DISCIPLINE WITH TRADING
Yesterday Globetrader added an interesting posting about discipline in trading. He compares it with stopping with chocolate. He used yesterdays holiday to investigate this aspect on his trading and studied the patterns when losing his discipline.
Some quotations made by him:
"You have an edge, you have your good winning streaks, but somehow the losers still take care of them and at the end of the month, at the end of the quarter you have retraced back to zero."
"Be it one or two exceptionell big losers, because everything you’ve learned the last few years goes overboard, in this moment, or be it a streak, where nothing you do seems to work, where you get signal after signal and they all get stopped out."
He admits to be in the first category:
"I’m in the first category, I blew it all in 1 or 2 exceptionell bad trades, sit there, look at me, tell me “oh shit Chris, you did it again”."
And:
"I know I can, I know I have an edge, I trust myself and I’m (usually) not trigger shy. But I have these whipsaw trades coming now and then, which take care of a good chunk of my profits."
I find this very brave to admit because I know he is true.
More about trading and discipline:
Some quotations made by him:
"You have an edge, you have your good winning streaks, but somehow the losers still take care of them and at the end of the month, at the end of the quarter you have retraced back to zero."
"Be it one or two exceptionell big losers, because everything you’ve learned the last few years goes overboard, in this moment, or be it a streak, where nothing you do seems to work, where you get signal after signal and they all get stopped out."
He admits to be in the first category:
"I’m in the first category, I blew it all in 1 or 2 exceptionell bad trades, sit there, look at me, tell me “oh shit Chris, you did it again”."
And:
"I know I can, I know I have an edge, I trust myself and I’m (usually) not trigger shy. But I have these whipsaw trades coming now and then, which take care of a good chunk of my profits."
I find this very brave to admit because I know he is true.
More about trading and discipline:
posted by Carlo Giuntoni at 9:28 PM
1 Comments:
i BELIEVE WHAT YOU HAVE WRITTEN IS TRUE 100%. MOST OF THE TIMES A FEW TRADES IMPACT BADLY YOUR PERFORMANCE. ON THE OTHER HAND USING STRICT STOP LOSSES DOES NOT ALLOW YOU TO BRING HOME PROFITS EVEN WHEN THE TRADE EVENTUALLY GOES IN YOUR DIRECTION. IT IS A BALANCE YOU HAVE TO FIND. I KNOW THIS WELL. AT THE MOMENT I HAVE AN OPEN TRADE THAT RISKS BEING A BLOOD BATH. HOWEVER, I AM NOT WILLING TO CLOSE IT. DISCIPLINE IS PROBABLY THE MOST DIFFICULT THING FOR A TRADER. IT IS IMPORTANT TO ME TO DECIDE A PLAN BEFORE A TRADE WHERE YOU EVALUATE THE RISK - REWARD RATIO OF THE TRADE AND THEN STICK TO THIS PLAN.
http://short-termtrading.blogspot.com/
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