Wednesday, June 04, 2008

Trading method

Session Start: Tue Jun 03 20:30:45 2008
Session Ident: trader
[20:30] (trader): hi croc
[20:30] (croc): hi
[20:31] (croc): how are you?
[20:31] (trader): Very well and u?..i read you blog...it's big now! But i have a question: In a few lines what did u change in your trading method?
[20:33] (trader): Or can you point to the pages i have to read (in your blog) if not all pages! :))
[20:33] (croc): buy low, sell high or sell high, buy low...to determine what is high or low I use a simple range calculation from yesterdays close
[20:33] (croc): http://globetrader.blogspot.com/2008/03/trade-rules.html
[20:34] (croc): http://globetrader.blogspot.com/2008/05/countertrend.html
[20:34] (trader): Very nice to share!! thanks croc!!
[20:34] (croc): http://globetrader.blogspot.com/2008/05/heikin-ashi-candlestick-charts.html
[20:35] (croc): excel tool: http://globetrader.blogspot.com/2008/04/ib-excel-adapter.html
[20:35] (trader): thanks i think i read the last 2 ones!!
[20:35] (croc): :-)
[20:35] (croc): then you got it already
[20:39] (croc): but that's all in your brain
[20:39] (croc): its about taking really responsibility
[20:40] (croc): the last article has my ideas re this topic
[20:40] (trader): Yes...absolutely agree with you! Nice! Do you have an email or it is in your blog (if i have any question)?
[20:41] (croc): if you think you can do it then you have done it already. You just need to prove to yourself that you can do it, so these nagging doubts leave
[20:41] (croc): anwalt@czirnich.de
[20:41] (croc): there is also a link in the blog
[20:41] (trader): thanks! yes that's suggestopedy!
[20:42] (trader): force ideas prove right if you hardly think about them!
[20:42] (trader): I'll read it! Your blog is very rich and full of good ideas!
[20:43] (croc): problem is you need to trust your instincts 100%, but those instincts have to prove themselves to be right and it takes a lot of time to teach these instincts to do what you want them to do
[20:46] (trader): you still think you need to trade with instinct?
[20:47] (trader): or just instinct to take responsibility and start your own business?$
[20:51] (croc): lol trader, you don't understand, of course I trade with instinct. I can't build a mechanical trading system from my rules, there is always a filter which decides that I take this trade and leave the other. I have the best pattern analysis computer and neural net right between my two ears. I use it, I don't need to know how it reaches its conclusion, I just give it filters and certain rules which should be present and I'm happy if after a trading day I'm able to get an inkling how my brain did what it did throughout the day
[20:52] (croc): I'm no mechanical trader and will never be. I can't trade with 50% to 70% winning trades, or 30% losers
[20:53] (croc): so I need to rely on my instincts or better my subconscious mind to do the analysis for me
[20:54] (croc): as long as you go against your instincts and you have not a proven mechanical system which gives you an edge you will lose
[20:55] (croc): of course I have rules, of course I have strategies, what will I do when x or y happens
[20:55] (croc): but ultimately I need to rely on my feelings what the correct course of action in a certain situation will be
[20:55] (croc): of course these feeling are not 100% right
[20:55] (croc): but overall I have an edge now
[20:56] (croc): and that's all that counts
[21:00] (croc): take a look at brett steenbargers blog. He has some very good articles on training your subconscious mind. How you learn to hear your inner voice and how to learn to trust that voice or feeling
[21:00] (croc): http://www.traderfeed.blogspot.com/
[21:01] (croc): of course you need to couple that with a sound and simple system which "just" needs a filter which picks the good from the bad trades
[21:02] (croc): It's really a bit like developing/programming a neural net
[21:03] (croc): you don't need to know how it's done, but you need to provide input which you know could produce a lot of winners if only the bad trades (at least some) would be flagged and left out
[21:05] (croc): cu tomorrow, I will close now
[23:13] (trader): ok thks!
Session Close: Wed Jun 04 00:00:00 2008

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