Wednesday, December 28, 2005
12/28/05 Ryan Jones lesson 1 Homework
(editors note: As I've been working through his seminar titled "The Self Destructive Trader" I have seen multiple opportunities to go back and add/revise some of the post. I will try to put notes next to those changes since I think there is something to learn about the changes I've made to passed assignments.... especially this one regarding what needs to be fixed. I will keep all of this series titled "Ryan Jones Lesson X Homework" for ease of reference. Trader X)
I haven't been trading much as I've been getting ready for trading next year. I have to finish developing my trading plan and I've been finishing up some seminars and other material to further hone my skills. Along those lines Enrico and I have started a quest to record Foosers trades and then manually put them on charts so that we may learn more about his style and learn to better emulate him while we have this opportunity. This week is a week of practice in our recording methods and spreadsheets. Not much else to report there. Now on to Ryan Jones....
Several months ago I bought a seminar titled the self destructive trader... which clearly I am at times. In fact it's those few times that I have done the most destruction that I plan on eliminating. This course is 9 hours long and very easy to listen to in the car, which I've done. The problem is that there is homework involved and I didn't do it the first time, since I wouldn't stop and write it down. Of course if you don't do the homework then you really don't get as much out of the program as you would if you did it. He states in the first hour that this program can change your life but for most people it won't. Why, because they fail to apply the effort to change the things that need to be changed, whether diets, relationships, or trading. I hate to fail even worse I hate to lose money and I'm not afraid of hard work so I will do it. I have taken the challenge of doing the homework the second time through the program. This is my first assignment.
There are 4 steps to the first part of this seminar.
1. You have to admit that changes need to be made. Simple right. If you don't make changes then nothing will change and your same behavior will continue to destruct you. You are still on the path to self-destruction.
2. You have to commit yourself to making that change. Energy will have to be exerted and continually be exerted or you will go back to the path of self-destruction.
3. You must achieve and maintain accountability to someone. I think I might pick Rock Salt and Enrico for this.
4. Before you can make changes you need to know what needs to be changed.... which is the reason for this post.
List my failures in trading and in my personal life is my homework. My personal failings will not be aired here, but I will do that in my private notebook since it is part of this exercise...beside, I don't think I can type that much!
Trading failures are many, but only a few that are devastating.
1. (This was not part of this original not but this concept occured to me as I was listening to RJ's second hour of the seminar. The idea hit me so hard that I felt it really should have been number 1 on this list because as I think about this I began to realize it's when I do this behavior that it can trigger most of the issues listed below. So, while this wasn't on the original list it will be listed as item 1 and all others were move down on notch.)
Trading against the trend is still my natural tendency. Yes, I still have a tendency to try to pick tops and bottoms. In fact, the main reason why I've been profitable under foos is that he usually doesn't do that. I've still notice in the last week even though I haven't been trading much that when I have not been following Foos, and doing my own thing that I've started to lose again. This brings on the obvious connection.
Trade against the trend. Lose money. Get pissed. Revenge trade. Simple right? I think I learned something here... I guess that is the point.
2.Revenge trading after a loss to get even. I've discussed this before and still need to work on this everyday as I did have one more incidence of this recently... my last bad posting in fact was partially caused by this. Increasing size to make up a loss isn't smart...eventually I will figure this out or blow myself up trying.
3. Over trading... I don't just mean doing 50 trades in a day but trading too large a size as well as doing more trades than I should in an effort to make up for losses.
4. Trading Plan. I need to develop a simple flow chart in order to help develop a plan. For example, if making HH's and HL's and the trin is sloping down and the P/C is below .75 and the ticks are largely + then I need to develop a plan to take long trades. Simple but I need to develop one and refer to it often!
5. I need to do more prep work afterhours. Recording Foos trades will help this as I need to get back to printing nightly charts and then drawing on them things I see. I haven't done this in a month and this will have to change in the new year. I also need to mock trade more on ensign if nothing else. Especially after I deconstruct Foosers style
6. Concentration on trading plan once I have one developed.
OK, that is my 6 worst offenders as I see them at this moment. That is my homework.
Trader X
I haven't been trading much as I've been getting ready for trading next year. I have to finish developing my trading plan and I've been finishing up some seminars and other material to further hone my skills. Along those lines Enrico and I have started a quest to record Foosers trades and then manually put them on charts so that we may learn more about his style and learn to better emulate him while we have this opportunity. This week is a week of practice in our recording methods and spreadsheets. Not much else to report there. Now on to Ryan Jones....
Several months ago I bought a seminar titled the self destructive trader... which clearly I am at times. In fact it's those few times that I have done the most destruction that I plan on eliminating. This course is 9 hours long and very easy to listen to in the car, which I've done. The problem is that there is homework involved and I didn't do it the first time, since I wouldn't stop and write it down. Of course if you don't do the homework then you really don't get as much out of the program as you would if you did it. He states in the first hour that this program can change your life but for most people it won't. Why, because they fail to apply the effort to change the things that need to be changed, whether diets, relationships, or trading. I hate to fail even worse I hate to lose money and I'm not afraid of hard work so I will do it. I have taken the challenge of doing the homework the second time through the program. This is my first assignment.
There are 4 steps to the first part of this seminar.
1. You have to admit that changes need to be made. Simple right. If you don't make changes then nothing will change and your same behavior will continue to destruct you. You are still on the path to self-destruction.
2. You have to commit yourself to making that change. Energy will have to be exerted and continually be exerted or you will go back to the path of self-destruction.
3. You must achieve and maintain accountability to someone. I think I might pick Rock Salt and Enrico for this.
4. Before you can make changes you need to know what needs to be changed.... which is the reason for this post.
List my failures in trading and in my personal life is my homework. My personal failings will not be aired here, but I will do that in my private notebook since it is part of this exercise...beside, I don't think I can type that much!
Trading failures are many, but only a few that are devastating.
1. (This was not part of this original not but this concept occured to me as I was listening to RJ's second hour of the seminar. The idea hit me so hard that I felt it really should have been number 1 on this list because as I think about this I began to realize it's when I do this behavior that it can trigger most of the issues listed below. So, while this wasn't on the original list it will be listed as item 1 and all others were move down on notch.)
Trading against the trend is still my natural tendency. Yes, I still have a tendency to try to pick tops and bottoms. In fact, the main reason why I've been profitable under foos is that he usually doesn't do that. I've still notice in the last week even though I haven't been trading much that when I have not been following Foos, and doing my own thing that I've started to lose again. This brings on the obvious connection.
Trade against the trend. Lose money. Get pissed. Revenge trade. Simple right? I think I learned something here... I guess that is the point.
2.Revenge trading after a loss to get even. I've discussed this before and still need to work on this everyday as I did have one more incidence of this recently... my last bad posting in fact was partially caused by this. Increasing size to make up a loss isn't smart...eventually I will figure this out or blow myself up trying.
3. Over trading... I don't just mean doing 50 trades in a day but trading too large a size as well as doing more trades than I should in an effort to make up for losses.
4. Trading Plan. I need to develop a simple flow chart in order to help develop a plan. For example, if making HH's and HL's and the trin is sloping down and the P/C is below .75 and the ticks are largely + then I need to develop a plan to take long trades. Simple but I need to develop one and refer to it often!
5. I need to do more prep work afterhours. Recording Foos trades will help this as I need to get back to printing nightly charts and then drawing on them things I see. I haven't done this in a month and this will have to change in the new year. I also need to mock trade more on ensign if nothing else. Especially after I deconstruct Foosers style
6. Concentration on trading plan once I have one developed.
OK, that is my 6 worst offenders as I see them at this moment. That is my homework.
Trader X
