Having a system is one thing but trying to execute it flawlessly all the time is difficult for me right now. I am not trading tomorrow. Options expire Saturday and there will be more earnings coming out. I will leave this game to you pros.
Do yourself one favor, and try to avoid options expirations as a beginner...In past years, you had better "runs" into expirations...1999 comes to mind as a year that had cleaner action...Same thing with 2000...But nowadays, in this bear market condition, options expirations(especially the Thurs and Fri of the expiration) are filled with hidden agendas, pins to strike, programs to upset the balance...WIth your limited amount of capital, unfortunately, selectivity is your best friend...As you have seen from the quick drawdowns, trading the minis with 5k in a market with this much program trading, "noise", etc. is a beast...Either you need more capital or you need to find a way to make solid decisions that are not going to shakeout you out with every uptick and downtick...
These are the kind of small yet important details that give traders an edge. This is the kind of thing I need to do by putting two and two together. If MSFT is coming out with their earnings in a quarter where everyone is looking for guidance, and suddenly MSFT moves strong afterhours and there is a divergence between MSFT and YM or ES or NQ, then the smart trader would capitalize on that. These are the small things that go beyond a simple mechanical system, IMO.
The smart trader is doing something other than trading in that situation. The gambler attempts to capitalize on what he *thinks* he see's.
Aphi Just a few comments: 1) You seem to have given yourself "permission" to lose, as has most everyone else posting to this journal! Kind of like it is to be expected, like it's the norm. Don't know about anyone else, but I don't enter into ANYTHING expecting to lose, ever. I EXPECT to win, period, or I don't do it. Maybe that's the first lesson you need to learn, that you don't have to lose. 2) How do you keep from losing? You start with some type of plan. Without a plan you're a loose cannon....and from your journal it's obvious that you're a loose cannon. If you're going to do that just write me a check...I'll save you the time. But if you want to win you start with an end in mind...you start with a plan. 3) What is a plan? It could be REAL simple, starting with what to trade? Now Aphie, for a supposedly smart guy you're pretty dumb. Why on earth would you be trading securities with a $5K account? You're break the Day Trading Rules right off, and then be restricted. Why bother? Either pick the ES or the NQ, or give it up...you're just donating. The NQ is a somewhat smaller contract, so maybe it would be easier to involve yourself with it...but if you were going to use a 3 point stop in ES, you'll need a bigger one in NQ...let's say 5 points or so...which is $100. 4) Think about it....with a plan let's say you're going to risk $100 per trade. That means you have to make 20 unsuccessful trades to lose $2K. 5) Design a plan which when you're wrong losing $100-$150 let's say, but when you win makes you let's say $250-$300. Think about it....if you're only right half the time, you still WIN. 6) Can you design a plan which WINS half the time? I can't answer that. I thought that was what you were doing for the last couple of months. But maybe you were telling the truth...you were just masterbating! In any case, drop that little thing of yours and design some type of plan BEFORE you make ANY more trades. Now Aphie, I don't want to read any more in here about these option trades with a one lot for God's sake...a credit spread at that which creates a 5 point risk to make .50....lol...give me a break. I don't want to read how you made $5 after commission. What I want to read is how you made 4 trades today, 2 right, 2 wrong, and made $200 before commission. Once you've designed a plan, test it against the market, see if it works IN THEORY before you commit your money to it. Again, it doesn't have to be perfect, but YOU have to be able to execute it PERFECTLY. So if it isn't designed for YOU, YOU won't do it. Now frankly, I'm not that big on "systems". But I'm not you Aphie...I've learned some discipline...and discipline seems to be the quality you're mighty short on. A system that keeps you and your emotions under control is the ticket for you right now. Again, do it before you lose. Losing is NOT OK. And it's NOT necessary. OldTrader
Geez, You sure are convincing when you put it that way - were you in debate team? I see what you are saying...my only fear is that, if you would allow me to quote a famous movie, is that once you start down the dark side, forever will it rule your destiny... nitro
Aphie, let me start out by being perfectly blunt. You have annoyed me, and others to the max. But letâs put the past behind us.... But let me continue to be blunt. You ainât too good at this â and youâre not alone. Itâs hard, and full of pit falls. You have received much good advice, but even that you simply are not ready for. You are losing your hard earned money, and you are making a fool of yourself. Yes alphie, you have a lot of good, decent traders trying to help (traders helping traders : )), but you have even more cynical old bastards like me, laughing our heads off. And while itâs fun, it ainât right. What you need at this point is discipline â real honest to god discipline. You need focus. You need undeniable rules. You need a system/method that requires almost no room for your input. There is such a method posted right here on this board. One that fits the above criteria, and one that truly works. Quahâs SVS. Look kid, cut the crap. All the attention may be nice, but profits are a lot nicer. Itâs time to end the pity party. Itâs time to stop with the pseudo intellectual âtrader talkâ. Swallow your pride. Do what you have to do. Disappear for as long as it takes you to pull it off. So let me conclude by being more blunt...I hope that you donât take the advice, because I look forward to your inevitable demise, and laughing along all the way. I donât like you, aphie. But I also know that you really arenât âaphieâ, but rather some kid named Joe, or Bill, or whatever. So my advice is for the real you, not the little obnoxious bullshitter you have created. Think about it, kid.
What gets me is all this talk about trading being equated to war or battles or samurai, or some freakin Ancient Chinese Secret. Like it's some noble quest akin to slaying dragons. Hey, if helps you to believe you're on a battle field taking casualties and kung-fooing your way to stardom, then by all means, bombs away. Metaphors aside; you sit behind a monitor (pit traders not withstanding), watch some pretty blinking lights and numbers and squiggly lines, and push a few buttons based on what you see and feel. Not a whole lot to get worked up about. Maybe if we accepted trading for what it is instead of blowing it up into the second coming of Christ, some of the baggage may be eliminated. I hope you do well aphie.