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Author Topic: On my exciting and amazing journey to the stars.....  (Read 377384 times)

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Ajax616

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Re: To the person that I want to be
« Reply #30 on: November 27, 2011, 07:35:01 PM »
"Even a poor system will make money with good money management system."

"It's one of the stupidest things ever said" - Jack Schwager

Because there's no edge.  You need an edge.....to win.



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Ajax616

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Re: To the person that I want to be
« Reply #31 on: November 27, 2011, 08:19:03 PM »
Zen in Trading :

"Just like in archery, whenever there is effort, force, struggling, straining, or trying it's wrong."



"Every trader follows their own light."  Story of Jack Schwager and friend



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Ajax616

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Re: To the person that I want to be
« Reply #32 on: November 27, 2011, 08:29:26 PM »
The Zen of Trading
Author: Greg Hodges
http://www.daytradinginsider.com

Being a day trader isn`t for everyone. Opening a scottrade account does not automatically qualify you as a trader. As a matter of fact, you have to be a little “special” to make your living in this manner. You`ve got to be cool, calculating, and always ahead of the most slippery of animals-the markets you trade in. But more than that, you need to know yourself.

You may think you know yourself, but being a day trader will teach you who you really are. And this fact is one of the most important and long-lasting effects of being- day-in and day-out, riding the wave of uncertainty. If you have any self-doubt, a propensity to be negativite or an inflexible ego…your goose will certainly get cooked before you can say “this must be rigged”. But if you have the ability to recognize your weaknesses honestly and take them head-on, the benefits can be much more than just financial.

But, alas, its only human to have moments of weakness and it becomes necessary for a successful day trader to develop a system not only for trading, but also for keeping the spirit tuned up and ready to rock and roll. This is a neglected yet most essential part of trading. The following is one method used by the author to mold a rather tentative and crude “trading head” to a survivor of fifteen years of making a living on delta (change).

Pillow Talk
Clearing ones mind of extraneous thought has been a key tenant of day trading years. In today’s world of “information overload”, we are constantly bombarded and overwhelmed by media of various sorts. A trader must not let their mind get cluttered by the constant distractions. More importantly, a trader must keep a positive and optimistic attitude. How does one do that?


There are numerous books on self improvement and spirituality that offer many methods and philosophies. As for the author, I found a very practical and effective system as expounded in The Handbook of Higher Consciousness by Ram Dass. In his wonderful book, Dass makes the connection between emotion and programming the brain. We learn by a powerful combination of emotion coincidental with a learning experience. An example is when you are frightened or angry; we are at our most vulnerable to program-in behavior because of the chemicals and hormones amplifying behavior. That’s why we sometimes act very irrationally because we were programmed when we were children and we keep responding to that infantile conditioned response. Dass recommends a very easy way to reprogram ourselves. We need to stimulate emotion at the same time we program instructions to our brain. He suggests that we cover out head with a pillow and scream into the pillow “no negative thinking” over and over again. The more emotion, the better. My friends, it works for me. When ever I get negative, it’s to the “screaming pillow” I go. Maybe it will work for you.

Because of my need to keep positive in my trading (keep in mind that a trader may have almost as many losing trades as winners), I learned a valuable technique that helps me keep positive in all situations-all the time. Without my pillow, I would have probably been like most normal traders when going through a losing streak…. “lose my cool”. When you lose your cool, fear and doubt can push you to abandon your system and with it- your capital.

You may not need a pillow, but you should find a way to keep centered and positive. There`s a lot of literature on the psychology of trading and investing. Believe me, under- standing your-self and how to “be above the fray” is as important as a good trading system. Moreover, your self-awareness will help you immensely in all aspects of your life.



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Ajax616

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Re: To the person that I want to be
« Reply #33 on: November 28, 2011, 06:26:17 AM »
Three things you need for success.

1.  Heart
2.  At any moment, Sacrifice what you are for you will become
3.  Pain is temporary, but the pain of quitting lasts forever

Eric Thomas



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Ajax616

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Re: To the person that I want to be
« Reply #34 on: November 28, 2011, 07:15:14 AM »
Use a higher Standard Deviation when the VIX > 30

Instead of using 2.1, consider using 2.5 or higher




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Ajax616

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Re: To the person that I want to be
« Reply #35 on: November 28, 2011, 07:17:41 AM »
I missed a trade in BHP, because I cancelled the order.   

The trade would not have been filled on that day, triggering a 2 trade violation.  It would have been filled the next day.  I didn't want to repeat JPM again.  JPM was faulty on many levels.

However, BHP was a better entry.

But that's okay, I will have many opportunities to trade.



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Ajax616

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Re: To the person that I want to be
« Reply #36 on: November 28, 2011, 08:32:34 AM »
Trigger needs to be close to BB......



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Ajax616

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Re: To the person that I want to be
« Reply #37 on: November 28, 2011, 09:17:02 AM »
I cannot curve fit my trading plan to match what works.  For example, I cannot move my Bollinger Band MA to 24 or 28, because it will miss out on some very good move in trending markets.

The BB MA28 does work much better in volatile markets, but then it will not work at all in trending markets, because it will miss most of the signals.

What will work is paying attention to the VIX.  With a high VIX, make sure my signals are better.  I think I failed myself with my MAN and JPM entry.  As a result, I got a little nervous.  The MAN entry would have been okay under normal market circumstances, but considering the high VIX, it was better to go with the Three Bar Rule.

My new recent adjustments does accommodate a high VIX, without curve fitting the bollinger band.  I do not want to curve the bollinger band, because I will miss out on the strength and heart of my strategy, the P2s.

Focus on VIX and better candle signals.....



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Ajax616

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Re: To the person that I want to be
« Reply #38 on: November 28, 2011, 11:04:40 AM »
Re:  Trading Confidence

If you're not sure you're gonna win, then you're not there yet.



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Ajax616

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Re: To the person that I want to be
« Reply #39 on: November 28, 2011, 06:03:11 PM »
Using the Cheetah analogy:

I chased the strong (JPM, CCL, and MAN) gazelle, too early, and when the lame baby (BHP & Mur) gazelle came along, I ran out of strength to go after it.

That is my lesson that I will take with me.  I will consider the VIX in all my entries.  Therefore depending on the VIX, I will apply strong candle signals or not.

Thank you for these powerful lessons.


« Last Edit: November 28, 2011, 06:39:53 PM by Ajax616 »

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Ajax616

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Re: To the person that I want to be
« Reply #40 on: November 28, 2011, 06:52:24 PM »
It takes a strong candle pattern or trigger to enter in a uncertain market.   

The more uncertainty, the stronger the candle trigger needed. 



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Ajax616

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Re: To the person that I want to be
« Reply #41 on: November 28, 2011, 07:58:16 PM »
Thank you Alex for the education in Calm, Cool, and absolute discipline



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Ajax616

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Re: To the person that I want to be
« Reply #42 on: November 28, 2011, 10:49:31 PM »
"I don't care how smart you are.  Nothing takes the place of hard work." - Freeman Hrabowski

Thank you for reaffirming that "Emotionally intelligence" is the key to success.


« Last Edit: November 28, 2011, 11:17:50 PM by Ajax616 »

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Ajax616

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Re: To the person that I want to be
« Reply #43 on: November 29, 2011, 02:16:38 PM »
How silly of me to gloat about my preparations for each day, when I am barely starting out.

There was only one major reason to do such silly things, to make my self look better.

But people see through that kind of disguise.  Therefore, just do it and keep it to myself until they ask. :)



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Ajax616

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Re: To the person that I want to be
« Reply #44 on: November 30, 2011, 09:08:21 AM »



“If you want a thing bad enough to go out and fight for it,
to work day and night for it,
to give up your time, your peace and your sleep for it…

if all that you dream and scheme is about it,
and life seems useless and worthless without it…

if you gladly sweat for it and fret for it and plan for it
and lose all your terror of the opposition for it…

if you simply go after that thing you want
with all of your capacity, strength and sagacity,
faith, hope and confidence and stern pertinacity…

if neither cold, poverty, famine, nor gout,
sickness nor pain, of body and brain,
can keep you away from the thing that you want…

if dogged and grim you beseech and beset it,
with the help of God, you will get it!”
---Les Brown
______________ __


« Last Edit: November 30, 2011, 10:16:10 AM by Ajax616 »

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