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72black
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I believe this is what should be posted. I have watched this before & highly recommend. It's in several sections. 1st: [ame=http://www.youtube.com/watch?v=ZtsB0pOscVM]ptj 1 - YouTube[/ame]
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Trading Account Management Discussion
72black replied to TheNegotiator's topic in Risk & Money Management
I use % rule, no more than 3% of account at any one time. So, if I perceive a trade to be highly probable (who knows that anyway? but it's in my rules) I will risk as much as 3% of account. But, for example, I may place 3 trades on so theoretically I could have 1% per position. To answer your question, MM controls my actions as should any trader. For example, when I first began trading I ran my account too low to trade so I withdrew my funds closed the account & reevaluated my trading short & long term systems & most of all myself. Once soughted I opened an account. Hope this answers your question. -
At the end of the day it's up to the individual. I have added to this discussion based on my own experiences & for me fiscal worry will have me see what I want to see & do perhaps what I should not. True some people find fiscal worry a motivator. I had many experiences with this as a mortgage broker, the most come work group for debt motivation was sales. In particular high end sales managers. Trading is a business & for me must be viewed separately from personal financial matters, I pay myself a % salary of capital earnings & care deeply about my personal money. I needed to separate my emotional attachment - it was a long road. Stepping away inside my mind was necessary for my trading business to move forward. Still a work in progress & will continue to be. As for hearing what goes on in the world I do not. I do exactly what my system tells me. I do not pay attention to commentators on TV, radio, news paper on the net or a friend with their worldly words of wisdom. If price action is below my trigger I short if price action is above my trigger I go long. Again this is what I had to do to step away emotionally. If anyone truly desires to succeed long term in any endevour the individual must adopt a mindset that works for them.
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Trading Account Management Discussion
72black replied to TheNegotiator's topic in Risk & Money Management
I believe most are looking for the magic not the reality. Facing the facts would errode the dream of placing positions while sipping a cocktale on tropical beach from the laptop. -
This I agree with. Our state of mind is in control of the trade. I personally struggled on shorter time frames due to the desire for action of a work like attitude where actions are rewarded with pay - as I discovered trading is anything but. Now I stand back and trade a longer time (day) which is producing returns I never thought possible as I follow the rules & do not outsmart my systems rules. Over my morning coffee I check positions (did prior to coming here) & look for new entries, correcting as necessary then close my platform. If I sit & stare at my charts my mind will envisage what it wants to see which is dangerous. I studied Van Tharp's Peak Performance (twice to date) & doing this course forced me to take real hard look at myself which not only benefited my trading but also my personal life & outlook. Or was that my personal outlook improved which resulted in better trading? I believe the latter is true. Having a clear mind set without worry over bills & payments due cannot be part of the mindset of trading as this can produce negative influence. I believe a successful trader has zero external influence. We mere humans are by nature hard wired to self protect & trading goes against our natural tendency to self protect as we expose all that we are; overcome this & you will prosper. Do exactly what the chart tells you to do & do not under any circumstances second guess.
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What is the Best Swing Trading Strategy?
72black replied to NYSEGOP's topic in Swing Trading and Position Trading
The best trading system is subjective as everyone is different & no two people will trade the identical system the same. Know yourself. Psychology is the largest component of any trading system. What works for one will not work for another. :boxing: Trial & error worked for me. -
Agree, recording actions but can be time consuming but when beginning it forces you to be honest with yourself ..... if you truly desire to be profitable. I found it reduced my sabotaging.
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I do the same. It's a terrific time keeper of my actions.
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Yep what ever works. I like the idea of keeping emotions in the laundry.
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Yes the battle comes from within, accepting losses are part of the business of trading & not to be dwelled upon. In addition the secret is keep the stop in place & not readjust. I shrug my shoulders & look for the next opportunity.
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A trader needs to find what works for them in order to succeed. When beginning it is especially important to record positions and thoughts as it provides a focal point which over time can become internal. Personally I find retaining records keeps me focused as it is an extension of my trading system without using my diary my day wouldn't feel complete. Much as a local store owner monitors and tracks their inventory, as a trader I do the same. It works for me.
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Mysticforex, what information do you keep in your log & what tool do you use? For example, do you record your trade type, instrument, amount of funds spent, your thoughts & emotions at the time?
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Why Traders Continue to Fail - When They Are Trying Hard Not to Lose
72black replied to Rande Howell's topic in Psychology
Great article & discussion that has followed. We live in an instant gratification society and expect the same of any endeavors we partake in our life time. When we go to a paid for time job (3 letter dirty word) at the end of the week we are paid for our time, whereas trading we can sit in front of the screen for a week only to not be rewarded. No action no pay. In the back of our minds we expect to be rewarded for time so I believe we envisage what we want to see and make a move to get a reward of time spent. :missy: This only part of what I experience daily in an attempt of detaching my emotions on the psychological roller coaster of trading. -
Hi all, new to Trader Laboratory though have visited often. Trading is a lonely business & as I'm sure we all have experienced drawdowns (some beyond belief!) but hey we live & learn. I have been at it for about 7 years with mixed success over about 3 years. For me I found day time frame works best, off TPO's, as sitting in front of the screen all day watching ticks was a little too much for me. It does take time to find what suits best. The more information & assistance we provide each other the greater chance we all have of succeeding.
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Retaining accurate records is of such a high importance it cannot be stressed enough. Exercising discipline is vital when implementing your trading system regardless of it being technical or fundamental, so too is the subject of Money Management which should include keeping a diary. Without following strict fiscal rules you are limiting your chances of survival long term. Disciplined sound money management rules should be written into your trading plan and clearly define what percentage of your account is available to risk per position and decide how many lots to buy, a diary should be able to assist with risk management. Keeping an accurate account of your trading activities has a positive effect on your psychology. You can view your past history to evaluate where to fine tune or implement a new trading system as trading is a business and should be treated as such. Much like a shop retains sales and inventory records so should a trader. A trading diary is a valuable tool to be used to aid the direction of your trading activities. Capital preservation is paramount to your long term survival; ignore at your own peril.