I notice you haven't made much money this year. Since the year is drawing to a close, how do you feel about your performance for 2012? Have you considered ways to improve it? This idea will work for you in bear markets, but underperform in bull markets. Maybe in bull markets you could switch to a more active trading approach. Not necessarily day-trading as that could be too time-consuming, but maybe something like 4 hour charts. Just an idea. I have another question. What are your goals for trading? Do you aspire to live off income from trading and investments, or are you just building a nest egg for your retirement?
I'm happy with my performance for 2012. I haven't made much from trading this year, but it all evens itself out over time. Last year I made mid-5 figures in a single trade (see my post on 11/1/2011 in this thread). I live very frugally so it's not a big deal. As long as my net worth is steadily increasing over time. I know not everyone agrees with how I trade: I made mid 6-figures following the crash in 2009.
Without disclosing the capital at risk this statement is meaningless; on top of that 2009 was unique among decades.
On that trade, you were trading thousands of shares, fully loaded at 5700. In this journal you're trading 1 lots. Why did you size down so significantly after a solid 2011 result?
Price had gone significantly against me. I started that trade with a small position and added more as it went against me. If I could predict price, then I would go all in from the beginning.
I saw that post already and remember that 2011 trade. You started it near the highs of the year, and added all the way down through the 20% correction. This year we've only had two smaller corrections so far. So not as much opportunity. I wasn't trying to tell you that you're wrong or anything. I won't argue with someone who is making money. It's kind of funny. Even when someone posts a profitable journal they get users coming in and finding things wrong with their approach. Ha Ha Ha. Must be some weird quirk of human nature to always find things wrong with stuff. Give out a profitable system and they say well this is ok but it would be better if it made more. Guess I'm guilty of it too Ha ha ha ha........
You are right to take a small initial risk because you don't know what the market is going to do next. You are wrong to add to that position if it continues to show you a loss. The right thing to do is to add to a winning trade, not a losing one.