Bullshit runs a marathon
We have quite a lot of talk on the board at the moment, calling people out on this and that. If you want to know if someone is a good trader, you should observe what they say and do. Good traders focus on method, record keeping and objectivity. Bad traders talk about what the market will do next.
End of story. It is that simple. I’m going to lead the way by showing you my trade logs and real world trades for the month of October so far, where I lost money.
Good trading is 1) Having a system 2) Trading that system well 3) Monitoring both personal and system performance 4) Maintaining or developing superior trading psychology. If you picture your system on a scale from subjective to totally objective, the more subjective your system is, the more critical it is that your record keeping is constantly up to date.
This is my trade log for the period in question, and I will go through every trade opened or closed in the month of October
This was a rule based short, which made 1.2R and reversed, stopping me out according to my rules. 0R
At the same time I was stopped out of my equity short, a long setup appeared, and I took it in YM (the strongest). When placing the trade I used discretion to avoid going for a 4R win (like I ordinarily do), instead opting for a 2R limit exit on the whole position. I used discretion (according to my rules allowable in limited situations) to exit 2/3 of the position at the upper bollinger and move stop to breakeven. This was a correct decision for me, even though the market continued to rise. I have a nominal 1 contract long position remaining. At this juncture it should be noted that we have a spike and channel price action heading into overhead supply. This market could fall off the plate at any time. Stop is at breakeven, nothing to do.
I took this NG X5 short in September, but exited in October. Exit was at the daily spike high, a near perfect trade.
Note a rule of my system is to become cautious when larger candles appear at the end of a move and to consider standing aside from textbook looking setups in that situation. For this reason I stood aside from the follow up short setup which saved me a -1R loss. I am happy about this, it was excellent trading according to my ruleset. Below is the discretion tab of my trade sheet
A rule of my system is that I need 1.2R to a flat upper bollinger to consider taking a trade. Given that the sideways period had gone on so long, I opted to waive that condition (it was 1.1R). This turned out to be a correct decision. Partial profits banked at 2R, this is behaving like a solid move.
HG Has been a very good market lately, after a big short winner last week we have a long trade, which is now at breakeven. Target is the upper daily bollinger, and looks odds on to hit it.
6B (GBPUSD futures) entered yesterday, in loss, stop at ISL. Probably will lose. Good trade.
PL F6 – This is an excellent trade from Friday, stop has to be moved to breakeven Monday morning, and targets should be adjusted from the upper bollinger.
Conclusions. So far in October, equity is down slightly, but have made no trading mistakes. Use of discretion is way more than usual, but in most instances discretion has been spot on.
The only setups for Monday are in Bonds – obviously highly correlated
Understand the point I am trying to make here people. If you don’t do something like what I did above at regular intervals, you are NOT a good trader. There are things to learn about every trade, both winning and losing. If you lose money you can gain knowledge, and knowledge, over time, leads you towards incremental development of your systems.
If you are an intraday trader, this should be done every single day. On the intraday systems Dudeplunger trades with me, we do the above EVERY DAY. No exceptions.