One thing I specifically remember is having a mantra I repeated to myself before each meal each day...
I am a professional trader. My job is to take risk. I am able to honour my stoplosses because I am a professional trader. It is my job to trade consistently. If I manage my losses I will be profitable because I am a professional trader. I pride myself in my ability to let my profits run until the market tells me to cut. I feel good about being able to not let my emotions rule my actions. I am a professional trader and will make $1,000,000 by year end. I will achieve this by following my stops and profits to conclusion and not allow my emotions to overrule my actions. I am a professional trader and therefore flexible in thinking and will not allow my current position in the market to overshadow new information being accumulated. I am allowed to make mistakes as it is part of being a professional trader, I forgive myself easily for making mistakes and move on to the next opportunity. Letting losses run is not in my own best interest. Cutting profits short is not in my own best interest. What I have read here is the truth and I believe in my own ability as professional trader to always act in my own best interest.
After repeating this it comes true. I have basically reprogrammed my subconscious to start believing things different from what I was instinctively taught since birth.
Someone asked me for an example of how I would make a trade...I have in an earlier post highlighted thinking around EURGBP, OIL, ZAR and ALLSHARE index in South Africa. These trades still hold and are still open, I have reduced exposure in ZAR increased in EURGBP and closed in OIL -Holding slightly less still in ALLSHARE.
Currency Specifics: As I explained I went short 6758 on eurgbp then closed some around 6780 (for a loss) entered them short again at 6789-91 and then added more on 6748 and some more on 6738 I am thinking of adding another here at 6718 and then if I hit 6700 I will close half of everything put my stop at 6758 and start adding to the position again at 6685 and 6675 and take them back at 6630'ish. depending off course on what I feel like when these levels are hit. Note - I added at 6738 not on the first time it went through but on the pullback last week thursday/friday.
The positioning was : enter 5 at 6758 close 3 for loss at 82 add 3 again at 89 and 90 then add another 3 at 48 another 3 at 38 and I will probably add 4 at 6718. I will close 8 at the figure and then I will have a proper trend starting without risk of losing much anymore. These contracts is just standard lots I think the position is now at about $240 a pip...Not mind blowing I know, but remember I am doing this as a sideline.
So the basic idea is to be fairly active in the beginning until your view starts to work out. When it has then put yourself in a profitable situation -take the pressure off- and see how far the trend can continue adding along the way and taking them back at certain points but always biased towards your view.
Some of these trades take a long time to develop and some just dies -thats when you need to know your view is wrong and close/change gear. I would rather be proven wrong on my view than on my trading.
Also just a quick note on brokers. If we had a particular strong view on the market and we decided to pool our limits and start a serious campaign which might last for months and will involve huge positions we always had the courtesy to phone the brokers and ask them for prices over the phone so they can see us coming and organise their dealing desks in such a manner to accommodate their positions with ours. In turn they protected us on stops and profits and we got better execution...It is always a two way street and I think thats why internet brokers become villians in the eyes of some traders. It is just not possible for these internet brokers to quickly get rid of positions coming en-force over the internet and I think that is the reason why they put some traders on manual execution as they are trying to limit their own losses.
I am a professional trader. My job is to take risk. I am able to honour my stoplosses because I am a professional trader. It is my job to trade consistently. If I manage my losses I will be profitable because I am a professional trader. I pride myself in my ability to let my profits run until the market tells me to cut. I feel good about being able to not let my emotions rule my actions. I am a professional trader and will make $1,000,000 by year end. I will achieve this by following my stops and profits to conclusion and not allow my emotions to overrule my actions. I am a professional trader and therefore flexible in thinking and will not allow my current position in the market to overshadow new information being accumulated. I am allowed to make mistakes as it is part of being a professional trader, I forgive myself easily for making mistakes and move on to the next opportunity. Letting losses run is not in my own best interest. Cutting profits short is not in my own best interest. What I have read here is the truth and I believe in my own ability as professional trader to always act in my own best interest.
After repeating this it comes true. I have basically reprogrammed my subconscious to start believing things different from what I was instinctively taught since birth.
Someone asked me for an example of how I would make a trade...I have in an earlier post highlighted thinking around EURGBP, OIL, ZAR and ALLSHARE index in South Africa. These trades still hold and are still open, I have reduced exposure in ZAR increased in EURGBP and closed in OIL -Holding slightly less still in ALLSHARE.
Currency Specifics: As I explained I went short 6758 on eurgbp then closed some around 6780 (for a loss) entered them short again at 6789-91 and then added more on 6748 and some more on 6738 I am thinking of adding another here at 6718 and then if I hit 6700 I will close half of everything put my stop at 6758 and start adding to the position again at 6685 and 6675 and take them back at 6630'ish. depending off course on what I feel like when these levels are hit. Note - I added at 6738 not on the first time it went through but on the pullback last week thursday/friday.
The positioning was : enter 5 at 6758 close 3 for loss at 82 add 3 again at 89 and 90 then add another 3 at 48 another 3 at 38 and I will probably add 4 at 6718. I will close 8 at the figure and then I will have a proper trend starting without risk of losing much anymore. These contracts is just standard lots I think the position is now at about $240 a pip...Not mind blowing I know, but remember I am doing this as a sideline.
So the basic idea is to be fairly active in the beginning until your view starts to work out. When it has then put yourself in a profitable situation -take the pressure off- and see how far the trend can continue adding along the way and taking them back at certain points but always biased towards your view.
Some of these trades take a long time to develop and some just dies -thats when you need to know your view is wrong and close/change gear. I would rather be proven wrong on my view than on my trading.
Also just a quick note on brokers. If we had a particular strong view on the market and we decided to pool our limits and start a serious campaign which might last for months and will involve huge positions we always had the courtesy to phone the brokers and ask them for prices over the phone so they can see us coming and organise their dealing desks in such a manner to accommodate their positions with ours. In turn they protected us on stops and profits and we got better execution...It is always a two way street and I think thats why internet brokers become villians in the eyes of some traders. It is just not possible for these internet brokers to quickly get rid of positions coming en-force over the internet and I think that is the reason why they put some traders on manual execution as they are trying to limit their own losses.
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