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This is a discussion on YM journal within the Trading Journals forums, part of the Reception category; Frugi, Really looking forward to this thread. My new trading PC arrives in less than 2 weeks so I'll be ...

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Old Jan 22, 2004, 9:20pm   #17
Joined Sep 2003
Frugi,
Really looking forward to this thread. My new trading PC arrives in less than 2 weeks so I'll be with you in the market learning as I go.
I notice there's been some negative comment all ready. Ignore it,seeing someone's trades and reasoning soon after they occur must surely be a real help to all the beginners out there
cheers,
hampy
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Old Jan 22, 2004, 10:05pm   #18
 
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D'oh

frugi started this thread I made one good trade today and that was a long at 1142.50 just after the doji sandwich around 8.00. I waited to buy until the price moved above the yellow pivot line and was rewarded with two long bars up (10 min). I sold this as it reversed off the top of the channel at 1144.75.

Unfortunately I also made 17 poor or unecessary ones. This was thanks to my starting trading in the lunch hour (I had been out scaling walls during the arvo!) which swiftly pitched me into a thicket of angry whipsaws.

It's no good scalping sly quarters if there's an equal number of halves and points lost. Or, while on the subject of elephants, I would do well to remember that I cannot defecate like one if I only eat like a bird. I got away with taking quarters yesterday because I was very careful with entry and concentrating intensely. Today I was not so careful, probably a touch distracted, and before long I was down over $250 and spent the rest of a grim day chasing losses instead of staying patient and treating each trade as if I had made none previously (i.e. on its own merits).

Today was quite choppy in general so I doubt anyone found it a breeze which is a poor but slight defence. But there is no excuse for trading (gambling) after 8.45 and even after the close just to try and grab a bit back.

I also missed the TICK/RSI PD between 6.30 and 7.00. I didn't fancy shorting the double top at 8.20ish as there was no TICK divergence.

However it is worth mentioning that my loss is at least within the bounds of my trading plan - I am allowed a max loss of $400 a day (composed of $25-$175 per trade (depending on potential perceived reward)).

Today's travesty: -$162.50-(18*$4.80) = -$248.90
Day 2 running total: -$189.20

Hope you guys did better Cheers for the PM too, Rosso.
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Old Jan 22, 2004, 10:06pm   #19
 
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frugi started this thread Eeuw...here's what not to do. Note the doubling up revenge trade too!
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Old Jan 22, 2004, 10:12pm   #20
 
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Yes, a hard day with nothing to get your teeth into.....
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Old Jan 22, 2004, 10:25pm   #21
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How much commission did you pay for that lot?
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Old Jan 22, 2004, 10:29pm   #22
 
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frugi started this thread $86.40
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Old Jan 23, 2004, 11:24am   #23
 
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Frugi,

Please take this the right way as your honesty deserves respect.

You say that your trading plan allows for a max loss of $400/day. I assume that means that if you lose $400 you stop trading for the day. Does your trading plan also include detailed rules on set-ups, entries, exits, risk control and money management?

It looks to me that you are entering and exiting the market pretty much at random trying to chase a few ticks here and there and seriously overtrading.

My advice, for what it's worth, would be to step away from the market. Develop a trading system that details exact entry and exit rules. Backtest it extensively. Develop a money management system based on the maximum drawdown in your backtest. When you come to trade your system judge your performance against your system not against your daily P&L. So one day you might lose $400 but when you check, after the close, your system actually lost $412.50. Your actual trading made you a tick ahead of your system - well done you're a good trader.

There are two parts to trading, the system and the actual trading. 95% of people only do the trading part and have no plan. It's probably no coincidence that 95% of traders also blow their dough in no time at all.
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Old Jan 23, 2004, 3:44pm   #24
 
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frugi started this thread sidinuk,

No offence taken at all - I am very grateful for every bit of advice that comes my way.

Yes, if I lose $400 I stop trading for the day.

Quote:
It looks to me that you are entering and exiting the market pretty much at random trying to chase a few ticks here and there and seriously overtrading.
Spot on. I overtraded like a fool yesterday and the bulk of my trading plan was on holiday.

However I am also capable of making two or three good trades a day and feel I have a reasonable discretionary system (that incorporates the essential elements you mention) with which to pocket a couple of points a day. By discretionary obviously I mean I like to "manually" interpret price action, pivots, TICK divs. pattern formation etc. in real time and act according to my view of the situation. Though discretionary, the system is quite strict and I trust it. You will probably not believe this given my first two p/l statements but I believe there is a good trade or two lurking among the dross.

The trouble is that I am ill disciplined and and apt to make several, as you say, virtually random trades, just trying to grab a tick here and there, especially when I am already losing. I am trying to eliminate this nasty self destructive habit which is mainly why I'm posting my trades in public. That way kind folk such as yourself can point out the error of my ways and I can learn from my losses.

Quote:
When you come to trade your system judge your performance against your system not against your daily P&L. So one day you might lose $400 but when you check, after the close, your system actually lost $412.50. Your actual trading made you a tick ahead of your system - well done you're a good trader.
I'm afraid don't really understand this statement. Surely if you have a different result from your system's at the end of the day then you have not followed the system, i.e. broken your rules, which is just what we're trying to avoid? Also I imagine it would be difficult to test one's results against a discretionary system, as part of it is, by definition, subjective.

On any given day I will be pleased with my performance if I have simply followed my rules and ended the day with a profit, however small.

Today is going better so far. Patience patience....

Best wishes.
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