Registered: Jun 2011
06-26-12 04:18 PM
Does anyone have a strong opinion on this?
I have been developing an intense focus on the price ladder, with charts/profile by my side as support tools. I'm scalping FESX, typically taking winners and losers of 1/2/3 ticks, with a few outliers (good and bad) 4/5/6/7.
A big problem I am having is, I am micromanaging my trades excessively. If you stare at the price ladder long enough, you can find a million reasons to buy or sell.
And so it is, I can pick out a good entry, only to scratch it, or take 1/2 tick winner, and then watch it move another 5 ticks in my favour. My win rate simply is not good enough to offset the inevitable -1/-2 tick losers that mount up during the session, not to mention transaction costs.
I am seriously considering telling myself, for the rest of the week, to take either +3 tick winners, -2 tick losers, and scratch only if a +2/3 tick winner comes back to me - so that I give all trades a bit of room to breathe.
No doubt I'll take some -3/-4 tick losers along the way, but overall this profit/loss ratio target should work, assuming I can hit something a little better than 50/50 win rate.
+3/-2 ratio Pros: It prevents me from micromanaging trades, and helps me to remain relaxed during the session
+3/-2 ratio cons: To simply conjur up +3 winner / -2 loser as my target... it seems pretty arbitrary and therefore possibly stupid?