my journal 2

This is a discussion on my journal 2 within the Trading Journals forums, part of the Reception category; I will now resume my simulated trading (see above), after winning twice on real trading: yes, because that's when it ...

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Old Feb 2, 2010, 5:55pm   #145
 
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danger... danger... danger...

Yamato started this thread I will now resume my simulated trading (see above), after winning twice on real trading: yes, because that's when it gets dangerous for me. Usually, emotionally I can bear no more than 2 wins per day. Maybe I'll do one more trade in 4 hours.

I will now practice short trades, as I had decided to do in the post above.
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Old Feb 2, 2010, 6:43pm   #146
 
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re: my journal 2

Yamato started this thread I finally doubled capital by going only SHORT. It was very easy and fast, after trying and failing 4 times, but it wasn't just luck and I can do it again. However, you can lose your money quite fast. This type of trading really teaches to use a stoploss. For example, I could never bring 10k to 50k without using the stoploss.

The SHORT opportunities are there similarly to the LONG opportunities, except that it's hard to spot them if you're looking for both types of trades at once. It's easy to spot them if you just focus on them. To focus on the SHORT trades, you almost exactly reverse your thinking of when you're looking for LONG trades. It's very hard to identify them simultaneously.

snap1.jpg

If you catch a move below support, you can quite easily double your capital with just one trade, but you get that situation (like in my first stock) only in one out of 10 trades. The majority of charts present the exact opposite situation: price above resistance. Once again, these charts go more up than down.

Last edited by Yamato; Feb 2, 2010 at 6:50pm.
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Old Feb 2, 2010, 8:50pm   #147
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Re: danger... danger... danger...

Travis,

I like your discipline bud... it's easy to get caught up in the game and feel "invisible"

Do you usually stick to this 2 wins and done mindset everyday?

Thanks!




Quote:
Originally Posted by travis View Post
I will now resume my simulated trading (see above), after winning twice on real trading: yes, because that's when it gets dangerous for me. Usually, emotionally I can bear no more than 2 wins per day. Maybe I'll do one more trade in 4 hours.

I will now practice short trades, as I had decided to do in the post above.
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Old Feb 2, 2010, 9:58pm   #148
 
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re: my journal 2

Yamato started this thread Read my profile... Unfortunately I write the best anti-gambling posts because I've been the worst gambler for over a decade. I still have not found a way to be profitable except with automated trading. I'll let you know if I ever turn profitable. My most recent experience with discretionary trading was that, after I got my capital to 30k thanks to automated trading, I've brought it down to 3k thanks to my discretionary gambling.

In the past 12 years I've lost over 50k (in US dollars) thanks to my discretionary trading. That's partly why I started this journal (see "my journal" for what I wrote before this one), in order to try everything, in my quest to become a profitable trader. So far I've been the most undisciplined and reckless trader there could ever be. I am a rebel in every field, and in trading I rebel against my own rules. Even today. After those two trades, two hours later, I went back and made another 2 trades, of which one went right and the second one went wrong and made me lose what I made in the other one. So I was right that I should have just stopped at 2 trades instead of 4.

What's your experience with compulsive gambling?
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Old Feb 2, 2010, 10:34pm   #149
 
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re: my journal 2

Yamato started this thread http://megavideo.com/?d=WUCX2WI5
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Old Feb 2, 2010, 10:53pm   #150
 
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re: my journal 2

Yamato started this thread Oh yes! Another doubling up just by doing SHORT trades. Yes yes yes! Learning to make money by both going SHORT and LONG. I never thought I'd be able to figure it out, regardless of the fact this is only simulation. I guess I have learned to read stock charts.

snap1.jpg

This is exactly like learning how to land on the flight simulator, or to learn to win at risk, or like learning any other video game. Why isn't real trading like this? Because fear of losing money paralyzes your learning skills!
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Old Feb 2, 2010, 11:00pm   #151
 
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Here's my plan

Yamato started this thread I'm just going to keep on doubling up until this becomes second nature, and then I'll try the IB's paper trading account again. Maybe in time I'll learn to make this happen with real money, and defeat the two enemies that I don't have in the chart game:

1) fear from trading real money
2) boredom from trading in real time (which is slower, and makes you second guess yourself)

In real trading you're going to make a decision, and then the chart won't get where you expect it to go in a few seconds but in a few hours (at least). And in those few hours your thinking will change, because no one can be such a slow thinker as to think one idea every 4 hours. Making a good trade takes a few seconds. What do you do in all the hours you have? You will second guess your trade, and this is a problem.

That's the one problem I wouldn't have with day trading. But then daytrading may actually go too fast.

I don't know... regardless of all this talk, these will be my steps since I have no choice: ace the chart game with all 4 types of trades (below/above support/resistance) and then move to IB's paper trading account. Then, if I can manage to be profitable at that, I can be profitable on a daily basis with real trading.

Last edited by Yamato; Feb 2, 2010 at 11:06pm.
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Old Feb 2, 2010, 11:12pm   #152
 
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Meet your violent and boring professor, Real Trading

Yamato started this thread Why does the chart game work and trading doesn't work as easily? Why can you learn the chart game and not trading?

Because the chart game gives you the answer right away, and that's what learning requires. Imagine if you were in school, and took a test, or in any learning situation, and were given the feedback a few hours later. With the chart game i get the feedback in a few seconds. That's why it is so powerful.

With real trading I get the feedback in a few hours and it is so expensive that I can only afford one guess, one class, one lesson per day, and not 1000 guesses per hour like in the chart game.

No one is going to learn if you delay the answer for so long, and kick them in the balls every time they are wrong (by taking their money). In this sense, I'd say that the market is an awful teacher. Would you want to be with a teacher who tells you if you are right or wrong a few hours later, for every question you ask him, and who kicks you in the balls every time you are wrong? Nope. Yet that's exactly what kind of a teacher "real trading" is.

The market, or rather real trading (vs accelerated paper trading with the chart game) is a bad teacher in that it gives you crappy lessons, very costly... in that:

1)It teaches you too slowly (it gives you the right answer hours later at best)
2) and it hurts you too much when you are wrong (so that you can only learn one lesson every so often).

In summary, real trading is a boring, ineffective and costly teacher. That's why few people can learn how to trade.

Real trading as a teacher reminds me of that girl I knew who was always so enigmatic about her answers: she wanted to spend time with me, but she wasn't really interested. She held hands, but she wasn't sure. As frustrating as ever. We want clear and constant feedback from the market and from women, but with Italian women, this is rarely the case, and with the market, it's never the case. It makes you wait, it keeps you waiting, just like an Italian woman, never letting you know whether it's a yes or a no, until you've wasted more time than you can afford, and have given up out of boredom.

Last edited by Yamato; Feb 2, 2010 at 11:22pm.
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