My Experimental Trading Life

Discussion in 'Journals' started by ToBeMyself, May 17, 2010.

  1. Hi Matt81,

    Thanks for your interest.

    I'm glad to know that you're doing the similar thing.

    Normally, I set a target and take profit if it hits. Occasionally, I'll modify the target manually if I sense a strong price move before it hits the target and let it run. Very often, I found the price changes the direction too soon, and I don't like to have a profit became loss.

    I set a daily goal for myself: $300/day. Not too much but good enough.
     
    #21     May 20, 2010
  2. GG1972

    GG1972

    I ll be following you with interest but the above statement is wrong-you should stay with the trade as long as it's possible. Maybe eventually you graduate into 2 or 3 contracts then take one off at pre defined level and let the other run with a trailing stop.

    Setting a daily $$ limit has two drawbacks
    1. forced into taking trades when you dont see opportunities
    2. small relative profits on big opportunity days like today and yesterday
     
    #22     May 20, 2010
  3. Hi GG1972,

    I think you made a very good point here.

    It's almost impossible for me to make $300 everyday. Losing days are part of trading life.

    I have also asked myself this question: what to do if I didn't reach my daily goal?

    Here are some calculations and an answer for myself:

    $300/day, that's 6K/month, it'll be 72K/year. I'll not evaluate my trading performance on the daily basis, but monthly. As long as
    I can make 6K/month on average consistantly for a year, I will make my final decision to switch to full time trading.

    Again, this is only a plan and i'm sure it's not that easy to get there.

    I appreciate your input.
    Thanks.
     
    #23     May 20, 2010
  4. 10% is still too big a drawdown. There is a stat called "Risk of Ruin." (RoR) and is near 100% for almost everyone. The bigger your drawdowns & your leverage, the much more likely and rapidly you will learn what RoR means...
     
    #24     May 20, 2010
  5. BOT 1 CL@69.94
     
    #25     May 20, 2010
  6. SLD @70.17
     
    #26     May 20, 2010
  7. BOT 1 ES @1073.25
     
    #27     May 20, 2010
  8. SLD @1076.00
     
    #28     May 20, 2010
  9. Nice trade.
     
    #29     May 20, 2010
  10. SLD 1 CL@70.10
    BOT 1 CL@69.82
     
    #30     May 23, 2010