I'm up for the day and I can't get myself to trade more. I want to protect my profits. I'm afraid of losing it all.
RM I choose to agree and disagree with you. What you say is true (and a very good post). But. What you say is also potentially very dangerous for someone learning to trade. Learner's, most of us need to do some grind time (trade your plan) while we work through the emotions of trading. When you get good at that and have achieved a metallic heart and balls of the same metal then you can aspire to deliver on Rearden Metal's promise. If you try it initially most of you will burn in a mercurial hell for a while until (if) you step back and try to achieve lesser levels of mastery. IMHO (my p&l doesn't operate in the same plane as rm's ) My advice (what worked for me) in working to step beyond barriers based on reaching a certain number of dollars is to really focus on the goal of taking X trades that perfectly meet your plan. So when you feel the "lets leave it this time" recognize it as your barrier, metalize your balls, and trade your plan anyway.
That's the paradox of trading isn't it? Knowing the rules, and knowing when to break them. I think you're both right -- you can only break the rules when you completely understand why you are following them in the first place.
I have traded the same "style" for about 4 of my 7 years of trading.....and the LAST piece of advice I would give a new trader is to develop a plan and stick only to it. One must be able to ebb and flow...listen to their gut, and know when it is their plan, their emotions, or some other random factor than needs to be adjusted. Sticking to a plan without reason is silly. My "Gut" has saved my ass move times than I can count.
No disagreement here. If you're brand new to trading, you can't possibly have a natural 'feel' for the game yet. So, yes- a rookie definitely must work off some sort of basic strategic framework until he becomes somewhat familiar with the market.
At some point, for a few, it will click and they'll know exactly what is meant regarding "feel"; the most underrated and underestimated skill to have, period. Another thing that I hate hearing is how the entry is not important. Of course, where you take profits & losses is vital, though to suggest that entry isn't important...I'll be damned. Timing on both entries and exits is everything, at least if you're moving stock. "Two muslims with one stone". That's horrible, lol.
Well, unless they're aggressively shouting their insurance company recommendations at me, I really have nothing at all against birds.
Another thing in all this is to have a "feel" for and just familiarity with whatever it is you're trading in addition to a "feel" or knowledge of how the market reacts in different situations. This comes with experience. If you're trading the index futures against people that trade these everyday and have been for years, you'd better know what you're doing. They certainly do, at least the good traders. It really helps to track and observe whatever it is for a time. But it just depends what it is. I knew a guy that just traded 2 listed securities only, and mainly one, Citigroup, for over 10 years everyday and made 6 figures year in and year out just because he knew it so well.