In a word, the biggest challenge I am facing with my Trading is “Discipline”.
Constantly, I enter trades with the expectation of taking profit on half my position once the move has at least gone up/down the size of my stop. However, I am finding that I twitch out of my full position prematurely thinking that I’ll find a better entry.
I follow a strategy of sizing up when I stop out of a trade with the assumption that I will be more selective with the next trade I enter, however, I continually enter trades in consolidation periods or enter during retracements thinking that I’ve found a point where the trend has reversed.
There’s also a level of confirmation bias when I look for trades, seemingly finding signs in different timeframes that confirm what I feel the direction of the trend is.
These are all issues of discipline because to an extent, I understand the strategy I need to follow and I would have been much better off if I had just stuck to these rules from the beginning.
I’ve started trading full time recently and I’ve found that listening to the “Trend Following” (5th edition) audiobook help as it goes into great detail articulating the emotion cycles of traders and explains them well.
Looking forward to taking on this ecourse.
Run away from the notion of retracement trading. Run.