I got an email tonight from a brilliant-trader-in-the-making. He has made extraordinary progress in just the last few weeks. This was one of his big breakthroughs, and I want to share it with you. Here is what he wrote to me this evening:
Rob, I just wanted to let you know, I've heeded your advice about good and bad trading days and so far things are in the positive (Friday's trades kicked ass, btw). It's funny, but part of the problem I've had is wrapping my head around the idea that not every day is a good day to trade, which leads me to believe that realistically, I might only have 2 or 3 days a week that are optimal trading days. That's great and everything, but I'm used to being someone's slave working 12+ hour days at all hours of the day and night. Working only 2 or 3 days a week and making ungodly sums of money is just...weird. That would likely explain my "trading frenzy" the past few weeks. Now, I'm just chilling out (saying NO to crack) and waiting for the right trade or day to trade then stopping when I get a positive trade or I reach my pip goal.
I have nothing to add. That was pure genius.
Comments
Still nodding my head after reading this. After 12 months I think I'm really getting down to controlling the compulsion to trade that I think, dogs most of us. I used to put this compulsion down to greed. But for some time now I've thought that a lot of it is about 'conditioning' in that other life - the one outside our trading life. In that life it just seems wrong to do nothing - in our trading life more often than not the reverse is true. I must have learnt something from Rob. When I joined I was probably doing 8 or 10 trades a day and losing loads of money. Now I often don't do 8 trades a week and I'm consistently making money. Speaks for itself I think.
Posted by: Sid Wyemann | February 4, 2006 12:48 PM
Hi Rob,
I have just read your posting. It is exactly how I feel about trading. I can hardly tolerate when nothing happens, I am chasing the markets and take low probability trades. Fortunately, I trade only on a game account, so the damage is only virtual, but it still can hurt. One week I make 200 pips and think I have found the holy grail. The other week I give it all back plus some more.
Principally I know I should trade only on good days and avoid bad days. The trick is how to tell good trading days from bad ones? Obviously, good trending days bring the big bucks, choppy and small range days are detrimental. Any idea how to pick good days and avoid bad ones? Technical analysis tools I tried so far did not proved to be very reliable indicators.
Thanks Andras
Posted by: Andras | April 14, 2006 10:41 AM