Early exits are killing me.

Discussion in 'Psychology' started by EMini-Player, Jun 25, 2003.

  1. lindq

    lindq

    Although...I would caution you that this recent market is not going to give you a realistic study over time of where your profit targets should be. I've left an incredible amount of money on the table after hitting my targets, and I'm sure others have as well. Are you using any software for backtesting?
     
    #21     Jun 25, 2003
  2. Nope, no back-testing. Only real-time forward testing/trading. I realize I will continuously need to tweak the system based on market conditions, but I can live with that.

    -FastTrader :cool:
     
    #22     Jun 25, 2003
  3. gms

    gms

    I'd rather leave some on the table by exiting later, if that's more profitable then setting a target and leaving too early, which is what I found in my case. Whatever works better for you, of course, but I found that I shouldn't decide when enough is enough. Certainly, a longer timeframe sets it up better to afford that "luxury" of overstaying. Rather than set a target, you can get out when you want if you see reasons to.
     
    #23     Jun 25, 2003
  4. lindq

    lindq

    Why not?
     
    #24     Jun 25, 2003
  5. Are these tick bar charts for stocks or futures? I had a hard time finding a good tick bar chart for stocks because the volume of each stock is so different.
     
    #25     Jun 25, 2003
  6. I have no software to automatically back-test my method which is not purely mechanical.

    -FastTrader
     
    #26     Jun 25, 2003
  7. downtick -

    I'm sorry I didn't clarify that point it is for e-minis (futures). I focus on NQ and ES currently, although I am extrapolating this to FOREX and Eurex instruments as well, using TradeStation.

    I hope that clarifies it.

    rttrader -
     
    #27     Jun 25, 2003
  8. hwaxen

    hwaxen

    First, always use a trailing stop. Second scale out of your trade. Don't concern yourself with commissions, the concern is a proper exit.

    A 1,000 share trade does not have to be done as 1000 x 1000 while you are learning. It is okay to go 500 and then 500 and then exit 500 300 and 200.

    Record each trade, why you entered the trade, what you expected to happen, what happened and how you managed the money on the trade.

    Review your journal.

    Early exists are from a lack of confidence. The more you trade, the more you learn and the more confidence you should have.

    Howard
    http://www.tapetactics.com
     
    #28     Jun 25, 2003
  9. tradealot

    tradealot

    You need to ask yourself why you got into the trade in the first place. It sounds like you do not have an adequate gameplan or a rational justification for being in the trade, that is why you are cutting out so quickly. If you know why you are in the trade and why you will get out of the trade this will happen less. Also, remember that trading is not a perfect science. You will always remember the "one that got away." That may also be something you need to get over.
     
    #29     Jun 25, 2003
  10. tradealot, I don't remember or even try to remember the "ones" that got away. Doesn't matter to me.

    Anyways, as promised, here are my morning trades:

    Buy CVTX @ 30.41 8:41:43 AM
    Sell CVTX @ 30.44 8:42:45 AM

    Buy NVLS @ 35.87 8:45:01 AM
    Sell NVLS @ 35.82 8:47:45 AM

    Buy BRCM @ 24.55 8:52:58 AM
    Sell BRCM @ 24.61 8:58:23 AM

    Then I was off to my day job. Came home for lunch and scalped the Q's real quick:

    Sell QQQ @ 30.07
    Cover QQQ @ 29.97


    That's it folks. Any analysis on my morning trades. Keep in mind I can only trade the first hour of market open (today only the first half hour since I had a work meeting in the morning)

    Thanks in advance for any insight.

    -FastTrader
     
    #30     Jun 25, 2003