Trading ... Trader ... AND I ...

[Galts Gulch]

I often see posts on this and other threads that contain the phrases “I feel” or “I think.”

“Feeling” and “Thinking” can prove to be dangerous when approaching the market. The danger of this state, as we all know, is closing trades way too soon and/or reacting very haphazardly. I see many traders with the expression of “I got my 10 pips and got out,” (as an expression of relief) or “I think the E/U is turning over.” Often there is evidence referenced, such as support/resistance, weekly pivots, etc., which can justify taking action. However, most of the comments are simply from the gut with little or no evidence to support the action taken. If this describes you, this is a sign that you are still too emotionally invested in your trade or perhaps do not have faith in your trading plan.

Your trading plan should have defined entries, stops and profit targets – which can be adjusted for market conditions – not because of what you feel, but what you see; all this based on your back testing of your trading time frame and your rule set.

The way you approach the market should be the same for every trade, every pair – to have the same sequence of behaviors, analysis, and execution. One of the techniques that can be helpful is “self talk.” That is, saying aloud what you see, going though your checklist and rules and then answering the question “Is this a valid signal?” If the answer is yes, enter the market prepared to place stops and targets; if no, do nothing and wait for the next signal. You will begin to develop a routine. Speaking aloud and hearing your words will reinforce your observations.

This routine, if repeated consistently, will develop into an automatic response with minimal emotional investment resulting in more discipline and control. You will not be thinking or feeling. You will begin to objectively observe, analyze, express and consequently follow the directions (the rules) of your trading plan. You will find that your state will be less anxious, less fractured, and most importantly, less emotional. Your family may think you are crazy, but your profits will prove them wrong.

"IT IS NOT IMPORTANT WHAT ALL WE DO .... TILL THE TIME ....
WE KNOW THE IMPORTANCE OF DOING IT ALL" .....
KARMANYE VA ADHIKAARASTE MAA PHALESHU KADAACHANA .....

 

[Galts Gulch]

DEAR ALL,

Like any profession, burn-out potential certainly exists with trading. I used to look at my charts and literally see a blur. That’s when I knew I needed a break. The bad part was missing a lot of good trades while I was away. It took a while to get over the mindset of lost opportunities, but once I realized I can’t have everything, I began to relax, calm down and really appreciate time away from the markets. Just like a good vacation, a chance to recharge and regroup is important to stay sharp and on top of your game.

With the holidays upon us, the markets also go on holiday. Sure there are still plenty of trading opportunities, but you’ll begin to notice the ranges typically start to narrow this time of year. With all of the time I do spend trading, I like to get away entirely and leave town, turn off my computer and start for formulate my plan for next year. I revisit my financial goals, my past year’s performance and other personal checklists that involve my family. It’s a good time to get a renewed perspective. I always want to improve in every aspect of my life – not just trading. Getting away from the markets lets me take some time to focus on other important things, take inventory of the positive and negative of the previous year and make adjustments.

Many of us don’t take the time to establish goals, formulate a plan, or at the very least, put together an agenda. We just live day by day and moment by moment and assume it’s all going to work out. When I was younger, that used to be me. I realized without a plan, I was just wishing and hoping. With a carefully thought out plan, I now had a road map and I could measure progress against and direct my energy and efforts.

The other big lesson I learned is you have to play hard to make the hard work worth it. That is why taking time off is so important. You have to stop to reflect and spend time doing other things you enjoy. These are worthy distractions that will keep balance in your life and keep your psyche healthy.

Getting away also generates renewed enthusiasm – at least for me. Being away for a while makes me anxious to return; more committed, focused and determined.

Relax during the upcoming holidays and understand that the markets will be there when you return – you’re not missing anything.

Trust me. Upon returning you’ll feel more empowered, motivated and appreciate the skill you’ve acquired that can make such a remarkable difference for you and your family.

This is the perfect time of year to take a break.

The markets will be waiting when you ... me and WE all return.

Money is what money does and if we do not enjoy what we have hard earned ... What money will do?

Work like a donkey ... Freak like a horse ... is my mantra ...

 

[DSM]

Thanks GG, Great post.

And it is all so personal, not just theory. :clap::clap::clap:

DEAR ALL,

Like any profession, burn-out potential certainly exists with trading. I used to look at my charts and literally see a blur. That’s when I knew I needed a break. The bad part was missing a lot of good trades while I was away. It took a while to get over the mindset of lost opportunities, but once I realized I can’t have everything, I began to relax, calm down and really appreciate time away from the markets. Just like a good vacation, a chance to recharge and regroup is important to stay sharp and on top of your game.

With the holidays upon us, the markets also go on holiday. Sure there are still plenty of trading opportunities, but you’ll begin to notice the ranges typically start to narrow this time of year. With all of the time I do spend trading, I like to get away entirely and leave town, turn off my computer and start for formulate my plan for next year. I revisit my financial goals, my past year’s performance and other personal checklists that involve my family. It’s a good time to get a renewed perspective. I always want to improve in every aspect of my life – not just trading. Getting away from the markets lets me take some time to focus on other important things, take inventory of the positive and negative of the previous year and make adjustments.

Many of us don’t take the time to establish goals, formulate a plan, or at the very least, put together an agenda. We just live day by day and moment by moment and assume it’s all going to work out. When I was younger, that used to be me. I realized without a plan, I was just wishing and hoping. With a carefully thought out plan, I now had a road map and I could measure progress against and direct my energy and efforts.

The other big lesson I learned is you have to play hard to make the hard work worth it. That is why taking time off is so important. You have to stop to reflect and spend time doing other things you enjoy. These are worthy distractions that will keep balance in your life and keep your psyche healthy.

Getting away also generates renewed enthusiasm – at least for me. Being away for a while makes me anxious to return; more committed, focused and determined.

Relax during the upcoming holidays and understand that the markets will be there when you return – you’re not missing anything.

Trust me. Upon returning you’ll feel more empowered, motivated and appreciate the skill you’ve acquired that can make such a remarkable difference for you and your family.

This is the perfect time of year to take a break.

The markets will be waiting when you ... me and WE all return.

Money is what money does and if we do not enjoy what we have hard earned ... What money will do?

Work like a donkey ... Freak like a horse ... is my mantra ...

 

[Galts Gulch]

Thanks GG, Great post.

And it is all so personal, not just theory. :clap::clap::clap:

Thanks a lot Buddy ...
I mentioned in the first post itself that ... this thread will be more about my journey as an Individual and as a Trader ...
It will continue to stay that way ...:thumb::clap::clapping:

 

[bpr]

Discovered the thread today. Some of the posts are priceless.
I subscribed and gave 5 stars :thumb:
More people need to see this.

 

[Galts Gulch]

TRADING IS REALLY TOUGH ....

So many different markets – F&O ... MCX ... NCDEX ...

So many different options ... in ... F&O ... MCX ... NCDEX ...

So many different Time Frames ...1M ... 5M ...15M ... Smaller TF ... Higher TF ..

So many different Trends ... Long Term Trend .. Medium Trend ... Short term Trend ... Counter Trend ...
So many different Contract and contract notes ... Contract Expiry ...

So many different ... Fundamental Analysis ... Technical Analysis ... Price Action ... Support levels ... Resistance Zones ...

Pivot ... High ... Low .. M2M ... NRML ... Points ... ODIN ... NEST ... CTT ... Service tax .. Education Cess ...

So many different forums ... So many different Threads in So many different Forums ... So many different Posts in So many different Threads in So many different Forums ... So many different advices ... critics ... in ... So many different Posts in So many different Threads in So many different Forums ...

So many different DISTURBANCES ... COMPLICATIONS ... NOISE ... POLLUTION ... DISTRACTION ...

TRADING IS REALLY TOUGH .... because of .. So many different DISTURBANCES ... COMPLICATIONS ... NOISE ... POLLUTION ... DISTRACTION ...

AND ... TO THINK ... WE INFLICT MOST / ALL OF THESE ON OURSELVES...

The next time, you fly ... request the air hostess / first officer ... just to see the instrumental panel in the cockpit ... compare this to Trading ...

Will the Groom / Bride thank about the marriage vows / rituals ... future complications .. savings .. in laws ... Children .. etc ... during the first night??/ Can / Will they perform in the first night ... If they think all these and more???

TRADING .. IS ...AS EASY AS EATING ... DRINKING ... SLEEPING ... PLAYING ...

TRADING IS EASY ... IF WE REMOVE .. DISTURBANCES .... COMPLICATIONS ... NOISE ... POLLUTION ... DISTRACTION ... FROM TRADING ...

Different people have different NEW YEAR RESOLUTION ...

We, being / want to be professional traders ... let us make this resolution ...

LET US MAKE ... TRADING MADE SIMPLE :thumb::thumb::thumb:

How to make Trading Simple ... What all to do ... What all not to do ..
When ... How ... Why ...

In next two posts ...

 

[XRAY27]

TRADING IS REALLY TOUGH ....

So many different markets – F&O ... MCX ... NCDEX ...

So many different options ... in ... F&O ... MCX ... NCDEX ...

So many different Time Frames ...1M ... 5M ...15M ... Smaller TF ... Higher TF ..

So many different Trends ... Long Term Trend .. Medium Trend ... Short term Trend ... Counter Trend ...
So many different Contract and contract notes ... Contract Expiry ...

So many different ... Fundamental Analysis ... Technical Analysis ... Price Action ... Support levels ... Resistance Zones ...

Pivot ... High ... Low .. M2M ... NRML ... Points ... ODIN ... NEST ... CTT ... Service tax .. Education Cess ...

So many different forums ... So many different Threads in So many different Forums ... So many different Posts in So many different Threads in So many different Forums ... So many different advices ... critics ... in ... So many different Posts in So many different Threads in So many different Forums ...

So many different DISTURBANCES ... COMPLICATIONS ... NOISE ... POLLUTION ... DISTRACTION ...

TRADING IS REALLY TOUGH .... because of .. So many different DISTURBANCES COMPLICATIONS ... NOISE ... POLLUTION ... DISTRACTION ...

AND ... TO THINK ... WE INFLICT MOST / ALL OF THESE ON OURSELVES...

The next time, you fly ... request the air hostess / first officer ... just to see the instrumental panel in the cockpit ... compare this to Trading ...

Will the Groom / Bride thank about the marriage vows / rituals ... future complications .. savings .. in laws ... Children .. etc ... during the first night??/ Can / Will they perform in the first night ... If they think all these and more???

TRADING .. IS ...AS EASY AS EATING ... DRINKING ... SLEEPING ... PLAYING ...

TRADING IS EASY ... IF WE REMOVE .. DISTURBANCES COMPLICATIONS ... NOISE ... POLLUTION ... DISTRACTION ... FROM TRADING ...

Different people have different NEW YEAR RESOLUTION ...

We, being / want to be professional traders ... let us make this resolution ...

LET US MAKE ... TRADING MADE SIMPLE :thumb::thumb::thumb:

How to make Trading Simple ... What all to do ... What all not to do ..
When ... How ... Why ...

In next two posts ...

TRADING IS EASY ... IF WE REMOVE .. DISTURBANCES COMPLICATIONS ... NOISE ... POLLUTION ... DISTRACTION ... FROM TRADING ...

Excellent quote Galts Gulch

 

[Galts Gulch]

TRADING MADE SIMPLE

Things to do for TRADING MADE SIMPLE

1. Plan all your trades – Do we EVER go to bus stand / railway station / airport without planning ... Where we are going ... What are all the involved cost ... The expectation of that trip ... Trip duration etc?
Why is it ... We trade without a Plan?
Plan each of your trade ... The cost (Margin) ... Duration (this influences NRML / M2M etc) ... The risk (SL / Loss) ... The expectation (TP / ROI / profit)

2. Trade (ONLY) your plans – Once you have a plan, stick to that, without any compromises ...
For all the currency / commodity pairs that I trade, I have a list of .. “If I see this and this ... on so and so TF ... I will do this and this ..”
Soon after I see a Trade-able set up, AAA comes up IMMEDIATELY ...

"Acknowledge (a visible set up) ... Analyze (Qualify the Visible Set Up) ... and ACT (Trade) IMMEDIATELY"

WHAT IF MY PLAN FAILS? ... It does happen, less often than not ... But still ... In those circumstances ... As I already have A plan, I can always implement Plan B ... If I do not have a Plan ... There is neither A or B ...

3. Strategy – As there is no Universal and Best food / wife / car / job / salary etc, there is nothing called as Universal / Best Strategy.
Trading is more about The Psyche of the trader and Price Action, different analysis, indicators, TF’s etc ... are all accessories to find the “I” / Psyche part of the Trader. This is the reason, with same set of indicators, strategies etc, different traders find different result/s.
Your strategy is your EDGE ... no one else can ever beg / borrow / steal it ...

4. Analysis – To save time, to be Market – Ready on Trading day/s ... Do a Top Down analysis on every Sunday. Starting from Monthly TF, write down the various S/R zones, Pivot, 200 EMA etc for ALL the instruments that You trade. Give more importance to those instrument/s, that had higher ADR / ATR in the previous Day, Week and Month. Higher the range, we have more opportunities to make more profit.

Then draw the nearest and historical S/R lines. Give importance to those areas where Price has tested and bounced off in the recent past. They will be the nearest R/S zones that Price will be interested .. either to break or to bounce off. Once you have This foundation / Basic Plan ready as a Reckoner, trading days become less hectic and you will be prepared for all the Market actions and reactions ... Remember that better armoured is half the battle won ... and PLAN is The Best Armory.

5. Be with the trend – Higher TF’s always indicate the Long term trend. Drive this trend in shorter TF’s. Trading counter trends are dangerous in the long run. A small thing to remember here. If one is a scalper or uses shorter TF’s (lesser than 1H TF), it does not make sense to look at W and M TF’s as the gap will be too big between the market price and the W and M zones.

When there is a big trend, rarely it will stop immediately, if not for a very imp news. It will consolidate for few hours / candles and continue its original direction. Understanding this is very important as it keeps us away from getting in to trap of counter trend trades.

When the market is ranging, when the candles are either too small or have wicks at both ends or when Price is not moving at all, stay away. Knowing when not to trade is also as important as the knowledge about when to trade. Remember that a Re saved is a Re earned and preserved capital will help to run the successful trade/s.

Trade ONLY because you find a trade-able set up where you have higher chances of winning than losing, not because you have live account. Understand that live account is only a Mode / way ... PROFIT ... Consistent Profit is THE DESTINATION.

6. Terminal and Indicators – Understand that an indicator or set of indicators will not make a winning / losing trade. It is the trader who wins / loses. It is acceptable to have couple of indicators to show important signals / zones / value points etc. But too much cluster / indicators will spoil the visibility of trade-able set ups. Price action is always the king and all indicators are lagging by their very nature. Use them as tool, not as engine ... I have seen so many traders (I used to be one, 8 years ago) ... having so many indicators on the terminal that they end up in Analysis Paralysis ... analysing / thinking / complicating so much for a set up and finally failing to pull the trigger.

7. Dairy / Journal – this is THE most important aspect of a Trader’s journey. This should contain the instrument, reason/s for entry, TF on which trade is taken, reasons for TP and SL, time of the trade (entry time), closing of the trade (closing time), reasons for TP / SL being hit, reason if the trade is closed before TP / SL being hit. Understand that different instruments behave differently under different circumstances, during different trading sessions etc. Understanding this relation of an instrument with different aspects of trading helps in drawing a trading plan. Spend considerable time, effort and energy on this, every trade, every day, every week. Very soon you will evolve as a better trader, you can see lots of things very clearly, which was invisible before.

Few more things ... little later ... Haazir hote hai ... ek break ke baad ..

 

[raj_jain1]

TRADING MADE SIMPLE

Things to do for TRADING MADE SIMPLE

1. Plan all your trades – Do we EVER go to bus stand / railway station / airport without planning ... Where we are going ... What are all the involved cost ... The expectation of that trip ... Trip duration etc?
Why is it ... We trade without a Plan?
Plan each of your trade ... The cost (Margin) ... Duration (this influences NRML / M2M etc) ... The risk (SL / Loss) ... The expectation (TP / ROI / profit)

2. Trade (ONLY) your plans – Once you have a plan, stick to that, without any compromises ...
For all the currency / commodity pairs that I trade, I have a list of .. “If I see this and this ... on so and so TF ... I will do this and this ..”
Soon after I see a Trade-able set up, AAA comes up IMMEDIATELY ...

"Acknowledge (a visible set up) ... Analyze (Qualify the Visible Set Up) ... and ACT (Trade) IMMEDIATELY"

WHAT IF MY PLAN FAILS? ... It does happen, less often than not ... But still ... In those circumstances ... As I already have A plan, I can always implement Plan B ... If I do not have a Plan ... There is neither A or B ...

3. Strategy – As there is no Universal and Best food / wife / car / job / salary etc, there is nothing called as Universal / Best Strategy.
Trading is more about The Psyche of the trader and Price Action, different analysis, indicators, TF’s etc ... are all accessories to find the “I” / Psyche part of the Trader. This is the reason, with same set of indicators, strategies etc, different traders find different result/s.
Your strategy is your EDGE ... no one else can ever beg / borrow / steal it ...

4. Analysis – To save time, to be Market – Ready on Trading day/s ... Do a Top Down analysis on every Sunday. Starting from Monthly TF, write down the various S/R zones, Pivot, 200 EMA etc for ALL the instruments that You trade. Give more importance to those instrument/s, that had higher ADR / ATR in the previous Day, Week and Month. Higher the range, we have more opportunities to make more profit.

Then draw the nearest and historical S/R lines. Give importance to those areas where Price has tested and bounced off in the recent past. They will be the nearest R/S zones that Price will be interested .. either to break or to bounce off. Once you have This foundation / Basic Plan ready as a Reckoner, trading days become less hectic and you will be prepared for all the Market actions and reactions ... Remember that better armoured is half the battle won ... and PLAN is The Best Armory.

5. Be with the trend – Higher TF’s always indicate the Long term trend. Drive this trend in shorter TF’s. Trading counter trends are dangerous in the long run. A small thing to remember here. If one is a scalper or uses shorter TF’s (lesser than 1H TF), it does not make sense to look at W and M TF’s as the gap will be too big between the market price and the W and M zones.

When there is a big trend, rarely it will stop immediately, if not for a very imp news. It will consolidate for few hours / candles and continue its original direction. Understanding this is very important as it keeps us away from getting in to trap of counter trend trades.

When the market is ranging, when the candles are either too small or have wicks at both ends or when Price is not moving at all, stay away. Knowing when not to trade is also as important as the knowledge about when to trade. Remember that a Re saved is a Re earned and preserved capital will help to run the successful trade/s.

Trade ONLY because you find a trade-able set up where you have higher chances of winning than losing, not because you have live account. Understand that live account is only a Mode / way ... PROFIT ... Consistent Profit is THE DESTINATION.

6. Terminal and Indicators – Understand that an indicator or set of indicators will not make a winning / losing trade. It is the trader who wins / loses. It is acceptable to have couple of indicators to show important signals / zones / value points etc. But too much cluster / indicators will spoil the visibility of trade-able set ups. Price action is always the king and all indicators are lagging by their very nature. Use them as tool, not as engine ... I have seen so many traders (I used to be one, 8 years ago) ... having so many indicators on the terminal that they end up in Analysis Paralysis ... analysing / thinking / complicating so much for a set up and finally failing to pull the trigger.

7. Dairy / Journal – this is THE most important aspect of a Trader’s journey. This should contain the instrument, reason/s for entry, TF on which trade is taken, reasons for TP and SL, time of the trade (entry time), closing of the trade (closing time), reasons for TP / SL being hit, reason if the trade is closed before TP / SL being hit. Understand that different instruments behave differently under different circumstances, during different trading sessions etc. Understanding this relation of an instrument with different aspects of trading helps in drawing a trading plan. Spend considerable time, effort and energy on this, every trade, every day, every week. Very soon you will evolve as a better trader, you can see lots of things very clearly, which was invisible before.

Few more things ... little later ... Haazir hote hai ... ek break ke baad ..

real juice of trading experience....

beginners like me should drink it like never before...

 

[adg123]

Galts Gulch is Banned !!! WHY ? ny violation of forum rules? (I don't know if so). But he is a good teacher in this forum, specially for new traders -- Isn't it Moderator?