How do you know when you *shouldn't* be trading?

[BigLoveBug]

Hi all,

I'm new here but I've been trading for a bit now. I wanted to get some advice on how to know when I shouldn't be trading. Looking back on past experiences, there are a few times I've executed a trade that just had no reason to be executed. I was sleep-deprived / having relationship issues / stressed / etc... and made a bad call. Sometimes it's just because I was in a fog for that day.

How do you guys assess when you shouldn't be trading? Is it something you do through intuition? Do you have hard rules for yourselves? I have a buddy who doesn't trade if his HRV is above a certain point (heart rate variability indicative - can be indicative of stress).

I'd love to hear any thoughts / techniques!

Cheers,
John

 

[EnlightenedJoe]

The only time you shouldn't trade is once you know how and there are no opportunities available.

You must trade in all other situations. For beginners, they must pay tuition fees at all times or they will never get to the above state.

 

[foroom lluzers]

Hi all,

How do you guys assess when you shouldn't be trading? Is it something you do through intuition? Do you have hard rules for yourselves? I have a buddy who doesn't trade if his HRV is above a certain point (heart rate variability indicative - can be indicative of stress).



Cheers,


John

Not stress but emotions emotions

 

[tomorton]

Hi all,

I'm new here but I've been trading for a bit now. I wanted to get some advice on how to know when I shouldn't be trading. Looking back on past experiences, there are a few times I've executed a trade that just had no reason to be executed. I was sleep-deprived / having relationship issues / stressed / etc... and made a bad call. Sometimes it's just because I was in a fog for that day.

How do you guys assess when you shouldn't be trading? Is it something you do through intuition? Do you have hard rules for yourselves? I have a buddy who doesn't trade if his HRV is above a certain point (heart rate variability indicative - can be indicative of stress).

I'd love to hear any thoughts / techniques!

Cheers,
John

Stop day-trading John and start trading.

But before committing money, make sure you've got a consistent strategy that you have tested and practiced. Then practice some more, until its instinctual to follow your set rules. If you can make a profit long-term trading, try day-trading again. If you need to.

 

[Quantt]

Hi all,

I'm new here but I've been trading for a bit now. I wanted to get some advice on how to know when I shouldn't be trading. Looking back on past experiences, there are a few times I've executed a trade that just had no reason to be executed. I was sleep-deprived / having relationship issues / stressed / etc... and made a bad call. Sometimes it's just because I was in a fog for that day.

How do you guys assess when you shouldn't be trading? Is it something you do through intuition? Do you have hard rules for yourselves? I have a buddy who doesn't trade if his HRV is above a certain point (heart rate variability indicative - can be indicative of stress).

I'd love to hear any thoughts / techniques!

Cheers,
John

For me it is the automated rule based system, so essentially I don't trade per say, I spend my time testing other systems and just get notified when the algo opens or closes a position - there is no emotion, no missed or bad trades if I overslept or got a terrible hangover, etc.. Now the market is about to open and I am not glued to a screen, but commenting here on the forum

 

[piphoe]

For me it is the automated rule based system, so essentially I don't trade per say, I spend my time testing other systems and just get notified when the algo opens or closes a position - there is no emotion, no missed or bad trades if I overslept or got a terrible hangover, etc.. Now the market is about to open and I am not glued to a screen, but commenting here on the forum

Quantt, how does one get started doing something like this? Where would I begin, I guess learning to code first? Or are there off the shelf solutions for non-coders? How do you connect to your broker? Are all trades processed locally on your servers etc? Are you confident enough that your algos run 24hrs/day, or do you shut them off when you're not around?

 

[Quantt]

Quantt, how does one get started doing something like this? Where would I begin, I guess learning to code first? Or are there off the shelf solutions for non-coders? How do you connect to your broker? Are all trades processed locally on your servers etc? Are you confident enough that your algos run 24hrs/day, or do you shut them off when you're not around?

Hey, I am not aware of ready solutions and even if they were available, I won't be using them, because I am a bit paranoid and I am afraid than someone form the company will steal my system/edge... For the broker connection, I am using the broker API, Interactive Brokers have one well documented for example... For how to start, yes you'll need to learn to code, there is no question about it - it is like the 21 century literacy for me... I did start by back testing popular systems and even tough the majority don't work it gave me ideas - this is how I did develop my system... Next step was to develop a scanner to alert me for a trade and after that I did automate the trade itself... Yes I am trusting my system to run on autopilot, hosted on VPS servers in the cloud (initially everything was running on my laptop while still developing), but I do monitor it from time to time, when I apply changes and maybe once a week I'll go back trough the log files to make sure the trades are executed properly... Hope this helps...

 

[piphoe]

thx. What language do you recommend for a rank beginner to put this together? Somebody else recommended python? Am I correct that your broker is just feeding you quotes but cannot see your algos? i wouldn't want them stealing my edge either

 

[Quantt]

thx. What language do you recommend for a rank beginner to put this together? Somebody else recommended python? Am I correct that your broker is just feeding you quotes but cannot see your algos?

Yes python is a good start and yes you request from your broker quotes, positions, account information, etc, and you send back execution orders and they don't know exactly what you are doing with the data and why you want to buy this stock at that price...

 

[Stormy42]

Hi all,

I'm new here but I've been trading for a bit now. I wanted to get some advice on how to know when I shouldn't be trading. Looking back on past experiences, there are a few times I've executed a trade that just had no reason to be executed. I was sleep-deprived / having relationship issues / stressed / etc... and made a bad call. Sometimes it's just because I was in a fog for that day.

How do you guys assess when you shouldn't be trading? Is it something you do through intuition? Do you have hard rules for yourselves? I have a buddy who doesn't trade if his HRV is above a certain point (heart rate variability indicative - can be indicative of stress).

I'd love to hear any thoughts / techniques!


Cheers,
John

When you just can't read the chart any more due to all the tears...

 

[piphoe]

rofl, piphoe likes this!

 

[piphoe]

you know why this is so funny because its true.lol i've actually stood up and KICKED a monitor off the desk. not lately though

 

[David Knight]

Hi all,

I'm new here but I've been trading for a bit now. I wanted to get some advice on how to know when I shouldn't be trading. Looking back on past experiences, there are a few times I've executed a trade that just had no reason to be executed. I was sleep-deprived / having relationship issues / stressed / etc... and made a bad call. Sometimes it's just because I was in a fog for that day.

How do you guys assess when you shouldn't be trading? Is it something you do through intuition? Do you have hard rules for yourselves? I have a buddy who doesn't trade if his HRV is above a certain point (heart rate variability indicative - can be indicative of stress).

I'd love to hear any thoughts / techniques!

Cheers,
John

It's a good question. You did answer it yourself though. I posted in my journal the reason I'm not trading today.

 

[Stormy42]

you know why this is so funny because its true.lol i've actually stood up and KICKED a monitor off the desk. not lately though

If the truth was told, I reckon allot of us have been there!

Maybe this is why most traders have a really warped sense of humour, without it we'd just throw the towel in

 

[piphoe]

If the truth was told, I reckon allot of us have been there!

Maybe this is why most traders have a really warped sense of humour, without it we'd just throw the towel in

i also shouted something more or less that had to do with reproduction

FK!:cheesy:

 

[Illodius]

Everything comes with experience. Eventually, traders grow to understand which trading session suits them better and when it's best not to trade.

 

[progix]

I better say that i usually keep out from trading when the market becomes crazy and it happens mostly on the news releases so i don't trade at that times.

 

[mpups]

Maybe, when you've had x number of losses in a row within a day etc, its good to take a break for x amount of time

 

[options-george]

Hi all,

I'm new here but I've been trading for a bit now. I wanted to get some advice on how to know when I shouldn't be trading. Looking back on past experiences, there are a few times I've executed a trade that just had no reason to be executed. I was sleep-deprived / having relationship issues / stressed / etc... and made a bad call. Sometimes it's just because I was in a fog for that day.

How do you guys assess when you shouldn't be trading? Is it something you do through intuition? Do you have hard rules for yourselves? I have a buddy who doesn't trade if his HRV is above a certain point (heart rate variability indicative - can be indicative of stress).

I'd love to hear any thoughts / techniques!

Cheers,
John

Hi Love Bug, this is a good question.
IMHO, I found that the more discretionary one is in his/her trading style, the more impact being tired/worn out/negative has. These things have less impact if your trading is more automated (i.e. where setups are taken, managed and exited by a bit of code that you have written and tested).

Regardless of my trading style, I always run myself through a checklist in the morning prior to each session - which forces me to consider how mentally and physically fit I am. If the rating is too low, then I don't trade.

Here's an example of a completed check list from some time ago (in the form of a blog post).

 

[tomorton]

Maybe, when you've had x number of losses in a row within a day etc, its good to take a break for x amount of time

Advice regularly given but needs thinking through logically before universal use.

Barring use of a strategy with a 100% win rate, you will get strings of losers even if you do nothing wrong. These will be generated just by the market doing the less probable thing in each trading situation that is a loser. The remedy for these capital losses is to continue trading, to restore win rate to the mean.

Weaknesses in the strategy or errors in execution need careful identification so maybe a break to allow research might be called for. But even then, remedies for these are only proven in actual use. And the sooner the better.