"One of those days"-- the art of "Locked out"Recently I participate in an analyst competition, and I got eliminated in the trading sections.
Having an established trading system and strong mindset doesn't mean I make profit in every single trading days, as everyone would agree.
That's why we need a daily risk ceiling, if hit, we don't trade anymore,which is called being "locked out". usually 6% (2% per trade basis)
Being locked out is just one of those days, I would like to make so much profit every single trading day,
so all I did in trading was finding opportunities that matches my trades before being locked out.
While,in terms of frequency , basically 2 out of 5 trading days will be locked out as inside bars are not a strategy with high winning percentage.
"One of those days" is what I will talk to myself to stay calm, but when a short-term intraday competition happen to be one of those days,
that's when people will challenge your strategy or even trading ability, and that's pretty much offending to me, but the world will always focus on the result.
Keep fighting and keep trading, do the proper risk management, and not being influenced by one of those days.
Emotions
Practical Exercise - Challenges in Trading PsychologyPractical Exercise
1) Think of a past scenario where you acted impulsively in your trading and suffered the consequences.
2) What was the psychological issue that triggered the mistake?
3) How can you avoid future occurrences of this mistake?
4) Share in this thread.
BTC/USD- Wait for wave 5 (Elliott Wave) Bullish Typical market cycle playing out here. This pullback is healthy in order to continue bullish uptrend. Elliott wave has played out perfectly so far. We should have a nice bounce off one of the lower levels (4900 or 4400 area) then continue to break into price discovery of 6k. Wave 5 will present itself. Be patient. Good Luck :)
GBP-AUD Strong counter trend Cypher pattern setupThis is not really a trade setup, it´s more of a little thought sharing on emotions, the biggest enemy for us traders.
As you people that follow me knows i trade harmonics an insanely simple and very profitable way of trading, removes all subjectivity from trading with some testable, verifiable, and repeatable rules.
I could not trade in January because i was away from home traveling and too busy to take trades, so when we reached february i was itching to trade, had taken November and December off as always every year from trading and i had a newly investment infusion into my trading account, that ment i now had a responsability to not only make my self a living, but also keep another party happy with very little drawdown. And here comes out the new emotions i had not felt since i started trading, got soo concerned with cash preservation, protecting stops / moving stops that i was not following my rules. I was so hooked on making profit with no losses. But the thing is, in my rules there is no stop moving, my trades hits T1 60-70% of the time if no stop is moved, less if stop is moved, so i was suddenly making rookie mistakes.
I started out with 2 weeks of 2% drawdown, it recovered to a 3% profit in week 3 but at that time i had taken my self in moving stops on so many orders i could have made the double. So i wrote down on a big note that if i broke another rule i was not allowed to trade for a week, which meant calls from the new invester. By doing that i got to remove my feelings from trading again, and what happened.. I got so relaxed about it, i knew my trading plan works and have done it for years, further more i had 8 trades until today that i would have killed with my emotions if i had continued on, like the one i posted right here. It hit my entry live and i was watching it free fall towards the stop, a heavily counter trend trade, but it met the rules - The rules that work again and again every year, in this one i once again cut my emotions out and it turned on a dime right before my stop and hit my entry for a 2% profit for today.
Test your plan, control your emotions and carry out your trades till you can do them in your sleep and you will become Prosper beyond your imagination! But remember loosers is part of the plan too!
Kind regards
Thomas Jeff