Nowler's Trading Journal

[Brumby]

I did put some planning into the initial trade (not enough, but some) and getting stopped out of that was fine...we will lose many many trades in our trading careers but active throwing money away... silly Gavin.

I am afraid you will repeat those mistakes again, again and again. You and I know those mistakes were psychologically induced. Unfortunately in trading, there are specific instances when we are stressed or emotionally compromised we tend to make those mistakes that you experienced. It is a common trading problem and wishing or willing it to go away will not work. You should know better because your major is in psychology.

A trader's mind in making trade decisions is governed either deliberatively or intuitively. Our training is build upon a deliberative process in making trade decisions. This domain is challenged when our psychologically state is upset when stressed and the intuitive mind overrides the deliberative mind. This is when you make silly mistakes and post reflection will tell you so. The challenge is at that moment how do you stop the intuitive mind from overriding your deliberative mind? Just as in developing your trade skills, developing your trading mind requires a process. It doesn't happen by willing it. It requires specific defusion techniques that you practise and practise to become second nature.

 

[mpups]

I am afraid you will repeat those mistakes again, again and again. You and I know those mistakes were psychologically induced. Unfortunately in trading, there are specific instances when we are stressed or emotionally compromised we tend to make those mistakes that you experienced. It is a common trading problem and wishing or willing it to go away will not work. You should know better because your major is in psychology.

A trader's mind in making trade decisions is governed either deliberatively or intuitively. Our training is build upon a deliberative process in making trade decisions. This domain is challenged when our psychologically state is upset when stressed and the intuitive mind overrides the deliberative mind. This is when you make silly mistakes and post reflection will tell you so. The challenge is at that moment how do you stop the intuitive mind from overriding your deliberative mind? Just as in developing your trade skills, developing your trading mind requires a process. It doesn't happen by willing it. It requires specific defusion techniques that you practise and practise to become second nature.

Yes Dr Brumby i like it.. "developing the trading mind", and "defusion techniques"

 

[Nowler]

I am afraid you will repeat those mistakes again, again and again. You and I know those mistakes were psychologically induced. Unfortunately in trading, there are specific instances when we are stressed or emotionally compromised we tend to make those mistakes that you experienced. It is a common trading problem and wishing or willing it to go away will not work. You should know better because your major is in psychology.

A trader's mind in making trade decisions is governed either deliberatively or intuitively. Our training is build upon a deliberative process in making trade decisions. This domain is challenged when our psychologically state is upset when stressed and the intuitive mind overrides the deliberative mind. This is when you make silly mistakes and post reflection will tell you so. The challenge is at that moment how do you stop the intuitive mind from overriding your deliberative mind? Just as in developing your trade skills, developing your trading mind requires a process. It doesn't happen by willing it. It requires specific defusion techniques that you practise and practise to become second nature.

Agreed.
Interestingly, this mistake came at the same time as the last one. That is, when I got my account back to a certain seize.

Perhaps it wasn't the stress of losing that trade... Maybe it was an immediate reaction to not drop back below that milestone...

Either way, it was definitely an emotional reaction and I will need to focus on reducing the likelihood of it happening again. Or implementing measures that take me out of the equation in those instances.

At the very least, I am aware that this can be a very dangerous thing to happen and it needs immediate attention.

 

[Nowler]

Today's happenings...

I posted this in my prop firm thread but feel it's appropriate for this thread also.

"I applied to Maverick Trading and almost immediately my spidey senses were tingling. I couldn't quite put my finger on it but I continued...what harm?
I was required to watch a 48 min video during the application process and I did attempt to do this immediately but I had to pop out. I had gotten to about minute 10 at this stage and by then I could sense something a little off. I actually had to skip a part of the video because they were wasting my time talking about their tinder profiles and driving while taking selfies... I know right...wtf has this got to do with trading. I was in a bad mood this morning, so maybe that's the only reason I got the hump over that but still...get on with it

In hindsight I probably should have just moved on there, haha.
When I got home I had an email from them saying that my application was received and that I was required to finish the video. Reasonable request. Throughout the whole process it was made abundantly clear that I had to pass a few week training/education period and prove that I possessed the ability to move to firm capital. Again, reasonable. They went into grand depth about how good their guidance was during this education period and beyond. I still felt something was off and I was waiting for it to pop up...and it did!

It wasn't until toward the end of the video that it shot up. Once I have passed their fantastic educational period (of a few weeks) I then develop my strategy/s and prove it. Once I prove a profitable strategy then I move to level one live capital of €25,000. But there's the catch...I have to deposit 5k and then they will add the 20k

Pwahaha... I immediately stopped the video (when I finished laughing) and emailed them back, stating that I saw their video and was no longer interested.

Maybe this is how it is...but they won't be getting my money or ability
I knew I smelled a rat!

If their education is so great at ensuring I am going to be a profitable trader, then why do I have to put up 5k of my own money?

I just found this now
https://www.glassdoor.com/Reviews/Employee-Review-Maverick-Trading-RVW7178589.htm


PS: I realise that it would be smart to do a check up on these places first. I just didnt this time

 

[Fill_Or_Kill]

Today's happenings...

I posted this in my prop firm thread but feel it's appropriate for this thread also.

"I applied to Maverick Trading and almost immediately my spidey senses were tingling. I couldn't quite put my finger on it but I continued...what harm?
I was required to watch a 48 min video during the application process and I did attempt to do this immediately but I had to pop out. I had gotten to about minute 10 at this stage and by then I could sense something a little off. I actually had to skip a part of the video because they were wasting my time talking about their tinder profiles and driving while taking selfies... I know right...wtf has this got to do with trading. I was in a bad mood this morning, so maybe that's the only reason I got the hump over that but still...get on with it

In hindsight I probably should have just moved on there, haha.
When I got home I had an email from them saying that my application was received and that I was required to finish the video. Reasonable request. Throughout the whole process it was made abundantly clear that I had to pass a few week training/education period and prove that I possessed the ability to move to firm capital. Again, reasonable. They went into grand depth about how good their guidance was during this education period and beyond. I still felt something was off and I was waiting for it to pop up...and it did!

It wasn't until toward the end of the video that it shot up. Once I have passed their fantastic educational period (of a few weeks) I then develop my strategy/s and prove it. Once I prove a profitable strategy then I move to level one live capital of €25,000. But there's the catch...I have to deposit 5k and then they will add the 20k

Pwahaha... I immediately stopped the video (when I finished laughing) and emailed them back, stating that I saw their video and was no longer interested.

Maybe this is how it is...but they won't be getting my money or ability
I knew I smelled a rat!

If their education is so great at ensuring I am going to be a profitable trader, then why do I have to put up 5k of my own money?

I just found this now
https://www.glassdoor.com/Reviews/Employee-Review-Maverick-Trading-RVW7178589.htm


PS: I realise that it would be smart to do a check up on these places first. I just didnt this time

Nowler I'd be very surprised if you found a legit prop doing general intakes any more and since I like your attitude, it's tough to watch.

Optiver/Jane Street/First NY/Oak Cap/T3/even Met are all essentially mini quant funds now. They only want quant minded/quant educated people. The remainder are garbage educators for the most part.

You're about 10 years too late (actually more tbh) for props looking to give manual hopefuls a "shot" where they can actually then go on to earn serious money. I'm sorry. Did you try applying to Mandara for a laugh? Can't hurt. I know you lack experience, but they might be kind enough to give you some feedback at least, and they are for real. If you pursued a position there over the coming years you could end up earning some serious scratch and I think you are pretty young. It's about the only serious one I can think of that doesn't have an immediate bar to entry w/ high qualifications.

http://careers.mandaracapital.com/junior-commodity-derivatives-trader-london

Good luck with it all.

 

[Nowler]

Nowler I'd be very surprised if you found a legit prop doing general intakes any more and since I like your attitude, it's tough to watch.

Optiver/Jane Street/First NY/Oak Cap/T3/even Met are all essentially mini quant funds now. They only want quant minded/quant educated people. The remainder are garbage educators for the most part.

You're about 10 years too late (actually more tbh) for props looking to give manual hopefuls a "shot" where they can actually then go on to earn serious money. I'm sorry. Did you try applying to Mandara for a laugh? Can't hurt. I know you lack experience, but they might be kind enough to give you some feedback at least, and they are for real. If you pursued a position there over the coming years you could end up earning some serious scratch and I think you are pretty young. It's about the only serious one I can think of that doesn't have an immediate bar to entry w/ high qualifications.

http://careers.mandaracapital.com/junior-commodity-derivatives-trader-london

Good luck with it all.

Thanks for the suggestion mate but I have a bit of a dilemma.
One of my core principles is to not waste people's time, and in return I expect the same from them. They have explicitly stated "Essential: 2-5 years’ trading experience", so since I am aware that I have only 6 months, then I am knowingly wasting their time by making them read my application.

On the other hand...feedback would be amazing!
But again... even my 6 month record is nothing worth showing anyone...with it's 64% drawdown and is currently in the red from the initial deposit. I mean... if I was looking to hire someone and they applied to me, totally disregarding what I said was essential, I wouldn't trust them with my capital. If I can't trust them to follow simple guidelines, then I couldnt expect them to take money from a complex market

I think what I will do is wait another few months to a year before applying to them. In the meantime I will focus on my record on this mini account. I have an application in with a firm willing to pay trainees to complete their program. It's very VERY small money but they are hitting all the right buttons for me. What sort of a scammer elects to pay €12k/year to train the future employees? I also realise that this place I speak of is probably almost as rare as hens teeth.

I am at a crossroads right now. I have that application in, but if I don't get an interview date by Christmas (program starts next Summer) then i'm out of this sh!thole! I renewed my passport last week because this firm says i'll need it (if successful) but regardless of whether I am successful, i'll be using that passport soon. Likely i'll go to the UK, but I have no children, no partner, no belongings... the world is my oyster...well...the parts that I can afford anyway

 

[Nowler]

Basically her take on how she dealt with her dyslexic condition in trading. As for EW, unless you want to spend 10 years of your life learning it.

Also on price action I suggest you check out this website as there is a free course offered on trading. It is not those draw you in to buy stuff site. There are plenty of quality stuff in there.

https://adamhgrimes.com/marketlife-free-trading-course/

@Brumby

I have to draw attention to this again.
This is very helpful!
I have started the second last module and so far it has been hugely beneficial!
Admittedly, I haven't really been doing the homework after each module but I will start it over again after I give it the once over. The homework makes logical sense. I can see what he's trying to instill.

The course reinforces some of the things that I learn myself and it teaches me new ways to look at things, but possibly just as important as both of those, it provokes thought! I highly recommend that anyone new to trading definitely have a careful look at this! So if you are learning anything from this journal, let this be one of those things you pick up.

I have on occasion disagreed with him but then think more about it and perhaps he's right. I think he even says something about it at one point. About feeling free to disagree with him, but at least know exactly why you disagree. Same with agreeing I guess...

Anyway, I was just doing the second last module and I found myself thinking about how beneficial this has been so far and wanted to highlight it to any new or somewhat struggling traders and to say thanks to you again.

So thanks!

 

[Nowler]

Just a quick update:

Not really much to report for the last 2 weeks...just been reading, watching, learning.
I did lose another bit out of my account but that was me mucking around on the oil markets
It was educational but it was also just a bit of fun too.

It's got me thinking though...perhaps I should put another little bit on the account because at my current balance (mini account) the smallest unit of oil I can trade is about 4% of my account, which is breaking my 2% rule and is also playing on my psychology. Obviously when I am trading oil and I know I am over extended (4%) I act different...I am spooked more easily.

I just think putting another little bit of the account will help me out. I like trading oil markets too, but I don't want to be putting 4% on my trades as standard.

Apart from that, I am just experiencing and learning.
I have been looking for positions I can build in to over 2 days to a week. It's a different perspective I guess...

Anyway,
That's all I have to say.
I might not bother updating every week like I was doing. I'll just give you the direction I am going in and then update when I have something I feel is worth adding.

Tight lines, folks!

 

[Nowler]

Suggestion to readers:

In my best commercial voice...

"Is your wife unsatisfiii....*cough cough* wrong commercial..."

"Do you use a variety of web sources to refine your knowledge about the financial markets? Would you prefer to avoid having to thrall through so many sources BUT still get all of the same information, from the sources you prefer?

Well today is your lucky day! Ladies and germs, I have for you today this revolutionary but simple life hack! No more you'll go waltzing matilda! For folks, I have for you this gift from the gods!!... *gather around..*

R..S..S.."

Description: RSS is a type of web feed which allows users to access updates to online content in a standardized, computer-readable format. These feeds can, for example, allow a user to keep track of many different websites in a single news aggregator.

I am not tech savvy!
So if I can easily do this, then so can you.
Your web source must have RSS feature enabled but basically all I did was downloaded/installed (Free) a widget from the Play Store/App Store and then opened it up. I went to favourite web sources of market information and located their RSS button somewhere on the page, copied the links for the pages of information updates I wanted (Can choose all, or individual. eg. fundamentals, technical analysis, Gold/Oil/Currency market etc..). Paste that link into the widget you just installed on your home screen of mobile device and save! Do that with all the ones you want and presto! No more going through multiple sources for your info! You can set your widget to continuously check your sources or periodically. Now all your information comes through the one terminal.

 

[Nowler]

Looking for your input:

Can someone give me a good reason why I shouldn't, when I find a high probability move, enter with 1-2% and then add .5-1% on every pullback on the 1-5min chart? Spread betting forex.

I always use stops and after each pullback, I would move the previous stops up to the next pullback level.
In the few times I tried it, I was risking more than I was making, but I was aware of this. I wouldn't use that strategy on just any trade. Only the highest probabilities I encounter.
Obviously having more risked than I intend to gain is going against one of my 2nd tier rules, but should something being outside of my core principles mean I shouldn't play with it, manipulate it, see if I can make something good of it?

I understand that slippage is something that will come to a few minds, but my broker doesn't show gaps for some reason, and takes the opposite side of my trades...so would that mean my stops will always take me out at the predetermined level? Disregard widening spreads for a moment.

 

[mpups]

Looking for your input:

Can someone give me a good reason why I shouldn't, when I find a high probability move, enter with 1-2% and then add .5-1% on every pullback on the 1-5min chart? Spread betting forex.

I always use stops and after each pullback, I would move the previous stops up to the next pullback level.
In the few times I tried it, I was risking more than I was making, but I was aware of this. I wouldn't use that strategy on just any trade. Only the highest probabilities I encounter.
Obviously having more risked than I intend to gain is going against one of my 2nd tier rules, but should something being outside of my core principles mean I shouldn't play with it, manipulate it, see if I can make something good of it?

I understand that slippage is something that will come to a few minds, but my broker doesn't show gaps for some reason, and takes the opposite side of my trades...so would that mean my stops will always take me out at the predetermined level? Disregard widening spreads for a moment.

hi N

leaving "high probability" and risk/reward aside for a minute, its fine in theory to pyramid in this way. I think it depends on the person. Most people can do the maths of why it would work but not everyone can be "arsed" to do it. Sorry to be simplistic but just do it if you want to - assuming you know your overall risk level

k

hope youre enjoying your friday night

 

[Brumby]

Looking for your input:

Can someone give me a good reason why I shouldn't, when I find a high probability move, enter with 1-2% and then add .5-1% on every pullback on the 1-5min chart? Spread betting forex.

What exactly is a high probability trade according to your definition? Is it based on statistically established facts or is merely your opinion? If it is such a high probability, why even pyramid? You should just load the maximum position size in your initial entry.

Pyramid entries by nature are tied to your trade strategy. it is not an after thought. Pyramid entries are typically used in trading trends. Trends by nature has a low win loss ratio but the pay off is in RR size. So the idea of high probability trades and pyramiding doesn't exist except in some kind of imagination. If you have found one, I would like to be proven wrong.

 

[Nowler]

What exactly is a high probability trade according to your definition? Is it based on statistically established facts or is merely your opinion? If it is such a high probability, why even pyramid? You should just load the maximum position size in your initial entry.

Pyramid entries by nature are tied to your trade strategy. it is not an after thought. Pyramid entries are typically used in trading trends. Trends by nature has a low win loss ratio but the pay off is in RR size. So the idea of high probability trades and pyramiding doesn't exist except in some kind of imagination. If you have found one, I would like to be proven wrong.

In this instance, when I said high probability, I was referring to my opinion/experience of H+S patterns, which was present to the upside on the EUR/USD on the daily.

I have attached 2 pics: Daily and 5min

On the daily you can see the H+S to the upside. In my opinion, price would likely test the highs of the H+S that preceded this one, the one everyone has been looking at for the last week or more.

I have good success with H+S patterns, so when I see them forming I start rubbing my hands. This H+S to the upside broke the neck level, and for me, that's go time!
I was watching it on the 1min/5min TF to find pullbacks or just a pause in increasing price. I have put a red line under these on the 5min chart.

All stops would be moved up to the point of the stop of the current re-entry to the trade.

Note: I got out of that trade early because of the time it was, and it being Friday.
It very well may go test the high, but price was acting funny...I assume this to be because of the time it on Friday.

 

[Brumby]

In this instance, when I said high probability, I was referring to my opinion/experience of H+S patterns, which was present to the upside on the EUR/USD on the daily.

I have attached 2 pics: Daily and 5min

On the daily you can see the H+S to the upside. In my opinion, price would likely test the highs of the H+S that preceded this one, the one everyone has been looking at for the last week or more.

I have good success with H+S patterns, so when I see them forming I start rubbing my hands. This H+S to the upside broke the neck level, and for me, that's go time!
I was watching it on the 1min/5min TF to find pullbacks or just a pause in increasing price. I have put a red line under these on the 5min chart.

All stops would be moved up to the point of the stop of the current re-entry to the trade.

Note: I got out of that trade early because of the time it was, and it being Friday.
It very well may go test the high, but price was acting funny...I assume this to be because of the time it on Friday.

I have asked you many times before the question, what is your trading time frame?
If you are trading a break of the neckline of a H & S pattern on a daily TF, you are effectively trading; (i) a daily TF; and (ii) a H & S pattern. This means your stop and measured move target is based on the daily TF and the H & S pattern. I can understand using a 5 min TF to enter to fine tune your entry but the former on stop and target doesn't change. You do not have clarity on your trading plan.

 

[Nowler]

I have asked you many times before the question, what is your trading time frame?
If you are trading a break of the neckline of a H & S pattern on a daily TF, you are effectively trading; (i) a daily TF; and (ii) a H & S pattern. This means your stop and measured move target is based on the daily TF and the H & S pattern. I can understand using a 5 min TF to enter to fine tune your entry but the former on stop and target doesn't change. You do not have clarity on your trading plan.

I do have clarity on my plan. The TF used to identify this trade is the daily and TF used to manage the trade is the 5 minute. They are both different views of the same coin. I could have just traded it with an initial entry, staying looking at it on the daily but I knew I wanted to add to it, so I looked for more finely tuned entry opportunities on the 1m-5m.

My stops were determined on the 1-5min TF. The first being back below the neckline (Not sure what TF I used for it, but below the neckline is below the neckline regardless of TF. As long as the width of the spread is taken into account). If that was hit, then I have no more trade. If it's not hit, then I re-enter on the next pullback. If that stop is hit, then no more trade, but if not, look for another entry. Each new entry sees previous stops being moved up to the level of this current re-entries stop...perhaps 1 level back from it (allowing for a complex pullback)

The target is chosen from the daily TF and all re-entries have the same target level.

 

[Brumby]

I do have clarity on my plan. The TF used to identify this trade is the daily and TF used to manage the trade is the 5 minute. They are both different views of the same coin. I could have just traded it with an initial entry, staying looking at it on the daily but I knew I wanted to add to it, so I looked for more finely tuned entry opportunities on the 1m-5m.

My stops were determined on the 1-5min TF. The first being back below the neckline (Not sure what TF I used for it, but below the neckline is below the neckline regardless of TF. As long as the width of the spread is taken into account). If that was hit, then I have no more trade. If it's not hit, then I re-enter on the next pullback. If that stop is hit, then no more trade, but if not, look for another entry. Each new entry sees previous stops being moved up to the level of this current re-entries stop...perhaps 1 level back from it (allowing for a complex pullback)

The target is chosen from the daily TF and all re-entries have the same target level.

Frankly I don't understand what is your trade plan. Based on what you have posted, you are currently flat. What is your re-entry trigger and stop criteria? Is it based on the 1 min or 5 min TF?

 

[Nowler]

Frankly I don't understand what is your trade plan. Based on what you have posted, you are currently flat. What is your re-entry trigger and stop criteria? Is it based on the 1 min or 5 min TF?

What part don't you understand?
I hope this doesn't sound patronising and it's most certainly not intended to be, but this is a very simple trade plan.

Find a move, enter, place stops behind the breakout level. Look for pullbacks to re-enter, placing each new stop below the pullback level (move all stops here). Basically continue until either price reaches the target, or I am stopped out of the trade. That's it! I used my discretion on Friday to pull out of the trade because price was stagnant for too long (6pm GMT Friday/ Market is quieting down).

I am not in the trade anymore and have not traded today, so I don't have a reentry plan to give you. I'll have a gander when I can look to see what I think is probable. On the EUR/USD I would reckon a pullback to the H+S breakout level could be likely. If that happened and it bounced then I would be even more enthusiastic than the initial breakout on Friday.

What does "you are currently flat" mean?

 

[timsk]

. . .What does "you are currently flat" mean?

Hi Nowler,
This list of trading terms is hidden away in the bowels of T2W and might be useful for you to have bookmarked somewhere in case you come across a term you're unfamiliar with. That said, irony of ironies, the term 'flat' isn't listed!
Tim.

 

[Nowler]

.... That said, irony of ironies, the term 'flat' isn't listed!
Tim.

Typical

Thanks for the link mate, should come in handy. I have bookmarked it now

 

[Nowler]

Quick note...

I changed my leverage from 50/1 to 10/1, to better understand its effects.
I will see how this changes my account statistics