Comments on: Rules were made to be broken? http://www.uglychart.com/2006/06/20/rules-were-made-to-be-broken/ Beauty is in the eye of the shareholder Fri, 29 Aug 2008 03:50:18 +0000 http://wordpress.org/?v=2.6.1 By: uglychart.com » Blog Archive » June Review http://www.uglychart.com/2006/06/20/rules-were-made-to-be-broken/#comment-915 uglychart.com » Blog Archive » June Review Fri, 30 Jun 2006 20:31:39 +0000 http://www.uglychart.com/2006/06/20/rules-were-made-to-be-broken/#comment-915 [...] Despite two breaches in my system, June was a good month. I was up about 40R: The 29th trade and the 59th trade represent whole days where I overtraded and did not follow my system. I do not include each separate trade in my journal for these days (because there are so many trades and I’m not following my system) so I include them as one trade and I compute the R value based on my average R for the month. So that is why I say I was up “about” 40R, because there is estimation involved with these two days. Despite all the R, my account was only up 18%. I know I know, 18% is pretty good. But I had planned on my average R being 1.2%. It turns out it was only 0.6%. And I have to figure out why that happened and what I can do to change it. If I had used 1.2%, I’d be up 36% instead. Some of the reasons I used less of an R were: 1) I thought the market direction was questionable and so I wanted to lessen my risk, 2) I didn’t have confidence in shorting and so I lessened my risk, 3) my math is bad and I figured the wrong position sizes, 4) I overestimated slippage and underestimated liquidity, and 5) some bars were so narrow that I was afraid to buy so many shares. My first reaction to all of this was that I would increase my R and this would hopefully increase my average R. But I think instead that I will put more effort into buying enough so that I am risking enough. My goal for July is to bring my average R up to 1%. I attribute a lot of my success this month to meditating for 30 minutes every morning before the market opens. My worst day was a day that I overslept and didn’t have time to meditate. It has also helped me in other ways besides trading. I feel more content and have less temper. I also attribute the success of this month to the fact that I was using 30-minute candles, which did not allow me much opportunity to overtrade. Also, I put a lot of effort into looking for very narrow bars. I am on vacation until the 10th. The new all-time highs/lows will continue to post as usual. [...] [...] Despite two breaches in my system, June was a good month. I was up about 40R: The 29th trade and the 59th trade represent whole days where I overtraded and did not follow my system. I do not include each separate trade in my journal for these days (because there are so many trades and I’m not following my system) so I include them as one trade and I compute the R value based on my average R for the month. So that is why I say I was up “about” 40R, because there is estimation involved with these two days. Despite all the R, my account was only up 18%. I know I know, 18% is pretty good. But I had planned on my average R being 1.2%. It turns out it was only 0.6%. And I have to figure out why that happened and what I can do to change it. If I had used 1.2%, I’d be up 36% instead. Some of the reasons I used less of an R were: 1) I thought the market direction was questionable and so I wanted to lessen my risk, 2) I didn’t have confidence in shorting and so I lessened my risk, 3) my math is bad and I figured the wrong position sizes, 4) I overestimated slippage and underestimated liquidity, and 5) some bars were so narrow that I was afraid to buy so many shares. My first reaction to all of this was that I would increase my R and this would hopefully increase my average R. But I think instead that I will put more effort into buying enough so that I am risking enough. My goal for July is to bring my average R up to 1%. I attribute a lot of my success this month to meditating for 30 minutes every morning before the market opens. My worst day was a day that I overslept and didn’t have time to meditate. It has also helped me in other ways besides trading. I feel more content and have less temper. I also attribute the success of this month to the fact that I was using 30-minute candles, which did not allow me much opportunity to overtrade. Also, I put a lot of effort into looking for very narrow bars. I am on vacation until the 10th. The new all-time highs/lows will continue to post as usual. [...]

]]> By: Kevin B http://www.uglychart.com/2006/06/20/rules-were-made-to-be-broken/#comment-863 Kevin B Wed, 21 Jun 2006 21:16:09 +0000 http://www.uglychart.com/2006/06/20/rules-were-made-to-be-broken/#comment-863 plus you have a great blog....very good stuff on a daily basis....what I always have to check is if my system that I am trading are leading me into mistakes due to their inherent instability...which causes the nerves to start popping and drives me into unwanted reactions to the instability....I must have a system with clearcut rules to trade....otherwise I am just a trading fool.....I finally have a good system locked in and have been doing much better plus you have a great blog….very good stuff on a daily basis….what I always have to check is if my system that I am trading are leading me into mistakes due to their inherent instability…which causes the nerves to start popping and drives me into unwanted reactions to the instability….I must have a system with clearcut rules to trade….otherwise I am just a trading fool…..I finally have a good system locked in and have been doing much better

]]> By: ugly http://www.uglychart.com/2006/06/20/rules-were-made-to-be-broken/#comment-862 ugly Wed, 21 Jun 2006 20:00:08 +0000 http://www.uglychart.com/2006/06/20/rules-were-made-to-be-broken/#comment-862 Thanks guys Thanks guys

]]> By: Brad http://www.uglychart.com/2006/06/20/rules-were-made-to-be-broken/#comment-861 Brad Wed, 21 Jun 2006 06:45:30 +0000 http://www.uglychart.com/2006/06/20/rules-were-made-to-be-broken/#comment-861 Don't feel so bad! Look at what Phil Mickelson just did, and he's one of golf's greatest. It happens to everyone (exept Tiger Woods) Don’t feel so bad! Look at what Phil Mickelson just did, and he’s one of golf’s greatest. It happens to everyone (exept Tiger Woods)

]]> By: howard lindzon http://www.uglychart.com/2006/06/20/rules-were-made-to-be-broken/#comment-860 howard lindzon Wed, 21 Jun 2006 05:54:11 +0000 http://www.uglychart.com/2006/06/20/rules-were-made-to-be-broken/#comment-860 dude - you are honest -with yourself thats why you will always get better dude - you are honest -with yourself

thats why you will always get better

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