discipline

I am trading part time. Recently I started trading 2 full days a week after 6 months of only ES trading near the close (prior to this I had been spending all my days in front of the screen for 2 years and for large periods of this doing reseearch).

Now I am looking at trading the Bund during European market hours (I am not trading FX or Commodities ever but trade ES until later in the day if I trade it at all).

I find I need to do statistical studies to get more comfortable with what I am looking at with the Bund. I also need to learn what makes it move and when. I found some nice edges with Volume charts but am still missing the moves. Sometimes it is completely the inverse of the equities, sometimes goes the same way before, or after.

Steenbarger:

Discipline doesn’t mean not making mistakes; it means making mistakes the right way. Particularly when you’re building your competence and confidence, it’s important to learn how to “work your way out of the trade.” Positive experience can build optimism, but it’s the ability to work out of difficult situations that yields the confidence that you can handle most anything the market can throw your way.

Part of the fundamental truths of trading:

1. I objectively identify my edges.
2. I predefine the risk of every trade.
3. I completely accept risk or I am willing to let go of the trade.
4. I act on my edges without reservation or hesitation.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s