Weaknesses in trading and back to Funded Account with TST
January 22, 2016
Hope everyone is doing well, thanks for coming back and reading my blog. Had a few good chats with some traders over the week and it made me think about a few things. Our own individual trading strengths and weaknesses and recognizing them and learning to deal with them.
I’ll start with myself, I have been through it all just like you. I spent almost two years jumping from strategy to strategy, adding indicators, chasing the holy grail, trying to figure out if I was a day trader or a swing trader or full timer gambler. Every time I thought I had it down the market would throw it back in my face and have me second guessing everything once again. Trying out some Forex and failing even worse.
The first thig I realized is I was a day trader. Second was I was good at identifying setups and taking trades, third I was a horrible over trader. My profession over the last 9 years or so turned me into an aggressive trader wanting to take every possible setup that made sense and not stopping until I came out with profit. I would have a great day then it would be gone the next, it was obvious I knew what I was doing but there was something wrong.
I spoke with hundreds of traders over the years some profitable some not,
multiple millionaire traders from all over the world and realized I needed to counter my weakness directly through my strategy. For me it was risk/reward.
I know I’m going to take 2-5 trades on any given day, I know It’s a strong possibility I will lose 3 of them. The only possible way of coming out with money is making sure my losses are small and my winners are AT LEAST 2-1 risk/reward and even better 3-1 or 4-1. That’s exactly what I did, I loved the crude market and still do because you can have a small stop loss and take advantage of some huge swings.
I Back tested for days on end not leaving the house or my computer for days at a time looking for the best time frame and risk/reward combo I could possibly find. Once I had it all together, simply just knowing that I could get in multiple trades get stopped out and just needed ONE GOOD TRADE for the day and I could be in profit helped my mental state of mind.
I had figured out my weakness, excepted it and made a plan to fight it within my trading strategy. All I had to do is practice my setups and getting into trades with a smaller stop loss than I was used to. Once I started doing that A change took place immediately in my trading. I have not looked back since, my strategy has never changed and the core principles prob. Never will.
In conclusion, you need to recognize what you are doing wrong before you can fix it, trying to do that on your own can take years, most will never do it and give up. Once you recognize it then you have to except the fact you’re not perfect then try and figure out how to eliminate that problem through your trading so you can move on and start to profit consistently. For me it took a second set of eyes and some tough love from a few different traders, I literally got yelled at by a few and it go through to me.
When I look back at some of the traders I have helped it was because I helped them figure out what they do wrong consistently not right, what they are doing and not realizing or not accepting to realize it. I wasn’t because they are not intelligent or didn’t want it enough it’s because sometimes it takes someone looking from the outside to see the full picture.
I’m back in my funded account with TopstepTrader next week. Stay tuned for more trading updates!
As always thanks for reading and of course I’m always up for discussing anything about trading.