Fire up the engines

I've finally succeeded in negotiating a 5-hour study block with my wife. I have thought about this a lot and I think it could be exactly what I am needing. The problem is I live and breathe forex constantly yet I am completely frustrated from a total lack of study time. I need time where I can focus intensely on the tasks at hand, and to avoid the constant scatter-brain I have when at home. Tonight is my first trial of what I hope to carve into a permanent weekly study block. This particular block of time (Thursday evenings from about 6pm to 11pm) may be ideal for both myself and my family.

My primary objective is to get back into the trading I love so much. But my personal discipline will absolutely not allow this until I have completed the necessary prerequisites -- namely, development of new trading strategies as the old ones I was using are no longer viable (for various reasons). However, over the years I have learned how to build new strategies and I am looking forward to sharing those procedures here.

One thing I will try to do is set an agenda for myself to maximize each studyblock. I find that I am easily distracted... but if I have a bullet list of items to accomplish, I am much more likely to spend that time productively. I would like to go home exhausted at midnight feeling as if I have made major progress. That would make me extremely happy. I'm the type of guy who needs to see progress -- even if just in baby steps.

Study agenda Thursday 7/31 five-hour timeblock

• Formally answer all questions on the StepsToSuccess page
  
• Review RulesToLiveBy page and ensure everything up to date
  
• Establish the ResearchGoals page
  
• Forex Tester software -- need to "figure out" before trial runs out
  
  • How to load history data?
    
  • Is 1min -> tick interpolated going to be adequate?
    
  • Figure out how to step forward and backward
    
  • Determine timezone adjustment if needed
    
  • What "procedure" will I follow for running the test?
    
  • What indicators could work, and are available also in MT4?
  
  
• Prep for strategy discovery testing
  
  • Locate the survey form I put together
    
  • Identify which pair(s) I will focus on for this round of tests
    
  • Identify specific trading hours that will be studied
    
  • Identify specific indicators that will be observed
    
  • Begin writing out my formal testing procedure
  
  
• Begin envisioning how survey test data will be interpreted
  
• Identify specific items that need to be converted to strategy rules

Stuart Walton's trading rules

Stuart Walton provides a very interesting interview in Stock market wizards -- unlike most other traders Schwager interviews, this guy had "no burning desire to be a trader, no special analytical or mathematical skills, and was prone to emotional trading decisions that caused him to lose all or nearly all his money on several occasions."

He kept these rules posted on his computer to remind him constantly before making any trades. I really like and agree with all of these so I'm reposting them here:

• Be patient--wait for the opportunity.
• Trade on your own ideas and style.
• Never trade impulsively, especially on other people's advice.
• Don't risk too much on one event or company.
• Stay focused, especially when the markets are moving.
• Anticipate, don't react.
• Listen to the market, not outside opinions.
• Think trades through, including profit/loss exit points, before you put them on.
• If you are unsure about a position, just get out.
• Force yourself to trade against the consensus.
• Trade pattern recognition.
• Look past tomorrow; develop a six-month and one-year outlook.
• Prices move before fundamentals.
• It is a warning flag if the market is not responding to data correctly.
• Be totally flexible; be able to admit when you are wrong.
• You will be wrong often; recognize winners and losers fast.
• Start each day from last night's close, not your original cost.
• Adding to losers is easy but usually wrong.
• Force yourself to buy on extreme weakness and sell on extreme strength.
• Get rid of all distractions.
• Remain confident--the opportunities never stop.