Should you think about money while trading? Trading, but not money. Why?

[Splitlink]

The chart is in your head.

When you look at the price (not the chart) all day long, you know everything the chart tells you anyway.

That's ok for one or, if they have a good memory, two instruments but more than that?

Especially forex.

 

[trader_dante]

That's ok for one or, if they have a good memory, two instruments but more than that?

Especially forex.

All the professional, high earning traders I know, only trade one market or, at most, two.

The others that I have read about, that trade more, do still not necessarily need to see a chart.

I watch 18 (although actively trade far fewer) and I could definetly trade them without a chart if neccessary as I can see the chart for every single one, on all the timeframes I trade, in my head.

All I would need is to start seeing price quotes to fit things together.

That's not because I have a photographic memory it is because I look at these charts as close to 24/7 as is humanly possible.

On a side note: I am always surprised by how much people look at charts and don't see the most important thing which is the price itself.

I was once in a roundtable meeting at my prop firm where the head trainer asked one of the grads (who had been putting in 12 hour days staring at the charts of one market for well over a year), what the price of that market was.

And he had no idea.

Here is a guy who could probably draw the chart without looking at the screen and yet had no idea what the price was.

And then people wonder why they aren't profitable...

Go figure.

 

[Jason101]

That's ok for one or, if they have a good memory, two instruments but more than that?

Especially forex.

I can concur. I use to (try to) play chess without a board as an exercise. Not easy.

The chart is in your head.

When you look at the price (not the chart) all day long, you know everything the chart tells you anyway.

Hmm, this says to me that traders of this calibre must use extremely simple methodologies.

 

[trader_dante]

IHmm, this says to me that traders of this calibre must use extremely simple methodologies.

You would be surprised how simple.

And that is the holy grail.

 

[Jason101]

All the professional, high earning traders I know, only trade one market or, at most, two.

The others that I have read about, that trade more, do still not necessarily need to see a chart.

I watch 18 (although actively trade far fewer) and I could definetly trade them without a chart if neccessary as I can see the chart for every single one, on all the timeframes I trade, in my head.

All I would need is to start seeing price quotes to fit things together.

That's not because I have a photographic memory it is because I look at these charts as close to 24/7 as is humanly possible.

On a side note: I am always surprised by how much people look at charts and don't see the most important thing which is the price itself.

I was once in a roundtable meeting at my prop firm where the head trainer asked one of the grads (who had put in 12 hour days staring at the charts of one market), what the price of that market was. And he had no idea.

Here is a guy who probably could draw the chart on every timeframe without looking at the screen and yet had no idea what the price was.

And then people wonder why they aren't profitable...


Go figure.

Thats incredible, amazing! hats off to you!

 

[Jason101]

You would be surprised how simple.

And that is the holy grail.

I have no doubt.

Every week that goes by (instead of adding) I am taking something away from my methodology. I am not left with much now, I still have time, which I am convinced is irrelevant and I want to do away with it.

 

[BlackBison]

Before trading I used to play poker for a living and one of the key reasons that I was very successful in high stakes games was an almost complete mental detachment from money.

I used to view it as a game or system that I was trying to beat. Money was just the way to keep score over time. If I focused on making the correct plays and winning the war (but accepting that I would lose many battles along the way) then the score kept on rising in the long run.

I used to take £10k to £20k equity swings daily playing online so it was great psychological training for trading (which although very hard mentally, is easier than playing poker, as the variance is lower).

So, yes it is one of the real secrets in my opinion. But can everyone learn this zen like quality? Now THAT is the real question :cheesy:

 

[HowardCohodas]

Before trading I used to play poker for a living and one of the key reasons that I was very successful in high stakes games was an almost complete mental detachment from money.

I used to view it as a game or system that I was trying to beat. Money was just the way to keep score over time. If I focused on making the correct plays and winning the war (but accepting that I would lose many battles along the way) then the score kept on rising in the long run.

I used to take £10k to £20k equity swings daily playing online so it was great psychological training for trading (which although very hard mentally, is easier than playing poker, as the variance is lower).

So, yes it is one of the real secrets in my opinion. But can everyone learn this zen like quality? Now THAT is the real question :cheesy:

One of the best responses.

 

[Joules MM1]

I have no doubt.

Every week that goes by (instead of adding) I am taking something away from my methodology. I am not left with much now, I still have time, which I am convinced is irrelevant and I want to do away with it.

be cautious about this move....i mean, if your approach is to define a linear definition for transactions, then, that's different, however, imo, time plays a crucial role and has done so since the inception of the auction process......i do not mean that time needs to be seen as it is by quadrants or squaring or fibs or any of that "stuff" i mean, time is used and utulised in a way that most traders never understand, the very simplicity of its use by someone who wants what's in your account is a beautiful art to see.......

 

[jefftheripper]

It's a good point everyone is making about detaching yourself from the money. That way it doesn't influence your thought process about the trade. Where I disagree is where it is said successfull trading is following your plan and not about profit. This is a business and a business must make a profit or go under. If a CEO of a company doesn't make a profit year after year but follows his plan to a T, he'll be fired. The trader that makes 15 pips a week at $10,000 a pip has a more sucessfull business than one that make 100 pips a week at $2 a pip.

The trick is to detach your emotions (easier said than done) and make a consistant profit.

 

[Splitlink]

It's a good point everyone is making about detaching yourself from the money. That way it doesn't influence your thought process about the trade. Where I disagree is where it is said successfull trading is following your plan and not about profit. This is a business and a business must make a profit or go under. If a CEO of a company doesn't make a profit year after year but follows his plan to a T, he'll be fired. The trader that makes 15 pips a week at $10,000 a pip has a more sucessfull business than one that make 100 pips a week at $2 a pip.

The trick is to detach your emotions (easier said than done) and make a consistant profit.

Personally, I believe that it is the only way to stay alive.

If you cross the road on the green cross light it's no good saying "Well, if I get run over it's the driver's fault" That is what a lot of "Follow the plan" folk are saying.

 

[born2winfx]

Cash is king - but not in trading!

Stay loyal to your style and stay calm what ever happens. The money is just a number and will come if the time is ready

Cheers

 

[Splitlink]

Gosh! I hear a lot of stiff upper lip on this site! British spirit and the Captain on the bridge of his sinking ship, sort of stuff.

 

[Splitlink]

Half a league, half a league,
Half a league onward,
All in the valley of Death
Rode the six hundred.
"Forward, the Light Brigade!
"Charge for the guns!" he said:
Into the valley of Death
Rode the six hundred