What was I thinking?

rglenn

Well-known member
379 4
I must say that I have had the unfortunate experience that Newtron Bomb has talked about.

This is purely because I am still on a learning curve and want to find out the best system to use that produces the most profit in a given period. i.e a month

The reason that I things went a bit wrong was because I was using too many methods at the same time and probably lost myself into which rules I was using.

I am only using one method at present and now better able to determine the weaknesses of this method before trying anything else.

I think if you have a tradable system that is bringing in the dollars/pounds why change it.

The problem we can have especially on t2w is to be overloaded with info.

We read what other people are doing and maybe try to incorporate it into our method because it may seem that they are doing better than us - and this may ruin a good system.
 

barjon

Legendary member
10,617 1,755
I've been playing this game (non-professionally) for over 25 years and still I can't exclude the emotional baggage completely.

OK it may be that I'm a lousy trader and always will be, but I would merely invite everyone to compare their paper trading to the real thing. I would make my biggest trade on a result that, for the vast majority, their paper trading outstrips the real thing.

Why? Self evidently there's no emotion attached to paper trading.

Waqr - you never did tell me how much you wanted for those infallible traffic lights of yours!!!

good trading

jon
 

oatman

Senior member
2,879 22
Barjon,
I'm with you, paper trading is a waste of time apart from practising pressing buttons.

Cheers
 

Newtron Bomb

Experienced member
1,602 87
Concurred. Paper trading does have its uses but i think you could realistically halve or more any figures that you paper trade.

Is there anyone else who would care to post a trade or lack of trade for "what was i thinking?"
 

bonsai

Veteren member
4,106 10
RGlenn, I suspect you got it in one.
Most individual systems can be used to trade if you learn their
characteristics. The best way to do that is to concentrate on that
one approach.

A different indicator will usually top or bottom at different times
and serves only to confuse.

Trying to emulate what others do is a touch of 'the valley is
always greener on the other side ' ? And our reluctance to accept
losses as 'a necessary evil'.

But that is the second trick. ?
 

bonsai

Veteren member
4,106 10
One thought on paper trading.

Why not line up a friend. And every time you want to trade
give him a call and give him the details.
I am suggesting that this approach will put some of the tension
into the situation which is otherwise lacking ?

Alternatively, just start a thread here and post those trades
and see how it goes ?
 

Skimbleshanks

1
2,325 16
A halfway house between paper trading and the real thing could be use of a real-time simulator.

OK, everyone changes when they trade for real, having traded successfully on paper. So, perhaps it would be good to write down exactly what you do that's different so that you are at least aware of them!

My biggie is impatience, which I don't have paper trading but I do when trading for real. So I solved that by having something else to do - reading, knitting, combing the dog, playing cards, entering the caption competition on these boards, anything to keep me amused so that I am not continually watching the screen.
 

kinglatfan

Junior member
26 0
That good old maxim "plan your trade and trade your plan" gets a good few mentions on this thread and rightly so.

There has also been a lesser reference to business planning for trading: not the plan in your head but rather the plan you have carefully put down on paper and pinned on the wall above your trading screen!

What have you got under the heading damage limitation?

I have a three strikes and your out system with my maximum stop loss on any one trade being x, ergo making my maximum trading loss on any one day 3x whereas on a good day profit could be x unlimited.

I am reviewing the plan so that if I ever stop myself out because of losing trades I only allow myself back in after I have paper traded a profit over three paper trades.

I constantly revisit the plan and make changes which I would hope reflect my greater trading experience.

I always try to keep my trading simple and avoid as many flashing gizmos on the screen as possible. I prefer to watch observe and count when I am live in a trade rather than have to think. I am happiest thinking about and planning trades outside market hours

If I do find myself worrying and or thinking during a live trade then perhaps I should amend my trading plan so that I close the position down immediately.

Trailing automatic stop losses are a great help as they take away the strain. The only problem with this is that you telegraph your position to the market. I prefer to have a long stop stop loss a few points below what i am prepared to take as I am always fearful of the damn computer crashing. If a trade turns against me provided I am on line I simply pull the plug a few ticks above the long stop.

If a trade goes against me from the off then I take the stop loss and play three strikes and you are out. I have learnt the hard way never to move an initial stop away from the direction of the trade.

Believe you me life is a lot easier when you can hit the sell button without hesitation. So what if you get whipsawed you can always re enter.

If you buy at $10.10 looking for a minimum of say $10.30 and get stopped out at $10.00 you can always get back in if it rises to say $10.12 as if it is to get to $10.30+ it has to go through these levels anyway. if on the other hand it goes from $10.00 to say £9.75 whilst you are still thinking then boy do you have problems!
 

oatman

Senior member
2,879 22
Skim, do you play cards with the dog?
 

Newtron Bomb

Experienced member
1,602 87
Skim,

I'm assuming your distraction techniques are to stop you tinkering with the trade once you have made your plan. I tend to go for a walk around the farm if the circumstances allow (and the weather)
This also provides a solution to a variety of trading habits like over analysis. I tend to analise a market that i dont trade so i can get the tinkering satisfied if am not able to walk away from the screen.

Kinglatfan
lots of good points, it is surprising that all the sage advice of good money management can prevent a lot of serious heart ache.
I suppose a lack of this can also be attributed to not heading good advice in adulthood as we do when we are a child.


re paper trading - I think fins 1 pence per point is an excellent way to start you have the ability to trade real time real money and not loose your shirt, its just a shame that they have introduced a limited period for this low bet size, even after this period 50p isnt exactly going to break the bank ;)
 

rglenn

Well-known member
379 4
50p can certainly break the bank if you don't know what you are doing!

When I first started I was using 50p stakes and all my bank disappeared before I knew what was happening.

So beginners beware!!
 

Skimbleshanks

1
2,325 16
Newtron Bomb - my impatience has more to do with the current market, and it's a seasonal thing. The market is quieter during the summer, the swings don't have as much gusto, the bars are shorter, etc. So I am always more impatient in the summer than in the winter :D

In the summer the market seems to take twice as long to get to where she's going, so it is a good time for multi-tasking. Now there's sommat us girls excel at! :cheesy:
 

rossored

Senior member
2,105 56
Sorry I must just ask about this and temporarily drag this thread off it's track...

Skim, could you say why you feel the market is quieter during the summer months? Several other people have mentioned this before to me, but as I'm still in my first full year of trading I haven't anything to look back on to compare. Is there a reason behind it or is it just "one of those things"?
 

sidinuk

Established member
624 5
Skim, was last summer a bit odd then? Last July/August the markets were going bonkers with the dow moving 500 pts in a day quite regularly.

Tim
 
 
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