Bouning Back - How to revive a worn out spirit

#11
Hi Jitendra
it is now more than a month since you posted here.
Hope you are in good spirits.

How are you doing now? How is the trading going?
Hello tmwizard! As my last post on this thread suggested, I was introspecting quite a bit lately and I realised that I need to probably take a break from the markets. If you've ever gotten into a dull phase you will know low you feel. I had been feeling the urge to get back to winning ways and in that urge I was becoming impatient. That lead me to make more mistakes which was making it burning my pockets. I couldn't downsize my positions because in a small way, my ego came into the way and along with that, I kept thinking of recovering all my losses ASAP because of which I didn't even downsize.
I took a long break from the markets during which time I found myself a job as RM in a firm. It's been a good learning experience for me to look at trades of tethers and learn from it. I'm ashamed to say this but I have learnt more in the last couple of months as a dealer than I did while trading. But now I think I can see the light at the end of the tunnel. Haven't given up and I won't either
 

NJ23

Well-Known Member
#12
I'd suggest have a way to determine what you're going to do about the markets. Are you going to go long/short/outside? Have a method for deciding that. Keeping that part simple really helps. This will keep you focused. Confusion/indecision is removed. Test that method for long periods of time for how well it did in the past. Learn about yourself. What's your risk tolerance. When did you start feeling worried when your account started to move down? 10%,20%? That should be the level beyond which your trading method must not take your account. In other words, your maximum drawdown must not go beyond this level in any case. The most important part that plays in keeping you below this level is the Position Size. Learn money management. A good trading method can be screwed up with an improper position sizing. Turning odds in your favour happens in this part.

I'd recommend some books if you're interested:
(It's okay to not understand the mathematics behind it. The application of the methods and the intuition behind them is what we're after.)

1. Quantitative Trading Strategies by Lars Kestner.
2. Evaluation and Optimization of Trading Strategies by Robert Pardo.
3. Definitive Guide to Position Sizing by Van K. Tharp.

These are worth the investment.

And thank you for this thread. It'll help the lot of us.
 
#13
I'd suggest have a way to determine what you're going to do about the markets. Are you going to go long/short/outside? Have a method for deciding that. Keeping that part simple really helps. This will keep you focused. Confusion/indecision is removed. Test that method for long periods of time for how well it did in the past. Learn about yourself. What's your risk tolerance. When did you start feeling worried when your account started to move down? 10%,20%? That should be the level beyond which your trading method must not take your account. In other words, your maximum drawdown must not go beyond this level in any case. The most important part that plays in keeping you below this level is the Position Size. Learn money management. A good trading method can be screwed up with an improper position sizing. Turning odds in your favour happens in this part.

I'd recommend some books if you're interested:
(It's okay to not understand the mathematics behind it. The application of the methods and the intuition behind them is what we're after.)

1. Quantitative Trading Strategies by Lars Kestner.
2. Evaluation and Optimization of Trading Strategies by Robert Pardo.
3. Definitive Guide to Position Sizing by Van K. Tharp.

These are worth the investment.

And thank you for this thread. It'll help the lot of us.
Thank you, NJ. I've been trying to figure out a method to fixate on whether to go long or short. Till now I've been relying upon what my perception about the market is. It's more a brand based understanding rather than relyijg on a system. But will try and work on what you've said. I will look into the books that you have suggested.
 

bunti_k23

Well-Known Member
#14
I'd suggest have a way to determine what you're going to do about the markets. Are you going to go long/short/outside? Have a method for deciding that. Keeping that part simple really helps. This will keep you focused. Confusion/indecision is removed. Test that method for long periods of time for how well it did in the past. Learn about yourself. What's your risk tolerance. When did you start feeling worried when your account started to move down? 10%,20%? That should be the level beyond which your trading method must not take your account. In other words, your maximum drawdown must not go beyond this level in any case. The most important part that plays in keeping you below this level is the Position Size. Learn money management. A good trading method can be screwed up with an improper position sizing. Turning odds in your favour happens in this part.

I'd recommend some books if you're interested:
(It's okay to not understand the mathematics behind it. The application of the methods and the intuition behind them is what we're after.)

1. Quantitative Trading Strategies by Lars Kestner.
2. Evaluation and Optimization of Trading Strategies by Robert Pardo.
3. Definitive Guide to Position Sizing by Van K. Tharp.

These are worth the investment.

And thank you for this thread. It'll help the lot of us.
Thanks for sharing the stuff sir much appreciated:thumb:
 
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