The Disciplined Trader is the only trader who consistently profits… or is this a load of hooey?

Darren and Walter examine discipline in this episode, what is it? Why is it “needed?” Is it overrated?

Trading discipline is the topic for this episode (and some of this you’ve probably never heard before).

 

http://media.blubrry.com/2traders/content.blubrry.com/2traders/2Traders_-_EP31_Discipline.mp3

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In this episode:

00:36 – concept of discipline

02:20 – a successful trader

04:48 – market biofeedback

06:17 – rules and discipline

07:21 – definitive rules

09:05 – difference between newbie and experienced trader

10:40 – exact revenge

13:40 – hard wild

15:58 – trading buddy

Tweetables:

All of your actions are predetermined. [Click To Tweet].

Be able to judge your emotions. [Click To Tweet].

Successful traders do stuff their own way. [Click To Tweet].

Download The Full Episode 31 Transcript Here

Walter: You’re missing out on a valuable piece of the equation if you simply limit yourself to a set of “if / then” rules.

Announcer: Two traders, Darren and Walter, pull back the curtain on profitable trading systems, consistent money management, and profitable psychological triggers. Welcome to the Two Traders Podcast.

Walter: Welcome back to the Two Traders Podcast. Darren is on the line. We’re going to talk about discipline today. Darren, this idea of discipline as with regards to trading, what does that make you think of, when you think of this concept of discipline?  

Darren: Yeah. People talk about discipline a lot. I’m not sure that I completely agree with it really. Because you usually put forward, that in regards to trading, discipline means basically you should have your plan set up and then you should follow it to the letter. I don’t really believe that’s a good way to approach trading.

I’ll explain why. Basically if you trade that way, it means that all of your actions are predetermined. There’s no any scope in there for you to add new data to your process.

A very good way of describing it. Let’s say for instance, you have a predetermined setup where to enter the market, these occur and then you have a predetermined stage two that you do next. The idea here is, if you’re disciplined, then you just follow this through, come what may. I think that’s basically saying that you can’t react to what the market does.

For me, a big part of my trading is reacting to what the market has just done. Then making a decision based on that. I think we have this concept that, you can’t do that successfully because you’re emotions are getting involved and you basically rely on your biases.

If you’re not trading well or if perhaps you’re still learning to trade, then you may well do that. One of the key things to being a successful trader is th...

(Continued from Part 1 – click here for Part 1) In part 2 of “Trading With Space” Darren and Walter examine: How does the blame for losing trades change depending on your trading philosophy? Bad luck for casinos = a draw down for your trading system? Darren knows how many bad trading days he’ll likely...

What is space in trading? And why does it matter?? Should traders pay attention to space? Why? Why not?? Is it something you must know about, and “see” on the charts to find good trade setups? Or is it a load of hooey?? Find out what Darren and Walter think about space, and whether it...

What is space in trading? And why does it matter??

Should traders pay attention to space?

Why?

Why not??

Is it something you must know about, and “see” on the charts to find good trade setups?

Or is it a load of hooey??

Find out what Darren and Walter think about space, and whether it is something you should pay attention to when you analyze the charts.

http://media.blubrry.com/2traders/content.blubrry.com/2traders/2Traders_-_EP29_Trading_With_Space_Part_1_of_2_.mp3

Download (Duration: 19:48 / 22.6 MB)

In this episode:

01:37 – space

06:37 – potential buy

08:28 – technical analysis

09:06 – human behavior

11:13 – consolidation

13:09 – space versus consolidation box

14:45 – filters

15:40 – mental obstacles

18:19 – no control

19:27 – letting go

Tweetables:

Space can help you identify turning points in the markets. [Click To Tweet].

Too much analysis can lead you to feel responsible for losing trades. [Click To Tweet].

If the market is consolidating, it is probably not reversing. [Click To Tweet].

Download The Full Episode 29 Transcript Here

Darren: But for me, that’s exactly the time that you should be taking the trade. In other words, it doesn’t look as nice to trade, it doesn’t feel right and in my experience those were the trades that win for me.

Announcer: Two traders, Darren and Walter, pull back the curtain on profitable trading systems, consistent money management, and profitable psychological triggers. Welcome to the Two Traders Podcast.

Walter: Welcome back to the Two Traders Podcast. I’ve got Darren on the line. How are you going today Darren?

Darren: I’m pretty good Walter.

Walter: So we’re going to talk about space Darren. First of all, let’s start with this, I know a lot of traders like myself, like to trade reversals. They like to find trading points. I know that you do a lot of that too or some of that anyway. It doesn’t really matter if you’re talking about a reversal point inside of a trend or just a straight up. This is where the market is going to turn around here or go away from this spot. A lot of traders like to hang their hat on, you know, the fact that “Hey look, I found that spot on the chart were reverse” and they feel like they’re getting on a reversal.

For whatever reason, it’s easier for most traders that I’ve come across, to find reversal trades than it is for them to jump in with the trend. Even if you’re trying to trick yourself and say “I’m getting this reversal where the market is going counter trend here and I get on in this reversal even if it is in the midst of a strong trend.”

One of the things I look at is what we call space. The room to the left.

(Continued from Part 1 – click here for Part 1)

In part 2 of “Trading With Space” Darren and Walter examine:

* How does the blame for losing trades change depending on your trading philosophy?

* Bad luck for casinos = a draw down for your trading system?

* Darren knows how many bad trading days he’ll likely have next week…

* Trailing stops and pip targets, which one works best?

* “Acapulco Trades” vs “Pinch Trades”

* Patience in trading vs missing out on the best turning points…

And much more in this episode…

http://media.blubrry.com/2traders/content.blubrry.com/2traders/2Traders_-_EP30_Trading_With_Space_Part_2_of_2_.mp3

Download (Duration: 20:01 / 22.9 MB)

In this episode:

01:15 – blame depends on your system

02:25 – “oh no! the markets have changed!”

03:22 – anticipating good days and bad days

04:38 – hit your weekly target, stop trading?

05:53 – hard work trading the 1hr charts

06:20 – months on end without a losing month

06:55 – a few “big winners”

08:10 – trailing exits

08:45 – breaking the “rules”

09:30 – why use other traders’ rules?

10:26 – inverse risk:reward trading

13:07 – crazy ideas are rewarded

14:25 – Walter’s use of support/resistance

16:45 – Rivo on the forum is testing lower tf trades

16:55 – Walter’s “space” trades simply defined

Tweetables:

Look for “space” when trading chart reversals. [Click To Tweet].

Weekly targets mean knowing what the market may offer you. [Click To Tweet].

Know when to break the “trading rules”. [Click To Tweet].

Download The Full Episode 30 Transcript Here

Walter: Last time in part 1 of Trading With Space, you’ve heard about this idea of room to the left and what space is all about if you’re not familiar with that. Darren and I, disagree about the usefulness of space on your charts. If you haven’t heard Episode 29 which is part 1 of Trading With Space, please go back and listen because without an understanding of part 1 in our discussion there, part 2 here is not going to make much sense at all. If you want to be able to follow along part 2, please go back and do watch part 1. So, let’s get started and jump back into Trading With Space. This is Part 2.

Announcer: Two traders, Darren and Walter, pull back the curtain on profitable trading systems, consistent money management, and profitable psychological triggers. Welcome to the Two Traders Podcast.

Walter: Yeah. That’s exactly what I was getting at, was that my instinct goes to say,

Do you see a incomprehensible, complex market when you sit down to trade? Or is it a simple song… music to your ears? Many traders have strong views about whether the markets are incredibly complex or just a simple extension of the market participants (and this is usually reflected in how traders try to extract...

Do you see a incomprehensible, complex market when you sit down to trade? Or is it a simple song… music to your ears?

Many traders have strong views about whether the markets are incredibly complex or just a simple extension of the market participants (and this is usually reflected in how traders try to extract profits from the market).

If the market is too complex, how can we ever compete with the string theory physicists working for the banks and hedge funds?

And if the market is simple, what can we do to make sure our system doesn’t become too complex?

The answers are waiting for you in this podcast (ok, that was a joke… maybe not the definitive answers, but this episode will definitely get your brain working on the problem).

Also, you’ll hear what Darren believes is “pure madness” in the market and why Walter worries about traders who want to “be right.”

http://media.blubrry.com/2traders/content.blubrry.com/2traders/2Traders_-_EP28_How_Complex_Are_The_Markets.mp3

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In this episode:

00:55 – The market is insanely complex

01:27 – Simplicity is the answer

02:50 – The market is made up of people

06:03 – A matter of perspective

07:07 – Perspective is important

08:10 – Understand everything

09:21 – Trying to predict

11:22 – The big short

12:29 – Perpetual Bull or Bear

Tweetables:

The market is a collection of humans, with ordinary emotions. [Click To Tweet].

You can learn to read the markets and trade profitably. [Click To Tweet].

A very complex strategy won’t necessarily give you an edge. [Click To Tweet].

Download The Full Episode 28 Transcript Here

Walter: To me, I don’t see why people feel like the market necessarily has to be complex. Now I think it’s not because, it isn’t complex and there are a lot of decisions that go into moving the price.

Announcer: Two traders, Darren and Walter, pull back the curtain on profitable trading systems, consistent money management, and profitable psychological triggers. Welcome to the Two Traders Podcast.

Walter: Welcome back to the Two Traders Podcast. I’ve got Darren on the line. How are you today Darren?

Darren: I’m really good Walter.

Walter: So we’re going to talk about this idea of the markets and how complex they are. I’d love to get your thoughts on these. We often hear things like “Oh, the market is so complex, people can’t understand the markets, they move randomly, can’t make money in the market, it’s zero in some game”. All these things like that, what are some of your thoughts on that?  

Darren: I think it’s insanely complex that’s probably why trading is so difficult. We’re trying a certain control of the market and we try and find pa...

As traders, we’re taught to follow the rules. There’s no room for changing it up, cowboy. Gotta be disciplined. Only the traders who stick to the system survive… But is this true? Are there times when you should, as an experienced trader, actually {gasp!} break the rules? In other words, in this episode the topic is “Trading...

As traders, we’re taught to follow the rules. There’s no room for changing it up, cowboy.

Gotta be disciplined.

Only the traders who stick to the system survive…

But is this true?

Are there times when you should, as an experienced trader, actually {gasp!} break the rules?

In other words, in this episode the topic is “Trading From Your Gut” – and whether you should do this, or steer clear.

http://media.blubrry.com/2traders/content.blubrry.com/2traders/2Traders_-_EP27_Trading_From_Your_Gut.mp3

Download (Duration: 22:02 / 25.2 MB)

In this episode:

00:46 – Gut-system

02:11 – Price Movement

02:40 – Exiting My Trade

03:00 – Darren’s Three Rules

04:57 – Removing Your Intuition

11:04 – Practice Makes Better Decision

12:25 – Who Makes better decision?

13:13 – Same Trade But Different Results

14:25 – Trader of Currencies

15:45 – Missed Entry

19:28 – Backtesting

Tweetables:

The trader who’s been trading longer is more likely to be making better decision. [Click To Tweet].

Use trial and error to learn to be a good trader. [Click To Tweet].

Backtesting the System is a brilliant Idea. [Click To Tweet].

Download The Full Episode 27 Transcript Here

Darren: With practice you can make much better decisions based on judgement in the moment then you can predetermine what you’ll going to do.

Announcer: Two traders, Darren and Walter, pull back the curtain on profitable trading systems, consistent money management, and profitable psychological triggers. Welcome to the Two Traders Podcast.

Walter: Welcome back to the Two Traders Podcast. I’ve got Darren on the line and today Darren, we have a question that came through from a listener about your trading. Here it is, it says, “The question is for you Darren, imagine some element in your trading where you simply decide to let your trade go or close it. Is it safe to say that your system is a gut-system? Meaning that it requires you to make decisions that can’t be explain but always it’ll be profitable?”.

Darren: I need to sort of briefly explain my logical trading first, based on how I’m approaching trading now. Generally, most people when they trade they do some analysis of the market. From that analysis, they make a plan of what they think is going to happen next and what they’re going to do when that happens.

For instance, you’re a trend trader, and a trend is in place and your plan, maybe to wait for price to retrace to a moving average. Wait for a particular price action pattern, enter into the market and then give a similar thing for your exit.

That’s how essentially a lot of technical systems are based on that process. When I look at the market,

Life’s better at the top, isn’t it? A fat cat trading account, huge bonus at the end of the year, and money to burn on the “trader lifestyle.” Or is it all it’s cut up to be? Could it be that many traders don’t know what they want? Is it better to trade for the...