Nope...usually its like Stardust said...the "hope mode" kicks in at the 8 level and then the "please God" at the 16 and when that rolls against you...the conspiracy theory justifies the puke on your keyboard and desk.
That assumes you know ahead of time which trade will be the winner. You don't. If I knew that I would take my full line on the first trade all the time. This is all about probability. Certain setups have a higher probability than others so I go bigger on those ones.
No, I said double when you KNOW you are right. The trade is doing EXACTLY WHAT YOU HAD HOPED IT WOULD DO. You add to your position as it is going your way.
Absolutely agree. I have gotten stung and it will happen again. At some point you have to flip the switch. My platform comes with a circuit breaker. Once I'm down $X I'm liquidated and locked out until the next day. I know this is a high risk strategy but I'm fully aware of the risk, the consequences, and the profit potential. It doesn't surprise me at all that I'm taking a lot of heat on this topic. It's not mainstream by any stretch but it works well for me. The only thing I really wanted to accomplish tonight is to give someone something to think about if you're open to it. If it's not for you then that's cool.
I have 5 screens and I trade the ES, NQ, and ER2. The "instant pat on the back?" It ain't about that, it's about finding an edge. An edge comes in many forms, just find it. BTW, I can't say enough good things about "Trading in the Zone," by Mark Douglas. Best trading book I ever read.
Totally agree HG. Per earlier post, I have a circuit breaker on my platform. When I'm down $X I get liquidated and shut down. I know this is risky stuff.
Ok, gotcha, I do that. I do average up, I don't average down. However, I will "build" a positon, which is averaging, in a sideways area when I sense a move coming but when I do I nibble on the dips, for example, and build my line over time. Again, timing the market is only a small piece of the puzzle for me. Risk and money management are paramount!
I was pretty hesitant to post this strategy this evening because I knew I'd catch a lot of heat. I'm glad I did because it was a good discussion, even from the bashers. G'nite all, and may all your trades be good ones, even the DD's.
This is good floor talk, when there was a floor. How do you think locals used to trade, besides filling paper. Find the edge and press it, and know where it lies and get the hell off before you fall.