Trading Oct. 24

Oct 4th

• I blowed up my trade account again, I place stop loss with wrong principles. It is too tight, even though the trade direcition is not wrong, it still blow up my account.  

Oct 3th

• principle in trading is to
  • use just a small amount of money in an exchanging of a larger amount of money
  • Go with the trend, don't predict market
    • Go with the trend - mainly using dow theory(HH-HL=uptrend, LH-LL=downtrend) to trade with the direction of existing trend in the time frame that is watching
    • Don't predict the market - it is too hard to analyze and predict the market with human brain and the result in the long run is usually not much good. it doen't use brain energy efficiently in such this unproductive work(trading has no real benefit to this world)
  • trendline and snr zone is like the place on the map(for resting or pausing for a while), but the direction of trend is still need dow theory
  • trade as much asset as you can to diversify risk
  • Trade stupidly, just simply identify the trend, like a 6-years old child watches the chart using dow theory
  • Trading is not a thing that you should waste your thought or brain energy. It is just an identification of trend by using dow theory and probability of effect from trendline or SnR zone that will not stop out your position and risk diversification by trade as many asset as you can.
  • Again, trade stupidly, don't waste much of brain energy in trading. Instead, use the brain energy for the real productive thing in your life such as your precious real work, hobbies you enjoy that have real benefits to the world.

Oct 3rd

• I found that the Dow theory is the best principle in chart reading. Just HH-HL is in an uptrend and LH-LL is in a downtrend, and just stupidly trade with the trend.
  • Trendline and SnR zone are just the location on the map(also important), but the direction of price is identified by Dow theory.

Oct 2nd

• When I found that trading in the day is so hard, it is probably because I bias on the wrong side. The most easiest is trend following with dow theory
  • when the price still make Higher high, higher low, it should be bias uptrend.
  • when the price is making Lower high, Lower low, it should be bias downtrend.
• We shouldn't have emotion with the market action because it is not us who can create the price action. Having emotion either stress or too much joy usually comes from using too much risk.
• When adding to the win position, the stop loss should be at further price than the entry price so that even the position added, there is no addition loss or even zero loss.   

Oct 1st

• I found that coffee probably ruin my trade, it creates emotional instability causing me unable to make a decision thoroughtly. There is a research showed that it may cause a brain unable to compensate to sleep deprivation which result in brain volume shrinkage. My important life decision can't rely on just drinking this beverage.