You a 1000% percent right. I broke a rule today in my trading management plan by exiting a winning trade early in crude oil future, and missed $800. I exited early because I was staring at my PnL instead of my trade management plan. I took $200 instead of $800. All personal fault, not technical fault. These type of mistakes NOONE on this earth can fix but me, and I can not bullshit or make excuses, or blame anyone or anything else it's all my fault. Very painful
You are one of the good ones sir. Agree, but I would include all traders, day and swing, equity, commodity, future, forex, derivatives.... There are a numbers of retail traders following this path and successfully trade for a living: Holding a day job, built up enough capitals, then accumulated enough profits over the years trading part time to hone their skills, one day quit/retire to trade full time. The naysayers say in this case trading is a hobby. It is not a hobby if that is your major source of income, if you make more in trading than what you made in your day job. However, it is a long road not suitable for everyone. You need patience and a bid of luck. Don't dismiss luck, it is much easier if your timing coincides with a prolong bull market. Rising tide lifts all boats. This is but one path and I am sure there are other paths. Best wishes to all.
Hello speedo, A few questions for you: 1. How did you find an average maximum favorable excursion you was confident in to use a as your profit target? Was this through XXX amount of back testing trades? 1. How did you come up with stop no more than 7 ticks? Was it through Maximum Adverse Excursion testing or just knowing very well the intrument you trade or just personal preference based on risk style? I agree, I have learned that what counts is having multiple opprtunities to enter the market. Thanks for your response.
SML, I have a practice habit I've done for years. Each week I track every signal, noting L or S, entry price, time of entry, type of trade (all are variations of 930 trend pullback), MFE, MAE and finally W or L and ticks gained or lost. This keeps me in touch with excursion rates but yes, personal preference weighs in heavily. I am a hit and run singles hitter, it suits my temperament. As to the 7 ticks, since I am targeting either 10 or 12 ticks, I have to limit loss size. Typically I can enter a signal within this limit with a bar takeout but when I can't, I put in a limit order after trigger and either it fills or it doesn't. There is always another bus coming down the road.
No I trade all in and all out. I look at different optimization scenarios from time to time but I haven't found anything worth complicating trade management.
Same. I used the wrong terminology. What I mean is have you considered trading larger size to make the numbers bigger?