Learning to trade without indicators and to love small losses

[cunparis]

I recently started a series on my blog about the evolution of my trading, beginning with my trading using the eminiwatch method which consists of sine wave cycles on multiple timeframes. When I got rid of all that my results improved quite a bit but there was still one problem - the psychological issues!

I would do anything to avoid a loss. And that had to change. So I set out to change my thinking and my beliefs so that I can accept small losses and keep them small. It's not easy to do and I had a small relapse yesterday but overall I'm making a lot of progress.

I've been writing about all this and I'd love to get some feedback on it. I've been journaling it as I go and my results are improving daily. So I hope you will find it useful.

The series starts here: A look back on my journey - Part 1

Let me know if you find it useful or if you have any ideas for future topics.

 

[Splitlink]

I recently started a series on my blog about the evolution of my trading, beginning with my trading using the eminiwatch method which consists of sine wave cycles on multiple timeframes. When I got rid of all that my results improved quite a bit but there was still one problem - the psychological issues!

I would do anything to avoid a loss. And that had to change. So I set out to change my thinking and my beliefs so that I can accept small losses and keep them small. It's not easy to do and I had a small relapse yesterday but overall I'm making a lot of progress.

I've been writing about all this and I'd love to get some feedback on it. I've been journaling it as I go and my results are improving daily. So I hope you will find it useful.

The series starts here: A look back on my journey - Part 1

Let me know if you find it useful or if you have any ideas for future topics.

I enjoyed your blog. I'm an old dog around here and you can't teach them new tricks. I have been trying to adapt to bigger stop distances, so as to be able turn the computer off and go to the cinema, occasionally. However, no can do! So I am a believer of closer stops because of many years in doing it. Very hard to change.

I'll watch this thread. Good trading.

 

[cunparis]

I enjoyed your blog. I'm an old dog around here and you can't teach them new tricks. I have been trying to adapt to bigger stop distances, so as to be able turn the computer off and go to the cinema, occasionally. However, no can do! So I am a believer of closer stops because of many years in doing it. Very hard to change.

I'll watch this thread. Good trading.

Thanks for reading Spitlink, it's great to have input from an "old dog". What kind of stops do you use? I've been trying for 3-4 ticks. It's a real challenge and I may have to increase that a little, I'm still experimenting.

 

[Splitlink]

Thanks for reading Spitlink, it's great to have input from an "old dog". What kind of stops do you use? I've been trying for 3-4 ticks. It's a real challenge and I may have to increase that a little, I'm still experimenting.

Still experimenting? Me, too!. I normally put 50 odd points stop, so that I have something in case of a crash, but the stop is usually discretionary and I try for 7-10 points. I trade Footsie, normally. Do you stop at once, or do you wait for the bar to complete, to allow for spikes? That can be a bit hairy, I must say!

I'm a morning trader, BTW. This will be my last post until, probably, to-morrow

 

[cunparis]

I just wrote about how I use volume profiling that i learned from FuturesTrader71. I consider it an evolution of market profile concepts.

http://www.tradewiththeflow.com/2010/10/14/a-look-back-on-my-journey-part-6-volume-profiling/

 

[advfntrader]

taking small losses is THE most difficult thing I find. I can go for weeks taking lots of nice steady profits, then somehow I take a loss of 25% of the account !! WHY - I am still trying to work this out, part of it is greed and hoping that it will come back

 

[cunparis]

taking small losses is THE most difficult thing I find. I can go for weeks taking lots of nice steady profits, then somehow I take a loss of 25% of the account !! WHY - I am still trying to work this out, part of it is greed and hoping that it will come back

I think we have to find the right balance. The past 2 days my scalping has been terrible. Stopped out all the time, sometimes by a tick or two. At least I'm practicing taking stops. I'm experimenting with tight stops and I think 4 ticks is too tight for ES. Still working on that.

However I did only one swing trade, short at 77.25 it went up to 81 overnight and is now very profitable. So the one trade I don't have a tight stop is the one that makes the most money.

 

[bankroll]

I just found this old thread searching "Emini Watch." Cunparis, how is your trading going so far?

 

[cunparis]

I just found this old thread searching "Emini Watch." Cunparis, how is your trading going so far?

It's going well and improving. I just wrote up a blog post reviewing my stats for November on my blog:

November Results » Trade With The Flow