After blowing accounts and using so called dicretionary systems...I lost my peace of mind totally. Last year during the same time, after learning about many many more technical analysis tools including different MAs and MA crossovers, I adopted a system that was still discretionary. I was still getting whooped.
That was when I started to do meditation and cut down the discretionary part ruthlessly. It then occurred to me that the ground beneath my feet is not shaky anymore and I could stand and see properly and walk properly again before I can start running. Go completely mechanical if you want long term sustainability. Have a system in place even if it gives you a 30% to 40% only strike rate. Long term wise it will help you immensely.
I have done the following. I would suggest the same for you too. I hope they help you too:
- Zero in on a 2 to 3 rule based trading system- for each of your systems - i.e, intraday/ swing/ positional. My intraday system has only 2 rules. My swing system also has 2 rules only.
- If you are doing intraday, do not have more than 1 open position at any time. Remember that we are not Superman or Shaktimaan that we can multi-task. I was a cognitive neuroscience researcher & trust me when I say that multi-tasking is a myth and the greatest scam perpetrated upon us. Humans cannot multi-task. We can only do things sequentially. You might be a freak of nature and get things right initially or somewhere in between but you cannot get things right all the time if you multi-task. Still don't believe me? Study the empirical research for yourself.
- Be very strict with your entries and exits and do not have stupid things like early entry and early exits in place. There are no early or late exits. Just exits and entries. You either enter or you do not. Do not be in between.
- Maintain a trade journal and be brutally honest. Do not write any qualitative detail in it. The journal should be simple and should speak for itself.
