i see successful trading as a combination of two skillsets: the intellectual (IQ) and the emotional (EQ)...the intellectual will plan the trade and then the emotional will trade the plan...the greater
these two skillsets and the more in balance with each other they are, the greater the chances for not just profitable trading, but trading mastery...
i have been trading for 10+ years, have had a fair amount of success, and am still finding big holes in my game...most of my success has been swing trading stocks, options, and stock index futures, with holding periods of 1-5 daily bars, though sometimes more depending on the model that i am using for that particular trade...
i am discovering that i am a horrible day trader!! i think the reason is that as i don't have a firm understading of the technical setups, thus my day trading plan is not good...
my primary income stream comes from swing trading my 25+ models of US stock index behavior...my swing trading plan is very good, but could always use some improvement...
the biggest thing that i have learned since becoming a prop daytrader this past summer, is the importance of emotional intelligence (EQ)...with the great moderators at the prop daytrading firm constantly in my ear about planing the trade and trading the plan, i have become a significantly better swing trader...their message isn't entirely new either...i was just more ready to hear it and change my behavior...
my personality has always tended to be on the introspecive side...this has helped me see my own behavior...losing a lot of mony from the summer of 2007 through the summer of 2008 because i didnt follow my swing trading plan (too scared), significantly helped motivate me to change my behavior...since the summer of 2008, i have done an increasingly better job at following my trading plan, stemming the losses, and now generateing consistent gains...my capital accounts are turning back up and i believe that my emotional intelligence is increasing...today, i am trading the plan 95% of the time...what about the other 5%? well, i am working on it...my goal is to trade the plan 100% of the time, no matter how i feel...i am almost there...
we all want to succeed at this incredibly difficult endeavor...not everyone will...if we really want to though, we have to look at ourselves as clearly as possible and identify our intellectual and
emotional strengths and weakness...if we dont, then the market will do this for us, and the results will be ugly...
if we do and are then capable of making the cognitive changes when planing the trade, and the behavioral changes to correctly trade the plan, then we just might have a chance at not only making some money, but also achieving trading mastery...
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