Learn How To Fish
- Thread starter VJAY
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Nice writeup from linkon....
DISCIPLINE is defined as "the practice of training people to obey rules or a code of behaviour, using punishment to correct disobedience". No one does that better than the Market.
No matter how long one is trading, market will slap you hard the moment you develop disobedience. Even worse is, it will reward you for your first few acts of indiscipline and then it will pummel you to the ground and force you correct your ways and learn to respect the randomness of the market.
Keyword here is Randomness. Some days markets and your system wont sync. It appears as if, market is waiting for you to put your stoploss order and then it will take it out. You dont put in a stoploss and it will work for some time and then it will eat away your profit for the last few days in a single trade.
Even the most seasoned of traders have similar stories. That because we are playing with probabilities. Its a law of average game. Some days my system will sync well with the market and I end the day early happy that i made my target for the day. Some days when the system doesnt sync, I end up fighting the market and loose 3-4 days of profit in that single day.
There is so much to learn about how to mentally cope with trading as a profession. And i am still learning....
This is way its important to constantly back test your system with bar replay. This gives us the confidence to stay with a system even when its failing. There is information flowing all the time. Views are shared on various forums and channels that might encourage you to find reasons to support that bias in the charts. Charts have a wonderful way of looking different when looked under a different time frame or under a different system.
Basically our eyes see what it wants to see and that is why discipline needs to be ingrained into the trading psyche. The more we back test, the more willpower we will develop to learn to ignore the information overflow and stick to what we know works.
DISCIPLINE is defined as "the practice of training people to obey rules or a code of behaviour, using punishment to correct disobedience". No one does that better than the Market.
No matter how long one is trading, market will slap you hard the moment you develop disobedience. Even worse is, it will reward you for your first few acts of indiscipline and then it will pummel you to the ground and force you correct your ways and learn to respect the randomness of the market.
Keyword here is Randomness. Some days markets and your system wont sync. It appears as if, market is waiting for you to put your stoploss order and then it will take it out. You dont put in a stoploss and it will work for some time and then it will eat away your profit for the last few days in a single trade.
Even the most seasoned of traders have similar stories. That because we are playing with probabilities. Its a law of average game. Some days my system will sync well with the market and I end the day early happy that i made my target for the day. Some days when the system doesnt sync, I end up fighting the market and loose 3-4 days of profit in that single day.
There is so much to learn about how to mentally cope with trading as a profession. And i am still learning....
This is way its important to constantly back test your system with bar replay. This gives us the confidence to stay with a system even when its failing. There is information flowing all the time. Views are shared on various forums and channels that might encourage you to find reasons to support that bias in the charts. Charts have a wonderful way of looking different when looked under a different time frame or under a different system.
Basically our eyes see what it wants to see and that is why discipline needs to be ingrained into the trading psyche. The more we back test, the more willpower we will develop to learn to ignore the information overflow and stick to what we know works.
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