Friday, January 07, 2011
1/7/11 Epic week 1
The year of EPIC. Week 1.
The year of epic is this year and it means that I take my daytrading specifically to a new level of perfection. I have been profitable with other types of trading for years but daytrading has befuddeled me. Not anymore. I have cracked the mental issues.. and there were many I am sad to say. Not saying there won't be more but I finally fee as though I am to the point to understanding the CORE issues that have been holding me back and concouring those issues!
When I look at my mistakes from Tues and today... it should have been more like $2500 but I traded Tues and Wed without mistakes. Mistakes today were mostly from announcement and me getting greedy! Still... I will take $1000 and be VERY happy.
I pulled $2500 out of market for Dec. Already $1000 for Jan with a lot more time ahead and better trading habits. I know I will double my Dec results with ease.
I'm batting about 50% Q (quality or efficiency from perfect trading) Dec was only about 25% Q so I am making huge strides forward. Most of the issues were just me finding a system I believe in and was able to psychologically trade... it had to fit me. This stupidly simple system fits me very well.... not sure what says about me but.... I'll take stupid if it makes $$$$$$$$$
I have been doing a lot of work with another trader. We talk a few times a week for accountability. We really hit home on something yesterday that has defined in one word the reason why we have both struggled and have both made huge strides in becoming profitable.
Courage.
Let me define it as I use it. I am a huge WWII buff... and have watched and read volumes on it. Band of Brothers is reviewed annually if not more. That's very hard with kids! One thing you will hear repeatedly by those Hero's and Hero's by classic definition when asked weren't you scared when you ran across the field to get so an so and drag him back to the fox hole, or weren't you scared when you rushed the machine gun nest to take them out, or weren't you scared when you etc..... You get the point. What is ALWAYS the same answer? It's this: "Hell yeah I was scared! But I had to do what I did because it was the right thing to do and I was suppose to do it in SPITE of the FEAR."
After 3 losing trades in a row how scared am I to take the 4th... the one that makes it all back and then some? Heck yeah I'm scared... but I have been taking those trades more and more because my backtesting says that if I don't then I lose money. Tell me something I don't know! I'm scared to take the 3rd winning trade in a row because I know the loser is out there. Hell I'm scared just put on a trade period! OK, well not that scared but you get the point. The more I trade this system the more I own it and I am willing to take the next trade to stay in that stream of reproducible flow of profits (a different entry in itself). The more I trade it the more I know how it acts under any and all conditions. The more I trade it the more FAITH I have that it does make $ over time. Steve nailed this concept about faith.
He says to me one day that he always thought that the fear would go away and that great traders don't feel the fear. I told him the story that great traders still feel the fear, but still trade the system anyway. The fear doesn't go away... at least not completely. Then he comes back to me weeks later and says to me...."I think I understand that the fear doesn't go away, but as your faith grows it becomes larger than fear and allows you to trade the system as it grows even if the fear doesn't go away!" I had never thought of it that way but he is right. He NAILED it! FAITH overcomes fear.
Courage in life: Doing what you know is right despite the consequences and having the faith to do it anyway.
Courage in trading: Following your plan despite the consequences and having the faith to do it anyway.
If there is ONE reason for me performing better, THIS is it. Courage.
The year of epic is this year and it means that I take my daytrading specifically to a new level of perfection. I have been profitable with other types of trading for years but daytrading has befuddeled me. Not anymore. I have cracked the mental issues.. and there were many I am sad to say. Not saying there won't be more but I finally fee as though I am to the point to understanding the CORE issues that have been holding me back and concouring those issues!
When I look at my mistakes from Tues and today... it should have been more like $2500 but I traded Tues and Wed without mistakes. Mistakes today were mostly from announcement and me getting greedy! Still... I will take $1000 and be VERY happy.
I pulled $2500 out of market for Dec. Already $1000 for Jan with a lot more time ahead and better trading habits. I know I will double my Dec results with ease.
I'm batting about 50% Q (quality or efficiency from perfect trading) Dec was only about 25% Q so I am making huge strides forward. Most of the issues were just me finding a system I believe in and was able to psychologically trade... it had to fit me. This stupidly simple system fits me very well.... not sure what says about me but.... I'll take stupid if it makes $$$$$$$$$
I have been doing a lot of work with another trader. We talk a few times a week for accountability. We really hit home on something yesterday that has defined in one word the reason why we have both struggled and have both made huge strides in becoming profitable.
Courage.
Let me define it as I use it. I am a huge WWII buff... and have watched and read volumes on it. Band of Brothers is reviewed annually if not more. That's very hard with kids! One thing you will hear repeatedly by those Hero's and Hero's by classic definition when asked weren't you scared when you ran across the field to get so an so and drag him back to the fox hole, or weren't you scared when you rushed the machine gun nest to take them out, or weren't you scared when you etc..... You get the point. What is ALWAYS the same answer? It's this: "Hell yeah I was scared! But I had to do what I did because it was the right thing to do and I was suppose to do it in SPITE of the FEAR."
After 3 losing trades in a row how scared am I to take the 4th... the one that makes it all back and then some? Heck yeah I'm scared... but I have been taking those trades more and more because my backtesting says that if I don't then I lose money. Tell me something I don't know! I'm scared to take the 3rd winning trade in a row because I know the loser is out there. Hell I'm scared just put on a trade period! OK, well not that scared but you get the point. The more I trade this system the more I own it and I am willing to take the next trade to stay in that stream of reproducible flow of profits (a different entry in itself). The more I trade it the more I know how it acts under any and all conditions. The more I trade it the more FAITH I have that it does make $ over time. Steve nailed this concept about faith.
He says to me one day that he always thought that the fear would go away and that great traders don't feel the fear. I told him the story that great traders still feel the fear, but still trade the system anyway. The fear doesn't go away... at least not completely. Then he comes back to me weeks later and says to me...."I think I understand that the fear doesn't go away, but as your faith grows it becomes larger than fear and allows you to trade the system as it grows even if the fear doesn't go away!" I had never thought of it that way but he is right. He NAILED it! FAITH overcomes fear.
Courage in life: Doing what you know is right despite the consequences and having the faith to do it anyway.
Courage in trading: Following your plan despite the consequences and having the faith to do it anyway.
If there is ONE reason for me performing better, THIS is it. Courage.
