03/30/09: Total P/L -16.24 3 trades 1 win 2 losses Here is the beauty of trading: My first trade (DXD) stopped me out by .04, then turned and went to my target. Trade #2 (FAZ long) stopped me out by .03, then turned and went to target. Trade #3 (QID long) actually ticked to my stop of .90 but the bid/ask was .91/.91, so I was kept in the trade and it went to target. Should I be upset that my 1st two trades just barely stopped me out for for $420 worth of losses, or should I be happy that my third trade SHOULD have stopped out with 1 more tick, but stayed in and hit my target (+$400). The third option is just chalk it up to "that's trading"...you never know what you will get day to day. Go back and read the time stamps of each trade...you can't make stuff like this up!
Geez, I can't believe you call yourself a trader! You need to place your stops .05 cents further out!
G, Thank you for your very detailed reply. There is a lot of wisdom in the style you trade. In the meantime, you definitely trade what you preach, as we now know the many occasions of the mischevous pennies in your trades today! Gook luck tomorrow. You know many people are paying attention to your journal! OC
Thank you OC, I don't know if I would say there is alot of "wisdom" in the way I trade. I actually think it is the opposite. I try to take the easiest and most basic trades I can (per my plan) and then just let the trade run its course. Here is my motto when trading: Could I teach an 8 year old to trade like this and find these patterns? If the answer is yes, then I take the trade. Here's the thing, if you were to teach an 8 year old to trade, guess where he/she would take every target? Right where you tell him to. When I was 8 and my dad taught me how to hold a football I did it that way EVERY time. When you learn to tie your shoes you do it that way EVERY time. Do you think an 8 year old would exit a trade before a target because the trade didn't "feel" right? Do you think you would ever hear an 8 year old say "I should have let that one run". Do you think an 8 year old would ever move a stop lower? My guess is no, because they were not taught that! Here's another way I look at it: How do you cook the perfect steak? find the best meat you can, alittle oil, salt, pepper..cook....done! You don't add crazy sauces or mess with the steak when it's on the grill. You just leave it til it is done. Alot of people have questioned some of my exits...why didn't I take a trade when it got so close to target or move my stop down alittle (yes I'm talking about you Nodoji..hehe)...the truth is I am not smart enough to out guess my trade. I am like the 8 year old and I only know the one way. I know my own personal makeup-If I take a trade .05 from target this time what will stop me from tweaking it .10 next time, or .15 the time after that? I am not good enough to do that (just like the 8 year old), so I leave it as is. Is this the absolute correct way to trade...probably not. But I am not smart enough to know different. On another note OC....No I did not know ANYONE was following this thread (at least on a daily basis), so welcome to all and feel free to ask/bash anything you want. A few have asked me about my entries and patterns I trade (there are only 4) and I will go into more detail about each trade I take at the end of the day when I have more time"ala nodoji". I will also write a post giving a detailed explanation of the 4 patterns I do. I may need the help of Nodoji to post some charts in here for me (you owe me for the bashing you give me....) I am a "visual" person myself and see things better on a chart than reading a description about them. Hope this helps...Good trading all!
just want to chime in that i follow your thread and i quite enjoy that you post your trades in realtime. i'd also love to see some charts.
Geez, I think posting your charts would be fantastic! I just cut and paste mine into Photoshop and add text. As for bashing: Starting this week three experienced traders stand over my shoulder every day and I know I have to explain my decisions to them, so that's keeping me from doing as many stupid things as I've done in the past. Those guys are you, Bob and Boosh