2008.12.18 Trading plan

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TheRumpledOne
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Postby TheRumpledOne » Mon Mar 02, 2009 12:26 am

RULE #14: The long run is longer than you think... Playing only the best hands can be frustrating... Anger and irritability can arise. The emotions can be severely tested. This is where Zen comes in.

The only way to turn the corner is to get rid of marginal trades.
It is ALREADY a very fine balance. If one injects a few marginal trades into the picture, he quickly screws up the Profit/Loss equation. Making the matter worse, doing so will create chaos in both one's equity curve and one's head. Just get rid of marginal trades, don't stare at the monitor the whole day, and learn to maximize profits WHEN appropriate.

If we fail to take the responsibility for getting rid of marginal trades, we lose the privilege to trade. Provided one does have a good method, it?s meaningless to try to fix things any other way.

Trade LESS, make more. (William)


READ THE ENTIRE THREAD
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

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Postby TheRumpledOne » Mon Mar 02, 2009 12:26 am

RULE #14: The long run is longer than you think... Playing only the best hands can be frustrating... Anger and irritability can arise. The emotions can be severely tested. This is where Zen comes in.

The only way to turn the corner is to get rid of marginal trades.
It is ALREADY a very fine balance. If one injects a few marginal trades into the picture, he quickly screws up the Profit/Loss equation. Making the matter worse, doing so will create chaos in both one's equity curve and one's head. Just get rid of marginal trades, don't stare at the monitor the whole day, and learn to maximize profits WHEN appropriate.

If we fail to take the responsibility for getting rid of marginal trades, we lose the privilege to trade. Provided one does have a good method, it's meaningless to try to fix things any other way.

Trade LESS, make more. (William)


READ THE ENTIRE THREAD
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



Please do NOT PM me with trading or coding questions, post them in a thread.

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Postby Gert Frobe » Mon Mar 02, 2009 4:29 am

thanks Avery

This caps what we talked about this morning. In my mind I want to tweek the indicators and make them better, move my monitors to were they have a 8 inch space between them so the info doesn't run togather and I might pick up more info and on and on. However, price only goes in two directions how fast can I change and get out when I'm wrong, and have the courage to trade again taking the profit stoping before I give it back.

Airball

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Postby prochargedmopar » Mon Mar 02, 2009 1:46 pm

Wow, never looked at it like that.

Me thinks I'd rather use $100 pips and make 40 pips per day.
More fun/More challenging.
Cheers.
Thanks
#1BODY in direction of profit #2INCREASE lot size Obsessively
My Losses cause me Great Laughter!
Trading Bible here> therumpledone/the-ideas-that-i-trade-by-t3256/page1670

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Re: 2008.12.18 Trading plan

Postby TheRumpledOne » Tue Dec 09, 2014 6:24 pm

THIS IS A MUST READ!!

http://www.artofmanliness.com/2014/12/0 ... nliness%29


Mental checklists to improve thinking. Berkshire Hathaway vice-chairman Charlie Munger uses a mental checklist of biases and cognitive flaws that he reviews before making any big decision to ensure he’s thinking clearly about it. He’ll go down the list and ask himself if any of these biases are clouding his thinking and what he can do to mitigate it. Ever since I’ve learned about that, I’ve tried using something similar in my life. Crafting this list is still a work in progress for me, but here’s what I have so far:

◾Am I making this decision due to the sunk cost fallacy?
◾Does the person who’s recommending a course of action for me have an unitentional self-serving bias in making that recommendation? (i.e. “Never ask a barber if you need a haircut.”)
◾Am I making this decision because of confirmation bias?
◾Is my judgement of someone’s behavior due to the fundamental attribution error?
◾Is my anchoring on one particularly attractive trait in something causing me to ignore the bad traits?
◾Am I fooling myself into thinking I can’t fool myself?
◾Have I distorted my memory of what happened to fit my actions more neatly into a narrative?
◾Is the gambler’s fallacy coloring my decision?
◾Is cognitive dissonance leading me to rationalize and excuse my mistakes?
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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TheRumpledOne
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Re: 2008.12.18 Trading plan

Postby TheRumpledOne » Tue Dec 09, 2014 6:24 pm

IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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