Increase leverage increase fear, decease leverage ie no futures or smaller position and you will be able to hold on to positions. So many people who might otherwise be good traders get done in by fear because their positions are too big for where they are on their trading journey. It takes a long time to be able to handle size without emotion, and ofcourse everything is relative. 100 lots for someone with a $100K net worth is like being on crack, for someone with a net worth in the millions it is all the drama of a glass of wine.
I no longer work there. The guy hired me as a favor so I did not sign anything. I used to wait tables at this restaurant where he came to eat frequently. Once I found that he was a trader, I asked if he needed any intern. After few days he called me. Guess I was lucky. Besides his main thing was grains and Bonds and I do not intend to discuss that at all.
Not really true. I had defined risk and I would buy/sell on pullbacks. If the position did not go the way I had anticipated, I would get out at the close or until stopped out. My stops were wide about 10-15 pts.
I need to take the dog out and get some dinner. I will be posting strategies later tonight. It is based on Gary Smith's "How I trade for a Living" with few more filters for better entries. Please get that book so that it will be easier for you to follow what I am talking about. Your local library should have it.
Thanks Jimmy, I'll look into that. I read his other book but wasn't too impressed. I have been around here for a while and always admired your encouragements/help to other people.
I recommend it because it seems to be a good shortcut to a process that's taken me a lot of time and a little (relatively speaking) money. And that is this. Trading should feel good. The SPY trade was probably in your comfort zone, and the ES trade wasn't (BTW, you might only need 10pt stops, max, do some backtesting, see how it works). There are a lot of trading vehicles for all different sizes of traders, you might want to look into the OEX or SPX, and there are also the Options on Spyders. http://www.cboe.com/micro/SPDR/introduction.aspx which would allow you to leverage your position while staying in the realm of sound money management (which is part of the key to any good trading strategy). Regards, JJ
"Hopefully with this journal, I will be disciplined enough to follow my rules." just courious, what makes you think that if you followed your rules perfectly, there would be a profit? Is there some rationalle to this or is it faith?
Great segue NattD. If he knows his methodology inside-and-out (othewise known as his EDGE), and trades it (not the individual market that he is in) and manages risk correctly, it's gonna be pretty tough to fail. Regards, JJ