I’ve been cutting back on my Twitter. I don’t tweet much and I only look at tweets from a few traders whose trading style is compatible with mine. I had to quit following a few good traders whose trading style is incompatible with my own.
Here’s the deal: The top traders are very nimble. They can stop & reverse very quickly. They can scalp in & out and improve their cost basis. They can scratch losing trades without a loss. They can do a lot of things that I can’t do. And if I listen to them it can be detrimental to my trading. This is ironic that listening to a good trader could be detrimental but that’s my experience.
Often I see someone tweet “I’m long” and I agree with them so I get long. And we go down. And then I see a tweet “I reversed and got short” – while I’m still holding a [losing] long! Or I’m looking for a long and see someone take a short and so I get short only to find out it was “just a scalp” for them.
This is similar to what happened to me today. Before telling the story I want to say it’s my fault and I’m not blaming anyone else. I’m responsible for my own trading.
I read some thoughts from a trader I follow, he talked about filling the gap. We broke below the OSL and then pulled back so I got short ready for the gap fill. And then ES shot up like a rocket. What happeend?
ES tested yday’s high and could not get accepted in yday’s range. So the obvious expectation was for it to rotate higher. But this talk of a gap fill clouded my judgement. I was bullish for the day as we’re building higher value and somehow I totally changed what I was doing and traded short. STUPID!
Now some people can trade & tweet and not be impacted by all the ideas that are shared. I guess I’m not yet one of them. It’s something I’d like to be able to do some day but until then I need to be extra-careful.
Part of the problem is I hadn’t formalized my idea for the day. I did my homework but hadn’t written out my hypotheses as FT suggests. I need to get back into that habit and write them out each day. If I do I think it’ll be easier to stick to my plan.
I don’t want to be totally down on Twitter as there are great ideas shown. FT said he was looking for 33-35 for a pullback to get long today. That confirmed my own plans as well. So I took the long and got a great trade. So I’m not saying one should go completely without Twitter. I’m just saying one has to be very careful.
As for streams, there is so much noise in there that I can’t read them while trading and I can’t understand how anyone can. My take is that there are some traders participating in the stream who should be focusing on their trading, and there are many people in the stream who are probably not trading, at least not profitably, and many of them are calling trades & expressing opinions. I don’t want to criticize the stream, it’s great – after I’m finished trading. But how can anyone read all that and trade?
So I just follow a few people whose trading is compatible with mine, and I will stick to my own plan, and I will browse Twitter after I’m finished trading or when I have no possibility for a trade. I stopped tweeting because quite honestly I’m not good enough to share ideas. I hate the thought that I could be misleading someone. I find in general most people tweet their trades that work and go silent when they don’t. I’ve found myself doing that. Who wants to talk about their losses? So I jus stopped tweeting so that I can focus on the markets.
After I’m finished trading I study my charts and I can always find clues for what the market did. The hard part is finding those clues real time. Eliminating distractions can certainly help.