Hi,
I have problem with my discipline. I have a system that work nice. I currently gain 4% this month. The problem is I often break my own rule. I’m very dissapointed with my self right now. I just broke my own rule today, and made minus 1%. Often my “smart” mind tells me that I need to enter/close a position, although the system says no. How do you tackle something like this?/
I don’t know for sure, as I am still working on the ‘system that work nice’ as you stated.
But from one vantage point, pretend there is a whole ton of real cash on the line. IF you are fortunate enough to be using 10, 20 , 50 , or more PER PIP - would you take the trade. or if it need be more imagine 100 or 200 or 500 a pip - what number says- whoa - wait aminute are you 100% certain on this trade.
You don’t trust your system, therefore you can’t abide by your rules.
How long of you traded your system, how much data have you got to say it is successful over the long term not just one month.
Your trading system is like your girlfriend, if you trust her explicitly, you will have lots of good times, even though you may have some bad troughs every now and then, but if you don’t trust her then you will be forever fighting, arguing etc, never going anywhere & ultimately destroying your relationship.
You won’t break your rules if you trsut what you are doing!!! Smiple…
I trust my rules. I was doing very well last year for 3 months before last year EURO crisis. That crisis turns out to be bad for the system. The condition was too extreme. After that I quit trading until this year.
I started again but with more strict rules which I think will not make a huge loss when the crisis come again for example like using VIX index http://finance.yahoo.com/q?s=^VIX.
The problem is not the system. I’m too greedy and not patient enough to wait the signal.
I’m not sure I understand, if you have a system you trust that you believe shows positive expectancy, then why are you wavering from those rules?
Why do you enter to early? Do you think you are missing out on something, pips?
It sounds like you’ve tinkered with it already which suggests you aren’t a 100% confident in pulling the trigger when the rules says.
You say your ‘smart mind’ tells you to enter/exit and your system doesn’t. Well there are 2 outcomes- overall your system is wrong or overall your smart mind ain’t so smart!
I reckon the problem is you are thinking about it too much. If your system works, be a robot, trade it and only it-you shouldn’t really need to think as all conditions should be set out in your system.
Hmm, it’s not like what you think. I have a system, and it’s currently says don’t enter. BUt then I see chart and think hey this is a good chart. I should enter. Tired of waiting the signal I enter the market. I’m impatient waiting for my signal.
I use quote on “smart”, meaning that is not smart because it does not follow my rule. The question is how to be a robot?
That’s the million dollar question :eek:
Setting emotions aside while trading is what sets aside most profitable traders from the losing ones. If you can answer that question, then you would have solved the problem of thousands of aspiring traders. 
Just my 2 cents, listen to the advice given earlier. It’s all about trust. If you trust that your system won’t fail you, then you won’t feel the need to second guess your system and can focus on following its rules all the time. 
Or maybe try giving yourself a monthly trade limit next month, ie. only permit yourself to place a certain, limited number of trades, then when you hit this number shut down your machine and don’t let yourself look at the charts for the rest of that month. Having a limit to the number of trades you can place that month might force you to be more selective, wait for setups that truly fit your strategy.
Trouble is, discipline is about the hardest bit of trading to pick up if it doesn’t come naturally.
Once again, you say have a system, yet you are discretionary trading.
You will always need discretion, it is only by commitment to the job you will gain the experience to use your discretion and not let your emotions overrule.
Apart from using psychological techniques like I mentioned, the only other thing will get you there is time and experience - just stick at it.
Why do you need discretion if you have a thoroughly tested mechanical system.
If your system is positive with no discretion involved then why would you introduce it when you supposingly have more experience?
Your mechanical system will never be 100% mechanical, that is where your discretion comes in, and it will never be 100% tested, you will need to know when not to trade, and sometimes when to trade when your system doesn’t quite tell you to.
You have to understand what goes on in the market before you can apply mechanics.
The Turtles system was purely mechanical, it was only when some added there own discretion that it affected the system and why they all weren’t successful.
Would you like to qualify that statement with some evidence?
The story is well known and freely readable on the web, but provide exact evidence, no unfortunately I can’t, I wasn’t privvy to being one of the turtles.
Actually reading your above statement “Your mechanical system will never be 100% mechanical,” “and it will never be 100% tested” are they facts or opinion, because I fear statements like that can be misleading.
To have confidence in your system, you need to have trust in your statistics you have produced from the past. Now if you add discretion, then your model is flawed because each entry / exit may not be the same as you have added discretion.
The OP is having difficulty with discipline, my point is if he trusts his system, why does he need to enter early, be greedy, when the system is profitable with rules already set.
Go and do something else.
I used to close my charts down and go read a book. Secure your trade with stop loss and maybe take profit, and leave alone.
If you can’t mentally stop yourself from fiddling around then remove yourself from temptation.
Good luck.
so why don’t people trade turtles today?