My Journey In Technical Analysis
- Thread starter XRAY27
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Trading is is often depicted as a dream job. Indeed, I can trade from anywhere in the world. I can spend time with my family, work out, go out, read, travel, meet with friends,… whenever I want to. No boss, no employees and no customers.
Well, all this freedom is the byproduct of having developed my own trading strategy, and having become consistently profitable.
“Good trading requires a particular set of mental skills that will need to be developed. Since those skills are counterintuitive in nature and tend to go against normal human tendencies, they will have to be developed and built over years of practice and engagements in the markets” – Yvan Byeajee
“If I’m going to succeed, I need to make sure that I’m not just motivated by the end goal, but I’m so passionate about the process that I will love the journey and stay on track” – Unknown
Read full article :BECOME A TRADER
Well, all this freedom is the byproduct of having developed my own trading strategy, and having become consistently profitable.
“Good trading requires a particular set of mental skills that will need to be developed. Since those skills are counterintuitive in nature and tend to go against normal human tendencies, they will have to be developed and built over years of practice and engagements in the markets” – Yvan Byeajee
“If I’m going to succeed, I need to make sure that I’m not just motivated by the end goal, but I’m so passionate about the process that I will love the journey and stay on track” – Unknown
Read full article :BECOME A TRADER
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What does it take to become a better trader?
It takes courage, commitment, persistence, hard-work and most of all- character!
A lot of self-proclaimed “trading gurus” out there are saying it is easily accomplishable- the truth is that if it is one thing, that thing is definitely not EASY.
I hope you will understand me and stop looking for a Holy Grail- it is inside of you and you- just reach out!
-steve
It takes courage, commitment, persistence, hard-work and most of all- character!
A lot of self-proclaimed “trading gurus” out there are saying it is easily accomplishable- the truth is that if it is one thing, that thing is definitely not EASY.
I hope you will understand me and stop looking for a Holy Grail- it is inside of you and you- just reach out!
-steve
"Cutting your losses short and letting your winners run” may seem logical, it can be extremely difficult to follow when money is on the line. If it was easy, everybody would be making tones of money.
But why is it so difficult?
The short answer is because of how our brain is wired.Indeed, we, humans, have a very old brain which makes us prone to many cognitive biases. Those biases cause us to often act irrationally when faced with a stressful situation.
In trading, when we’re faced with the risk of losing money, one of the main cognitive bias we tend to suffer from is “Loss Aversion”, a concept that was demonstrated by psychologists and behavioral economists Amos Tversky and Daniel Kahneman.
Basically, “loss aversion” refers to our tendency to prefer avoiding losses rather than acquiring equivalent gains.In other words, our nature dictates that we are more likely to let our losers run, in order to avoid taking a loss, and cut our winners short in order to avoid losing the small gain we have. Yes, that is the exact opposite of what we have to do in order to make money consistently in the markets.
Source: Lonestocktrader
But why is it so difficult?
The short answer is because of how our brain is wired.Indeed, we, humans, have a very old brain which makes us prone to many cognitive biases. Those biases cause us to often act irrationally when faced with a stressful situation.
In trading, when we’re faced with the risk of losing money, one of the main cognitive bias we tend to suffer from is “Loss Aversion”, a concept that was demonstrated by psychologists and behavioral economists Amos Tversky and Daniel Kahneman.
Basically, “loss aversion” refers to our tendency to prefer avoiding losses rather than acquiring equivalent gains.In other words, our nature dictates that we are more likely to let our losers run, in order to avoid taking a loss, and cut our winners short in order to avoid losing the small gain we have. Yes, that is the exact opposite of what we have to do in order to make money consistently in the markets.
Source: Lonestocktrader
Reality check..
A trading system is component of method and psychology, in that time scale for entry is vital...say intraday 1 ,3,5,15 mins ,swing/positional,30, hourly,daily ...which one is best !!!
Half of traders life is wasted in dancing between the time scales
...How to fix the time scale ??? Answer is backtesting given method on different time scale/s..many don't even do that on any time scale and just jump with real money and blow there account
if a successful mentor is there who is guiding you in real terms ,story may be different,but many don't have this luck of grooming hands
Sleepless nights to fix a system,is hard reality
,but this will prevent you from blowing the account,when you do back test ,many methods in internet,forums etc will fail.
Don't worry you can search new one or can fix,but blowing the account leads to self destruction of confidence to trade which is hard and almost impossible to fix
A trading system is component of method and psychology, in that time scale for entry is vital...say intraday 1 ,3,5,15 mins ,swing/positional,30, hourly,daily ...which one is best !!!
Half of traders life is wasted in dancing between the time scales
if a successful mentor is there who is guiding you in real terms ,story may be different,but many don't have this luck of grooming hands
Sleepless nights to fix a system,is hard reality
Don't worry you can search new one or can fix,but blowing the account leads to self destruction of confidence to trade which is hard and almost impossible to fix
As an individual trader it is simply impossible to remain emotionless, making the proper trading decisions at all times, when the action is heated.
Even when there is a lull, our emotions kick in and we feel a change is needed or something should be done, when in reality our rules may say to stay out or do nothing. We need an objective temperament, an ability to control emotions and carry a position as per the rules. After all Time is your Friend, Impulse is your Enemy
Behaviour of learner is that they want a robust system from a successful trader,but when if any trader starts sharing his method in open forum ,people doubts his nature,..so shared ITR,tradelogs,…still many question his intent,even doubt the authenticity of this logs ..
I have accepted this very nature but after wasting long time ,which made my self ignore my research in swing/positional ,but later realized that and started swing/positional on fixed qty for 6 months to come out of psychological issues, then started with full qty !!!
Bottomline :Many learners will not come out from this notion that successful traders don’t come to forum (off course many successful traders never visit forum at large), or they never share there trading system,so don’t try to convince any body, share ,learn & earn from forum !!!
.. I have accepted this very nature but after wasting long time
,which made my self ignore my research in swing/positional ,but later realized that and started swing/positional on fixed qty for 6 months to come out of psychological issues, then started with full qty !!!Bottomline :Many learners will not come out from this notion that successful traders don’t come to forum (off course many successful traders never visit forum at large), or they never share there trading system,so don’t try to convince any body, share ,learn & earn from forum !!!
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Trading system completes when it has positive expectancy,next leg is to follow it,without any errors.
Market direction is divided into trending days and non trending days,trend trader earns max in trend days and loses in non trend days
So, what he has to do, try to earn in non trending days or avoid those days,first option does not work,since market will be much shallow in the move,but can do second one,MP given me great advantage in that avoiding mechanism
varun obv with my tweaks added to MP ,this given edge in days when open makes 80 % rule (MP terminology) now intraday system formidable (Don’t send PM’s every thing was updated in the forum)
Swing/positional had no issues…what I need is to follow all three(intra/swing/positional) consistently
Always remember consistence,
All highly successful people, all professionals that operate at the top of their fields—the masters—are all consistent.
They do it at the same time, the same pitch, with the same level of enthusiasm over and over again. This is an incredible truth about all successful people.
The one thing that I see in people that want to be successful is that they go for 2 or 3 days and then they stop. Consistency builds discipline, disciplined actions done consistently create success.
A consistent approach starts with getting consistent in your day-to-day operations. If a particular approach doesn't work and you keep changing it, then you’ll think nothing works. Come up with an approach and be consistent with it until you’re sure which parts of it don’t work.
If you are not consistence,game is over
Market direction is divided into trending days and non trending days,trend trader earns max in trend days and loses in non trend days
So, what he has to do, try to earn in non trending days or avoid those days,first option does not work,since market will be much shallow in the move,but can do second one,MP given me great advantage in that avoiding mechanism
varun obv with my tweaks added to MP ,this given edge in days when open makes 80 % rule (MP terminology) now intraday system formidable (Don’t send PM’s every thing was updated in the forum)
Swing/positional had no issues…what I need is to follow all three(intra/swing/positional) consistently
Always remember consistence,
All highly successful people, all professionals that operate at the top of their fields—the masters—are all consistent.
They do it at the same time, the same pitch, with the same level of enthusiasm over and over again. This is an incredible truth about all successful people.
The one thing that I see in people that want to be successful is that they go for 2 or 3 days and then they stop. Consistency builds discipline, disciplined actions done consistently create success.
A consistent approach starts with getting consistent in your day-to-day operations. If a particular approach doesn't work and you keep changing it, then you’ll think nothing works. Come up with an approach and be consistent with it until you’re sure which parts of it don’t work.
If you are not consistence,game is over
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