ES Journal Archive (2011)

Discussion in 'Journals' started by Buy1Sell2, Jan 3, 2011.

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  1. Taking heat and accepting a loss is the part of the game that will keep you in the game in the long run.

    So, you currently have a 100% win rate? Was the reason you risked those 30+ points (more since you did not have a stop) that you were afraid to be wrong on a trade?

    If that is the real reason, I would be very afraid of what will come some day.

    When would you have cut your losses on this one provided it did not come back to you? Would you have taken a 100 point loss? More?

    The fact that you have been so successful will make it that much harder for you to swallow your pride and take that first big loss.

    Even if you racked up 200 points in profits in the last months, it does not take that many big losses to give them back, especially if you`ve increased size as well.

    When I first started trading in the stock market, I actually managed to build up a small fortune in a relatively short time. I really did not know much, but I actually traded with a stop and took small losses. The only problem was that those losses did not happen very often. And usually, I was stopped out of a trade after having the trade move in my favour initially (meaning I was stopped out for a profit). I thought I was a genius (sure felt so) :)

    Then, one day, being leveraged to the hilt and dreaming about my retirement, the market gapped through my stop and I instantly had a HUGE loss. Of course, I was unable to accept it. I prayed and I hoped and read forums to see what the other losers were hoping and saying about my stock (very funny and interesting behaviour btw) . Finally, the pain was too big, and I sold at the bottom. Fuck. I entered long at the new swing high since it was too painful to see the market run away without me. And so the story goes.....classic revenge trading followed after that. I lost most of my profits in a very short time due to poor risk management, inability to take a loss, inability to adjust to the new conditions and revenge trading to finish it off.

    The ES may continue going up for a long while, I`m not denying that. But some day, the party is over. And when that happens, those traders who are not able to adjust will get wiped out.

    Now, I hope this is not immediately labeled as criticism, because in all honesty it is well meaning advice that I have paid much for myself. I truly commend you for all the profits you`ve racked up lately. I just don`t want you to lose them due to poor risk management like I did.

    Now, they say that one often needs to experience things for themselves in order to truly learn. Maybe that`s true :(

    Best regards,

    LF
     
    #2371     Mar 3, 2011
  2. yes, new trader.
    2 months losing money, about 10 months making money everyday.

    And yes, the amount I make is probably considered beer money to a proper successful trader, although, in fairness, everyone else seems to lose money except airwaves so I'll take what I can get!

    I only trade in £1 (ish) stakes. I average about £45 everyday ($80) tax free.
    Not a lot of money, but it takes zero effort on my part so I can do what I want with the day, Im not 20 yet, and I make more than most of my mates.

    my 10k account is very close to being doubled which I said I would do despite everyone saying I would 'wipe out' way before then ;)

    Don't know why i'm the centre of attention often getting the abuse.
    I try to be nice to people. It can only be because im betting in the opposite direction to everyone else! lol

    I dont think ill wipe out, but if I do, I will definitely start a thread to admit my stupidity, just like I promised to do in my bet with startraitor regarding whether we see 1190 or 1350 first, back when we were at 1270 (although that bet is looking rather good for me at the moment, so he'll be starting the thread and not me)
     
    #2372     Mar 3, 2011
  3. Yet another mega rally on average volume. In a normal market this might mean something.
     
    #2373     Mar 3, 2011
  4. fed keep posting as i enjoy plotting your moves -it helps me get into the mindset of how you trade
     
    #2374     Mar 3, 2011
  5. Just for fun and part of testing a new strategy, I`m taking a sim trade overnight:

    Short @ 1329,50. Limit buy @ 1323. Stop @ 1332,50
     
    #2375     Mar 3, 2011
  6. Pekelo

    Pekelo

    Constructive criticism is not abuse. And the criticism is for your own benefits. You get it because:

    1. You are a one trick pony. You keep going long in an uptrend. It is fine while the uptrend lasts.It will come to an end eventually.
    2. Your risk/reward is terrible. You made 2.5 pts while risking 25....
    3. Even when you average in, you don't hold the extra contract long enough, making only peanuts, compared to the drawdown.
    4. You have no stop loss or any kind of money management, except averaging down.

    People like you made money in the 90s. Then the music suddenly stopped in 2000....
     
    #2376     Mar 3, 2011
  7. NoDoji

    NoDoji

    I don't think you're getting abuse. Traders with a lot of experience are informing you that there are ways to trade efficiently and safely and make as much as, or far more than, you currently do, without cementing in your young brain sets of beliefs that may destroy your capital at some point.

    However, you're young, the money's small, no harm, no foul!

    I, on the other hand, have to generate $85,000 annually just to cover living expenses and taxes. I can't afford to sit in losing trades for days or weeks until they "come back". That's why I had to learn to trade safely and efficiently :cool:
     
    #2377     Mar 3, 2011
  8. feng456

    feng456

    Look guys, i_c_fed is clearly a genius. Instead of giving him adv...uh i mean cirticising him, we should be honoured and humbled by his presence. The guy obviously is no less than a divine oracle who knows the market will keep going up forever. Why else would he not use stops? Because he KNOWS!
     
    #2378     Mar 3, 2011
  9. You should read my PM's!
    And I do get alot of ''hows the long only theory working for you today?!!!'' when we get the occasional drop in this very thread. I dont ask such questions of those who have been on the wrong side of this rally everday since i've been here!

    Well, that's part of the issue.

    All of these so called experienced traders seem to lose money everyday trying to short the ES.

    As for The others who critique me, I have no idea whether they can actually trade or not. I only have their word that they are successful to go by. Anyone can say that....even me! No long run of real time trades and so I cant put a value on their advice.
    I'm not necessarily calling such people liars, but i've learnt to be skeptical.

    In my first few months when i was a member of trade2win, there was a member called 'wasp' who was the resident guru who everyone considered to be one of the best traders on the web. He'd talk us through trades he had taken that day, and posted charts annotating his entries and the thousands of pounds he had made that day. He then took everyones money to start a little hedge fund which he blew up inside of a few months losing tens and tens of thousands of pounds!

    I'm happy to learn, but try to see things from my perspective. Nobody has been able to remotely inspire me (with the exception of airwaves who seems to trade in a similar manner??)
     
    #2379     Mar 3, 2011
  10. I understand your skepticism and is wise of you to approach public forums with such attitude. However, I'm pretty sure NoDoji means well and is offering solid advice.

    Trading without stops or trading without losses, is not the correct approach to trading.

    The problem is that while the trend remains strong you are tricked into thinking you are a master, then the unexpected happens and wipes you out, trust me, it wipes you out.

    Ever heard the phrase "don't confuse a bull market with a genius?"
     
    #2380     Mar 3, 2011
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