When the market was in an up-trend a few weeks ago, my problem was scalping, and not staying in the trade long enough to really BANK. So, I slowly changed my habit of getting out too quickly with only a couple of hundred profit to staying in and riding it through. But, then the market changed to the current choppy crap environment, so I'm thinking of switching back to scalping. Urgh...frustrated! -FastTrader
I am doing that this summer and its a wonderful time to take a break, its vacation time anyway for my family and most of my friends. This provides a good opportunity for me to relax apart from the times I do during the day. I take a few weeks, in a row, off from the gym and my normal routine of physical workouts, and it seems to be part of a successful long term plan. I have learned to do this in trading as well. I enjoy taking time off after good periods because it gives me a long rest during a period of good confidence. This is also actually a part of my trading system in general, because I know that my worst trading occurs after some of my best trading. Okay I plan for the day when this fluctuation can be minimized or eliminated, but right now the breaks work well and I miss trading less and less during them. I think this is positive. Sometimes I like to go light or take a break. Not because Im haggard, but because its rewarding and good risk management for me. I have also used this time to revisit some of the best books I have on trading, and am happy to say that these books are getting better each time. I find more material reinforcing the things I am doing or aspire to do each time I go through them, and I think the time is well spent. Also have recieved and attempted to provide much of the same here on ET. Next week I am going fishing in Mexico with three of my best friends, none of whom trade, but all own their own businesses. We met on our college tennis team and that was years ago. I have been trading nearly 5 years next March, and when we sometimes talk about work or business, I reflect that I am doing what I love to do and so are they. Its great. Stimulus and recovery. Or rest and recovery. Its a valid principle in exercise, as exercise is a stimulus for growth and rest is when the growth occurs. And recovery is often overlooked in that arena and the importance is well known. I am learning, at least for me, that the same principles work in the mental arena as well. So in trading, pre-scheduling various types of rest periods works well. Its like any other high-involvement, high reward occupation. My brother is an orthopedic surgeon and is at the ocean for 5 weeks during the summer. My sisters are in similar situations. Trading can be demanding, the more demanding one finds it the more stimulus for growth is taking place. In addition to a manageable daily trading schedule, total time off has an important value that is part of a long term successful career.
GreeDog, What % of equity do you risk per trade, and hwat percentage of equity does today's trade represent? If the first number is less than 1%, and the second number is less than 5%, I think you're still in good shape. -- ITZ
Today was expected to be low volume right? Total chop w/ FOMC tomorrow, none of the big players were doing anything anyway. So don't expect any big moves. It DOES seem that one might want to have several playbooks/systems to work w/. Identify the type of day, and play accordingly. If it's a low volume day w/ Alan G. at the podium the following, look for bouncing around in a tight channel (after about 11). Since trading the lunch hour on a low vol day is a sure fire way to get creamed, you'll wait till 1 to see what's going on. Don't expect anything too far above or below. Trade it if it does moves too far above or below. Now, I wounld't expect this afternoon's playbook to work too well tomorrow when Alan G. says stuff that'll make the market behave like a demented banana. That's when you bust out your trend following stuff. My worst day was on something like today
sorry to learn that another ET member got into the chicken chop suei today. I did my share of that last week, and after 4 consecutive losing days, I finally convinced myself to take the rest of the Aug off. Green_dog, maybe it is a good time to back off and little (size down), or just give NQ a try. I did so during some months ago, and i hardly looked back to the QQQs. - - - I have to agree. Traders 'work' too hard sometimes!!! I did a poll awhile back, and noticed that 1/2 of the traders never considered taking a summer break... We got the best work ethics around
I hear you. I have 49 open positions on my sheets..watched my PL swirl around from pos to less pos to b/e all day. Made 3 Es trades; then decided to put my head on the desk; typical August Monday..nothing more..take a break. I dedicate this Maker's Mark to you bud! you'll be fine. Best, David