ENDLESS WALTZ
** MY Recent NVDA Trade is the same thing that happened on my VNR Trade Dec 6.. I need to watch Pre-market action **
**** DECEMBER 18, 2016 **** 20161218 Entry
1st trade:
Positive news catalyst. Bought the GAP UP BUT did not have an F3 the prior day nor my usual profitable pre-market pattern. Should've waited for a sell-off then buy the bounce off previous day close/support. Bought AGAINST the trend and HOPED for a spike. Whipsawed me within 4 mins lost $1.22/share. DID NOT CUT LOSSES FAST ENOUGH and HOPED. DID NOT REALIZE it was NOT a GO-TO-SETUP !!
FUCKING CUT LOSSES BRUH !!
2nd Trade:
Saw that the best time to buy was NOW !! Bought the dip once trend change was confirmed. New indicator Heiken Aish diff showed trend change and took 60cent profits. The STRONGER trend MACD still showed a greater overall general upward trend. Stock went up for a further $1.3 and at least $1.10 til macd showed change of trend. GO-TO-SETUP
3rd Trade:
FOMO FUCKING MO !!.. I was pissed off at the 1st trade of the day and even more pissed when i took profits too early. I had NO DAY TRADES left so i said fuck it and bought at 15.3 completely chasing it and went to sleep. Woke up and the fucker hit 16 when rumours of a financing brought the fucking thing down to a LOD 14.5. Pre-market went as low as 13 point fcking 8. Sold my position at 14.3. Nerve fcking wrecking trade due to REVENGE TRADING.
REVENGE TRADING AT ITS FINEST !!
**** DECEMBER 20, 2016 **** 20161220 Entry
During My XGTI Trade, I noticed that the 1min TF failed while the 5min TF kept going strong.. What's going on?
I reviewed my AKAO trade once again....
Looking back now, I bought in when the longest time frame momentum have alrdy dried and has alrdy turned pre-market. The middle TF momentum has already turned and is AGAINST ME. The shortest TF has turned to the upside and is indicating a "SHORT-TERM" change in momentum. Not knowing the significance of how important the bigger TF's are. I entered the chart early not realizing the bigger TF are against me.
Something clicked that day and I knew I was on to something. I finally figured out what I was missing and the reason why some setups work and the same setup does NOT work at other times. This is exactly what I believe Sykes has a natural nack of through his years of experience without the need of indicators.. He is able to visualize the momentum at different timeframes. Catalyst > Price action Pattern > Where is the trend? ..
There are multiple trends going at once!!!! But the general big picture trend is stronger than the smaller TF trends. I must be able to see all trends at diff TF and make a good call on how strong the momentum really is. If all the planets line up, that's the best time to take a trade.
(This explains why a long in one time frame is a short in another.... It's like ripples in water or waves canceling each other out.. It's only 2D up and down in a slice of one time dimension, Humans quantify time into chunks.. But in reality, stocks are emotions/waves/vibrations that exist in MULTIPLE DIMENSIONS aka Time Frames... It makes so much sense now... support and resistances at specific prices are arbitrary price points that humans give value to but in reality doesn't mean shit.. Visualizing the trend/strength of the momentum is PARAMOUNT to see whether it'll have enough force to break people's support/resistance points.)
That right there is the recipe for the momo trader folks... Good Luck, Have Fun... 2017 is going to be my year...
**** DECEMBER 21, 2016 ****
Everytime I have a huge epiphany and boost into euphoria, I end up having a setback. Short comments specific to the actual trade today just because it's what led to the trade that was significant. The trade itself was nothing special, positive catalyst but not an ideal Go-To-Setup, F3 Pattern Pre-Market hours due to a News Catalyst of CALA collaborating with BMY (Bristol-Myers Squibb Company) on a evaluation of a cancer drug. Boredom from lack of plays yesterday as well as being physically drained from working nights/staying up after work to trade/not eating as well as I should/haven't been working out caused the worst ZOMBIE trade I've done.
I didn't set my risk, I didn't have profit targets, I chased blindly, I traded AGAINST the fckin trend. The worst part is that I finally made flash cards of my go-to-setups which I didn't bother utilizing. I didn't do my pre-trading checklist which the first question on there is to assess my physical/mental/emotional status prior to taking on trades. I felt like my mind wasn't functioning at all yet I somehow ended up being inside a trade that is not what I am used to, and a big size on top of that.
With the momo strategy refined now.. a good 70% of my losses comes NOT from the strategy, but with my LACK OF DISCIPLINE. This is an exerpt from my CALA Trade:
"I was in the trade for a total of 1 min and 12 secs !! Fckin' multiplied to an hour, I technically lost at a rate of $14,400/hour !! How much money am I going to let myself lose until this lesson hits me hard enough emotionally to change my habit/behaviour?" - The Undisciplined Trader aka Me
Goals for the next two weeks:
1) Create watchlists daily/develop patience and only trade what's on my WL > FOCUS only on Go-To-Setups
2) 100% compliance with pre-trading requirements prior to making the trade. If i stick to this plan = 0 ZOMBIE/REVENGE TRADES
3) Stop thinking about money and focus instead of making the right plays. The money will follow.
"Think of it this way, as traders, Our job is to be patient. Most of our time should be spent watching and waiting.” -LX21
"Aim Small, Miss Small." -T. Sykes
"No one ever went broke locking in profits !!!"- Superman
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Below are entries from April which I really should have paid more attention to... During the break from these entries and now. I have had to go through ALL the same mistakes/re-learn what it is that I alrdy had an idea of how to be consistent. Reading through these and this past month's trades. My conviction is FAR FAR stronger in sticking to know what is working and cut out the bad habits that are causing my losses.
APRIL 22, 2016
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..
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 !!
APRIL 26, 2016
Losses that result from self-sabotage can be just as damaging but they're usually more subtle in nature. Making errors like a sell for a buy, or vice versa. Or indulging yourself in some distracting activity at the most inappropriate time are typical examples of how traders make sure they don't win. Why wouldn't someone want to win? It's really not a question of what someone wants because i believe all traders want to win. Yet there are often conflicts about winning. Sometimes these conflicts are so powerful that we find our behavior is in direct conflict in what we want. These conflicts can stem from religious upbringing, work ethic or certain types of childhood trauma. If these conflicts exists, it means that your mental environment is not completely aligned with your goals...
APRIL 27, 2016
Closing Remarks/Immediate Goals:
Almost all my mistakes have NOT been because of the market but because of my inability to stay disciplined and stick to the rules my mentors and I have formed. The goal is to quell/defeat/ELIMINATE this enemy of mine that is being an undisciplined trader. Self-Sabotage is a bitch. So for the next 2-3weeks, I will ONLY be trading the 2 plays i've been successful with and papertrade using ORB 15-30minutes after the market open to get more experience with it. I will also try to control myself from a new term i've came up with, Zombie Trading =D... Trading when you are in mental functions are compromised, making sure i'm in good physical/mental health prior to market open as well as having done my homework and being well-prepared vs rushing to get to the market open.
For the next 4weeks:
1) Trade only the 2 setups i know
APRIL 28, 2016
It's funny that up to this point, most of my studying/learning had been focused on trying to KNOW the market, KNOW the strategies, KNOW the indicators.. but something always lingered in the back of my mind... Alot of the successful traders i follow and learn from admits publicly that they aren't smart at all... They have no financial background, some have no degrees, sykes at the extreme just basically uses barebones candlesticks and nothing else other than basic support/resistance lines. Grittani who i love doesn't use that much indicators as well and trades off the level 1 mostly+basic resistance/support zones.---
--- Only when I started to listen to Matt Owens that it really hit me that the more complex/hedge fund strategies are out there alright,.. ones you can use to scale up your wins as your account grows. BUT for most if not all retail traders.. It's not needed.. The market is neutral... The strategy is already proven to give you an edge, the MAIN thing I really need to focus on is trying to be as objective and an impartial trader as i can. Finding a way to not be swayed by emotions such as fear, greed, fear of missing out, anger/revenge trading, boredom, etc.. should and IS NOW my main goal for trading since these are exactly what i see between the novice traders and all the successful/profitable traders i've followed so far... sykes, grittani, fous, kunal, nicorico's blog, tim bohen's presentation on youtube, derrick leon's blog, matt owens, and in the future superman..
The market is NEUTRAL, controlling yourself to be a disciplined and consistent trader = successful trader. Discipline.... Compared to the majority of americans, with my past, i feel like i have a very, very good discipline as far as financial discipline and work/studying discipline.. But currently, i'm having discipline problems in trading when it comes to sticking to the strategies i know since i like to try out new things. I do have systems thought out to counter the habits i have the is in direct confrontation to trading, but I have identified a 2nd problem.. a behavioral problem that gets in the way of me fixing my first problem.. Laziness/Procrastination... I've decided to halt trading for a week or so until i finally have the systems i want in place that'll protect me from my 1st problem of being an undisciplined trader..
Having a patient, disciplined, objective and impartial trading mindset/attitude is what i'll be working on this next 2weeks-1month .. Once i start on a path on being consistently being in that state.. Only then can I expect myself to be a consistent profitable/successful trader. ................
Computers can't accurately judge huge portions of the market because the market itself are just a huge blob of emotions. It's very irrational like everyone keeps saying, cause what moves the market at it's core is human emotion. If people stopped going to sbux, how would it affect its stock? If people's emotions towards buying each new iphone that comes out changes, what would happen to the stock of Apple for each new gen release of the iphone? lx21 says show me someone with no emotion, i'll show you someone with no passion.. On the other hand, there's been successful traders out there that says to trade as if you have no emotion, just like a robot.. Humans have the edge in analyzing the market because the market itself is irrational and made up of emotions.. humans are at heart, irrational/emotional beings... Computers have the edge in the act of trading, because they don't let the emotions of a human affect/disrupt the plan/strategy. I think I can refine those two opposing schools of thought even more in one sentence...
MAY 13, 2016
I've been really reflecting hard on the main problems i've been having. Most of my losses are because of my inconsistency in being controlling my emotions and not the strategy/market.
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