Technical solutions to keep you in the game
How technical means can help you to become better. Usually sooner too.
I always say that if there is a technical solution to my trading problem, I need to go for it. At the end it is the process that matters, so if we can build the process around technical stuff it is usually more time-effective. Here are some issues, that I have met, and how they can be solved. For comparison, I present the usually harder mental solution too.
Problem: Having big red days.
Do You erase all your profits in one day?
Technical solution: Block your trading platform after you made some harm to your account. Do not allow yourself overtrade with revenge. Use a trading platform that blocks you out automatically.
Mental solution: accept losses with grace, do not let a previous loss affect your next trade, do not get angry and tilted by series of losses. Easy to say, harder to implement when you are an emotional wreck.
Problem: Over-partialing
Do you take a partial on every move, so You get some profits, thinking that You cannot lose money by taking profits?
Technical solution: use range market orders for stops and profit taking, just enter the trade and wait for the result. Just watch it, or even leave it go.
Mental solution: Do not partial sooner than you reach the desired target.
Problem: I have no watch list
Do You know what to trade and have no stock scanner software?
Technical solution: get a watch list from twitter or Your trading chatroom from more experienced traders or any website that gives you a watch list. (even for free)
Mental solution: Learn how to create a watch list. You will have to do it over the time anyway.
Problem: Broken PC/Internet connectivity in the middle of the trading
Are You prepared for the unexpected situations?
Technical solution: have a trading platform on your mobile to be able to close positions which had no stops. 2nd option is to have a second PC or router with mobile connectivity available at home. In combination with risk controls of your broker, not much harm can be made.
Mental solution: Do not freak out when technical problems hit You, You cannot do much about it anyway.
Problem: Risking too much
Do You take bigger than healthy positions?
Technical solution: fund your account, just about right for your risk. The formula is that you need 1200 times more buying power than the risk per trade, so if you risk $20, and you have 1:6 leverage from your broker you need $20*1200=24000 buying power so that with a leverage means you need $4000 cash on your account.
Mental solution: Do not open big or multiple positions.
Problem: Not enough screen space for the charts
Do You need more monitors?
Technical solution: buy a new (or 2nd hand) monitor with higher resolution or 2nd monitor to add to your current one. It is easy and quick fix rather than trying to make it with the small thing on your laptop.
Mental solution: Adjust your needs and style.
Problem: You freak out from a winning trade because you see how the money goes up on your unrealized P&L
Do You watch the money constantly and exit based on Your unrealized profits?
Technical solution: hide the P&L and use technical indicators for targets or use range orders.
Mental solution: Do not look at money while trading.
Problem: I do not know when to exit a trade as it is over my target, and it has potential to go more
Do You change Your idea on a runner and want to let it run more, but have no plan?
Technical solution: use a technical indicator on the trading platform to indicate the exit point
Mental solution: Learn and adopt new trading pattern or scaling strategy to your trading.
Problem: I have no monitor
Is all that You have just one laptop and nothing else?
Possible Solution: use your TV as a monitor. Chances are that your TV is already 4k resolution, so you will have sufficient screen space for the charts
Problem: I have no dedicated PC for trading and don’t want to spend a fortune on a new one.
Is all that You have a company PC that You are not allowed to install things on?
Possible Solution: Get a cheap refurbished PC for few bucks. $150 is usually enough, just make sure the PC comes with a display port capable to do 4k resolution and 60Hz refresh rate. More on this topic in the previous post:
