NexusFi: Find Your Edge


Home Menu

 





You have to believe in your plan.


Discussion in Psychology and Money Management

Updated
    1. trending_up 1,866 views
    2. thumb_up 6 thanks given
    3. group 0 followers
    1. forum 2 posts
    2. attach_file 0 attachments




 
Search this Thread
  #1 (permalink)
 Jaguar52 
NY + NY/USA
 
Experience: Advanced
Platform: Ninja
Broker: Optimus Futures- Rithmic
Trading: CL, 6E
Posts: 236 since Nov 2009
Thanks Given: 11
Thanks Received: 1,270

When I trade I direct all my effort toward being present on the hard right edge. I reduce my thoughts to just a few questions: what is price doing, where did it come from, and where can it go. In the immediate tick of the bar, price is either going up or down. It may have come from below its current position and I look for a support area that may have been created as a result of this movement. I ask myself, where can it go if it moved to a commitment point. There is my target, and then I ask myself where is my risk. Support and resistance can be substituted for risk and reward in some cases, and commitment points can be defined as a failed support or resistance. Targets can be defined as the next support or resistance. You could even define it as a fib retracement, it that is what you believe in. So, herein is the secret to how I trade. I believe what price is telling me. Yes, even when it fools me and lies, I still believe what it is doing. Why? Because I do not have the answer. No matter how many times I get fooled or lied to, I know price is the only one that has the answer and eventually it will stop lying and fooling around. When it does I want to be ready to know its commitment point and take advantage of its movement beyond this point. If my strategy says the statistical probability of price repeating itself in the same pattern is high, then I trade that probability. If my strategy provides me 5 signals, then I am obligated to trade those 5 signals. If I hesitate, then it is because I failed to believe or fell into thinking that I know better what price is going to do then it does.
Belief is the first step toward following your discretionary trade plan and becoming more mechanical with your trading. Clearly defined entry and exit rules, clearly defined money management rules (the rules that define when a trade has failed) and clearly defined risk reward rules. Flexibility is another important aspect in order to be able to trade confidently. Thinking on your feet about what price is doing will also tell you when price is undecided, and being flexible enough to shift your direction according to what price is telling you is important.


Visit my NexusFi Trade Journal Started this thread Reply With Quote

Can you help answer these questions
from other members on NexusFi?
$12M Ceasefire Contract Goes Disputed as Bandar Abbas St …
Prediction Markets & Event Contracts
$4.5M Floods Russia Nuclear Contract in 24 Hours -- Krem …
Prediction Markets & Event Contracts
Iran Lebanon Problem Kills Switzerland Talks, Brent at $ …
Prediction Markets & Event Contracts
Memorandum Watch: How the 60-Day MOU Framework Makes May …
Prediction Markets & Event Contracts
Iran Airspace Contract Surges to 33.5% as Project Freedo …
Prediction Markets & Event Contracts
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
NexusFi site changelog and issues/problem reporting
4 thanks
Darmok and Jalad at Tanagra
1 thanks
  #3 (permalink)
 tulanch 
Salt Lake City, UT
 
Experience: Intermediate
Platform: SC, NT, MT
Broker: AMP
Trading: NQ ES YM Bonds
Posts: 285 since Mar 2010
Thanks Given: 51
Thanks Received: 405


Believing in your plan is critical. Assume you have before you a single upward bar. If you had only this to base your trade on, which way would you enter? Conversely if you only had a single down bar before you, which way would you enter? I hope your answer is up on the up bar and down on the down bar. Sure that might seem like a silly thing to illustrate, but did you find that easy to answer? Do you truly believe that it is/was the correct answer? Trading is not rocket science – trading is simple. Sticking to your plan, that is what makes it difficult - the human factor. See Long, go long, see short go short, what’s hard about that? (big grin) It’s about learning to see and read the direction, momentum and potential support and resistance (demand and supply) locations instantly as they form and project on that hard right edge of nothingness. It’s about summarizing all the available information down to upward or downward - then with confidence in your plan and read - take the trade. Practice reading for a while, then simm it for a while, then and only then go live. Treat it all as if it is live. Only you will know when you’re ready to progress, only you will know when you’re doing it right.


Reply With Quote
Thanked by:




Last Updated on January 27, 2012


© 2026 NexusFi®, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Downloads - Top
no new posts