The psychological aspect and my thought process
Hello everybody, I'm so sorry that the migration did not as fast as I'd like it to be and, finally on last it's done and I can be back on trading.
Before i touch on how i would trade, i suddenly thought sharing my thought process would make so much more sense because literally you
will understand how i use my strategies. I felt there are so many good systems around but it becomes ineffective in may cases because i
cannot execute it the way its creator does perfectly. After trading for many years, i also felt the best strategies, whether its original or
copied, will be successful if it becomes your "strategy". This requires a lot of practise, patience and perseverance to keep trying.
So if you are feeling lost out there, don't be because everyone goes through almost the same process.
I'd like to do a quick recap on what has been shared so far.
In part 1, I spoke mostly on breakout on the A6 traded on CME and then, how to use a simple pullback to trade it.
Part 2 follows up on part 1 which focus on not chasing the market if you have missed it as in most cases, from the 3rd impulse move(up)
onward as it loses momentum.
Rushing into trading a trend that has lost its momentum can keep you longer in a position longer then it should be. This exposes you to risk
which can be external (unexpected central bank announcements, data announcements, war etc) or internally which is your psychology at that
moment. If you are trading smaller account, the trade locks up your capital which may also lead to additional holding cost or opportunity risk.
In some cases, it frustrates you so much that you start doing funny things like scalping, averaging in, adjusting stops etc.
Why lose good money after bad? Trust me if you do get into such scenarios, just bite the bullet and cut it off!! Learn from it.
The worse that happened to me was, i used to average in and adjust stops frequently for a period of time and occasionally make money out of it.
Somehow, this creeps and lived in my sub conscious for a long time and unknowingly caused big draw downs and almost destroy me mentally and
financially
The next time, just practise and train yourself to be patience if you do encounter such a scenario and ask yourself 3 questions:
1) How many moves the market has made in this direction (stick to your time frame, do not use multiple time frame here!)
2) What is the risk to reward if i enter?
3) Trade smaller
Just try to do this and you will see how much you benefit from making small and simple steps that shape your thought process and produces results
which also reinforces positive psychology which is confidence!
In part 2.2, i will produce a quick peek into my thought process and share how i would trade using another simple technique.
Hello everybody, I'm so sorry that the migration did not as fast as I'd like it to be and, finally on last it's done and I can be back on trading.
Before i touch on how i would trade, i suddenly thought sharing my thought process would make so much more sense because literally you
will understand how i use my strategies. I felt there are so many good systems around but it becomes ineffective in may cases because i
cannot execute it the way its creator does perfectly. After trading for many years, i also felt the best strategies, whether its original or
copied, will be successful if it becomes your "strategy". This requires a lot of practise, patience and perseverance to keep trying.
So if you are feeling lost out there, don't be because everyone goes through almost the same process.
I'd like to do a quick recap on what has been shared so far.
In part 1, I spoke mostly on breakout on the A6 traded on CME and then, how to use a simple pullback to trade it.
Part 2 follows up on part 1 which focus on not chasing the market if you have missed it as in most cases, from the 3rd impulse move(up)
onward as it loses momentum.
Rushing into trading a trend that has lost its momentum can keep you longer in a position longer then it should be. This exposes you to risk
which can be external (unexpected central bank announcements, data announcements, war etc) or internally which is your psychology at that
moment. If you are trading smaller account, the trade locks up your capital which may also lead to additional holding cost or opportunity risk.
In some cases, it frustrates you so much that you start doing funny things like scalping, averaging in, adjusting stops etc.
Why lose good money after bad? Trust me if you do get into such scenarios, just bite the bullet and cut it off!! Learn from it.
The worse that happened to me was, i used to average in and adjust stops frequently for a period of time and occasionally make money out of it.
Somehow, this creeps and lived in my sub conscious for a long time and unknowingly caused big draw downs and almost destroy me mentally and
financially
The next time, just practise and train yourself to be patience if you do encounter such a scenario and ask yourself 3 questions:
1) How many moves the market has made in this direction (stick to your time frame, do not use multiple time frame here!)
2) What is the risk to reward if i enter?
3) Trade smaller
Just try to do this and you will see how much you benefit from making small and simple steps that shape your thought process and produces results
which also reinforces positive psychology which is confidence!
In part 2.2, i will produce a quick peek into my thought process and share how i would trade using another simple technique.