Setting short term trading goals to build self-confidence

Now that we are 14 days into the new year, here’s a status update on my trading of various currencies and equity indices.  Coming to you from my new office location on a crisp Saturday morning.  My friend has done me a huge favor by helping me out with a desk in the City!!

Apologies for blogging a bit less lately. There has been so much trading work to do, I have found it hard to make time.

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Been battling with self-confidence a bit as of late – I am sure most homo sapiens do from time to time – I am betting on the idea of setting short-term milestone and achieving them will bolster my self-confidence.

Thus, I am setting a list of objectives for the coming week.

Goals for this coming week

Technical Work & Trading Strategies

  • Progress along with mean-reversion setups – taken 15 trades in the 2017 sessions thus far. I browsed up over the 30+ screenshots I have taken over the past two weeks – these being executed trades as well as trades as well as setups I noted and passed on, missed out on, or spotted only afterwards.   These was very helpful and it’s given me concrete things to work on.
  • Trend-following strategies – this has given me nothing but headaches thus far in 2017 – I am hoping that a solid discussion with TraderDi (for whom trend-following is her ‘bread & butter’ strategy) on Saturday afternoon, will provide me with some clarity – presently I feel like King Theoden in Lord of The Rings prior to Gandalf freeing him from the curse.  I do have some ideas up my sleeve for that one, but let’s see.
  • ‘Continue with continuation’ setups (did you like the play on words?) – my mean-reversion strategy looks out for near identical variables that I need for trading continuation patterns – I traded two continuation setups last week with reduced position size – they both worked.

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The Trader & Processes

  • Mindset – Attempt to stabilize my mood and confidence a bit better – ensure I get that good balance of work, good nutrition, exercise, hanging out with friends and doing fun stuff, and sleeping!  Been reading a bit of Tools of Titans too during lunchbreaks – excellent food for thought!
  • Routines and Processes – crack on with all the stuff I have been creating and implementing in 2016 – for example, y documentation and note-taking and the timing of it – I am going to give myself an A+ for that this week – it’s been top notch – I am impressed with myself whilst looking over the 30+ screenshots I created in the last fortnight!  Likewise my consistency in getting to bed early, rising at 5am, completing my market preparations and working hard has been pretty darn good this past week!
  • Continue settling into my office – after leaving the retail trading office digs, this has been the first week trading alongside a successful hedge fund.  I am not actually part of the fund but they have given me a desk & rather spectacular room to trade from.  It’s great being surrounded by a different bunch of people who are all part of the industry and working right in the heart of London’s historic financial district, the City.

 

That’s it for now, folks.  Have a good weekend!

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14 Responses to Setting short term trading goals to build self-confidence

  1. David Eppel says:

    I think you are being hard on yourself-the finance industry has 2 weapons-new dumb money and luck- I like Van Tharp who says we trade our BELIEFS about the market-the squiggly lines mean nothing. (The FTSE is hurting me currently) Anyone with a real winning formula would be a billionaire by simply doubling their stake with each winning trade- I think it’s possible for retail players to scratch a living but where are they?

    Like

    • Mr Eppel,

      Why is the FTSE hurting you? Perhaps you are hurting yourself by not getting out of the trade? Perhaps you are risking too much on anyone trade?

      Like

      • David Eppel says:

        I have so many choices of adjustment with options but FTSE has smashed up 3.25% in 11 trading days-my trades rely on <3% before adjustment- actually it's not even an annoyance as I trade 1/4 of my possible trade size, but I'm usually wrong on the market-it doesn't usually matter though. I just like to make money EVERY month. Volatility has all but died- it'll be back.

        Liked by 1 person

    • David Eppel says:

      I never trade naked, I always sell more options than I buy so my hedge is partial but instead of premium smashing out of control my long positions are a huge help. I have in 16 years of trading not seen so many up days either consecutively or on balance in 2016, the market is just a dumping ground for central banks’ excess cash

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      • David Eppel,

        How much are you making a year?, 6 or 7 figures?, you sound like you have it all figured out, you must be printing money!

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      • David Eppel says:

        No I’m not a good trader- but I know how to trade. As the website shows http://optionsinvesting.co.uk
        I had a major event in my life in 2016 which meant closing out a big position which would have made ££££ and then along came Trump and I stepped aside for almost 2 months-2016 was not a good year for me.. It was the year volatility died,and I wonder if central banks and algo’s will conspire to make our lives even harder. I aim to make 20-40% p.a. I’m not greedy nor it seems,ambitious-maybe I should be

        Liked by 1 person

  2. Zaheer says:

    Hi George

    It’s been a while. How are you doing?

    There are trends taking place in FX and stocks. It just depends on what’s on your portfolio.

    What have you traded this year so far and what time frame are you defining “trends” on.

    Goal setting is always good so all the best with them.

    Liked by 1 person

    • I’m sure george will be around shortly to reply to your message..

      But from his public posts i get the impression he mostly DAY TRADES the FX markets.

      I have mentioned in the past that day trading the fx is one of the hardest types of trading there is. I dont say it too often as i don’t want to post negative on some else’s blog.

      I believe George sees the immense difficulty as a challenge!

      I was reading about Blair Hull again, hugely successful trader and blackjack player, he reckoned only 1 in 500 people had what it took to be really profitable card counter.

      I think being a successful fx day trader is even harder than being a successful card counter.

      Liked by 1 person

    • Nice to get a comment from you Zaheer! Hope things are good with you too!
      I am trading a trend-following strategy on a 1-hour timeframe. That said I am going for 1-1.5R winners and a greater than 50% win rate rather than large winners and smaller win rate as I recall you often did (not sure whether you still do!).
      As ADT says its mostly on FX instruments, as well as some indices.
      Thanks again for your comment & wish you all the best for 2017!

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  3. Aiming for 1-1.5R ratio winners can be part of a day traders repertoire, but day traders should also be aiming to catch big winners as well. In fact i think the majority of a trader’s profits should come from the second type of trading (big winners with win rate of 50% or less).

    Here are some quotes from Van Tharp and from the Market Wizards books.
    Although they aren’t talking about day trading specifically, i have personally found the same principles apply just as much to day trading:

    “The golden rule of trading—cut your losses short and let your profits run.
    Most successful speculators have success rates of 35 to 50 percent. They are not successful because they predict prices well. They are successful because the size of their profitable trades far exceeds the size of their losses. This requires tremendous internal control.”

    “While amateurs go broke by taking large losses, professionals go broke by taking small profits. The problem in a nutshell is that human nature does not operate to maximise gain but rather to maximise the chance of a gain. The desire to maximise the number of winning trades (or minimise the number of losing trades) works against the trader. The success rate of trades is the least important performance statistic and may even be inversely related to performance”

    “If you don’t stay with your winners, you are not going to be able to pay for the losers.”

    Liked by 1 person

  4. looks like I will close out my 2016 trading for 8.8% profit which is pitiful by my standards, 20% is my low. FTSE retreated sufficiently for me to make a nice return-sometimes the market can play nice. I’m sure many other traders are troubled by the epic events which continue apace with wild governance in the US creating mayhem

    Liked by 1 person

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