For few months of losing streak, I was lost where I started looking for other indicators and technical analysis. It felt like there was no significant change in my trades as shown in my records. Failure after failure, I decided to try those other indicators. Then again, failures continued to burn my portfolio. I was lost, again.
The year 2016 was about to end, we, Bastards, were called to gather in one group which was basically to consolidate all ZFT Bastards now Sparks. It was a nice idea to gather us all in one place, to get to know each other and collaborate ideas. It was very uplifting for me coming from being a lone hunter. We got a chance to talk to each other and be able to ask some of the mentors. It was a great opportunity to ask and confirm our doubts and studies.
I had some studies which were not part of the system thought I may incorporate some for the better. Actually, I was trying to use “Channels”. There was a blog post that I’d read months ago but this was just the moment I really thought I understood its meaning. This is the main reason I finally erased all other indicators and studies which aren’t part of the system that kept bugging in my head. I lost a lot of time and effort aside from the losses incurred but still I never lose faith in the process. Therefore, I started pushing myself to focus more in our system in analyzing what I “should” be looking for than to what I was “trying” to look for. It was definitely a wrong decision not to trust the system but I’ll make sure I’d learned my lesson.
You might want to check this: A Technician’s Guide To Subjective Trading
Long story short, going back to some of our notes and going back to our previous discussions I was able to discover a pattern using the system. I realized that without a setup which I really understood and carefully studied it’s very hard to wait and pick which stocks am I going to trade. I knew how bounce, ceiling, trend following, swing, are played but to be equipped with the right setup which suits me best was different from trading everything than trading with specialty.
Setting out a template and carefully justifying the signals and patterns for my setup made me more realized the things I wasn’t aware of before. The system was always there BUT self-observation and self-discovery had significantly helped me digest the meaning behind those patterns using the system.
Well, I love those candles which goes out of the box!
You might want to have a look this–> Trading 101: Boxes & Triangles
I’ve been told about the idea that I could be more profitable if I wait for those patterns to manifest other than trying different setups where I wasn’t comfortable with. It seemed very different when I was being told against experiencing what I was told. Perhaps my comprehension just works best when I experience pain(loss).
With this realization, I’m was slowly getting able to wait and ride the setups which suits my profile. I was able to regain my confidence and be fortunate for some trades to anticipate them.
Though I wasn’t able to maximize these trades but my conviction in selecting them had increased in some ways. I felt a significant change in the way I look at the charts from this point. It’s more of having an ease in interpreting what a chart tells me.
“I was fascinated to realize that my buying, based purely on the stock’s behavior, enabled me to profit from a proposed merger without knowing anything about it. I was an insider
without actually being one.”
-How I Made $2000000 In The Stock Market by Nicolas Darvas
Unfortunately, there’s another hurdle which was creeping me out, selling. Since the market was sideways, I wasn’t able to sell on good profit levels right before the price goes down and this happened often times. Again, I’m back in searching for a solution with this problem. Going back to my notes and ask for some advice are probably the first steps that needed to be done.
Cash to Ash.