Have you ever encountered a method of trading that works – really works – but have been unable to make it work for you? That seems to be my life’s story. I have been at this game for a long time, and I am pretty good at it, if I must say so myself. I only have a few things to overcome. Second-guessing myself, and self-distrusting blowouts.
Aside from those two minor problems, I am near perfect!
I know what works – at least for me: Common sense trend following. But I am inpatient, I need to know quickly if I am going to ring the cash register, or take a hit. So that means that short-term trading is my only hope. Scalping e-minis for a half to three-quarters usually puts profits in my pocket, but... I’d like more.
Have you ever heard of Linda Raschke, and her “short skirt” trades? There’s really nothing new or special about the method. Buying/selling bull/bear flags in established trends on a one-minute chart using a three point target, and a three point stop. There ain’t much to it. It’s simple, easy to see, and it works better than 65% of the time.
( For more info: http://www.lbrcapital.com/members_tradesetuplibrary.asp
So how come I am not rich? Because I can’t follow the rules. I cut my profits short, and take losses before I should. Thereby defeating the purpose and genius of the method. Day after day, hour after hour I sit at my computer looking at these trades do what they are supposed to do – i.e. make money. But I always manage to either not take them in real time, or to take them but not properly play them.
Well enough is enough! I have tried everything I could think of to force myself to do what I have to do – but for one thing: Public humiliation. So for the foreseeable future I will post a “journal” of my attempt to trade a method I know works. I will only take the so-called “short skirt” trades (or at least they are the only ones I will tell you about), and will do my best to trade them as they should be traded. At day’s end I will fess up as to my success or failure. Feel free to comment, ridicule, or stand in awe.
I am not doing this for you. I am doing it for my own benefit – I don’t know what else to do to force the needed discipline on myself. So your input, while welcome, is not really necessary. The mere knowledge that someone will see what I did, or didn’t do that day may just be the kick in the pants that I need.
I’ll start on Monday. Tuesday may be a short day as I have a medical appointment, but as a rule I trade most every day.
I will provide information about my equipment, software, etc in a subsequent post.
Wish me well – PLEASE!