Article Our Jack

[T2W Bot]

Jack is a trader, but not the cool, calm, collected sort of trader you would think. Yet he stills manages to be profitable by tailoring a trading strategy to suit his mindset. So how does he do it? 
Our Jack is a trader. Not that you?d employ him because he is not the cool, calm, non-emotional, confident and steady-under-fire character of the job description. A highly emotional chap is our Jack. He is always scared stiff and sure every trade is going to go wrong.  He hates losing and any loss wounds him deeply and stays with him for weeks. He is as greedy as hell and absolutely hates giving money back and watching his profit deteriorate. On top of all that, he?s frozen fingered and can always be relied upon to come up with some reason why he should not enter or exit a trade at the time he planned.
Our Jack?s a loser, right? Well, no he?s not because he knows himself and his emotions extremely well indeed. Our Jack has chosen to work with his emotions rather than to try to defeat...

Continue reading...

 

[Legion]

I gave it 7 for jacks ok ness in recognising its good for him? to do things his way, with who he is , not wanting to change within? hmm (lazy Bugger) yet Frozen Figured Jack ? Not good. You often have plenty of time waiting for intra session set ups... cant teach an old dog new tricks?

Might need more work (a heavier Club) to remove that ingrained stubborness but id say yes.


"His friend could have shown him how he could have done better but had given up trying by this stage."

Jack has to want it, if hes given up then hes given up.

 

[Jack o'Clubs]

Did someone mention my name ?!

 

[bracke]

But how does Jack determine his entry and exit. All those indicators. charts, fundamentals, gurus, tea leaves, not to mention his own prejudices (I said not to mention those! Oh sorry).

Nice to see you in the pink barjon.

 

[trendie]

I can relate to the idea of not fighting your emotions, or trying to negate them, but to design an approach that accomodates them.
( I thought I was the only one that had thought of that! )

 

[damianoakley]

An interesting story which shows how important it is in trading to know yourself.


Thanks

Damian

 

[superfly]

it makes sense to adopt a trading strategy that, at least, minimises the potential for those emotions to wreak havoc. There is one absolutely crucial point. And that is that however much it hurts we must be absolutely honest with ourselves in identifying our weaknesses and it is no good brushing them under the carpet.

Thank you Jon

 

[Charlton]

The story illustrates the point that during the actual act of trading a pre-determined plan enables the trader to keep their emotions from interfering with trading decisions. This is the initial stage of becoming a consistent winner, which Mark Douglas describes as the "Mechanical Stage" in "Trading in the Zone". I gave this 8 because I feel the article might provide readers with the first steps in moving towards being a consistent winner

 

[CYOF]

I gave this a 9 - not because we should always listen to someone with 30 years experience (although it may be wise to do so), but because the approach is what one must do, and will actually eventually do (even if one does not realise it) when one decides to take up trading the financial markets

Those that accept it up front can greatly shorten the learning curve - Fail To Plan> Plan To Fail

Here is my synopsis of the main headings which will be different for everyone:

1) Style of trading > Identify your preferred timeframe

2) What to trade > Identify your preferred market

3) How to trade > Develop your strategy

4) Trade Management:

a)Entry > Market & Strategy dependant

b) Initial stop Loss > Market & Strategy dependant, but always remember Rule No.1> We never let the market prove us wrong, only always let the market prove us right.

c) Running Stop Loss > Market & Strategy dependant

d) Exit > Market & Strategy dependant

I did not give it a 10 for 2 reasons:

1) It mainly focuses on one Market / Strategy - This approach may work well for Jack, but in reality, a lot of traders may never be able to trade this way.

2) It did not mention Position Sizing, which I think is crucial and can actually mean the difference between making a living at full time trading, or not . Rule No.2 > Press your winners correctly

Overall, it is a very good practical article and demonstrates the type of thinking that may greatly benefit all new traders -and maybe even some experienced traders as well :?:

 

[timsk]

Nice one Jon!
Good article, well written.
It's liberating to know that it's not necessary to score 10/10 in every department in order to be a successful trader. Recognising and acknowledging our weaknesses and then structuring our trading plan to deal with them appropriately is the tricky bit. This article provides a simple blueprint to enable us to do just that.
Tim.

 

[Moxy9]

... I think, ... I'm Jack !!