Tuesday, June 21, 2011

New trading week

Hey there,
Had two days off from trading. Today will be trading with very low stakes comparing with stakes I used in Ascot. I need to warm up my foots and see how markets gonna look. I remember deadly period after Aintree big entry finished, I jumped to the markets overconfident with too big stakes, of course I got long drawndown. So past made these lessons, and I am gonna learn from them. Will be concentrating not for profits but for my risk, it means I will be trying not to win, but firstly not to loose.

Last week results
Last week I traded all Ascots days,  with ~500 profit. However last two days was a lot harder to trade, than a beginning of the week, who knows why? Markets got harder to trade, or my mindset got tired? Well it's still very good results for me.


I am rereading same book by Brett Steenbarger "Psychology of trading". I find there lots of good ideas and insights. I think it helps me to stay in the right mindset. Well, that's it for today, good luck in your trading.

Thursday, June 16, 2011

New personal record

Hey there,
Just a quick post. Yesterday I made my new "pl" record in pre-race horse trading. Finished day with  €179.70 profit :) My last record was 158.61. Royal Ascot is very generous to me, probably most of the traders take a lot bigger profits in this week. Well, I do not need to forget my past lessons, after Ascot finish I will need to reduce my stakes dramatically, and of course be happy making in the day a lot less return. Sometimes it's hard to not be greedy, then you just had a period of success, you always want better and better results ... However this kind of thinking does not work in trading. You take what markets are giving, and that's all. Do not start to force the trades, where opportunities are not in your favor. Think about not losing firstly! And profits will come.
Traded 22 markets, with only 3 small losers. 
That's it and good luck :)

Sunday, June 12, 2011

Comparison of my mindsets

Hey there,
After some mental work with myself results got a lot better. Below you can see few examples, with two different mindsets.
First one - greedy inconsistent looser, who wants to make lots of money, but can't wait for the right spot and who hates to think about risk, because he needs money! He desperately want to get in the winning streak without taking responsibility for making loosing trades. He blames markets for making him pain.
And second one - patient trader, who manage his trades consistently, no over trading, no rush, waiting for the right setup, he does not need money, the only desire for him is to make "right" decision, and he knows that in the end of the day he will make nice profits. He does not blame the markets after losing trades, he always take full responsibility for his actions.

Well these images of my results are self explaining.  Brett N. Steenbarger wrote in his "The Psychology of Trading"  book - "Examine your patterns: What were you doing wrong in the losing trades? What worked in the winning trades? Each of these patterns has a purpose: to teach you something about your trading, something about yourself. ... Traders will be able to trade by building on their successes, becoming more of who they already are at their best."

So my main goal is to keep the right mindset for long as possible, I need these thinking habits a lot! :) Its very easy to go back in the destructive old behavior patterns...

That's it for today, wish you good luck.

Thursday, June 9, 2011

Forget winning, remember not loosing

Hey there,
Well I abandoned my "plan" from the last post. Something was not working out correctly. In short I was "inconsistent" and undisciplined. Making profits with micro stakes, taking losses with all-in situations, and it over weights any knowledge about markets... I forgot very important thing, trading is not about making winning trades, but more importantly it is about not loosing. I forgot to be risk averse, I was over trading. And of course markets started to punish me for being greedy bastard. You must quit greed completely! This approach helped me to start scratch loosing trades as fast as possible, and of course to wait for right setup as long as it takes, no rush, no pressure. Think about your risk, not about taking as much profit as you can and your edge will take care about the money. So my plan changes, it comes a lot simpler, I will be taking what markets gives me, without any pressure to make "xx %" on my account in particular day. And I will not be growing my account balance for some time, I noticed that my account gets bigger I start to loose it :) 

Well I hate my "inconsistency" and my psyche problems... Why let's say 3 weeks of trading passes without a looser day (easy trading), and in the next one I am loosing everything? And more importantly I can't understand why these shifts in my head happens, what influence this change to my mindset? Greed, ego, fair, lack of knowledge or discipline ... ? 


I am gonna change few things in my trading, gonna be starting to be "consistent" with my staking, and my bank account balance. And I believe I will get a small salary in the end of the month, what of course is good thing to grow my confidence and a believe of being consistent winner.


That's it folks, wish you nice trading.