+1. Agreed. If you stay with losers you lose money. You stay with winners. I know that I will NOT get every entry right nor will I get every trade right. I just need to manage risk appropriately with proper position sizing to make money. I would differentiate exits as proper exit from losing trades (stop loss placement) and proper exit from winning trades (protecting profits). The latter just has to be more than the former.
Your afternoon trade was again entered at the area of the top (of your inverse ETF). It is like shorting a bottom, which you did in your first post. So in summary: two trades, all entered at the top (shorting a market local-bottom). -4% on SMN, and -1% EEV. Why did you not fade yourself?
You never will get it will you. You seriously ought to put your money where your mouth is. 2 trades SO FAR not working out is not a failed trade. The trade is not over yet. However, I have a stop in place and I do not average down like some people. I have NO problem admitting when my trade does not work out. I cut and run,...next trade. Its all part of the business of trading. So far I am not willing to say that. You may be correct in that my system got me in late here or early or how ever you want to view it but I know that in the end I will make money. That is all that matters. As for fading the market,...when I see a trade not working out I tighten my stops as the indicators I use to get me in are starting to look less and less like a "buy signal". When it turns bearish on my inverse etf trade I have no problem changing to the BULLISH side and going long this market. You can say this whipsaw makes trend following "useless" but again that is part of trend trading. However, you would never get this as you do not even put your money in the market and have no idea the complexities of trading. You seem to think that the market has to go in a straight line to get to where its going. As for -4% and -1% so what?...the loss is NOT FIGURED BASED ON % OF MOVE. It is based on how many shares I bought. Obviously I bought fewer shares on the instrument with more volatility....again rules of BASIC POSITION SIZING 101. The % of my portfolio at risk on each trade is the EXACT SAME about 0.9% each. So if I am wrong I have "lost" a whopping 1.8% of my portfolio....devastating huh?. When I am right I gain much more than that on average. Its sad,...truly sad that you even offer yourself as someone who knows what the hell you are talking about. You do not even keep a "trading journal" and that is your name!! Do you even know what goes into a trading journal? Do you know how to analyze a trading journal? I will assume the answer is NO just like all the other questions I have asked you over the last week of this thread that you failed to answer. The only reason I posted my trade here was because of the title of this thread. I will keep others up to date as these trades mature for those interested. For now I am keeping my stop at the mentioned levels. I may tighten the stops tomorrow once I see where the market opens. BTW,...still waiting for your PnL statement or evidence of your peformance...
One more thing,...as for "shorting the bottom" I did not. I have been in cash since this thread has started until recently. Some of my recent trades....for those interested. 9-28-11 Long SMN @ $25.14 and closed @ $26.77 on 10-5-11 9-28-11 Long SKF @ $81.37 and closed @ $83.74 on 10-5-11 9-29-11 Long SDS @ $24.01 and closed @ $25.76 on 10-5-11 9-29-11 Long EUO @ $18.78 and closed @ $19.76 on 10-6-11 10-6-11 Long THOR @ $33.57 and closed @ $33.72 on 10-7-11 10-6-11 Long SLV @ $29.89 and closed @ $30.57 on 10-7-11. These may not seem like big moves and admittedly they are not... however these small moves in a choppy market over this time frame yielded me 3.6% in less than 1 week. Oh and I recalled these when reviewing my TRADING JOURNAL....
USD sellers and stock / EURUSD bulls dominate once again. Time for more short burning. USDCHF bearish daily chart strengthens.
They got you in one day only. You need at least 7.38% gain just to break even--- In fact you need at least twice that just just to break even. Notice that they got you at the worst entry, and they did the kill in one day only, with practically no drawdown. What lessons did you learn from this?
AGAIN,...ZERO COMPREHENSION OF POSITION SIZING. It does NOT matter the % gain or loss on an instrument for the total gain or loss on a trade. What matters is how many shares I bought. For your information,...AGAIN,....I lost 0.9% on that trade. All part of doing the business of trading,...which you obviously DO NOT understand. If you think 0.9% loss is an insurmountable obstacle to overcome then you are really more of an idiot than I take you for at the present time.