Learning to Learn

16:18 Johnny: (I was) just curious as to what…(system you’re using)

16:22 H: Johnny.... it's not the system.... it's the trader.... not what the trader does..... but who the trader is. Understand more of yourself... and why "you do the crazy things that you do?" Henley

16:23 Johnny: I understand H but I like to understand different systems as much as possible as to always improve on my system

16:26 huddy: even if (trading) one contract ....it will tell you who you are as a trader

16:27 Johnny: (I) made money 4 days in a row, and lost it on Friday in that wacky (volatile) market. Now (I’m) back to the drawing board. Twice I got beat by a very volatile market. Now I know to stay away from them till I learn it inside and out. Sim trade those wacky markets

16:29 huddy: good idea or just don’t overtrade and wait for good setups and put your stop in on the bar you enter on or close to it

16:33 Johnny: ….say the market is downtrending. On the way down it tends to jump up constantly so I set my target on a estimated jump up to go short

16:33 huddy: (I) think we call that an MOF or a Sling even :) That is all you need. You can make a living on that set up alone. Pick a time frame and read buffy's stuff until your eyes bleed. Who cares if you miss one .. there will always be another. At that point you are just chasing which is a really great way to have no money real fast.

16:36 Johnny: So how do you jump on the train like buffy's notes explains jumping on the train ?

16:36 huddy: I have looked at and/or traded these charts for thousands of hours...no short cuts. I have paid my dues in real $

http://www.dacharts.org/archives/Buffys_Classes/make-2007-breakout-year.htm

16:37 huddy: There you go Johnny.

16:37 @Buffy2: Johnny, please read the above link as it discusses taking a setup from seeing it to trading it profitably in your account. Too many newcomers think there is no work involved and they can just sit down and make lots of money.

16:37 huddy: for example...I was looking the wrong way most of the day and missed the nice move up, but did not chase it. Then when it turned I looked for my pattern and waited it out...one nice trade makes your week.

16:38 Johnny: Wasn't the space between High and Low and the trend talking to us today ?

16:38 huddy: sure, but I missed the whole long is my point...I just let it go. (I was) looking the wrong way - my fault. The point for you is let it go until you get one in your wheelhouse and then work it like sauce on a rib

16:40 H: Johnny.... go back and look if there were any slings or mof's in this downtrend... you gotta first find (these setups) after the fact before you can see them on the right side of the chart.

16:49 huddy: making money does not always mean making money everyday. I gauge my performance daily but measure my success by how my whole week goes.

16:50 H: making money is not my goal right now... trading well is... and everyday is not a winning day for me

16:50 Johnny: I agree H

16:51 huddy: If I make a few bad trades (not necessarily losing trades)...I go to the penalty box
16:51 Johnny: penalty box ?
16:51 huddy: I turn off the order button
16:51 Johnny: Oh ok
16:52 huddy: (I) don’t allow myself the privilege of risking my money. H is right. I make money but I am saying I don't win everyday. Most days yes, but not everyday. That is unrealistic for me. I try to trade well everyday. I make a living. (I'm) in flip flops and boardshorts instead of a suit and tie. But I don't measure winners or losers that much, just whether I follow my rules and trade well. (Trading is) all between the ears and you don’t have to trade volatility. I sit on my hands a ton. I may mark up charts with what I expect to happen but (I) am not always in a trade. Every time you are in a trade you are at risk...

16:56 Johnny: But what I don't agree is to just stick to one system and shut yourself off to everything else. I'm now doing better because I've been open to everything else. I have a system and everything else I learn is to just improve and refine it and make it better and better all the time

16:57 huddy: you want to make the most you can in the shortest time possible and be flat the rest of the time. Being open (to other trading methods) ...but be good at one thing.....then another. Then it becomes part of your knowledge base and you can draw from it when what you do is not showing up on the charts.

16:59 H: Johnny.... when what you do is not showing up on the charts.... why do anything?.... unless you feel you need to be in the market, trading all the time

16:59 huddy: There’s next item (for) your trading plan. Don’t trade what you don’t know.

17:00 Johnny: (I) got that lesson LOUD & CLEAR. Painful lesson

17:00 huddy: Everyone in here probably has stories about blowing out their accounts or close to it. The tuition is steep in this business...it is not for everyone

17:01 Johnny: Hopefully there's not much tuition left to pay

17:02 huddy: for you I hope not Johnny....study hard

17:02 Johnny: Cause the (setup I use has) worked so far for me. And (I) have to stick to the setup that works for me.

17:02 H: Do you want some help with that? you're not going to like it, but i'll give you some advice that helped turn my trading around.

17:03 Johnny: I've been studing my A_ _ off for over 1 1/2 years huddy. From the time I get up in the morning till I go to sleep

17:03 huddy: Sounds like you are in your sophomore year then - no offense :-)

17:04 Johnny: Sure H I'll take any advice I can get - None taken

17:05 huddy: but right now you still have a license to learn...baby steps only...like Buffy's material talks about...

17:06 H: learn one thing.... and learn it well... forsake everything else until you are a master at that one thing... what ever it is you choose. when that one thing shows up on the charts, trade it... when it doesn't, don't (trade). Very simple, but not easy.

17:06 Johnny: I know Buffy's system is good but I just can't make my brain use it

17:06 huddy: thanks H...took me a half hour and 50 lines to say that

17:07 @Buffy2: you better use the part based on pa…(and)..you need (pa)

17:07 huddy: :)

17:07 @Buffy2: thanks huddy and H for comments

17:07 H: lol.... later huddy

17:07 Johnny: TC Huddy

17:07 @Buffy2: you should be using discipline numbers per the link (I put in earlier)
17:07 huddy: hope it helps....and hope you understand that we are trying to help and hope that you do well...bye

17:08 Johnny: Thnx huddy everything helps I appreciate it.

17:11 Johnny: Buffy, I use part of your system as you see in my charts. But your whole system is something that I just can't seem to etch in my brain.

17:13 @Buffy2: Johnny, the idea is to learn one thing well - then open up - (it) doesn't matter what that one thing is. Which talks to you more?... bline or 2x

17:14 Johnny: 2x

17:15 @Buffy2: there is a chart with just 2x - all colors can be changed - more can be taken off

17:17 @Buffy2: you should (have a trading method so you can see your setups and entry points) BEFORE you ever try to trade them. I don't see any marked charts from you asking questions like is this the mof/sling...where would entry/exit be.

17:19 Johnny: Buffy I rely a lot on your system which is the 2x and MACD on my chart

17:19 @Buffy2: Johnny, if you understood the system, last friday you wouldn't of paid such a heavy price. imho you are trading real money long before you’re ready. It’s silly for you to even be trading real money ANY time as you are still asking newbie ?s.

17:21 Johnny: Was too volatile I don't think anyone traded. Did you?

17:22 @Buffy2: does it matter what I did, you shouldn't of been (trading)

http://www.dacharts.org/archives/Worth_A_Second_Read/About_the_Markets.htm

17:24 Johnny: Buffy but I don't understand? So far the only time I really lost was the extreme volatile markets other than that I took 1 quick loss in 12 trades?

17:24 @Buffy2: Continue to pay (trading) tuition then -- the link I…put in explains it

17:25 Johnny: I agree it was stupid of me to play that kind of market and I'll never do that again

17:25 @Buffy2: but then maybe you think because you have been studying so long you just can't start there -- I and others are trying to tell you that you should and just put all the knowledge to work to get through those steps faster. Right now only you know what is best for you and your not listening to anyone else. So lets not talk about this again until you are ready to listen to others. We all know where it is going to end up from watching so many others pass through the room over the last 7 years.

17:28 Johnny: Buffy all I said is that I have a system that seems to work in normal markets so far. I just made the mistake of playing very volatile markets. That’s all I'm saying. I don't understand? My system incorporates your system as well and I appreciate you teaching me your system. It works very well

17:29 @Buffy2: and that has nothing to do with what I and others in here are trying to tell you - (you will) continue to pay (trading) tuition

17:29 Johnny: I paid tuition in very volatile markets. Other than that I didn't

17:30 @Buffy2: hhmm.. I did use the word continue. We are all saying the same thing we said months ago and probably will be saying two months from now

17:32 Johnny: Which if I understood correctly is develop a system that works well for you - Which I believe I did? …except in volatile markets. I sim traded it for a while…I saw that at a certain point it worked, so I went in live with 1 contract at a time and it still worked, and got burned in volatile markets and I’m not getting into volatile markets again. Lesson learned

17:37 H: ok johnny.... then what you need to do is keep trading your system till you know it inside and out.... and stop comparing yourself to others.... concentrate on the signals your system gives you... trade them if they are there... and stay out when they are not there.... and don't worry if the market moves without you.

Last updated 10/30/2008