as usual, nodoji nails it. i'll just add that calling tops and bottoms is more about ego than making money.
WOW,...Chill out!! This guy is obviously new to trading and you yell at him like he's a useless individual. We were all (and some still are) newbies at the trading "gig" (as you called it) at some point in our lives. Why treat him like that? A more constructive approach would be to guide him to some places where he could learn the skills you think you have. To the OP...I think the main reason (as mentioned by some others) that you are scared of having your stops hit is because you probably have no idea how to set them. You probably have had many stops hit and then notice the trade go in your direction. This is a function of setting your stops at what may be a recent low but NOT at a point at which your trade would be invalidated. I agree with NoDoji to post some trades to give examples. I do NOT agree with NoDoji in that TA and indicators are useless. You have to decide for yourself what kind of trader you are and what you want out of the market. How much time can you devote? What is your personality and what kind of trading suits that personality. Are you an emotional person? If so what things will help you calm your nerves and seek those out. I also found that ChDong is actually quite right in some of his comments (despite the way it was said)...particularly the one about a tested system. For me THAT made a huge impact in my trading. You MUST keep statistics of your trading and keep doing more of what works and less of what does not work. Hopefully in less than the 10,000 hrs you will figure out enough of a system that suits you and gives you a statistical advantage. Good Luck.
You Moro$^@#@%^ I have given him EXACTLY what he needs, EXACT information, and did it in a "tough love" way Where as you did bullshiting thing where you chalk it up to BS psychology and in turn make sure he blows up by listening to actors on this site You wanna see what a profitable trader talks like YOU READ MY POSTS end of story, I am done, get out of my way And now a disclaimer, which I don't mean a word of it. I do it so I don't get kicked out or something, another thing about a good trader, contingency plans. DISCLAIMER: I apologize for strong language and I hold the posters on this site in high regard. I look forward to sharing knowledge in positive and prosperous online community.
Have you ever considered trading the near the money option instead of the underlying in that situation? The typically 0.5'ish delta would generally reduce your risk by about half.
No one knows "how far" a move will go, volume might be able to show you sometimes a bit of help, but even then the retracement/reversal might stall and continuation and new highs can come in. When people tell me they are scared, tells me they require a great amount of backtesting so they can learn the signs of how Price action reversals. There is never "one thing" that markets do at Major highs/lows. But there are a number of them you will need to learn and test such a volume, higher timeframe trendlines, distances between prior highs to show slowing down, sideways action or basing to show possible uptrend, climatic bars at highs/lows, upside down "V" tops, etc... and of course proper money management rules. And you can also use options for initial hedge. My "Magic" system has decades of backtesting and more testing to make better. In your own way, you have to figure out how to reduce risk in a way to expand profit boatloads. What works for me is after the entry, money management stops of time and speed allow me to stay with trade for so long, and if it doesn't get to certain Price area, try to get out at Breakeven plus. I have found for my own trading, profitable trades happen very quick and ones that linger at entry Price often become losers if I overstay my welcome. And the OP who you said was rude gave excellent advise, just a little more harsh. Unless you test, test, test and no longer scared, you shouldn't try to find tops/bottoms, fear usually costs money.
excellent idea. i know some trend followers use options instead of futures for this very reason and b/c of the asymmetric return profile (e.g. you can only lose prem but your upside is much larger).
ChDong, No truer words could have been spoken, but from your own mouth,......and I quote: "end of story, I am done, get out of my way" Please,....get the help you need. By the way, the Forum for this thread is listed under "Psychology". The OP didn't ask for a technical analysis solution. KDASFTG
I day trade on a 5-min time frame with 1-min trend continuation triggers, so it works fine for me to simply follow my particular plan. However, I do sometimes trade options for swing trades.