Self Directed Investor Inc
SDI: "Empowering investors with ideas and education"
Symbol Lookup »  
Topics:ChinaETFsEarningsEconomyEnergyForexGoldIncomeLessonsIdeasTrading

  • Other news: News from PR Newswire
| More

Discipline: Not Just About Controlling Risk

Tue, Feb 1, 9:45 PM ET, by Jeff T. - Equities Trader, Hedge Fund Live

I haven’t blogged about my trading in some time but after Friday’s brutal performance and today’s poor execution I’m gonna take a few minutes to review what I did wrong and what I need to improve if I expect to be successful.

On Friday I had my worst day since I have been at the firm and I don’t want to say it was market related because that’s bullshit, I didn’t have a solid plan, I covered my futures too quickly and got beat up. We talk about discipline all the time and how it is the most important aspect of being a successful trader. When we mention discipline we usually only talk about it in terms of controlling losses/risk, I feel I’m pretty good at keeping it tight but I’m terrible at having the discipline to let my trades work for me.

Waiting for a Trade to Play Out

One example of my lack of discipline was today when trading CF, I haven’t traded the agriculture names in some time but I do know that AGU, MOS, POT, and CF usually trade together, IPI which is the last of the group can sometimes do it’s own thing. Anyway, POT, MOS, and AGU were all breaking out early in the session while CF was pulling in, I picked up on this right away and called the trade out. I was patient, I waited for CF to hold because I don’t want to catch a falling knife but once it stopped pulling in I bought some stock. CF started to tick higher fairly quickly and I put an offer out at the highs of the day. It was only a few minutes later when got shaken as the ISM number came out and sold the stock only up a few ticks. As you could expect CF quickly caught up with POT, AGU, and MOS leaving me in the dust about three dollars lower.

The point is the trade was a lay up, I knew it but didn’t let the trade play out and instead of making upwards to $400 on the trade I’m flat and pissed off as I continue to see it but not profit properly.

Moving forward I have to get back to the basics, plan a trade and then execute. Once i execute it’s about being patient, waiting for my offers to get lifted (if long), bids hit (if short), or my stop triggered if wrong.

Visit HedgeFundLIVE.com.



Experience Hedge Fund Live; the web site gives you access to a Transparent Hedge Fund through its virtual trading environment. As a special offer to Self Directed Investor visitors, you may use the following price reduction code and receive a 33% discount: SDI33P. You may also choose the Premium Membership 4 Week Free Trial option when you register. Sign up NOW for a 4 Week FREE TRIAL, receive the 33% discount and enter Hedge Fund Live!


SDI Glossary: "price" Definition
This Article's Word Cloud:   Directed   Friday   Fund   Hedge   Live   TRIAL   Trial   Week   about   also   basics   because   being   code   didn   discipline   discount   dust   execute   expect   have   haven   important   mention   minutes   offer   only   patient   plan   pulling   quickly   receive   reduction   related   some   stock   successful   talk   that   time   today   trade   trades   trading   usually   want   what   when   which   wrong

| More

Stepping Inside the Straight Up Rally for the SP500
Wed, Aug 27, 3:51 PM ET, by Corey Rosenbloom

What does the chart suggest about the current rally into 2,000 and what can we ...

Join Corey Wednesday for a Special Five Steps to a Reversal Webinar
Tue, Aug 26, 1:11 PM ET, by Corey Rosenbloom

I’m excited about a webinar opportunity I’ll present for you Wednesday as part of Trader’s ...

Charting Three Top Trending Stocks to End August
Tue, Aug 26, 11:11 AM ET, by Corey Rosenbloom

I’m a big fan of the concept of “Strong Getting Stronger,” and three such stocks ...

Current Market Rally Echoes a Pattern from the Past
Tue, Aug 26, 10:41 AM ET, by Corey Rosenbloom

If you look closely at the current market rally, you may see something eerily familiar. ...

Bearish Engulfing Opportunity in Altera ALTR
Mon, Aug 25, 2:31 PM ET, by Corey Rosenbloom

Altera (ALTR) showed up on two of my stock scans this morning and I wanted ...

August 25 Breakout Market Update and Stock Scan
Mon, Aug 25, 1:41 PM ET, by Corey Rosenbloom

Well there we have it! It’s official – the S&P 500 achieved the 2,000 Magnet ...

Charting Apple AAPL Through the 100 Dollar High
Fri, Aug 22, 12:11 PM ET, by Corey Rosenbloom

Last week I posted about “Open Air” and magnet levels in Apple – let’s update ...

August 21 Stock Market Update with Trending Stock Scan
Thu, Aug 21, 2:11 PM ET, by Corey Rosenbloom

As we continue yet another trend day to the upside, let’s highlight the price action, ...

Color Keltner Channel Chart into Highs for SP500 and NASDAQ
Thu, Aug 21, 1:11 PM ET, by Corey Rosenbloom

Sometimes it’s helpful to look at one indicator at a time, and we can do ...

Triangle Breakout Triggering for USDJPY Dollar Yen
Thu, Aug 21, 12:11 PM ET, by Corey Rosenbloom

FOREX traders – or those who simply monitor currencies as part of an intermarket picture ...

Hidden Trading Opportunities from August 20 Consecutive Close Scan
Wed, Aug 20, 6:51 PM ET, by Corey Rosenbloom

Sometimes the simplest scans can provide stock candidates to trade that we otherwise may never ...

Up Up and Away for the US Dollar Breakout
Wed, Aug 20, 3:31 PM ET, by Corey Rosenbloom

With stocks breaking out, it may be a surprise that the US Dollar Index is ...

Studying the Repeat Pattern that Targets New Highs for SP500
Wed, Aug 20, 2:11 PM ET, by Corey Rosenbloom

I’ve been posting frequently about the potential “Repeat Pattern” in the S&P 500 that charts ...

Up Up and Away for Home Depot HD Breakout
Tue, Aug 19, 11:31 AM ET, by Corey Rosenbloom

On better than expected earnings, retail stock Home Depot (HD) gapped higher, breaking to all-time ...

August 18 Breadth and Stock Scan Market Update
Mon, Aug 18, 2:41 PM ET, by Corey Rosenbloom

Our mid-day update takes place on yet another bullish trend day higher as price breaks ...

Intraday Divergence and Reversal Planning for Crude Oil
Mon, Aug 18, 2:11 PM ET, by Corey Rosenbloom

Crude Oil may be forming an intraday reversal pattern – with divergences – off an ...

NASDAQ Breaks to New Highs on Relative Strength
Mon, Aug 18, 12:11 PM ET, by Corey Rosenbloom

If you’re an S&P 500 or Dow Jones only trader, you may be missing the ...

Uncovering a Hidden Value Area for Apple AAPL Shares
Fri, Aug 15, 3:41 PM ET, by Corey Rosenbloom

What are our Color Value Area Charts revealing about a key magnet price area to ...

Interesting Breadth Chart for August 15 Intraday Stock Scan Update
Fri, Aug 15, 2:11 PM ET, by Corey Rosenbloom

We don’t usually have exciting Sector Breadth Charts to show but today is an exception. ...

Planning a Larger Reversal or Another Trap for Corn Traders
Fri, Aug 15, 12:41 PM ET, by Corey Rosenbloom

Even if we don’t trade commodities, it’s helpful to learn educational lessons and plan trades ...

Decision Point into Resistance for the Dow Jones
Fri, Aug 15, 12:11 PM ET, by Corey Rosenbloom

The Dow Jones faces a major decision point into a known resistance cluster – monitor ...

Unique Educational Fundraiser All Day Webinar Event for Toni Hansen Saturday
Thu, Aug 14, 3:41 PM ET, by Corey Rosenbloom

I’m both pleased and humbled to announce an all-day event of educational webinars from top ...

August 14 Trend Day Intraday Update and Stock Scan
Thu, Aug 14, 3:21 PM ET, by Corey Rosenbloom

We have another Trend Day on our hands as price once again gaps higher and ...

SP500 Decided to Break On Through to the Other Side
Thu, Aug 14, 12:31 PM ET, by Corey Rosenbloom

Not to be spooked by a little retracement in the market, the buyers (bulls) decided ...

Is the the Breakout You've Been Waiting for in Coal? KOL
Wed, Aug 13, 2:11 PM ET, by Corey Rosenbloom

I’m seeing increased chatter about Coal stocks and ETF KOL regarding a potential breakout and ...

August 13 Intraday Stock Scan and Market Update
Wed, Aug 13, 1:31 PM ET, by Corey Rosenbloom

We started the day with an up-gap and have seen a Trend Day ever since. ...

Instant Intraday Market Internal and Fibonacci SP500 Update into Key Level
Wed, Aug 13, 12:21 PM ET, by Corey Rosenbloom

Let’s take a quick look at our ongoing intraday Fibonacci Grid along with key Market ...

Introducing the 10 Gappiest Stocks in the SP500
Tue, Aug 12, 3:31 PM ET, by Corey Rosenbloom

What’s a “gappy” stock and once we figure that out, which stocks are the ten ...

Updating Our Market Structure Color Charts for SP500 Dow and NASDAQ
Tue, Aug 12, 10:41 AM ET, by Corey Rosenbloom

Let’s take a quick moment to update our “Market Structure” Color Charts for the Big ...

Plotting Reversal Signals for Stocks Oil and the Dollar
Tue, Aug 12, 10:11 AM ET, by Corey Rosenbloom

A quick look at the intraday charts of the S&P 500, Crude Oil, and the ...

August 11 Daily Update and Stock Scan
Mon, Aug 11, 1:11 PM ET, by Corey Rosenbloom

We started the day with an up-gap and have seen a Trend Day ever since. ...

Plotting and Planning a Breakout in Priceline PCLN
Mon, Aug 11, 12:21 PM ET, by Corey Rosenbloom

High-flying stock Priceline (PCLN) triggered a bullish breakout signal this morning with a thrust above ...

Game Planning the SP500 with a Repeat Pattern
Mon, Aug 11, 12:11 PM ET, by Corey Rosenbloom

I wanted to highlight a “Repeat Pattern” in the S&P 500 that can help us ...

Sector Rotation Update and Charts for August 2014
Thu, Aug 7, 10:11 AM ET, by Corey Rosenbloom

What are Sector Rotation Charts hinting about the hidden strength (or weakness) of the broader ...

Opportunities from Stocks Most Extended from 200d SMA August 2014
Tue, Aug 5, 10:21 AM ET, by Corey Rosenbloom

Which stocks are most over (and under) extended from their 200 day SMA? How can ...

Groupon GRPN Pushing for Breakout Reversal
Mon, Aug 4, 11:41 AM ET, by Corey Rosenbloom

Groupon shares (GRPN) may be setting up a potential breakout and bullish trend reversal trade. ...

Simpler Stocks Webinar on Trading ETFS for Profit and Protection
Fri, Aug 1, 8:31 PM ET, by Corey Rosenbloom

John Carter is launching a new, specific venture for you entitled “Simpler Stocks” as a ...

New Fibonacci Reference Grid and Color Arc Structure Chart for SP500 Dow and NASDAQ
Thu, Jul 31, 1:11 PM ET, by Corey Rosenbloom

With the breakdown under the key “Arc Trendline” Structure pattern in the Dow and S&P ...

Market Finally Falls - a Check on the New SP500 and Dow Jones Levels
Thu, Jul 31, 12:21 PM ET, by Corey Rosenbloom

It’s good when logic trumps irrationality, and price retraces in a stable uptrend instead of ...

Updating the Creeping Correlation in Stocks and Bonds SPY and TLT
Wed, Jul 30, 1:51 PM ET, by Corey Rosenbloom

If you’re not paying close attention, you may be missing the stealthily increasing positive correlation ...

Signs of Life from a Breakout in US Steel X
Wed, Jul 30, 1:11 PM ET, by Corey Rosenbloom

Is it possible that US Steel (X) is finally catching a bid from a breakout ...

Midday Market Update and Stock Scanning for July 29
Tue, Jul 29, 2:31 PM ET, by Corey Rosenbloom

Price provides a choppy Range Day environment for traders ahead of tomorrow’s “Fed Day” announcement. ...

Is PLUG Setting Up Another Breakout Run to the Highs
Tue, Jul 29, 11:31 AM ET, by Corey Rosenbloom

Former high-flyer Plug Power (PLUG) could be setting up another bullish breakout and run for ...

Are You Following this Stellar Parabolic Arc in INTC
Tue, Jul 29, 9:51 AM ET, by Corey Rosenbloom

If you haven’t charted or traded Intel (INTC) in a while, you’re missing an amazing ...

July 28 Monday Midday Market Update and Stock Scan
Mon, Jul 28, 2:11 PM ET, by Corey Rosenbloom

It’s time to take a look at what’s happened this morning, what Breadth is saying, ...

Join John Carter Thursday for a Trading Options Like a Pro Webinar
Sat, Jul 26, 1:31 PM ET, by Corey Rosenbloom

I’m excited to announce an upcoming featured webinar by John Carter on Thursday, July 31st ...

Interesting Arc Pattern Forming Buy Signal in Harley Davidson HOG
Fri, Jul 25, 1:51 PM ET, by Corey Rosenbloom

What fascinating pattern is developing into a key support level for Harley Davidson (HOG) shares? ...

The Divergences are Working July 25 Market Update
Fri, Jul 25, 1:11 PM ET, by Corey Rosenbloom

I’m actually a little surprised that the market is falling like it “should” be doing, ...

SP500 Gasping at New Highs with Cautious Divergences
Thu, Jul 24, 1:21 PM ET, by Corey Rosenbloom

We’re seeing a familiar Hollywood script play out with price chugging to new highs as ...

Breaking Down and Away from the Highs in Electronic Arts EA
Wed, Jul 23, 3:21 PM ET, by Corey Rosenbloom

Electronic Arts (EA) surprised to the upside yesterday on earnings but failed to impress traders ...

  More articles:  1 2 3 4 5 6 7 next »

ABOUT US »   ADVERTISE »   CONTACT US »   TERMS OF USE & PRIVACY POLICY »

Discipline: Not Just About Controlling Risk | Self Directed Investor | Copyright © 2008 - 2014, All Rights Reserved

Any ideas and opinions presented in Self Directed Investor content are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All site visitors agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.

SDI is associated with: ValueForum.com -- a subscription-based online social networking forum of over 1000 individual investors. | MarketNewsVideo.com -- videos appearing on SDI are produced by Market News Video. | TickerTech.com -- stock quote content appearing on SDI is at least 20 minutes delayed and is powered by Ticker Technologies. | GoldStockStrategist.com -- Edited by Scott V. Nystrom, PhD, Gold Stock Strategist provides analysis on gold mining companies.