{"id":10670,"date":"2015-11-17T16:23:25","date_gmt":"2015-11-18T00:23:25","guid":{"rendered":"http:\/\/www.tradingheroes.com\/?p=10670"},"modified":"2024-04-02T00:24:17","modified_gmt":"2024-04-02T07:24:17","slug":"trading-ideas","status":"publish","type":"post","link":"https:\/\/www.tradingheroes.com\/trading-ideas\/","title":{"rendered":"3 Easy Ways to Tell if You Have Great Trading Ideas (without risking money)"},"content":{"rendered":"

\"Trading<\/p>\n

When you buy something through one of the links on our site, we may earn an affiliate commission.<\/div><\/p>\n

It can be really easy to fool ourselves into thinking that we have the best trading ideas…<\/p>\n

When we first start out, most of us have a tendency to think that we are better\u00a0traders\u00a0than we actually are.<\/strong><\/p>\n

But then a funny thing can happen…<\/p>\n

The longer we stick with it, the more we start to think that we are worse<\/em> than we really are.<\/strong><\/p>\n

We beat ourselves up…<\/p>\n

At least that is the way that it was for me.<\/p>\n

I have had to go through such a long period of losing and now\u00a0just breaking even, that I started to really doubt my trading skills.<\/p>\n

So although I might have accumulated a ton of the right skills, I lacked the\u00a0ability to trade with confidence.<\/p>\n

If you have learned several trading methods already, and it feels like you are on the Trading Silodrome<\/a>, then your challenges are probably mental.<\/p>\n

I have talked with Walter Peters<\/a> about this on several occasions (since we are currently recording a new podcast) and he has been a huge help in giving me the tools to overcome my current mental programming.<\/p>\n

I have not been getting nearly enough. <\/em><\/p>\n

This is just one small aspect of the course, but here is a technique\u00a0that I am using to get feedback on my trading ideas.<\/p>\n

There are three specific methods that I have personally found very efficient…<\/p>\n

Note: This\u00a0material is not directly from Chris' course. To get his techniques be sure to sign up for the course<\/a>.\u00a0He only opens it once or twice a year, so if you can find an opening, I recommend you take advantage of it.\u00a0<\/em><\/p>\n

How to Find Out if\u00a0You Have Good Trading Ideas<\/h2>\n

Keep in mind that having good trading ideas, a good trader does not make.<\/p>\n

However, how can you uncover patterns in your trading ideas, if you don't keep track of them?<\/p>\n

You can't.<\/p>\n

So here are three of the most effective ways that I have found to quickly record trading ideas and get feedback on them right away. For me, I try to record my first reaction to a chart.<\/p>\n

1. Use TradingView<\/h3>\n

TradingView<\/a> is a great charting site that does a ton\u00a0of things right. I love their superclean web-based charting and the fact that you can chart stocks, Forex and other markets.<\/p>\n

This site also has a fantastic feature that allows you to take a snapshot of a market prediction, then go back to it later and play the chart forward to see if you were right or wrong.<\/p>\n

Some people use it to show how smart they are (or aren't), but I think that\u00a0there are two, much more beneficial uses for this feature.\u00a0<\/strong><\/p>\n

Blowing Off Steam<\/h4>\n

First, I think that most people have a tendency to invent trades that aren't there, just for the sake of trading.<\/p>\n

I know that I am guilty of that.<\/em><\/p>\n

Most of my drawdowns are a result of this. So what can you do?<\/p>\n

Well, if you are not completely sure about a trade, or even worse…you haven't backtested<\/a> it, then you can simply take a snapshot of your idea in TradingView, then go back to it later and find out how you would have done.<\/p>\n

Uncovering Good\u00a0Habits and Getting Honest Feedback<\/h4>\n

Second, putting your trade ideas into TradingView<\/a> will give you a black and white record of how good or bad your trading ideas really are. Do your gut reactions really result in profitable trades?<\/p>\n

Should you be pulling the trigger more often? Or is there a certain type of trade that is your kryptonite, and you should avoid at all costs?<\/p>\n

Having this record of your trading ideas can\u00a0give you the answer.<\/strong><\/p>\n

Keep in mind that recording ideas and actually trading them are two completely different things.<\/p>\n

But taking a close look at your ideas and impulses can be a great start.\u00a0<\/em><\/p>\n

2. Use Evernote<\/h3>\n

Another way to find out if your trading ideas are profitable is to keep an idea journal in Evernote<\/a>. I have written about creating a trading journal<\/a> in Evernote before, but you can also use it for tracking trading ideas.<\/p>\n

Here is how you would use it:<\/p>\n

    \n
  1. Open Evernote before the start of your trading day<\/li>\n
  2. Create a new note in your Idea\u00a0Journal folder. Use today's date for the name of the note.<\/li>\n
  3. As you scan your charts, make a note of every chart in which you see a potential trade<\/li>\n
  4. Add a screenshot, so you can go back to it later and see exactly what you were seeing at that moment<\/li>\n<\/ol>\n

    This is very similar to the TradingView method. The one you use will just depend on which one you feel more comfortable with.<\/p>\n

    There is no right or wrong.\u00a0<\/em><\/p>\n

    You might even want to try a couple of methods at the same time, to see what works best for you. Here is an example from my Evernote<\/a>\u00a0Idea Journal.<\/p>\n

    I record the following information:<\/p>\n