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Zr1Trader
Registered: Dec 2010
Posts: 1540 |
04-17-12 01:48 AM
SB hold anything overnight and your just asking for it... You should know this. A gap is a gap and no stop will save you from that. You do this a while and you will see things that you never thought you would see and those times will blow you out.
You keep talking about breathing room. Just set the stop and target and forget about it. Exit at Market close if nothing gets hit or trail the stop up and let the market take you out.. That way your emotions can't control you and you'll learn the process. Screw the money. Focus on the process of risk management.
"your stop is .5 to 1% of equity.
want it wider..........?
chop you position in half and double the stop distance away.
wider still.......?
chop position size again and place it 4 times the distance away.
"
I'm done advising. GL and may the sharks not eat you alive with your food and board money.
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sfbayarea
Registered: Oct 2011
Posts: 304 |
04-17-12 04:04 AM
Quote from Riffraffpatrol:
Sb--first of all I cant believe u put spy in the same context.
Ever hear of an intraday halt re: a material company specific event? Don't think it can happen to GS? You have so much to learn.
I recall halts being done but not until it was well into a trend like some down move. The news hits the charts first. Nothing is impossible. So since SPY is not one stock of a company and being an ETF of many, there won't be an intraday halt? If I went to trade the SPY instead of GS, I would be safe from such an event? Do you have or anyone have a chart of what happens on a day where there is such an event?
I know that I do 200 shares most of the time. Ideally I would like to do 150 but they don't allow for odd numbers unless it was a partial fill. I know that I like to get out of the market a lot so I don't have too much emotion for too long. If I go with 100 shares, I know that I will have to be in the market longer. That is something that makes my emotions tougher to handle. It's probably the right thing but my emotions have trouble with it. Emotional control is something I still struggle with.
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sfbayarea
Registered: Oct 2011
Posts: 304 |
04-17-12 04:16 AM
Quote from Zr1Trader:
SB hold anything overnight and your just asking for it... You should know this. A gap is a gap and no stop will save you from that. You do this a while and you will see things that you never thought you would see and those times will blow you out.
You keep talking about breathing room. Just set the stop and target and forget about it. Exit at Market close if nothing gets hit or trail the stop up and let the market take you out.. That way your emotions can't control you and you'll learn the process. Screw the money. Focus on the process of risk management.
"your stop is .5 to 1% of equity.
want it wider..........?
chop you position in half and double the stop distance away.
wider still.......?
chop position size again and place it 4 times the distance away.
"
I'm done advising. GL and may the sharks not eat you alive with your food and board money.
Zr1Trader,
I appreciate your advice here. My stops are .5 to 1% of my equity as I've mentioned. I don't hold overnight. I've done it before and learned the hard way. My biggest loss have come from holding overnight. The last time I did it was last week was that I had a hunch based on the 1 hr chart. That is something I do not intend or plan on doing in the future. Like I said, this is a work in progress. Things that I've done couple months is not the same thing that I would do now. I used to get the keys mixed up when I know that I had to move fast. Pressing the wrong button for a buy instead of a sell or vice versa. I've worked on that and hadn't had that happen in a while. Cross my fingers. Thanks
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Riffraffpatrol
Registered: Feb 2011
Posts: 236 |
04-17-12 11:02 AM
Quote from sfbayarea:
I recall halts being done but not until it was well into a trend like some down move. The news hits the charts first. Nothing is impossible. So since SPY is not one stock of a company and being an ETF of many, there won't be an intraday halt? If I went to trade the SPY instead of GS, I would be safe from such an event? Do you have or anyone have a chart of what happens on a day where there is such an event?
I know that I do 200 shares most of the time. Ideally I would like to do 150 but they don't allow for odd numbers unless it was a partial fill. I know that I like to get out of the market a lot so I don't have too much emotion for too long. If I go with 100 shares, I know that I will have to be in the market longer. That is something that makes my emotions tougher to handle. It's probably the right thing but my emotions have trouble with it. Emotional control is something I still struggle with.
Forget about your false sense of security on what a chart pattern would look like under such an occurence...it's a moot point. By definition- a black swan is not only an outlier event, but one that is presumed would never happen. Simply thinking that a previous chart gave one a set of clues to get out ahead of the collapse as a basis for ignoring a black swan possibility is reckless.
What I am saying is your risk is far less in an index etf such as SPY vs a single stock such as GS. Of course a halt could occur in SPY... however u would never experience the % drawdown in an index vs the impact a material event tied to a stock could have.
Sb-- u simply CANNOT continue with your pattern of exiting a position with mere pennies...while having no problem holding for much longer periods & bigger $ amounts in your losing trades. You will fail. Correction-- you ARE failing. You will not generate the "breathing room" you are looking for this way...the math & probabilities involved here are against you and do not add up...they simply don't and your stubborness in refusing to change is only going to work against you and accelerate the inevitable.
Your whole thought process is wrong. 100 shares is exactly the first step u should take if a round lot is your only choice--- your capital exoosure is much lower-- a great thing! Your risk amount at your stop location is lower... a great thing! Your profit potential-- it will be much higher due to the comfort zone you should have from the first two benefits mentioned which should allow you to stay in the position for the bigger move.
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shopster
Registered: Jul 2011
Posts: 1479 |
04-17-12 01:07 PM
When a trader begins the process of learning to differentiate that which they believe exists from that which " actually does exist " while operating under the ‘correct’ mental state, then this augments the learning process.
‘learning to learn’ begins with observing the market (in a scientific sense) in order to see that which exists, rather than, in an effort to prove or disprove pre-conceived notions.
until this occurs, you will be yet another blown out casualty on the trading road with the needle hanging from your arm.
cheers,
s
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sfbayarea
Registered: Oct 2011
Posts: 304 |
04-17-12 06:07 PM
+4
One bad trade. I was up early so I was being more aggressive. I gotta run now. No trading for the rest of the day as I have to attend a gig. Will post the chart of it later as well as one of a scalp that saved me.
Bought 118.10 10:11
Sold 117.595 10:15
It did turn out to be -100 trade. It hit my stop and the gap was wide. I keep doing the same thing, next time no entries with large signal bars. Large signal bar means large pullback.
Scalps
Sold Short 117.86 Sold Short 117.20 Sold Short 117.24
Bought Cover 117.82 Bought Cover 117.17 Bought Cover 117.07
Sold Short 117.25 Sold Short 117.65 Sold Short 117.85
Bought Cover 117.18 Bought Cover 117.38 Bought Cover 117.81
Sold Short 117.5322 Sold Short 118.446
Bought Cover 117.51 Bought Cover 118.42
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