to appear most often.

Once you determine where the H/L's most often appear during a trading session you'll be happy. You will have answered a couple of important questions . . .

. . . That will give you an indication that it is possible to identify the H/L more often than the' voices of trading' say is possible . . .
Hi David,
You raise some interesting points. Certainly, if a trader can identify the likely high and low of the day as they print - then that is an edge all by itself - and probably enough to ensure consistent profits. The usual caveats about risk and money management apply of course.

I don't recall any threads devoted specifically to this topic and wondered if you might be tempted into starting one? If you don't have the time or aren't willing to share the fruits of your labours - no worries - just thought I'd ask!
Tim.
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Old Dec 10, 2017, 1:54pm   #167
 
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What happens at certain times of the day can indeed be a useful thing to analyse. There are, for example, some general characteristics found in a trading day. This example gives a brief pointer to these, but it is best to do your own analysis: https://www.thebalance.com/best-time...market-1031361

The way to play these characteristics is to think about risk and to adjust position sizes or close trades to change your risk profile accordingly.
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Old Dec 10, 2017, 9:37pm   #168
Joined Sep 2017
Nowler started this thread
Quote:
Originally Posted by Charlton View Post
What happens at certain times of the day can indeed be a useful thing to analyse. There are, for example, some general characteristics found in a trading day. This example gives a brief pointer to these, but it is best to do your own analysis: https://www.thebalance.com/best-time...market-1031361

The way to play these characteristics is to think about risk and to adjust position sizes or close trades to change your risk profile accordingly.
Re: your link
So in terms of Forex, essentially 8am open to...10-11am is the most fruitful?
The London 8am and the U.S 8am more so that the others i'd also assume?

But would the final hour of trading stocks transfer over to forex also?
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