Hey DD.... How I define trading risk; Anything and everything that can occur â which cost us money â outside of normal operating expenses I really donât view losing trade as anything other than necessaryâ¦, and a normal part of trading â when managed properly Yes normal trading losses are risk⦠but wait thereâs moreâ¦. Fed outlawing the shorting of financial stocks (thatâs my personal most recent black swan) 9/11 Flash crash Perfectly valid trades broken Internet lockup at the wrong time Lose electricity Canât find the brokerâs number Pet jump on the key board Stepped out to take a leak / grab a sandwich â price went balls out against your position Abnormal amounts of slippage Hit the wrong key Broker accounting screw ups Distractions (in all their various forms) On and on â there are so many⦠they seem to ooze out of the woodwork at times ============= Now.., I can sit here and tell Slugar this till Iâm blue in the face I can only hope some of it sinks in ================ Aside; I've never seen a healthy dialogue regarding risk on this forum - we.., who are not shy about it - should have one And as Slugar is making really good strides - I think he needs to be aware of the pitfalls - or at least some of them - before traversing this minefield we call trading imo - normal trading losses are the least of it RN
if you where a cape and have a big S on your shirt ,you might be right 70%, that means you will have 3 out of 10 trades go against you, those losses are the cost of placing a bet, the quicker you recognize em and close em the less you give back, you have to be better at risk management eventually, this is mandatory to grow your acct, it's not a personal affront to your ego, just a fact in money management, most of us mortals, never get close to the 70
I'd put the above in a class that I'd call "Shit that Happens" or "Life" I have no control over that but I can plan for it and try not to panic. The risk I have a smigeon of control over is how I take my many losses.
Thank You DD Youâve provided the antithesis to my approach on risk Slugar can now do a compare and contrast to assist in figuring out his methodology to managing to risk And how comprehensive to make it eta; I maintain we are risk managers - first and foremost RN
Trades for today. 1.long on a higher low at 3693 stop 3690.25 target breach of up move trend line. 2.long on another higher low 3695.75 stop 3693.25 target breach of up move trend line. 3.long on support at top of a range at 3708.25 stop 3605. 75 target breach of up move trend line.
Trade 1. long on a higher low at 3693 stop 3690.25 target breach of up move trend line. Comment Also a quad bottom @ ~3690.25 Entry â Solid Stop â Solid Target â Solid Trade 2. long on another higher low 3695.75 stop 3693.25 target breach of up move trend line. Comment Notice how R became S Entry â Solid Stop â Solid Target â Solid Trade 3. long on support at top of a range at 3708.25 stop 3605. Comment No target?????? Entry â Solid Stop â Solid Target â ???? Overall; Good stuff H&D beautiful - it's this quality..., that needs to be second nature RN
Thursday a.m. was full of overlap I only had 2 trades today. 1. Long on a higher low at 3723.50 stop 3721.25 target last swing high 3729.75 2. Long on support on the up move trend line at 3729 stop 3726.75 target breach of up move trend line.
Overall Comments The range noted â a bit too big to encapsulate the pertinent PA â imo only One TL is off a bit â I circled it in red Everything else golden Good job remaining patient No doubtâ¦. even the first up move contained overlapping PA Trade 1. Long on a higher low at 3723.50 stop 3721.25 target last swing high 3729.75 Comment Beautiful Trade 2. Long on support on the up move trend line at 3729 stop 3726.75 target breach of up move trend line. Comment Beautiful Good job ========================= On another note; 2 tests (bet you thought we were finished with them) Test 1; The NQ is an index made up of 100 stocks What event is about to occur that potentially could significantly impact the NQ (Thanks to Ammo I picked up on this) We must always be current with the bigger picture Test 2 â it really more of a thinking exercise â but a very important thinking exercise imo What differentiates the trades you takeâ¦, from the ones you donât I see many LH / HL..., and even S/R levels â and Iâm not suggesting you trade them â actually quite the opposite I want you to understand why..., you are letting them pass without a trade Because - I don't want you developing an itchy mouse finger and screwing yourself RN