not in my book, maybe in yours... , then redefine the meaning of the word "believe" as taking all system's trades good luck
There is something to be said for going home with a realized profit. My trades last a long time sometimes, days or weeks or months. Sometimes just a few hours or minutes. There will be another entry tomorrow so why not enjoy the night. Missing an entry doesn't jepardize me in any way. It's not based on taking every entry. If I get off early I like to go to the store and smile knowing I made more in an hour than just about everybody in line except for those girls with all the make up and tight pants, short skirts and high heels. But I really worked for my money. No lying around.
One day should not mean anything in the long run because this is about statistics. I struggle with this myself, I get bogged down thinking about "that shitty week" but I'm looking at the trees not seeing the forest. Unless it's some record-breaking-risk-explosion trade, it shouldn't matter, normal sized losses should make you yawn rather than scare you.
You're comparing yourself to people with salaries? How much do you make in a terrible day and how does it compare to them? Paid salaries are almost never taken away from you, trading profits evaporate with ease. Too fixated on short-term thinking. During the best times I'm usually thinking of the profits as a cushion for the bad times up ahead - and they're always coming, sooner or later.
Thanks Handle123 Yes, my testing shows I take a loss in the morning, I can usually recoup the loss in the afternoon. However, I have been taking the loss and then ending trading for the rest of the day on most days. So, I need to stop this. Thanks,
And the great thing about trading or the great thing about me is I enjoy it all and am not miserable and at least have maintained some sense of humor over the years. Yes, I compare myself to people with salaries and always come to the same conclusion...Beats working!!
when they have losses , they can't accept them , then they try to get their money back ,THEY INCREASE SIZE like gambler on martingale , then they fear losses.SIMPLE PSYCHOLOGY
True. Revenge trading is about one of the worst things a trader can do, and many have seriously problems unlearning that awful habit. It took me years to learn not to do that, at least most of the time. The urge is still there.
My point is the system you developed seems as if it is working on the entry but is failing you in managing bad trades. The only way to refine your system is to take every signal and observe what happens on both the good trades and the bad. Keep a trading journal and review it. Perhaps you will see something that you can develop into the system to cut your losers. I personally do not believe in mechanical system trading. In my opinion as you gain experience trading you JUST KNOW you are going to lose on the trade. To me it doesn't make sense to let it go to your maximum loss.
Thanks wartrace, Yes, currently I have no plan for managing bad trades, except for taking the full maximum loss. Like you mention sometimes you just know the trade is not going in your favor, but the system/discipline states respect your stop loss. For now, I will except the max loss and second guess. I can definitely understand what you mean. I am keeping a trading journal and track all trades outcomes and make notes. I will proceed with taking every signal and observe what happens. For me, if I take every signal, I have better data and better outcomes. Thanks,