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| Time Duration Between Trades Impacts Mindset http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=276&t=2973 |
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| Author: | wrbtrader [ Sun Nov 15, 2015 9:11 am ] |
| Post subject: | Time Duration Between Trades Impacts Mindset |
Time duration between trades has an enormous impact on our ability to manage a loss (or winner)...an understanding that's needed before the next trade. For example, pretend you had a trade on Monday @ 1000am and it resulted in a loss. You're next trade is then on Tuesday @ 12noon. In comparison, now pretend you had a trade on Monday @ 1000am and it resulted in a loss but your next trade is at 1005am. Clearly the latter has "less time" to manage the emotion so that he/she can get into the right mindset within 5 minutes before the next trade in comparison to having +24 hours to do the same. Every trader is different. Some traders that have more time to "think about what just happen and try to manage the emotions"...their performance is worst because they had too much time. In contrast, other traders that had less time that have less time to "think about what just happen and try to manage the emotions"...their performance is worst because they did not have enough time. Therefore, we need to determine if our trading style correlates with our ability to manage our emotions because there may be a conflict that needs to be resolved or re-conditioned to fit our trading style. I had played a particular sport for +15 years in which I had multiple matches in the same day. Thus, I've been conditioned mentally that having too much time on my hands (e.g. as swing trader or position trader) is bad for me as a trader. In contrast, small time duration between trades in the same trading day correlates better as a day trader. Therefore, I'm a day trader...correlating with my ability to mentally prepare, manage, adapt between multiple trades in the same day. Yet, if I wanted to swing trade for several days or weeks, maybe position trade for several weeks or more...I would need to re-condition my mindset to fit that trading style. Identification of the mindset and then correlate (re-condition if needed) with the trading style or vice versa. Regards, M.A. Perry |
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| Author: | Werewolf [ Sat Jul 11, 2020 4:06 pm ] |
| Post subject: | Re: Time Duration Between Trades Impacts Mindset |
There is another crucial aspect of time duration. It is average time of losing trades vs average time of winning trades. Usually,I have found that in practically all of my good trading days,my losing trade's time has been shorter than my winning ones. I am now an intraday trader BTW. And this relates to time duration between trades.If after staying too long in a losing trade,then we compound the problem by inmediately entering another trade,we are probably not going to be in the best of mindsets to achieve the desired result. I abolutely agree with you that there is a personal rhythm for succesful trades. In my case,as an intraday trader(mainly ES and some CL) it involves 3 things:1-Longer trade duration for winners than for losers, 2-Make around 6 trades per day and 3-Avoid trading or reduce size 12:00-13:00 ET,which is a time zone where you can expect churning and volatility contraction. W |
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| Author: | wrbtrader [ Sun Jul 12, 2020 11:26 am ] |
| Post subject: | Re: Time Duration Between Trades Impacts Mindset |
Quote: There is another crucial aspect of time duration. It is average time of losing trades vs average time of winning trades. Usually,I have found that in practically all of my good trading days,my losing trade's time has been shorter than my winning ones. I am now an intraday trader BTW. And this relates to time duration between trades.If after staying too long in a losing trade,then we compound the problem by inmediately entering another trade,we are probably not going to be in the best of mindsets to achieve the desired result. I abolutely agree with you that there is a personal rhythm for succesful trades. In my case,as an intraday trader(mainly ES and some CL) it involves 3 things:1-Longer trade duration for winners than for losers, 2-Make around 6 trades per day and 3-Avoid trading or reduce size 12:00-13:00 ET,which is a time zone where you can expect churning and volatility contraction. Hi, I know a few traders that will use statistics associated with time durations of their trades as a warning its time to be looking for an exit, tighten stops or whatever involving the trade management of the position. One person in particular is for example losing trades have an average time of 4mins 15seconds. In contrast, profitable trades have an average time of 2mins 45seconds. Thus, the 2mins and 45seconds and he's still not at a profit...he sets his timer (sports watch) to begin beeping at 4mins 15seconds... He then dumps the position no matter if it has not hit his stop/loss protection. wrbtrader |
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