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  1. #1
    Active Member

    Trigger Happy Fool !!!

    Hello all,

    Have to say that since I have started trading about 2 weeks ago my biggest challenge has been patience. It has gotten better than before, where I would hit a call or put every other minute whenever I saw a potential opportunity. I actually quadrupled my balance at one point, but almost wiped out before hitting the brakes.

    Foolish.. So foolish, I know.

    It's just that when I recognize a bullish trend for example, I get the strongest urge ever to call when it drops below a recent support. As it continues to drop below supports I then want to call again, and again. But now I don't do that as much, as it's proven to be too risky and I end up missing out on better trades when I hit stop loss.

    Today, I've been executing strong restraint. I see it drop below a support I make myself wait. But then it gets frustrating when it goes back up and I would have been In the money!

    So it's really tough.. is what I'm saying. I've made some HUGE MISTAKES. But I'm trying to learn. Read through the school stuff as well. I have been breaking even mostly over the past few days.

  2. #2
    Veteran Member Optionguy's Avatar
    Selecting your trades is the best a trader can do. It tests your patience, but we are not in the market for an emotional ride. Emotional ride will be anyway, but we will be able to handle that if we stick to our trading plan and system.

  3. #3
    Legendry Member Okane's Avatar
    Hi!
    "when I recognize a bullish trend"
    How do you recognize a trend?

    1. What are your rules for defining what the current trend is?

    2. After trend confirmation, what validates your precise entry?

    3. What are your expiry rules?

    If you can't answer all of the above you should stop
    trading with real money for a while.

  4. #4
    Active Member
    Quote Originally Posted by Okane View Post
    Hi!
    "when I recognize a bullish trend"
    How do you recognize a trend?

    1. What are your rules for defining what the current trend is?

    2. After trend confirmation, what validates your precise entry?

    3. What are your expiry rules?

    If you can't answer all of the above you should stop
    trading with real money for a while.
    That's a great answer.

    1. I look at the M1, M5, M15, M30, H1, etc on MT4 to establish the current trend, I also check the news.

    2. This one I think must be learned with practice, and honestly with fake money it's not the same. I have been using 1-2-3 method with success, and using the pinochio method as well with success, and using the average lows or highs for past few hours as entry points as well. I've done well over 1000 trades in the past weeks, and over 100k in volume already, so yea, my biggest problem is over trading. I have been a trigger happy fool!!! But like I said, am showing MUCH more restraint now, this week been doing roughly 10 trades per day or so.

    3. I like to expiry in one hour.


    Like I said, I'm actually doing much better than before, the problem is still #2, but that can't be learned with fake money, at least not for me! I need to comprehend the risk with every cell of my being and delve deep into the psychology of trading to get this right. I could be wrong, of course, but I am doing better. Would like to do better than I am doing now of course!
    Last edited by tonechild; 04-04-2014 at 03:14 AM.

  5. #5
    Legendry Member Okane's Avatar
    Okay, here is what I have to say.

    Well, first you say that you take too many trades and end up almost wiping out your account,
    but then you say you took thousands of trades in just a few weeks and made lots of volume.
    Volume doesn't necessary mean you are doing the right thing, especially on the demo.
    I have had days with up to 12 winning trades in a row simply because the situations I was looking for
    were all according to my strategy, but then I've had entire weeks with only 1 trade that ended up OTM.
    What I'm trying to say is that the numbers of trades taken should not really matter - even though statistically more trades mean more losses.
    However, I can't believe that a good strategy with at least 3 solid rules that must ALL be valid in tandem
    generates over thousands of trades in just a few weeks.

    Perhaps you don't wait for all of the rules to be fulfilled before you enter trades - even though you understand the exact rules?
    The fact that you are taking fewer trades now is probably because you now wait for ALL of the rules to be true before
    entering trades instead of trading based on hope.

    If your strategy shows you a great opportunity and fulfills ALL of your rules then you trade, if not, you don't!
    Even if you go a whole week without a trade.
    If it gives too many false signals then you need to apply the necessary changes to decrease the fake outs.

    Correct, demo-trading has its limits, at some point you have to give it up.

  6. #6
    Active Member
    Quote Originally Posted by Okane View Post
    Okay, here is what I have to say.

    Well, first you say that you take too many trades and end up almost wiping out your account,
    but then you say you took thousands of trades in just a few weeks and made lots of volume.
    Volume doesn't necessary mean you are doing the right thing, especially on the demo.
    I have had days with up to 12 winning trades in a row simply because the situations I was looking for
    were all according to my strategy, but then I've had entire weeks with only 1 trade that ended up OTM.
    What I'm trying to say is that the numbers of trades taken should not really matter - even though statistically more trades mean more losses.
    However, I can't believe that a good strategy with at least 3 solid rules that must ALL be valid in tandem
    generates over thousands of trades in just a few weeks.

    Perhaps you don't wait for all of the rules to be fulfilled before you enter trades - even though you understand the exact rules?
    The fact that you are taking fewer trades now is probably because you now wait for ALL of the rules to be true before
    entering trades instead of trading based on hope.

    If your strategy shows you a great opportunity and fulfills ALL of your rules then you trade, if not, you don't!
    Even if you go a whole week without a trade.
    If it gives too many false signals then you need to apply the necessary changes to decrease the fake outs.

    Correct, demo-trading has its limits, at some point you have to give it up.
    Everything you are saying is 100% right. I over-traded, and simply because I struggle with the discipline to folllow the rules 100%. Keep in mind, I have not used demo money, I am using real money, and I have lost a lot of real money in the beginning.. I OVER TRADED, but have slowly been getting it back because I have been waiting a lot more. When I talked about my insanely high volume, I was not bragging nor implying it was a good thing. I'm trying to drive down the point that I over-traded, this post is all about my over-trading problem. The psychology of this has been my biggest challenge but it is getting better for sure.

    I am going to go for the MACD strategy, and going to be more patient. Thanks for your help.

    I'm just cautious about strategies with rules. I am NOT saying I know better, but I am saying that it is hard for me to believe a strategy works just because someone says it does. There's a lot of strategy scammers out there.

  7. #7
    Legendry Member Okane's Avatar
    No, I'm not saying that ALL strategies with rules work because the creator of the strategy says it does.
    I'm saying that each strategy has certain rules for a reason (at least the legit and recommended ones),
    the rules are there to minimize the losses because we are dealing with probabilities in the world of trading.
    Even if a strategy works for someone it does not mean that it will work for you and me.
    Traders interpret the charts in different ways based on their own level of experience and what their indicators tells them.
    When you become skilled enough, you will apply your own skills in addition to the strategy you like and hence
    benefit the max from that strategy which will result in a higher success rate.

    Ok, sound to me that you already know why you've failed and that's really good!
    One advice is that you analyze every win and every loss, try and write down step by step why you took that certain trade.
    Were the reasons convincing enough? How much confirmation did you get? You get the point. I can promise you this will help.
    Good luck!

  8. #8
    Active Member
    Quote Originally Posted by Okane View Post
    Ok, sound to me that you already know why you've failed and that's really good!
    One advice is that you analyze every win and every loss, try and write down step by step why you took that certain trade.
    Were the reasons convincing enough? How much confirmation did you get? You get the point. I can promise you this will help.
    Good luck!

    Thank you that is really good advice. So far I am seeing today, using the new MACD, that I have entered too early twice today(meaning it LOOKED like it was going to the rules but I should have waited for the candle to close to be sure so I was OTM), in addition I accidentally didn't take a look at the EMA at the top on another trade. Overall, I just love this stuff. Using THIS MACD strat works a lot better, but now finding myself watching chart for hours in anticipation haha

  9. #9
    Legendry Member Okane's Avatar
    Quote Originally Posted by tonechild View Post
    Thank you that is really good advice. So far I am seeing today, using the new MACD, that I have entered too early twice today(meaning it LOOKED like it was going to the rules but I should have waited for the candle to close to be sure so I was OTM), in addition I accidentally didn't take a look at the EMA at the top on another trade. Overall, I just love this stuff. Using THIS MACD strat works a lot better, but now finding myself watching chart for hours in anticipation haha
    Happy to help.
    Monitoring the charts for hours will make you a better trader, you will learn how the
    candlesticks interact and how price action works just by looking at the charts. While you are waiting for the trade opportunity
    use the time to draw support and resistance lines (if you don't already) till it becomes a habit.
    This will help you a lot later on.

    Yeah I make mistakes like that too, if you read my diary you will probably laugh at
    the silly mistakes I've made in the pats... and still do sometimes. For example: trading the wrong pair... 3 times.

  10. #10
    Specialist Member runneroption's Avatar
    Looking full time charts is a great way to learn. However if you are not patient enough to not trade all that time but to select only few very precise moments you will not succeed to become good trader. It is only the combination between persistence and patience that can lead you to new trading frontiers.

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