Registered: Nov 2004
03-03-06 08:21 PM
Quote from Buy1Sell2:
Missed the stop by .5 I would say in all honesty, I rather enjoy when the position goes against me because I start out so small. This gives me the opportunity to increase the bet after small losses. My strategy would be bad if I was using a lot of leverage. Long ago, I decided that I could trade this way, by not going all in on the first one. That's where I would get into trouble. My leverage is extremely low and this gives me the opportunity to have a bit more of a position when it does go my way. One other thing to bear in mind, the short term trading is an experiment for me right now. I have been a long term position trader for 25 years.
You have no idea how "high" your leverage is (all-in or not) until you are on the wrong side of a runaway gapping (or better, a death spike) market. Stops triggered far far away from your price. Stop limits, well you better not be on vacation.
IMO, your strategy is not suited for daytrading at all. Sorry.