[idaxtrader]

There are two distinct schools of thought regarding trading. Scaling in or to Scale out. There are professionals that I respect that are successful from both schools of thought. I have decided I want to give a full fledged effort into making a scaling in method work for me.

I have decided to post my notes from a non conventional book but a great piece of work. Phantom of The Pits. POP advocates strongly a scaling in method rather than a scaling out method. Neither way is right or wrong. Some people find averaging into a winning position to be more profitable in the long run. A averaging up method is also less ego involved and more business like compared to a scaling out. Which is much more competitive and ego involved



The ability to change behavior is the most important part of successful trading.

Correct knowledge without behavior modification projects improper execution of an otherwise perfect trading plan.

Trading is not as we all thought.

It has taken years to understand that being wrong is what trading is all about.

Behavior modification, without doubt, is the key to trading success -- not only in how we think but also how we act in certain situations. We must adapt to changing situations over which we have no control. We must change the situations over which we do have control.

Losing never stopped her from staying with her plan as she knew how to lose small and go with her program.

I also learned to not stake it all on one price.

I actually was doing them a favor in telling them to take their losses. To this day, I call this out to myself when the market isn't working my position correctly -- the big start of my behavior modification, I suppose.

A trained trader understands success as "You lose good and you're wrong small." Trading is called coming out on the small losers' side and being rewarded with knowing how good you have been wrong.

The message of importance is to be in control of your positions and not delegate it to the markets.

It is important to acknowledge the reason for trading, regardless of your situation or reason. Thirty years ago I would have thought it very strange to take these steps.

You need to acknowledge your reason for trading each day.

On bad days, instead of coulda-woulda-shoulda, you must expel your feelings of defeat as soon as possible because, if you don't, it will affect your next day's trading. Read that book if just for 10 minutes. Make it a routine.