Registered: Dec 2008
03-07-12 03:44 AM
Quote from BobbiDigital:
RN - if you could indulge me, I have another question:
How particular are you about entering trades - in theory, we don't know if it's going to be a small loser, small winner, or big winner. So, assuming there is adequate risk:reward, are you more likely to pull the trigger often taking small losers or wait for 'perfect' setups and risk missing out entirely (assuming chasing the market is always a bad idea).
For me trading small size makes it easy to dabble in less than perfect setups, but once I start sizing up I imagine my mindset will change...
Thank you as always sir
Glad to indulge you Sir…, and You are Very Welcome
Assuming there is adequate R:R…,
Am I likely to pull the trigger, often taking small losers…
Do I wait on perfect setups, and risk missing out entirely
Many ways to answer your question BD
No…, Yes…., Maybe…, come to mind…
Do perfect setups exist – yes (and if you would like to discuss this further simply say so)
Do less than perfect setups exist – yes…
Do I trade each – yes, unfortunately…
Do I miss out on moves – yes at times
Are entries one way I grade myself as a trader – You Betcha
Taking anything less than a perfect set up is…, by default…, assuming more risk
So then the question is; Is assuming more risk appropriate?
The only acceptable answer is – only if the reward is commensurate...
Most times it aint…, and/ or often times we don’t know if it is - until it is too late.
As a rule…, and the only advice I would share is…
Only take perfect set ups
Yup it takes patience…, and considerable tolerance for missing moves… but they also provide clear entries, targets, and most importantly, small risk
Having said this…, truth is…, sometimes I do take less than perfect setups…. Because I get impatient…, opinionated…, susceptible… (I’m only human)
But… NEVER would I make a habit out of it – nor a profitable career over the long haul
I absolutely know…, taking only perfect setups is the right way to trade…
I also absolutely know…, sometimes I screw up…
Market is already tough enough…, no sense in helping – and/or – making it easier for – the market to take our money…
Couple of additional thoughts
Absolutely nothing stopping a trader from adding additional perfect setups to his/ her tool bag – thereby diminishing further the need to take less than perfect setups – It only takes a few criteria to make one
One big difference between gambling / guessing… and trading – is our setups, and our ability to wait till they’ve materialized - imo of course