I've created this topic to discuss the 'practical' psychology and related issues pertaining to the KT methods and also trading in general.
The goal is to help each other in getting the right mindset in order to apply or study Jim's work. Roofer's methods followers are also welcome to participate since psychology is a broad topic in itself and U can always compare styles and use whatever ideas that might help ur bottom line.
U can also post without fear whatever mistakes, pitfalls or difficulties u might have encountered so we can discuss ways to help out.
To start up I'll quote my previous post from another topic so that it won't get mixed up and lost in that other topic.

Originally posted by TonyC

Roofer, what u are alluding to with the multiple timeframes comments is that they are deliberately omitting the 'CONTEXT'?.They are just blind to the bigger picture within wich the current price action,indicators,geometry are set up?. That's a big time mistake to deny 'Context'. And Jim will tell you: quote:'without context you have nothing'...it is so true I believe.
As far as computers go with their millions of calc per nanosecond, they still can't beat a well trained human mind with anticipatory instincts,rock solid discipline and a real 'trading plan'. But these types don't come by often and the brain can only function at peak performance for just a finite period of time,unlike comps that can run forever.So I'd assume that's why only a small percentage of the trading population can consistently beat the comps at their own games. And I think those who run the comps are fine with this fact because in the long run they still take the money of the weaker minded masses anyway. So that cycle is perpetuating, making the market wheels go round and rewarding only those who work hard at their trading craft by whatever means and methods necessary.Indicators or not, whatever works is what matters.
Being consistently profitable is no easy task but feasible I think, or else I wouldn't be trading at all. How can one achieve that goal? it's like climbing Mont Everest, many try but only few make it and along the way up you just learn about your true self and deep down inside the only fight u have is with yourself not the mountain...

regards,
T

Jim, if this topic gets any good interest down the line, can u consider make it a 'Sticky' topic?

Knowledge, techniques and other trading tricks does not make any money.
Only a good trading plan will turn that knowledge into gold, hopefully.
But, to keep that gold U have to have total control of ur trading plan from an emotional standpoint.
To learn something new and different u have to actually 'UNlearn' all of your preset knowledge. It's very hard to let go of things that u've been conditioned,trained to do . I'm talking about uninitiated people seeking to absorb the KT methods. And most of Jim's work goes against and beyond conventional wisdom. It took me some time to adapt but it was easy for me because I'm a very open minded person,honestly speaking, and deciding to let go of all my previously taught(and self-taught)knowledge was necessary and i felt the KT methods just 'spoke' to me. Not that i saw holly mary and heard voices and all, but more like it felt right in my mind, and the chain of events just kept on rolling with ease leading to deeper understanding and had my imagination boiling with new ideas etc...That's when u know if the KT methods is for you or not. Then it's just a matter of pursuing the path laid down for us by Jim.
The issues i was dealing with before and still strugling with but to a lesser degree now were more psychological than the technical method itself.
Like, for example, Overtrading, overleveraging my positions, taking on trades without regards to its context that lead to hitting low probabilities entry locations and greater risk ...and it cost me a big deal I can assure u.
These 'evil' trading sins sometimes take over your mind without you even knowing it before it's too late...you get caught up into a vicious circle that's hard to get out of unless you start to exert disciplined emotional control. The psychological concepts are easy to grasp and to talk about, but in reality very hard to overcome. It's a constant battle of will against your own destructive self. The only remedy to that is to follow ur predefined trading plan ! it's the only shield u have to protect your capital. So it comes down to this: accept the risk, TAKE the d@mn STOP ! trade without a stop and you are guaranteed doom...that's the first step in the right direction.
Next u have to work on being consistent with the ability to control ur risks...
Just some thoughts...
T

Hey T, glad to see you finally started this topic. I'll make it sticky here regardless, as I feel it is a very important topic for discussion. I expect it will go dead once all the initial posts are posted about how they all agree with what you are saying (sorry, folks, not putting anyone down, just going by the past track record in here...), but it is so important I want it to be sticky anyway.

I have said to myself many times if I wrote another book (I can't see it...) it should be on this topic. I even envisioned interviewing as many KT traders as I could and building the individual sub-topics around things that came up in the interviews. Then I would have a book that I would get an ISBN number for, and have it published and sold on Amazon and in bookstores. Something more mainstream. But then I came to my senses and realized working 100 hours a week as I do now is enough, without going ahead and starting another project. But we can still have this topic.

I have noticed as I get more and more experience with the mentoring, and as time goes on and I follow along with my earlier students, that it is as T says, you get the KT principles down, then you have to do battle with your head. This business will find every weakness you have, and lay it bare, as I mentioned in my recent chartless commentary (which is also on the free articles page). So, I hope this topic develops into something. I suspect many will be 'afraid' to bare their souls and discuss the personal psychological issues they have, but I'm hoping we'll get some participation.

"So it comes down to this: accept the risk, TAKE the d@mn STOP !" TonyC. Words of Wisdom, indeed.
I'll add a bit here, sort of a "Bad Trading Habits" that I have mostly eliminated, with resulting improved trading results in my simulated trading:
1. I used to trade without a Trading Plan. That was crazy. I had little discipline, lots of losses, no consistent clue as to why I was losing. I trade according to my written trading plan now. (mostly).Big improvement.
2. Overtrading & "Revenge" trading. Related to item 1. I no longer do this. Big improvement.
3. Bailing on trades, I still do this. This one is hard for me to stop, probably psychological factors here. I have a "no bail" rule in my Trading Plan, but find it hard to follow. I am still working on this. If I have a Trading Plan, I had d@mn well better follow it.
4. Taking small profits too quickly. I am improving, but have a long way to go. I think I am preoccupied with financial aspects of the trades & that is hurting me.

I love reading Dr. Brett Steenbarger's materials. I also practice EFT tapping & listen to hypnosis MP3 files.

the last 10 trading days was one of the best stretches of my time...the tools banging both sides of the indexes, the short on the 60 in BBY,the short then long in gold stocks, the chimney short in AMZN that required infinite patience for the entry, hitting the .382 at completion of abcd 5 times in a row in GS and having it work every time...so it was disconcerting to hear from my student that he could not find a trade....i guess there really is no substitute for spending enough time, AND THAT TIME IS DIFFERENT FOR ALL OF US,trading this very specific methodolgy that is shared here, until you have that moment that you know in your heart of hearts that there is no turning back, that you are going to totally stake your economic well being on what YOU know....

I now keep a Trading Journal that includes my thoughts & feelings before, during, & after each simulation trade. I think this is improving my trading. Included is a chart of a Kane FLAT ABCD completing at a 0.382 Fibo Retrace in combination with a Kane DT ABCD.



I entered after Point D of the Kane FLAT, & made a bit & exited before the price dropped & invalidated the Kane FLAT ABCD. I knew that the Kane DT might complete, & I wrote up the just-completed small win. I missed the larger Kane DT while I was writing up a small win. I realized that I think what I was doing was distracting myself with the journal writing because I was still mentally engaged with that small winning trade. I missed a good trade because I was still mentally patting myself on the back for a previous small winning trade. I really need to be ready for trades AFTER I make each trade. The market will be ready whether or not I am!

Al Kamego

I just had a thought. I rewrote my Trading Plan so that it was made up of only positive statements. Does anyone have an opinion about the merit of using positive vs. negative statements in a Trading Plan?

Al Kamego