I think its more like on each and every single trade, you might get stopped out. Maybe like 100 straight. And thus, since there is a potential that you might lose everything you have for trading, you should only risk money that you are willing to lose.
Weakest link in the chain: The Trader While it may be true that some individuals achieve success by breaking all the rules, it is also true that such individuals are clearly in the minority and their success is the exception, rather than the rule. Unless you are blessed with fantastic luck, you will need to achieve success in the markets the good old-fashioned way: YOU WILL HAVE to EARN IT. The only way to earn lasting success is through the diligent and disciplined application of specific techniques and methods, few of which are directly related to systems, and most of which are clearly the function of attitudes, psychology and discipline. What ultimately matters is how you apply the systems, and the consistency with which you can put the techniques into operation. A great trading system when used by an undisciplined trader is a LOSING system. A poor trading system when used by a disciplined trader can be a MONEY MAKER.
Ripley, If you are getting stopped out more then 3 times in a row, that basically means two things 1) you are in chop zone , recognize what it means to be in chop zone, do you know what it means? Can you recognize after the first 2-3 bars 3min bars? 2) Your entries are just wrong , not from a entry standpoint, but from a directional standpoint, from a good trade standpoint. I trade YM with a 2 tick stop, And I only get stopped out maybe once out of every 3 times usually with 1 tick lost, the rest of the times are either extremely profitable or scratched @ breakeven. Come over to elitetraders chat room, I'll show you what real trading is like, I trade there sometimes in real time. Its very exact, theres no questions whether you should enter or not, signals are signals, if there is fear in the signals, that means those are fake signals. A real signal is when you put on a 100 lotter and you have absolutely no fear. This is not because you are fearless, its because you seen this pattern occur hundreds of times that you practically can map out their next tick and the tick after and the tick after that. Of course your stop is right behind you .. Whenever I put on a 1 lot, it usually means I'm down 1-2 ticks already , why? because if It was a real signal, I would put down a lot more lots then some 1 lot. Of course I get very bored sometimes hahaha When you know, you are trading. When you don't know, you are gambling.
Coolweb, what happened to stock trading? I thought you wanted to trade stocks to take advantage of "retards" and now you are trading futures? I thought you had stock trading figured out and you are right 99.5% of the time. I just dont see the reason why you keep changing trading vehicles. Can you explain?
I still trade in stocks, only long term investments now Nothing at the moment to invest in. Once I ironed out all the kinks (while trading stocks oddly), vehicle doesn't matter much anymore, All the same to me except when I trade stocks I still watch the YM chart, so why not just trade YM, Trading different from investing. light bulB!
There is plenty to invest in. But because of your losses you are in the FEAR mode and can't open up new positions.
Seems like lots of people are inerested in my success in ripleys thread, Keep the stalking out of this thread please , take it to my journal hahahahahahahahaha
I dont know what successes you are talking about. One minute you are talking about being profitable in 30 days trading futures, then you go back to trading stocks to take advantage of "retards" and now you have given up on stock trading altogether and have gone into long term investing while going back to trading futures. All of this happening within a 6 month period. So once again, I am not too sure what successes you could have possibly had in such a short period with so many changes in idealogy. I am not trying to harrass or anything like that, I am just asking you an honest question.