Trading Around Equilibrium

** Just gonna non-stop talk **

Due to listening to Answerstocks vids, I got more acquainted with Superman and Triforce Trader. I went ahead and bought Trading around equilibrium as well as downloaded Trading in the Zone by Mark Douglas- as recommended by Matt Owens.

Overtrading

Already fixed last year july when i cut down from paper trading 30times in 1 day to 5times a day to 5 times a week. I'm currently under the PDT which forces me to really choose only the ideal setups to play. LX21's Star rating system is also being utilized. Whenever i get the urge to trade something that is NOT a play/pattern.. I walk away from the computer, i've also been using Syke's preferred hours of trading.. 2pm-4pm and never mid-day.. almost all my losses have been during mid-day. There will be plays during mid-day but it's a diminishing return effect for all the work/mental effort put in to babysit the mid-day..

Overstrategizing

I've been learning so many different strategies which is beneficial since i'm starting to get a feel for all the different types of traders out there.. Momo traders, scalpers, day-traders, swing traders, shorters. The downside of this is (which i fell for a few weeks) is that there's so much noise/distraction that i fall in love with the different types of setups but never really excel in one. In the beginning i fell into overtrading, now i was falling into overstrategizing. I fixed this by really only focusing on trading one actual strategy at a time until i've gotten the hang of it..

So far i've only really traded overnight longs Force/Survival patterns which i'm almost comfortable with, I just have to be very careful in making sure I clearly know what the catalyst that's moving it to minimize any catastrophic news overnight.. Preferably, i'll be in a stock overnight anticipating a gap-up. The only time i will attempt to "chase" a stock in the open is if it exhibits an F1/F2 pattern and there's was a favorable price action/volume AH/Pre-market.

As much as i want to be able to short, i really wanna excel swing trading overnight/going long in the open before i do any sort of shorting.

Over-TechnicalAnalysizing

Last time i had blogged about the different types of moving analysis/indicators/oscillators/etc. and the calculations that go with them. I loooove this part of trading, the math side of it. At one point i was getting overwhelmed with the need to keep learning more and more technical analysis but there's always this one thought in my head that keeps me grounded and away from being too much of an analyst. There are sooo many successful traders that aren't SME in technical analysis and only uses basic indicators such as support/resistances or none at all... 

Listening to trading in the zone by mark douglas reaffirms my belief that math/analysis is not the main requirement for being successful in trading. Falling in love with so many indicators again, just like overstrategizing, distracts my focus on the real problem at hand which is dealing with emotions. As long i don't fall for over-technicalanalysizing.. (lol anal-sizing).. I can reap the benefits/advantages of what the different indicators can give me.

Currently i've toned down to using:

9EMA+9SMA+9MAW

 I use all 3 and look at the combined range all 3 comprises as a cloud in conjunction with possible support/resistance levels to try to find the "true" support/resistance level.

RSI

Love using this just to give me a heads up on whether it's oversold or overbought.

MACD

Still trying to find a good use to this. Same with the Moving averages, these are NOT 100% buy/sell signals for me since they are lagging averages. I just use these to confirm the trend i'm looking at and possible reversals. I'm using arrows on the actual chart to show crossovers.

Hulls moving average

----- Really cool on how it hugs the price very very well, I don't like it one bit since it overcompensates at the beginning which doesn't fit with my current strategies very well. Hugs the price so well that it cuts into the candlesticks forming no reliable support/resistance levels. **One thing i noticed though.. The calculation is pretty complex relative to everything else i've used so far.. but somewhere in there *Too lazy to find it*, it shows a the reversal of the trend fastest than anything else i've seen on a lagging indicator.. will NEVER use this as to initiate a trade but i'm keeping close watch/backtesting to see how reliable it is to anticipate reversals.. It might be a false reversal but if i'm already profitable in a stock--- i'll be utilizing this to lock-in part of my profits..

VWAP

----- Cool, but i really haven't played around with it much to see how it fits with my strategy

<3 <3 <3 <3

Fell in love with this chart and stared at it for almost 20mins. Basically, i realized that decades ago.. before there was computers, traders only had charts to look at.. Looking at this chart alone, i can see the trend patterns/changes.. I can see how the calculations are made and basically how a computer crunches the numbers to form a lines/graphs/charts that modern traders take for granted on a GUI/Trading Platform.

Currently on my to-do-list to master:

Ichimoku Cloud

I really feel like this is going to be my end-game indicator. For this year, since i have a small account, i'll be sticking to my other indicators and the simple trade the ticker and not the company strategy. As soon as my account gets bigger however, I know that the big fund managers use little to almost no technical analysis at all (*Martin Shkreli quote*) and puts alot more weight on fundamental analysis. This type of trading will be reserved in the future once my account grows but for now it's really cool to learn how Matt Owens/Superman's trading style/mentality is going to be. I can easily tell right now that i will eventually evolve my trading since i naturally feel more comfortable with the way they trade. Trading the ticker works but eventually, it will come to a point that it'll have its limits. Of course i do realize that there are successful traders that are millionaires just trading the ticker which i will very well take advantage of their strategies, but eventually, i will be using a mix of both fundamental analysis/technical analysis in my trades.

Mentality

Theoretically, I can have a 95% winning rate strategy utilizing the most accurate/precise indicators and still be an unsuccessful trader if i don't manage my emotions well. One by one i've been isolating each emotion as soon as i meet him/her in my trades and really really do some deep thinking on how to overcome them from interfering with my trading.

Pride- The first problem i ran into in and what i believe is solely the biggest reason why most traders fail to be profitable. The reluctance of people to swallow their pride and admit their mistakes is nasty news. I've learned quick with the #1 rule: cut losses quickly.. I've really swallowed my pride alot in my life sacrificing things that i emotionally wanted for things i logically needed. Hi, My name's Ken and i'm a trader (mimicking AA introductions)... WHILE TRADING, I WILL LOSE MONEY AND I CANNOT CONTROL THAT FACT. BUT WHAT I CAN CONTROL IS HOW MUCH I LOSE. - KenLauren. 

Greed-  Funny i ran into this one, and thankfully hearing superman say "Lock-in profits/half-profits/some-profits" really defeats greed so fast.. The problem I had with greed was with trades that i'm already up let's say 800$, instead of locking in some profits.. the trade went south on me and i ended up having a loss of 100$.. That's pretty shitty when that happens to you. Sucks being under the PDT atm, but "No one ever went broke locking in profits !!!"- Superman . From then on, it's almost second nature for me to lock-in a portion of my shares when i am up. Also, going long.. once it's above my buy point... riding the 9 or 13 EMA til it breaks is a SOLID, SOLID EXIT Point for majority if not all of my position.

Fear- This is the current boss that i'm fighting this past 6weeks. I still haven't categorized it yet, but my last few trades i've been in have been solid setups/profitable but i took maybe at most 1/4 of my size... Possiblity is that i wasn't fully comfortable with the play i've been using Force/Survival pattern overnight into a spike. being unable to take my full size cut a huge chunk of what my gains where.. This type of fear i'm anticipating will go away as soon as i get more and more experience with the plays/trading.

A 2nd type of fear that i ran into before is also a very dangerous one. FOMO !!! The fear of missing out... Very very very very very very very very very dangerous... did i mention how dangerous this is? There's a few times i feel like it's acceptable to chase but i really have to weigh in using my indicators to lemme know if how far into the move i'll be chasing in and depending on the risk, i will NOT be using full size on chases. An even preferable adaptation to my trade to combat this fucker is that i've been setting actual entry price points and if i don't get my fill at that price, i just walk away from the computer... Eat shit FOMO !!