miketranz
961 posts
msg #63748
- Ignore miketranz |
6/15/2008 11:08:58 PM
1)Lack of a well defined plan. 2)Failure to follow your plan,if you even have one.3)Lack of discipline,without this one you'll never make money in the markets.4)Trading for action,not for extraction.If your looking for action,go to Vegas,at least they comp the losers.5)Greed.6)Failure to take small losses.7)Failure to set stops.8)Being on the wrong side of the market.9) Failure to trade the "right stocks" under accumulation.10)Picking bottoms or buying a stock you like because the price can't get any lower,trust me you'll be suprised just how low they can go.11)Failure to face reality in the markets.12)Failure to take action,to execute a trade.
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stocktrader
294 posts
msg #63753
- Ignore stocktrader |
6/15/2008 11:45:49 PM
All good stuff. Thanks.
I keep pumping mechanical systems to take care of these items. It is also challenging to follow a mechanical system and not cheat.
What I use is a SF short and long filter, each with automatic multi-column sorting (thanks TRO) in each, causing the ONE stock to trade in rising to the top. Each of the two filters are monitored each day for cumulative serial performance to determine short or long for that day (filter performance naturally fades in and out). Using semi-automation at the broker, a "single" order (MOO, STOP, MOC) is placed that includes position sizing and volatility correction.
This all sounds complicated, but only takes minutes each day to plan the trade, place the order, and walk away.
Entry, exit and stop. Human emotion is the enemy.
Trade well.
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miketranz
961 posts
msg #63778
- Ignore miketranz
modified |
6/16/2008 2:49:24 PM
True,human emotion is the enemy.Most people don't have the discipline to follow any system.Curtis Faith stated in "Way of the turtle",that all the students that traded under Richard Dennis were given the same instructions.His system worked if followed,but most could'nt hack it.The results and profit margins were different for each trader.Good read btw into the insights of system followers,and their beliefs.....
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stocktrader
294 posts
msg #63825
- Ignore stocktrader |
6/16/2008 9:46:34 PM
Thanks Mike. Interesting turtle story.
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miketranz
961 posts
msg #63826
- Ignore miketranz |
6/16/2008 9:48:31 PM
Your welcome.Now if I could only follow my own advice......
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stocktrader
294 posts
msg #63830
- Ignore stocktrader
modified |
6/16/2008 10:26:54 PM
lol. It took me a year+ to develop a successful mechanical system. I followed it 100% without cheating for 5 months and my account went up 125%. Then the market started to change and I continued to follow the system that had worked so well. I had learned to trust it. So, what I learned from this is that I needed two systems(long and short) and they both needed to be monitored for trend. Most people just follow an individual stock trend.....but, a filter also has a trend, or cycle.
One of the best ways I have personally found to stick with the mechanical system is to not look at the market during trading hours. Set the semi-automated orders the evening before the market opens. Doing this also makes a person "plan" the trade and reduces the human impulse to make an entry/exit when we know we should not. Like many, I lost count of the number of times I have entered into a trade knowing full well I should not.
So, you're not alone with struggling to following advice...lol
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Eman93
4,750 posts
msg #63832
- Ignore Eman93 |
6/16/2008 11:20:26 PM
You can get into that gambler mentality really fast, I just started trading about 2 months ago, I was having a bad day and just tried to grab a winner on the way up; it just made a bad day worse.
What I learned from that is to always analyze your trade, don’t jump in just because it heading up, look at the chart, wait for conformation, then enter the trade.
I have been to a few seminars and read a few books, knowledge is 70% of the battle, 25% is execution and 5% luck. It’s like anything in life, hard work and perseverance is rewarded, stupidity is quickly relieved of all their capital.
I picked up a new book Trade Chart Patterns Like the Pros by Suri Duddella, it is jam packed with good info. The book recommends that you know your entry and exit positions before you trade and it shows you how to derive those price points.
I am trying to understand the TRO way, or as much of it that I can understand at the moment. I can clearly see the advantages of trading in one stock, if you watch it and trade in it everyday, those support and resistance zones really jump out at you. You have to be patient and wait it out.
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stocktrader
294 posts
msg #63835
- Ignore stocktrader
modified |
6/16/2008 11:43:20 PM
"I just started trading about 2 months ago"
hold on tight, you're in for a ride :)
Sounds like you have a good head on your shoulders.
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miketranz
961 posts
msg #63867
- Ignore miketranz |
6/17/2008 9:29:53 AM
Eman,you're about to get an education.Come up with some kind of plan.Know where to enter and most important,know where to exit.Use small size to get a taste of real time trading.Always know your downside risk in dollar amounts that you can afford to lose,before you put on a position.When you enter a position,you want it to move in your direction at once.Place your entry where if you're wrong,you can get out fast and preserve capitol.Always set a hard stop right after you execute.Do what works for you in the markets.Good luck.Mike......
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azl12
1 posts
msg #64139
- Ignore azl12 |
6/21/2008 2:12:09 AM
I know a reaon that has failed me as I started to trade. Lack of real trading experience with execution with different order types. e.g. market, limit, stop orders.
Some times it's easy for me to get those orders confused then buying/selling at the wrong price.
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