Jan 7, 2011: Net of sales: $-314, Net of commissions: $-332 Average profit per share traded (sell 1, buy 1 = 2 shares): -0.09 % on capital used: -1.4% % index gain (as of writing): 0.22% Trade size: 300 Yipes! Well, this morning I was trying to do some trading on the open. That is the bulk of the losses (~-282). Suffice it to say, that is not part of the "system". I was just trying to be too clever. Got spanked on my ass. I did set myself up for the "one trade" afterward but aborted because I don't think I should be trading. Of course, the one trade was a beautiful set up and is about +.90 as of this writing. Note for future: don't do anything except aim to find that one trade. Once that system is working, then do other stuff. Repeat: don't do anything except aim to find that one trade. Once that system is working, then do the other stuff. I wonder how doable this all is really.
I don't want to talk about it. It went up to +$4 though I am secure in the knowledge that had I not aborted and ran off, I would have still gotten out at +1 because I'm still a moron.
Morning of Jan 10, 2011: Net of sales: $249, Net of commissions: $246 Average profit per share traded (sell 1, buy 1 = 2 shares): 0.41 % on capital used: 1.12% % index gain (as of writing): -0.10% Trade size: 300 YEAH BITCHES!!! I DID THE ONE BIG TRADE!!! WOOHOO!!!!!!! NO SCALPING!!! NO SECOND GUESSING!!!!!!! LOTS OF CAPITALIZATION AND EXCLAMATION MARKS!!!! There were a few more "one big trade" setups actually but I didn't take them. One thing I'm not sure how to react to is when the ETF trades directionally on no volume. I recognize that as a ETF, it needs to mirror the index but it is a bit disconcerting. That was why I didn't take the other setups otherwise I think I would have had 3 "one big trade" executed this morning.
Nice boy, Don't read too much into volume, and you are rite as long as index is trending you are safe. Just be on your toes to manage it. Try not too hesitate taking trades AFTER you had a big one, it typical nature of humans trying to safe what you have just made. Its ok though, you are just starting. gudluck
Someone else (you?) said that too. Think of the P/L as a stock price. If it is trending up, keep trading it until the direction changes. I'm gonna try and get the "one" trade going first and then I'll try and do this part. Thanks!
It wasn't me !! but a nice way to put it. However, In reality it is again a way to limit your trading (no. of trades and bla bla.) Do not get confused with all these wise THOUGHTS. Just keep trading and keep individual trades as INDIVIDUAL trades. No emaotion no co-relation. It is a good advice to shut down your PC when you are having abad luck as, when you start out it is easier to go on a TILT to try to make your losses back. So set up a strick daily loss, however NO LIMIT ON PROFITS<>
But then what do you do if say you have something like this: * Trade 1: $300 profit * Trade 2: -$80 I'd stop trading after trade 2. What would you suggest?
Jan 10, 2011: Net of sales: $354, Net of commissions: $342 Average profit per share traded (sell 1, buy 1 = 2 shares): 0.14 % on capital used: 1.56% % index gain (as of writing): 0.38% Trade size: 300 I made a couple of breakout-based "obvious" small trades after the "one big trade". Interesting to see that the later trades accounted for less than the "one big trade". Well, whoever gave me the advice to aim for bigger wins with a smaller trade size was a genius. I feel like I'm really getting more patient and picky about my setups. Just thought I'd put up some stats so far: Days (paper) trading: 14 Shares traded: 125000 Profit per share traded (sell 1, buy 1 = 2): 0.02 Net sales: $3115 Net profit: $2483
The idea is to keep your emotion in control and the most influencial factor is your P/L. Therefore, set-up an alert when your loss amount to a bearable figure, say $200 and then you HAVE to shut down. I understand that if you consitently loose money (i.e. $200) and smaller profits because you did not stop trading after you made say $400, ultimately you will drain your a/c. This ONLY means that you havn't perfected the art yet. Seriously once you GET THERE, so to speak, you will not even think about trades in terms of p/l. it will just be a simple trade. risk reward will take care of itself subconciously. Understand this that there are only few days that trading is EASY and you CAN win big. These are the OBVIOUS SETUP DAYS. think about it. possibility of bagging a big one is harder on a less trending day. If you bagged one, its probably because there is a strong trend in the market. And that is what is OUR edge.