Trading Nov 24

Nov 11th

• overtrade usually occur when you trade without plan, esp. when you don't carefully watch the chart.
• Trade will be bad when you lose to yourself or lose your self-control, not by losing to the market
• Over risk comes from you don't trust yourself that you will be able to succeed in the long run, so you choose the shorter and faster way. In reality, just control yourself is not that hard.
• Over trade comes from you are trading without an exact trading plan or you don't trust your plan and yourself.
• I should hold position little longer with trailing stop
• Always use the same risk, because if you use high risk, you will addict to over risking. Even though it is win, finally you will accidentally blow out your portfolio from that wrong habit.
  • also perfer hold position little longer with trailing stop because it will create more RRR which is more healthy for your portfolio in the long run.(short trading with fast profit is like fast food which may be more delicious but it is not good for your health in the long run)
  • over risk is just like a fast food, it is not good for your health
• Trailing stop might not work effectively in down trend because of corrective wave characteristic has higher volatility(but never break higher high in the larger TF), just adjust the SL to protect the fund is enough and let it run to or nearly to the TP target.
  • Or adjust stoploss from the one step larger TF than the traded TF eg. trade in m5 TF -> Adjust SL in h1 TF
  • Running trend(swing trade) is much more prefer than short term trade, because you will not miss any opportunity

Nov 10th

• Even though crypto price rise a lot(10-20% in one day) which is so very excited for the investors, it is the same as I trade gold in 5 min which I can gain a profit like this almost in every week and also not only in a bullish season like crypto. 

Nov 9th

• Yesterday, I blew up my portfolio, started by overtrade
  • Overtrade -> accumulate loss -> exhausted brain and mentality -> tried to cover the loss with exhausted brain -> overrisk -> broke

Nov 8th

• Fundamental is literally necessary when you are investing.
• Stop loss should be always tight, it may seem frustulating when there are frequently stopped out but it can be re-entry in any proper time.
  • it doesn't the matter how many times you trade, it is not over trade as long as you always trade with the plan and tightly control the risk.
  • Poor risk control, over risk, is so much more devastrating.
• It seems like that sideway is not an unusual thing that trader must always meet and have to manage. 
• Staring at the chart price all day doesn't help your trade went as you wish. Trading is not about wish but risk management and propability game. Just monitors it frequently around the day and action when it come to your planned location(major zone/ trendline) then go with dow theory.

Nov 5th

• Fundamental news is still very important because it has so much effect in forming the trading plan in your mind (it helps the brain forming the plan so much easier than just reading and analyzing the chart).
• Your mental and self-control will be broken down by your uncontrolled risk appetite.
• sideway shouldn't be traded in any case. Although sometimes you can win, but the chance of loss is so much more(around 80%). The another 20% winning chance is from trading in the larger TF, but the reward:risk is not good enough for long term. 

Nov 4th

• Maybe time related strategy of risk management doesn't work well. Conversely, it should focus and depend mainly on the price actions of the chart.
  • Market doesn't come in an exact time
• It's not about closed price but it is about supply and demand that win or loss in the particular times. However, closed price can still be used for 55%, the more reliable is the group of candlesticks.

Nov, 1st

• For my trade, I don't have specific system to trade. Instead, I only use pure classic techinical analysis tools which are Trendline, SnR zone, closed price and dow theory.
• However, for the risk management, there must be a robust system because trading is the possibility game(one kind of gambling), no matter how good you are at the trade(or your trading system) there will always be win and loss. Without good robust risk management and disciplinedly stricting to it, you will be broke in the long run, no matter how good you are at the trade.
• Thus, the first priority is the risk management system, not the trading technique.
• Market has its own thoughts, its own movements, its own brain, does not under any one control, and always does what it please not yours.