I'd like to become a better trader

Discussion in 'Journals' started by PO, Feb 2, 2011.

  1. PO

    PO

    out of the last @2314, +1085 on a trade, still out too early, but I feel that the profits will evaporate. Emotions are still in play even on the sim :(

    +240 for the day :)
     
    #351     Feb 24, 2011
  2. emg

    emg

    emotion in sim? i call that artificial emotion. In other word, it is not real
     
    #352     Feb 24, 2011
  3. emg

    emg


    here is another advice. If you start $100K and trade 1 contract. And you are down $550, is that a lot emotion.

    Most people will say, hell no.


    If you have $1200 left in your account and u are down $550, is that emotional?

    Most people will say, hell yea
     
    #353     Feb 24, 2011
  4. Redneck

    Redneck

    Couple of things

    How is a fixed stop, not a maximum stop (and I disagree with the concept of a "maximum" stop any how)

    Second point.... (fixed %)

    You’re saying

    As your account increases, so does the amount you risk….

    As your account decrease, so does the amount you risk


    Seriously….

    And how do you achieve this – varying the share/ car size…, or the changing the distance your stop is away from your entry

    And you change this how often – every trade?


    RN
     
    #354     Feb 24, 2011
  5. Redneck

    Redneck

    Why fixed stops for the plain jane day trader

    1.) Having a random stop, means you think you can control / second guess the market / a given trade’s outcome (if only I give this one more room, it’ll work… ah this one however needs less room)) – you can’t

    2.) Traders are risk managers first – using a moving target stop loss; negates – that responsibility…, that tool…, and that ability…

    3.) If I have fixed cost, I can manage that… If I have random cost, no one can manage that…

    4.) Stops are the only control we have once we’ve entered – you want a sledge hammer…, or a rubber hose - to exert that control

    5.) Fixed stops help get your mind off of the money…, and instead focused onto the task of trading (never do I think about how much I may lose for any given trade, I already know... The ONLY question I need ask is; Do I want to risk this much to see if this trade will work – yes…, no)

    6.) Using a fixed stop.., also means you need to wait (patience is a VIRTUE when trading) till conditions are right for your entries…

    Either that.., or you can read price well enough to get in under the current conditions, knowing your fixed stop will give enough buffer to reasonably allow the trade to work… or fail

    7.) If you find you need to use a variable stops based on market conditions – your trading skills suck – period



    =============================================================================================
    Admittedly there are times I use B/E stops – (this trade will work or it won’t – but I’m not willing to spend any more than commissions to find out) so technically I do adjust my stops… BUT

    I never increase/ decrease my default stop…, or move it once I set it, unless my first target is reached… and my targets are solely based on PA…, not some pie in the sky BS I may be thinking about/ assuming will happen… (you are a long way from this)

    And my default stop – is a set $ amount – that I know – is just outside of the typical move – in what I trade – within the time frame I trade it…

    Now if you thought about that last sentence – a light bulb should be going off regarding the next trade I place – when I’m stopped out for a loss – under typical conditions

    =============================================================================================
    Random stops are nothing but a band aid, and crutch – for poor trading skills

    I know you’re thinking – random hell I pick them based on the current conditions

    You are fooling yourself…

    Either trade price…, or you opinion – doubtful you can do both - I can't

    Feel free to blow holes in my comments – it is your money…, and your choice…

    RN
     
    #355     Feb 24, 2011
  6. PO

    PO

    if backtesting doesn\'t work, what does? Is trying to learn tape reading by watching the charts life for a long time a way to do that?
     
    #356     Feb 24, 2011
  7. PO

    PO

    RN, I wish it were so easy! When I\'m trading in sim I\'m much more relaxed, take fewer trades and follow my plan much better, still not perfect, but much better. It\'s very hard to care about your sim trades as much as your real money, but I\'m trying...
     
    #357     Feb 24, 2011
  8. PO

    PO

    I\\\'ve backtested some of my set ups, but not all, but now I\\\'m told that backtesting doesn\\\'t work? What qualifies as backtesting i\\\'m confused...

    should I spend more time backtesting intraday set ups programmatically, or just from looking at the charts and testing my set ups on the actual past charts from the multiple previous days?

    thanks...
     
    #358     Feb 24, 2011
  9. PO

    PO

    yes. the problem with 1 contract is, first, that I can\\\'t scale in/out. Very different, and, second, 1 contract is too little money for me and I trade it differently, I care much less.

    that is a good idea, I need to learn to ignore p&l and trade points, but how do you keep track of max loss for the day without looking at P&l?

    that is what happened to me too. So I\'m reevaluating the situation

    do you have a daily max stop loss ? or weekly?

    Actually that is a good idea that I will use. 2 weeks seems like such a long time!
     
    #359     Feb 24, 2011
  10. emg

    emg

    you have to forward test. maybe that is why u are struggling
     
    #360     Feb 24, 2011