My Edge and daytrading.

Discussion in 'Strategy Development' started by Bogwaluth, Jun 6, 2006.

  1. So my foray into tape reading has been a mess. I can see the sell and buyer or the lack of one. I can get into the trade. I have no idea when the get out or when to get out.

    Psychologically, I can't wrap my brain around churning 100k shares to make $5000. My fingers aren't even that fast.

    I have rules I follow when I trade commodities and when I pull up any random chart, they work intraday on stocks. I have 2 extra rules for intraday stock entries. Beauty of TA, just needs bars or candles.

    I have exit rules. They are clear cut and defined. I know these thing like the back of my hand. I can see them in REAL time and can pull the trigger. I get shaken out of the trade.

    I am so used to trading with stop orders that monitoring stocks causes me to jump ship.

    I laugh everyday because had I followed my rules, I 'd have made money. Instead I churn a billion shares and make someone else rich. I on the other hand make or lose $50.


    I added my new rule, my edge. Mathematically it can't fail. The only way I don't make money is if the markets cease to move.

    What is my edge?

    A new rule!

    Rule #1 Follow your rules!

    I'll let you know how it works. :)

  2. At least you realise it is YOU who is at fault and not necessarily your methodology.

    Most unsuccessful traders don't even gat that far. Dropping decisions made on emotion is the hardest part of making consistent profits- keep plugging at it and maybe even drop your size a bit and tell yourself to trade your rules rather than your feelings (to lower the fear of making a terriblly costly 'mistake').

    If you make a greater or more consistent return on smaller size whilst sticking to rules then you know you have been a victim of not following through with the advice you have developed for yourself.

    Human nature really can be counter-logical. You spend a shitload of time figuring out a strategy which will permit you to make money more often than you lose it...... then you trust something completely different when you start putting dollars on it! Still, if 99% of people didn't do that, there would be less money for those more disciplined to pick up....