Comments on: Worst day of the year http://www.uglychart.com/2006/08/25/worst-day-of-the-year/ Beauty is in the eye of the shareholder Thu, 21 Aug 2008 21:26:58 +0000 http://wordpress.org/?v=2.6.1 By: uglychart.com » Blog Archive » August 2006 Review http://www.uglychart.com/2006/08/25/worst-day-of-the-year/#comment-1366 uglychart.com » Blog Archive » August 2006 Review Fri, 01 Sep 2006 02:29:05 +0000 http://www.uglychart.com/2006/08/25/worst-day-of-the-year/#comment-1366 [...] I am so glad August is over. This was my worst month so far: This is a chart of my cumulative R. I was about even before commission and down some after commission for the month. Where did I go wrong? I broke my rules. I had the two worst days of my career this month. I made too many trades. I’m sure the success of my previous two months had something to do with it. This, among a few other things I have going on, may have caused some psychological pressure. Also, I think market conditons were not ideal. My discipline was poor. The blame falls on myself - but I will learn from my mistakes. This month was a blow to my confidence. I don’t like the uncertainty that keeps creeping back up just when I am feeling pretty certain and confident about my future as a trader. Trading is hard. I’m not making much money. It seems like every time you think you have it figured out, you find out you are wrong. I’m taking tomorrow off. My goal for the next couple of months is to trade my system without breaking any rules so that I can clearly see, from my trading journal and my trading results, that it works. I want to know that it works and how well it works, so that I can get some certainty back into my life. I need a well defined system and routine in my trading that I won’t have trouble sticking to when times get rough - as they have this month. From my losing streak this month, I have learned that it is much more difficult to stick to your rules when you arern’t doing well. It messes with your head. I play guitar and when I play something enough, it doesn’t matter what’s going on in my head - my fingers will do their job without a problem. I could be in front of a large audience or talking to someone or just alone in my room and my fingers pick the strings the same way, with the same rhythm. I want to trade my system repeatedly, without fail, the same way over and over every day so that it becomes a pattern and a habit. I want it to be carved into my brain so that I stick to my system without even thinking about it. On a winning streak or a losing streak, or whatever the market conditions - I want to trade my system the same way I play guitar or breath - without even thinking about it. My goal for September and October is to trade without breaking my rules. [...] [...] I am so glad August is over. This was my worst month so far: This is a chart of my cumulative R. I was about even before commission and down some after commission for the month. Where did I go wrong? I broke my rules. I had the two worst days of my career this month. I made too many trades. I’m sure the success of my previous two months had something to do with it. This, among a few other things I have going on, may have caused some psychological pressure. Also, I think market conditons were not ideal. My discipline was poor. The blame falls on myself - but I will learn from my mistakes. This month was a blow to my confidence. I don’t like the uncertainty that keeps creeping back up just when I am feeling pretty certain and confident about my future as a trader. Trading is hard. I’m not making much money. It seems like every time you think you have it figured out, you find out you are wrong. I’m taking tomorrow off. My goal for the next couple of months is to trade my system without breaking any rules so that I can clearly see, from my trading journal and my trading results, that it works. I want to know that it works and how well it works, so that I can get some certainty back into my life. I need a well defined system and routine in my trading that I won’t have trouble sticking to when times get rough - as they have this month. From my losing streak this month, I have learned that it is much more difficult to stick to your rules when you arern’t doing well. It messes with your head. I play guitar and when I play something enough, it doesn’t matter what’s going on in my head - my fingers will do their job without a problem. I could be in front of a large audience or talking to someone or just alone in my room and my fingers pick the strings the same way, with the same rhythm. I want to trade my system repeatedly, without fail, the same way over and over every day so that it becomes a pattern and a habit. I want it to be carved into my brain so that I stick to my system without even thinking about it. On a winning streak or a losing streak, or whatever the market conditions - I want to trade my system the same way I play guitar or breath - without even thinking about it. My goal for September and October is to trade without breaking my rules. [...]

]]> By: ugly http://www.uglychart.com/2006/08/25/worst-day-of-the-year/#comment-1334 ugly Sat, 26 Aug 2006 14:08:32 +0000 http://www.uglychart.com/2006/08/25/worst-day-of-the-year/#comment-1334 Jason: maybe I should go back to the coffee shop. Thanks. Zoomie: I think I would make a lot more money if I hired someone to stand over my shoulder and make sure that I didn't break my rules. Even then I would probably find a way to break them without the person knowing - maybe when they stepped out to use the restroom. Kevin B: thanks dan: thanks, I'll try Jason: maybe I should go back to the coffee shop. Thanks.
Zoomie: I think I would make a lot more money if I hired someone to stand over my shoulder and make sure that I didn’t break my rules. Even then I would probably find a way to break them without the person knowing - maybe when they stepped out to use the restroom.
Kevin B: thanks
dan: thanks, I’ll try

]]> By: dan http://www.uglychart.com/2006/08/25/worst-day-of-the-year/#comment-1329 dan Sat, 26 Aug 2006 06:38:19 +0000 http://www.uglychart.com/2006/08/25/worst-day-of-the-year/#comment-1329 but don't break your rules! but don’t break your rules!

]]> By: dan http://www.uglychart.com/2006/08/25/worst-day-of-the-year/#comment-1328 dan Sat, 26 Aug 2006 06:37:48 +0000 http://www.uglychart.com/2006/08/25/worst-day-of-the-year/#comment-1328 just keep doing what you're doing, it'll pay off =) just keep doing what you’re doing, it’ll pay off =)

]]> By: Kevin B http://www.uglychart.com/2006/08/25/worst-day-of-the-year/#comment-1325 Kevin B Sat, 26 Aug 2006 02:51:03 +0000 http://www.uglychart.com/2006/08/25/worst-day-of-the-year/#comment-1325 This week on the OEX has had the tightest range in 26 weeks and the previous weeks this month have been about as bad. Just a real tight moving market now after the tremendous volatility of June and July.This market is waiting for something. I have been taking smaller profits until I see this thing turn around. Don't put to much pressure on yourself by judging with August results. It really was a strange market. This week on the OEX has had the tightest range in 26 weeks and the previous weeks this month have been about as bad. Just a real tight moving market now after the tremendous volatility of June and July.This market is waiting for something. I have been taking smaller profits until I see this thing turn around. Don’t put to much pressure on yourself by judging with August results. It really was a strange market.

]]> By: Zoomie http://www.uglychart.com/2006/08/25/worst-day-of-the-year/#comment-1322 Zoomie Sat, 26 Aug 2006 00:50:52 +0000 http://www.uglychart.com/2006/08/25/worst-day-of-the-year/#comment-1322 Ugly, I am in the same boat as you on rule following. Today is the first day in about 10 that I followed my rules. And I made money. I am sharing my rules with my trading buddy to help me follow them. I am also typing them out, and posting them on my wall. The most important one I have is not to attempt 2nd entries on the same stock. I have lost so much money that way. I know I am preaching to the choir, but this is therapeutic for me....;). Thanks so much for sharing your experiences, good and bad. Ugly,
I am in the same boat as you on rule following. Today is the first day in about 10 that I followed my rules. And I made money. I am sharing my rules with my trading buddy to help me follow them. I am also typing them out, and posting them on my wall. The most important one I have is not to attempt 2nd entries on the same stock. I have lost so much money that way. I know I am preaching to the choir, but this is therapeutic for me….;). Thanks so much for sharing your experiences, good and bad.

]]> By: Jason Coleman http://www.uglychart.com/2006/08/25/worst-day-of-the-year/#comment-1321 Jason Coleman Fri, 25 Aug 2006 23:25:16 +0000 http://www.uglychart.com/2006/08/25/worst-day-of-the-year/#comment-1321 p.s. If I'm not wrong, there is still 4 trading days left this month. p.s. If I’m not wrong, there is still 4 trading days left this month.

]]> By: Jason Coleman http://www.uglychart.com/2006/08/25/worst-day-of-the-year/#comment-1320 Jason Coleman Fri, 25 Aug 2006 23:24:06 +0000 http://www.uglychart.com/2006/08/25/worst-day-of-the-year/#comment-1320 Hang in there. Maybe it's time to move back home if you are still trading from the cafe. Or get back to the cafe if you've been at home. I still have the notes from that day I visited you at the cafe. I want to use them to post a "from over the shoulder of a day trader" article. Maybe now it should be called "From Over the Shoulder of a Day Trader: Ugly is Awesome". We can change that to "Ugly is a Loser" if you think the self-hatred thing might help you out of this ;) The comments above are spot on too. Breaking even in a month which has been especially tricky (and an August at that) isn't too bad. Then again, when you're making your livelihood at this, it's very easy to get upset about breaking even. I'd be willing to bet that September becomes your best month ever. Hang in there. Maybe it’s time to move back home if you are still trading from the cafe. Or get back to the cafe if you’ve been at home.

I still have the notes from that day I visited you at the cafe. I want to use them to post a “from over the shoulder of a day trader” article. Maybe now it should be called “From Over the Shoulder of a Day Trader: Ugly is Awesome”. We can change that to “Ugly is a Loser” if you think the self-hatred thing might help you out of this ;)

The comments above are spot on too. Breaking even in a month which has been especially tricky (and an August at that) isn’t too bad. Then again, when you’re making your livelihood at this, it’s very easy to get upset about breaking even. I’d be willing to bet that September becomes your best month ever.

]]> By: jeff http://www.uglychart.com/2006/08/25/worst-day-of-the-year/#comment-1319 jeff Fri, 25 Aug 2006 22:56:31 +0000 http://www.uglychart.com/2006/08/25/worst-day-of-the-year/#comment-1319 Ugly, you are definitely not alone. I too had to learn to overcome certain tendencies that appeared out of nowhere and wreaked havoc on my account (and worse, my self-confidence). You're the kind of contemplative person who can sit still and be honest with himself. Listen closely to your thoughts (is your candle flame flickering?). Learn the clues that preceed the storm. They're generally the same every time. I simply have to walk away once I am aware of these clues. I cannot sit on my hands very well, but walking away solves the problem, PERIOD! If I don't, then I'm just flirting with disaster. Sometimes I close shop for a week or more and come back decidedly more objective than had I been hashing it out in the meantime. Something else that has helped me is just years of experience. I can now miss HUGE moves in the market when I'm away (this used to trigger all sorts of problems for me) and still feel fine, knowing that opportunity is ALWAYS just around the corner - the kind that once again will fit my risk parameters, style, etc. I know that because I've seen it a thousand times before. You can obviously make money at this, there is no doubt. You can make a living at it. I'm confident you'll figure it out. jeff Ugly, you are definitely not alone. I too had to learn to overcome certain tendencies that appeared out of nowhere and wreaked havoc on my account (and worse, my self-confidence). You’re the kind of contemplative person who can sit still and be honest with himself. Listen closely to your thoughts (is your candle flame flickering?). Learn the clues that preceed the storm. They’re generally the same every time.

I simply have to walk away once I am aware of these clues. I cannot sit on my hands very well, but walking away solves the problem, PERIOD! If I don’t, then I’m just flirting with disaster. Sometimes I close shop for a week or more and come back decidedly more objective than had I been hashing it out in the meantime.

Something else that has helped me is just years of experience. I can now miss HUGE moves in the market when I’m away (this used to trigger all sorts of problems for me) and still feel fine, knowing that opportunity is ALWAYS just around the corner - the kind that once again will fit my risk parameters, style, etc. I know that because I’ve seen it a thousand times before.

You can obviously make money at this, there is no doubt. You can make a living at it. I’m confident you’ll figure it out.

jeff

]]> By: ugly http://www.uglychart.com/2006/08/25/worst-day-of-the-year/#comment-1316 ugly Fri, 25 Aug 2006 22:14:05 +0000 http://www.uglychart.com/2006/08/25/worst-day-of-the-year/#comment-1316 Thanks Luke, that helps. Thanks Luke, that helps.

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