Volente, I also recommend every trader to read this book. It is great and has changed many traders. I also came across a book this weekend that has been a very good read. Not much new info but it seems to cover all bases. Psychology, methodology and is laid out in a very easy format to comprehend. It is called High Probability Trading by Marcell Link. If you or anybody else has the time for a new book I would like to suggest this one. Good trading to all. 4re
Made a trade, and currently up $46... but boy did I get out wayyyy too early..... Had I held I woudl have cut yesterdays losses in half already...... Also, turned my bot on this morning, it has yet to make a trade...... very nervous running it live, may turn it off, may leave it on.... decisions decisons.... EDIT: turned bot off, dont want the extra risk today.
Frosty, Glad to see you're in the black this morning. Here's my question: Why did you close the position? My guess is because you saw it going your way and wanted to take a profit. If you have a setup that tells you when to get in a trade, do you not also have a signal that tells you when to (or in this case, when not to) get out of the trade?
boro, I do have a few thigns to tell me when to get out... but mostly I exited that position soley on the basis that it was about 10 pts into the green.... and now i'm a little frustrated cus had I still been holding yetserdays losses would be gone already.... Also made another trade a few mintues ago, exited for No aparent reason again, and now i'm up to +$56 for the day... Must work on holding longer... at least the trades Ive taken thus far today has had a REASON why to take it and not just because I felt like it, now I need to get my exits to have a reason
Took another little "scalp play" basically, up $97 now... all trades thus far have had perfectly good reasons... my exits on the other hand, sitll not using good reasoning behind the exits.. but I feel my entries are MUCH BETTER Still got a long ways to go, I would again like to thank everyone for there comments and help..... I can do this, I KNOW I can
hey frost, you're probably a brilliant programmer and an excellent logician when it comes to designing computer programs which can implement your trading protocols why? no emotion involved, you're just doing the intellectual part of the process and so you can apply yourself step-by-step apply the same line of reasoning and logic to your trading why do you get out early? fear of loss why do you fear losing? lack of equity your basic problem (which you've stated previously) is that you are currently undercapitalized when trading it is optimal to risk only 1%-3% of your trading capital per trade ... what's the saying, if wishes were something or other? since we can't look at the optimal scenario, lets take a look at what is practical if you can risk 5% of your capital base per trade you are looking at a pretty decent stop loss level on any of the e-mini instruments when scalping for $80 - $100 ($80 NQ, $100 ES and YM) so how much capital is required per contract for an approximately $100 stop loss level? $2000 ($2000 x 5% = 100) so for each $2000 of equity you have, trade 1 contract, with a fixed price target (if you have to get NinjaTrader or another software which will allow you to set your trading parameters, when you see the setup, take the trade and back away from the terminal once your have your trade on, look to re-enter the markets when another trade scenario setsup now you just need a good SCALPING METHODOLOGY I'm betting as smart as your are, you can figure that one out for yourself your problems are psycho-logical (this is true for 99% of all traders, the other 1% are psycho-paths) this problem is remedied (not easily, but it is remedied) by having a system with a sound positive expectation, reasonable profit targets and most importantly of all excellent money management best, Jimmy
and when you have about $4,000 per tradable contract, go back to your trading program, and try to catch the extend range days (like this one) best, Jimmy
jimmy, Thanks for the advice... I basically stuck true to my rule about not trading through lunch and started trading around 12;30 central again. Made an initial bad trade and lost some.... but just finihsed a trade that went pretty well.. one of my longest winners I have had in a few days, I still sold before it was time, but I did better... I am a little overtrading however, but still going on valid entries... Currently up $133 on the day
Now up +$194 on the day. I have recouped half of yesterdays losses now.... still got a ways to go... but this is the highest I have been up in a while, so feels pretty good... cut that last trade too short more than likely again, but I am now holding for about 8-12 pts per trade generally and cutting at about the same spot... so getting a little closer to a 1:1 risk/reward... still not good.. but getting better, Improvement is all I can ask for