the hardest thing about trading...

Discussion in 'Trading' started by dac8555, Jul 21, 2006.

  1. TA4ME

    TA4ME

    Ditto. However, we all can't be winning unless we're beating up on fund managers.
    I shorted right before a bull trap and closed it right before a 2% drop. This seems to be the way my worst trades are right now. I get upset too when after I close it starts to drop. I then don't have the discipline, yet, to get back into it.
     
    #21     Aug 10, 2006
  2. DannoXYZ

    DannoXYZ

    Sorry I meant in the past month, actually 5-weeks, 4-July -> 9-August. Really 70% from 4-July -> 4-Aug. :)

    Well, I may be setting myself up for a good beating, but it'll be a learning experience, eh? Yeah, I try to limit my losses as much as possible, but it's been really hard compared to equities where I can set close sell-stops. By the time I react with futures-options, they've really moved against me. My only saving grace is I've been doing a lot of spreads & straddles, so my risk is the gap between the positions (and a little beyond to cover the losing side).

    Well, I'd rather look like a jackass than lose money. If I do something stupid, let me know before it's too late, eh? ;)
     
    #22     Aug 10, 2006
  3. 1) Take an early fixed profit.

    2) Move your stop to breakeven

    3) Let the rest ride a pre-determined trend keeping indicator
     
    #23     Aug 10, 2006
  4. bjg

    bjg

    Effectively, reduce position size?
     
    #24     Aug 10, 2006
  5. DannoXYZ

    DannoXYZ

    Sometimes I cash out a portion of the profits and use it to buy MORE! :)
     
    #25     Aug 10, 2006
  6. the hardest thing about trading...

    MAKE MONEY. :cool:
     
    #26     Aug 10, 2006
  7. nitro

    nitro

    I agree wholeheartedly. FWIW, imo learning how this affliction fits into your [psychology of] trading, is the Holy Grail.

    In fact, in a weird way, imo almost all trading problems can be rephrased in the language of how to deal with this situation.

    nitro
     
    #27     Aug 10, 2006
  8. I find the hardest thing in trading is to not trade. Honestly, doing nothing makes money for me.

    I'm studying this fund DODGX. I calculate DODGX has a cumulative annual growth rate of 92 % and a turnover of about 15 %. The managers don't sell often. Returns are high. As I think back on my trades since 1990 it was the positions that I held for years that made most of the profit.
     
    #28     Aug 10, 2006
  9. Agreed, OP says he's able to take a 1% stoploss after open, so he should treat the open position as a new one every minute/tick/volume-bar and replace the stoploss.

    Ursa..
     
    #29     Aug 10, 2006
  10. Now that's anothe sweet post.

    I'm going to have to start a LOG.
     
    #30     Aug 10, 2006