My three trading rules

[Trembling Hand]

Beerwm do you have stops on your trades?

 

[beerwm]

..yes

 

[Trembling Hand]

So do I, its at 0.5 % of capital. Game over for the day, come back tomorrow without having done any damage to my business.

At any instant in time its more important to do no harm than do good

 

[beerwm]

sorry, i wasnt clear.

my stops are more technical/volitility, etc not based on my overall account.

just from a purely mathematical point of view.

everyday you start of with 100% capital, youjr expectancy would obiously expect some gain.
now after losing 0.5%
your capital is at 99.5%, and your expectancy would similarily expect a gain.

say you made 2% capital in a day,

102%, you say u might increase your position sizing up to 10x.

im sure you undestand what im getting at.

does somehow your first portion of the days trade give you a signal about how stocks/or whatever are trading on that particular day?

do you place a weekly stop at 1-2%?

 

[aarbee]

Ok gents knock yourself out working on mindset. Just keep an eye out for traders that have been at the game for a while people like Nick Radge and Frank D. See what they talk about. More to the point see what they don't

I am pretty sure that Nick Radge appreciates the importance of mindset in successful trading for he listens to and sells a CD with positive affirmations.

Cheers

 

[Trembling Hand]

just from a purely mathematical point of view.

Actually that's kinda how it came about. Take your last 100 days of trading then with the worst 10 days half there damage. Your account looks better.

Now I know that that is a hindsight stat but it actually makes you trade with the right mindset (LOL). Where your first concern is not to lose money, if you take care of that at some stage you will just fall over some $'s sitting on the ground.

 

[Trembling Hand]

I am pretty sure that Nick Radge appreciates the importance of mindset in successful trading for he listens to and sells a CD with positive affirmations.

Cheers

Well there you go. I'm full of ****. Still you worry about approaching the day with the correct mindset and I will continue going about building skills that take the avg annual wage in a week. And not worry about the odd smashed mouse or keyboard. :

 

[beerwm]

heh.

mindset. i knew it

 

[Cartman]

I'd just like to know why you stop trading when u hit a 0.5% loss.

Your system is obviously designed with a positive expectancy which can only be guaranteed the more you trade

positive expectancy is not guaranteed by trading a system more (unless it is a totally mechanical system) and even then any past backtesting may crash and burn !! --- it is guaranteed by trading a system under the guidelines of what u have proven to make it positive ---- ie testing the system in real time
------

 

[cuttlefish]

im sure you undestand what im getting at.

Even if TH doesn't, we do


From TH's first post in the thread ...

Believe me you trade very nicely if the next 10 trades don’t mean the diff between making the rent or not.

How does this affect your trading if mindset is irrelevant?


I can see your point about skills development being the most important thing to focus on - but mind set is essential as well. The first mind game for complete beginners to get past is to take exits.

 

[cuttlefish]

Well there you go. I'm full of ****. Still you worry about approaching the day with the correct mindset and I will continue going about building skills that take the avg annual wage in a week. And not worry about the odd smashed mouse or keyboard.

Sorry- I see the game over buzzer had already sounded before I submitted

 

[cuttlefish]

From my observations the mindset rubbish comes from observing the end product of skill development.

This is a great point by the way and well worth taking note of - I can see your point that a focus on skills development will lead to a confidence that implicitly helps develop mindset.

 

[Cartman]

Nick Radge sells a CD with positive affirmations.

Cheers

Y does he need to sell stuff?? (no offence intended Nick) ----

I am pretty sure that Nick Radge appreciates the importance of mindset in successful trading

Cheers

i appreciate the importance of mindset also ---------- i am so pi#sed off that i was such a sh#t trader in the past, that i now have a positive mindset to increase my skill levels ---------- pretty sure Nick's CD wont help me though

 

[Trembling Hand]

Sorry- I see the game over buzzer had already sounded before I submitted

Cephalopod I honestly believe there is just far too much focus on mindset/psych stuff. Sure you don't want to be playing Russian roulette with each trade and you don't want to be getting into a state of complete frustration and anger or fear (I prefer just mild frustration & anger ). This goes without saying. But to say that you will be successful by getting in the right state of mind is delusional if you have no skills to have that confidence.

 

[beerwm]

positive expectancy is not guaranteed by trading a system more (unless it is a totally mechanical system) and even then any past backtesting may crash and burn !! --- it is guaranteed by trading a system under the guidelines of what u have proven to make it positive ---- ie testing the system in real time
------

where each trade is exclusive of one another,

i cant see how trading more would not deliver more positive results, unless your expectancy is wrong.

 

[cuttlefish]

Cephalopod I honestly believe there is just far too much focus on mindset/psych stuff. Sure you don't want to be playing Russian roulette with each trade and you don't want to be getting into a state of complete frustration and anger or fear (I prefer just mild frustration & anger ). This goes without saying. But to say that you will be successful by getting in the right state of mind is delusional if you have no skills to have that confidence.

Cheers TH - don't worry I get your point (see my post just above) - just having a bit of fun.

 

[Trembling Hand]

Cheers TH - don't worry I get your point (see my post just above) - just having a bit of fun.

 

[MS+Tradesim]

But to say that you will be successful by getting in the right state of mind is delusional if you have no skills to have that confidence.

So who is claiming that? From what I see, respondents are affirming that both are important.

 

[Cartman]

where each trade is exclusive of one another,

i cant see how trading more would not deliver more positive results, unless your expectancy is wrong.

Beer ---- scalping is more like caressing the high 'C' out of a Stradivarius ---- it definitely 'aint driving a 'Mack' down the 'Hume" ----

mechanical vs. discretionary r not on the same page if u r good at it ---

ps i'm not good at it, but i like to think i can see a distant light in the tunnel

 

[Trembling Hand]

So who is claiming that? From what I see, respondents are affirming that both are important.

I see that people are saying both are important. My point is skills must come before the mindset, Infact mindset can only come from the skills otherwise its not the correct mindset, its fantasy.

Therefore MY point is that skills are the start and end.