Discussion in 'Journals' started by Buy1Sell2, Dec 23, 2016.
Congratulations, who are you going to open your account with?
What good is a mental stop loss if you are sleeping in the maintime? So if we gap down overnight to 2170 you still will only close it at 9:30 am 5 pts below your mental stop, correct?
I have made a well rehearsed decision to only get out in afterhours for losses by manually taking them.
Gains are a different story. I don't mind having my limit sell order resting in the computer.
And here is the update that goes with original analysis.
Selling the 2388 zone has produced nice profits with low risk. And I have taken the money of the table.
Continuing long here this morning. RTH Hard stop has been entered at 2375.00
I change the stop each trading day to a hard stop when the beginning of RTH occurs.
Nice looking open here. Could be a slow morning due to announcements but the action does look good.
Reminder of the 5 phases. "The" Journal is in phase 5.
Phase 1 -- Theme is how newbie traders think Overtrading, Grasping, No stops, Don't want to be wrong.
Phase 2--Demonstration of trader beginning to realize that stops must be placed. However, due to wanting to be right, stops are placed way away from the market so as to give tremendous leeway in hopes of being correct. Trading slows down but sophomoric trader still takes experimental trades without regard for bigger picture and the current trend.
Phase 3-- Theme is Socratic with trader asking questions like "Wouldn't I be better off just taking a real small loss and taking a full profit target. Trader begins to realize that commissions play a huge part in profitability and success, Trading slows a bit more and the trader realizes that perhaps just one or two trades a day or a week using high leverage and small stops is all that is needed to outperform the market. Occasionally, but increasingly, trader follows prudent money management rules. From time to time trader gets stopped out for small loss and gets right back in for huge success.
Phase 4--Trader is now accepting the fact that he can be wrong a lot and be a winner. The individual trusts his rules 75 to 80 percent of the time and is rewarded thusly. During this phase, the trader realizes that there is no perfect entry and exit system and that his ability to control losses and obtaining full profit targets when right are his edge in this business. Trader begins to see snake oil for exactly what it is. Trader commences acceptance of the bigger picture and looks at longer time frames first before deciding upon entries on smaller frame charts. Trader removes most of the emotion from trading.
Phase 5--Trader follows rules 100 percent of the time. Trader trades with no emotion. Trader views endeavor as business. Trader exercises tiny stops and very prudent money management techniques. There is no question concerning trader's success in the future.
Separate names with a comma.