Tuesday 15 February 2011

Backtesting, psychotherapy and other drastic measures!!

Dear Diary.... And so on :)

I have taken some drastic measures since last time.

Number obe is that I have started counselling with a qualified psychotherapist. This on its own has made a MASSIVE difference to my general outlook on life and hence obviously to my trading. I was getting to the point with everything (not just to do with trading, but to do with my other business too) that I knew I cannot get myself out of the negativity alone. You know that negative hamster wheel of thoughts just feeding itself and making it spin faster and faster and those thoughts just getting more and more ingrained and slowing you down to almost a halt!

So like I said dealing with some underlying issues of self worth with a person who is totally impartial and neutral ash been an amazingly liberating experience. I really recommend it to ANYONE!

I have now put a framework in place on my future 3 months trading education and I have been also getting up much earlier at 6.30am to get to the markets by about 8am. And I have spent as much of my day as possible just in the trading forum and chatroom I belong to and at the same time trying to do a bit of backtesting and learning new strategies from the people in the room.

Also one of the BIGGEST differences has been backtesting. I know I was told about a million and one times that backteting is the most essential thing one can do and I still managed to ignore that advice for a quite a few months in the beginning of my journey. But now I have finally done it, it really helps with the psychology, makes it easier to just simply SEE the setups and gives you confidence and clear numbers and stats you can trust on. If you are trading and not backtesting shame on you!! You are missing on one of the MOST valuable tools there is in the trading world. Yes its timeconsuming, but oh so worth it!!

So look out for this space! Things are finally looking up for me - even at a pace of a super slow snail - but they are moving and this time to the right direction!!