Home > Uncategorized > How Stella Got Her Groove Back

How Stella Got Her Groove Back

So I’ve clearly checked out of the markets the last couple months.  The second half of last year was really challenging for me as my main setups were profitable one month to only give it all up the next.  Had I traded perfectly the last 6 months of the year, the net was result would have been a flat PnL .  That’s tough to stomach.  It’s also tough to feed a family on.  But do professional traders have to face potential stretches like this?  I think some might.  It’s also a very challenging environment to be trading in general right now.  So now I’ve come up with a game-plan to help me get my groove back and hopefully prevent me from losing it in the future.

  1. Trade Percent R Religiously – I plan on trading my percent R signals religiously the next couple of months.  I will  take signals from the 5 min TF Globex chart and the 15 min ES gap chart.
  2. Journal  Religiously- This is probably the most important step, especially if I hope to grow in my trading.  After entering a trade, I will journal my emotions as well as market analysis.  I need to communicate if I think it will succeed, fail, or break-even.  I need to document my impulses to drag stops and targets.  Only after documenting these thoughts, will I determine if there is any legitimacy behind them.
  3. Document Trades – I must record my trading in an excel spreadsheet.  I will probably have to keep 2 spreadsheets.  My actual trades vs. the idealized trades.  Even though my goal is take the trades religiously, I’m sure I will have errors and moments of weakness.  Also, only by documenting my trades, will I learn if my setups are still valid, which leads to…
  4. Analyze Trades/Journal – I will analyze my journal and spreadsheet on a weekly basis, most likely on the weekend.  I will determine if my instincts are correct or if they are hurting me.  I will review the profitability of my setups.

So I’m sure I’m leaving off many additional things I could do to speed-up success, but this will be a huge jump for me in and of itself.  I will review this list as I read more Steenbarger, Douglas, and Van Tharp and add more to it when I’m ready.  Stuart Townshend, a professional British hedge fund manager, has described the evolution of a trader in three major steps.  The first is a one-trick pony, the second is a systematic trader, and the third is an intuitive trader.  I’m wholly acknowledging here my desire to be the best one-trick pony I can be, but I also include steps that I hope will carry me to the next level.  Stuart even states that it’s not a bad thing and is a great place to really get a foundation for trading.  I don’t think this list is for everyone, but I do believe in order for me to be successful, this is the bare minimum of things I need to be monitoring.

Categories: Uncategorized
  1. FadeTheNoob
    February 25, 2010 at 10:04 pm

    Right on, brother. Follow through on this for a month or two and it’s hard to imagine that it won’t have a major impact on your current state as a trader.

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