Losses on a friday, ruin my weekend, another reason just not to bother. Hell of a first week, we all get bad days / months in my case.
Thanks for the response man. You are very insightful and I especially gave more thought to your money management information. You are correct, if I were to risk 1% per trade, and trade 15 times a day, and lose on 10 of them, that is a 10% hit to the account. However, at least on my back tests and statistics, the method had an pl ratio of close to 4 to 1. So if 10 losers = -10%, 5 winners at this pl ratio = +20%. If my math is correct. However, that is the pl ratio that's back tested. It's definitely a little different as I try and trade it with real money. Your comment makes complete sense though, especially risking 10% of the entire account in one day. It does seem a little risk-averse. woops. Thanks again, Smacks
But But if you lose 10 out of 15 based on 1% then your at -5% day trading in a day, only difference with Swing trading is the same trades would take a month or more, how important is your time to you ? Also you have been making 14 for risking 2 at times, thats 7 losses covered in 1 trade. NQ looks good today, dax is just dead no follow through at all. Home time
I've got an interesting question....can one's edge in the markets actually be money management, and not related to set-ups at all? I ask this because many set-ups are identical for many systems..especially the buy/sell on a pullback. Whether it's a breakout of a range/wedge pullback, a demand/supply line test, etc... What if one takes what they can get on the most pristine setup and call it a day? I might not be making sense, but I've been looking at myself and how I always want price to go "that much further". What if it's not about that? What if it's about taking 10 points home, daily, on a very consistent basis? If people were to stop after 10 points profit, and do this consistently, and have the discipline to not continue to trade, just observe, that's 50 points a week! You do the math. Especially after raising your lot size? Can one's edge simply be management in this sense? The edge is locking it in, and calling it a day. Simply stated. Why continue when you've got what you need? Thoughts?
My random thoughts You’re thinking completely counter intuitively…, and also correctly - good job Just needs a little additional refinement - but you do have the framework Btw.., you’re rudimentarily describing day trader scalping – as opposed to traditional scalping – it is a proven method And some would say it is not an edge – Not me =================== Fact is..., each time we enter the mkt we risk losing So once we've gained what we need for a day - why risk it Making money - anyone can..., keeping it - is what separates.., and defines consistently profitable traders RN
Money managent is just the only risking 3% simple logic everyone fixates on because its the simple part and handles the what if i lose 10 times in a row fear. So not in that sense no. Stopping at 10 doesnt work, what if you lose 30 2days in a row, your still -30 on the week, got to milk as much as possible out before you get tired or bored and lose focus. ( over trading isnt an amount of trades most think it is, its trading while your brain is fried ). Every trade has a risk, risk it 10mins after your last trade or the next day makes no different, infact if the market is moving well for your method, then its less risk than the next day which may not be. Trade management is key, when to exit a trade at BE or +1 as its likely to go to SL or hold for 20pts. Moving to a more scalpy method like yours next week, my method worked great but cant get it consistent enough for me, wasted too many months tweaking it, time to give up sadly. Focus needs to be 100%, 1 hour on, 1 off, while on no tv, phones not silent, no forums.
Also, if you set a target even a low 1 what happens if you first trade is a loser, your then going to try harder to hit the low easy target, possibly while not in the right mindset, creating more losses. So just take what the market will give you, when you have had enough walk away. And dont trade Fridays especially the afternoon, or Monday am when we all half ass everything.
Thanks RN. When you say I do have the framework, are you suggesting this works, but consider adding rules to let winners ride, instead of exiting a potentially really profitable trade? I don't understand the difference between day trader scalping, and traditional scalping. Is traditional scalping for small ticks with large size where as day trader scalping is more for points? So an edge is then the knowledge we gain from our research, testing, and implementation of our plan/method? The edge is also the correct psychology to coincide with all that? I always thought a daily point target is good, but also allowing room for more winners.
I hear ya. I find that when I'm trading, I start getting worn out by the afternoon session, and this leads to a lack of discipline. Trade management is a really effective tool I'd agree. I generally risk between 1.5-3 points each trade, however, I've been able to scratch some at B/E or simply -1 o -2 ticks, and this enables one to stay in the game a while. Good point. Scalpy? RN said something similar. I'm trying to get a definition here...thoughts? Thanks again TD