Trading journal

[SovoS]

@tommor

I hope a true friend never puts me, their friend, in a corner by asking what they think they should do.

I guess you mean “by asking what I think they should do.”? I confess I am surprised! If any friend asked me that then I would certainly try to answer to the best of my ability and including any caveat or shortfalls that accompany that opinion. Surely, that is reciprocal and what friendship is all about? If someone asks your opinion, surely it means they value your thoughts?

Slightly different matter if one offers advice or comment which has not actually been asked for. But then it is a matter for consideration. If I notice the driver has forgotten to put on the handbrake do I:

1. wait for him first to ask if he should (even though he hasn’t noticed)?
2. mind my own business, because he is a friend, and let his car run away down the hill?
3. Politely point it out so that he can make a decision about it?

@tommor

If they did I would try to steer them towards thinking more effectively about their own issues. I’d be more than happy to highlight some factors and outcomes they might have undervalued.

Precisely. Is that not what we do here on BP as well? How many questions have we answered here over the years, how many opinions and thoughts shared even when not specifically asked for? and even added more info than requested that might be helpful?

I really don’t see the point, or benefit, for either side in deliberately not sharing anything that might be helpful or beneficial to the other party! Why? It is surely more the issue of how we present it than not to present it at all.

If I were to tell you that I am about to place an enormous trade on SP500 right now, would you not remind me that it is the NFP release in less than 2 hours?

But, as you say, it is a topic where each has their own views on it!

[tommor]

Yes, you’re right, I meant to enter what I think they should do. I have edited this now.

Or they have…

I’m very free with giving out information, but giving advice is hazardous. Actually I often give out information which is correct and sincerely meant, but which is not the whole picture. I am happy if people come back with a further query.

But I increasingly try to ask questions rather than give directions.

[SovoS]

@tommor

But I increasingly try to ask questions rather than give directions.

But are not we British the epitome of kindness, politeness, thoughtfulness, and consideration of others? So why hide one’s light under a bushel?

Besides, we are always so ready to apologise afterwards!!!

P.S. It wouldn’t have mattered about the SP500 anyway, it hasn’t gone anywhere far either way!

And now back to the boring routines…

[dushimes]

@ProfesorPips

You don’t know how your answer will impact on others

@SovoS

if we care about someone then we should feel able to communicate our opinions and advice

Right, right. And this is where I feel conflicted. I have recently given advice on two unrelated occasions, and it turned out helpful. And that makes me feel good. I feel good that I was helpful, and I also feel validated because someone took my advice and it worked. So, if people DON’T take my advice, I feel invalidated, which is unpleasant.

But withholding potentially good advice in order to protect my own feelings could be selfish, right?

Now, it’s different if someone ASKS for advice. But if someone is sharing a happy story with you, and you don’t think it should be a happy moment, do you ruin the happy moment by dropping a truth bomb? Or do you just go along and be happy for your friend?

Imagine my friend shares some good news with me about something he’s doing, and I tell him he shouldn’t do it. What if he regrets telling me?

Imagine I get excited about starting my forex journey, and I tell a friend. How would I feel if he tells me it’s a bad idea because so many people lose money?

This is the exact reason why I don’t tell most people about my recent endeavors. Just remember that if you tell someone something, you’re gonna get a reaction. You may or may not like his reaction. If you don’t wanna run that risk, then don’t bother sharing it. Simple.

I think if someone shares something with you, just go along with it. But if someone asks for your opinion, ask twice to confirm they actually want your honest opinion. Also, you can disagree, yet still support someone’s decision.

@tommor

asking what I think they should do

Kinda the same, but I think another way to frame that question is ¨What would you do, if you were in the situation?¨ Or you could answer with ¨Well, if I were in the situation…¨ What do you think?

[ProfesorPips]

I live with it every day, during my fx journey, I got knowledge and experience on many fields, but user doesn’t want to listen because my answer are… uncomfortable “what? trading is hard? I saw an advertisement where some guy made 1000% in a month, your trading method is crap”, I met even with aggressive from one user because he doesn’t like my answer. Sad true, get used to it and live forward

[SovoS]

@dushimes

…if someone is sharing a happy story with you, and you don’t think it should be a happy moment, do you ruin the happy moment by dropping a truth bomb? Or do you just go along and be happy for your friend?
Imagine my friend shares some good news with me about something he’s doing, and I tell him he shouldn’t do it. What if he regrets telling me?

I think, @dushimes, the key point here is not what the answers would be, but the fact that you are asking these questions!

It shows that you care a lot about the person(s) you are interacting with and that is pure gold. What use is a friend who always just says what they think you want to hear even if they know that their actual opinion could save you a lot of trouble?

There are people who are so opinionated that they always voice their views regardless of its impact on others. And that is not very considerate!

So, in general terms, surely it is a question of the degree of importance, and the likelihood and extent of potential adverse results. E.g. does it matter if someone says they are going to bet $100 on a horse that is not likely to win compared with someone intending to put their life savings into a FX trading account, thinking they are going to retire to the Bahamas by Christmas?

Wouldn’t you say that if someone is sensitive to, and concerned about, the impact of their advice to others, then they are also capable of assessing when it is worth saying something and how best to phrase it?

And, of course, if the outcome is potentially extremely serious and irreversible, then you need to speak up regardless of how the other person will take it!

Just my thoughts, anyway

[dushimes]

I’m practicing some S/R trades, but it’s not going well at all. I traded 10 charts, and did well on just 2 or 3. It’s ok. That’s what practice is for.

However, there’s a problem with my entry/exit signs. I thought I had it figured out, but the charts say otherwise. I have to be open to the possibility that I’m wrong.

When I look at completed charts, everything looks so easy. I don’t mean it looks easy just because the answers are in front of me. I mean it looks easy because all my entry/exit signs are soooo obvious! I see them, and it all makes sense! EVERYTHING!

There’s a piece I’m missing. It could be patience. I’m not sure.

For the next week or so, while I’m practicing charts, I decided to pause opening new positions. I’m just monitoring for now.

I wrote some steps for my strategy, but it’s not working. So, I’m taking some time to review more charts, and edit the strategy.

I feel so foolish for not profiting from these price movements. I wanna get to the bottom of this.

Patience, young padawan.

[dushimes]

I’m gonna keep peeling this onion until I get the answers I want.

[dushimes]

It’s too early to say, but it seems that one of the S/R lines I’ve been drawing is wrong/irrelevant.

If a strategy is yielding random results, and seems confusing, it’s definitely worth evaluating. The market doesn’t care what lines I draw or where I put them. I could draw rainbows and puppies all over my charts, but the bottom line is whether or not it makes sense.

The market doesn’t care. The market is gonna do what it does. If I can’t make some sense of it, then there’s no way to enter and exit consistently profitable.

So, I’m further exploring this idea that I had wrong…

Patience and persistence!

[dushimes]

So, I have this new idea, and now I have to collect more samples to see how this idea affect my other strategies.

It doesn’t negate everything in all my setups, but I have to find out which ones.

I wanted to keep practicing charts, but this affects the strategy I was practicing. This takes priority.

[dushimes]

@SovoS I’ve found an idea that may help my strategy along. I collected 10 samples, and I’m revising my strategy. This time, with pictures!

We’ll see how this goes, but I may take a page from your book and cement this strategy into a pdf.

@SovoS

There are people who are so opinionated that they always voice their views regardless of its impact on others. And that is not very considerate!

Sorry to bring this subject up again, but a point just came to mind. I wanna be careful with what habits I develop. I think I have turned into a person that will often correct people, impulsively. Meaning, I just do it out of habit.

I don’t wanna have a counterargument every time someone shares an idea.

¨Guess what, I’m eating more fresh vegetables!¨

¨Well, actually, what you wanna eat is…¨

I don’t wanna be that guy EVERY time. Sometimes, it’s encouraging to just say ¨Cool! Good job!¨

People don’t wanna argue every time they’re trying to share something with you.

Does that make sense?

Giving advice is great, but I shouldn’t do it impulsively. And that’s what it was becoming.

[SovoS]

@dushimes

Giving advice is great, but I shouldn’t do it impulsively. And that’s what it was becoming.

I understand what you are saying, and I agree with you. Maybe the dividing line is between what is advice and what is conversation.

Maybe one alternative to giving advice that may be contrarian would be simply to ask questions like “why” and “what if”? Not only does that encourage the other person to expand on their thoughts, but also shows interest and builds conversation - without appearing to be a neg or a nag!

[SovoS]

@dushimes

We’ll see how this goes, but I may take a page from your book and cement this strategy into a pdf.

Personally, I find it to be a very useful habit. Traders are always encouraged to keep trade journals in order to analyse their results and progress, but I think it is just as important to write down in concrete terms what exactly one’s strategy is. What is it based on? what triggers an action and why? what timeframes? what entry criteria? what exit criteria? what risk size? what instruments? etc, etc.

For example - and purely as an example - I use a group of MAs for determining direction and PA S/R to set targets and stops. This is all set out in my pdf with picture examples.

I also use three timeframes: Daily, 4H and 1H. The daily defines the trend and the trend is valid as long as the 4H is synchronous with the daily. When the 4H flips ahead of the Daily then we are in a pullback until the daily flips and a new trend is defined. I only use the 1H when a trade is open, or potentially opening, to assist with timing.

By writing these down they become more crystallized and almost automatically applied.

These are all only intended as example illustrations. I think the main key is to keep it simple and keep it concrete. The discretionary aspect should only be in your final personal decision-making, not in the interpretation of the strategy.

But this is only the way I look at it

[dushimes]

@SovoS

simply to ask questions like “why” and “what if”?

Good point. I should be more empathetic, curious, and conversational, as opposed to authoritative.

Thanks!

[dushimes]

Well, the weather is nice outside, but I’m staying in to work on charts.

I might go for a brief walk later.

I actually prefer to do that at night, when no one is around, I have the street to myself, and I can talk to myself outloud. Those nights are quite nice.

Right now, I have snacks and I’m ready for some charts!

[chen2020]

@dushimes

Often I have questions or thoughts that I would like to share, but don’t want to create a new thread for each one. So, I figured I’ll have just one thread for everything bouncing around in my head. Feel free to comment and question.

I’m a beginner and looking to improve myself as a trader.

Smart move starting a single thread for all your trading thoughts and questions. Keeps everything tidy and easy to track. I’m also grinding to get better at trading – it’s all about that constant improvement.

[dushimes]

@chen2020

I’m also grinding to get better at trading

Good job! How’s it been going for you?

[dushimes]

I’m collecting samples for one of my strategies, and this time I’m also collecting the entry/exit signs.

I see things a little differently now. Unfortunately, I see things differently is some of the trades I’ve taken recently.

However, on the bright side, I strategically set a sell order and it got triggered. Price barely hit my order though. A few pips higher, and my order wouldn’t have gotten hit.

This month is gonna end with my balance at a new low. But, I’m gonna keep studying these charts. Onward and upward!

Patience, young padawan.

[dushimes]

I reviewed some of my recent losses. The conditions I’m trading now, I haven’t even practiced for these conditions, yet.

Taking those trades was premature. I shouldn’t have done that.

Evidently, another problem I have is fear. I get scared, I freeze up, and I abandon my strategy. Trading S/R is quite simple. Draw S/R, then wait for a sign.

Well, I few times I drew my S/R, then I saw a sign, and I froze. It didn’t look like I thought it should, and I didn’t take it. So whatever losses I incurred prior to this sign were in vain.

Take a loss, take a loss. Here’s the redeeming sign. Oops. Too scared to take it.

That’s how it went a few times. However, this is the strategy that I just started practicing a few days ago. I shouldn’t have taken those trades. I guess, I got antsy, and just wanted to take some trades. Well, I shouldn’t have. That’s why, now, I’m not taking anymore trades until I finish practicing this strategy.

The retracement strategy I was practicing prior to this current one, I think I had some misunderstandings about it, and I need to revisit it after this one.

The fear factor is a big problem for me. I hope practicing these charts will help with that.

The problem is that this strategy is for simple swings. But when price is choppy, there are multiple S/R levels around. My PA principles are the same, but the application is a bit different.

That’s what I have to practice next. This is the one that’s most applicable of all my PA strategies. I have to keep studying, and compound these ideas. I have to learn how to take the trades, despite the fear.

Patience, young padawan

[dushimes]

I hope I didn’t go overboard. I just spent the majority of the day planning out the next two months.

I marked out everything on a calendar. I planned when to gather sample charts, collect charts for practicing, editing, and practicing the charts. And when to start trading the strategy in demo.

The good news is that for one of the strategies I already have samples collected. That saves me a week.

Hopefully, I don’t have any ¨A-ha!¨ moments that derail my program.

My expectation while practicing charts is to train my mind to follow the given strategy. My expectation while trading in demo is to focus on learning one strategy at a time. Hopefully, my mind will get accustomed to it while I study the next strategy.