A 70k bet that I can't make a 50% gain in 2009

NoDoji · Mar 30, 2009

Quote from geez:

when guys are posting +200k days,
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The key word here is "posting" I'd love to see Mr. 200K call his trades in real time.

Great advice, Geez!

geez · Mar 30, 2009

03/20/09:

10:02 600 DXD BUY 64.18
STOP 63.88
TGT 64.78

geez · Mar 30, 2009

Quote from geez:

03/20/09:

10:02 600 DXD BUY 64.18
STOP 63.88
TGT 64.78
More...

10:10 600 DXD EXIT 63.88
P/L-195.40

geez · Mar 30, 2009

03/30/09:

10:20 500 FAZ BUY 23.82
STOP 23.42
TGT 24.62

geez · Mar 30, 2009

Quote from geez:

03/30/09:

10:20 500 FAZ BUY 23.82
STOP 23.42
TGT 24.62
More...

10:26 500 FAZ EXIT 23.40
P/L-224.14

MsFutures · Mar 30, 2009

Quote from NoDoji:

The key word here is "posting" I'd love to see Mr. 200K call his trades in real time.

Great advice, Geez!
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Agreed! Geez's real time posting is gutsy and admirable.

OC

geez · Mar 30, 2009

03/30/09:

13:35 800 QID BUY 50.15
STOP 49.90
TGT 50.65

nukethewhales31 · Mar 30, 2009

Quote from geez:

Thanks OC,
I don't know if I would call the results "remarkable" when guys are posting +200k days, but this is the style that works best for me. I realized that my biggest emotional hurdle to get over in trading was how to deal with drawdowns. With the style I use now I won't make a $1,000,000 a year, but I won't have to deal with huge drawdowns either. If I lose 5 trades in a row, my drawdown is just over $1,000 and for me, this is well within my threshold of pain and I feel(for me at least) it's dealing with the pain that is the hardest part of trading. A very basic way of looking at it is this: Find a max loss per trade that you are very comfortable with, for most raders I think it's probably about 1/2 of what they REALLY think it is (if you think it's $200 per trade, it's probably really $100), then just take the normal trades you would take, set your stop and your target and LEAVE THE TRADE ALONE. Don't try to outhink the trade. How many times have you heard traders say "I should have let that one go to target"? What's the reason this happens? My guess is fear of losing, but if your max loss is a VERY reasonable number you are MUCH more comfortable about letting the trade run its course. If the stock does hit your stop..good!...Take the small loss and move on! In my opinion, this is much better than holding on to a trade and watching it continue to move against you- you may even add to your losing position and as it keeps moving against you, you are completely wrapped up (financially and emotionally) in the trade that you should have been out of for a very small loss.
So, for me, I just find good entries (per my plan) and then let the trade run its course: STOP or TARGET. If I lose...so what, it costs me $200 out of a 85k account...a VERY small drawdown.
Hope that helps...stepping off soapbox now.
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wow .. nice post.. i feel this way exactly ... i even adjust my positioning to make sure if i need to use a wider stop i make sure i adjust my position size... most traders say 2% i feel 2% is to large i use .2% of my over account.. so im extremely comfortable with my trading... this is what i think is huge for people to overcome as they cant come to grips with their loses they let them run... then average into them and sometimes they win doing it... but winning like that programs them to fall into the same trap all because they couldnt bear to take the loss.. anyways im in the journal everyday good work.

sappjason · Mar 30, 2009

Quote from nukethewhales31:

wow .. nice post.. i feel this way exactly ... i even adjust my positioning to make sure if i need to use a wider stop i make sure i adjust my position size... most traders say 2% i feel 2% is to large i use .2% of my over account.. so im extremely comfortable with my trading... this is what i think is huge for people to overcome as they cant come to grips with their loses they let them run... then average into them and sometimes they win doing it... but winning like that programs them to fall into the same trap all because they couldnt bear to take the loss.. anyways im in the journal everyday good work.
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I agree 100%. Funny you mention .2%. I actually use .22% for my risk size and I'm very comfortable with that. Now, I'm an automated day trader, so sometimes, I'm in 20 to 30 positions in a single day (average 17 per day), so even at .22%, it can sometimes be a little crazy.

sappjason · Mar 30, 2009

By the way geez. Still really enjoying your journal. Gotta love your transparency. I'm really hoping you win that bet....

Jason