The Perfect Trade

Discussion in 'Trading' started by guy2, Jun 2, 2006.

Have you ever bought the low and sold the high (of the day)?

  1. Yes, I have done this more than once.

    33 vote(s)
  2. I have done this once.

    11 vote(s)
  3. I have never done this but expect to do it one day.

    10 vote(s)
  4. I have never done this and don't think that I will ever do it.

    21 vote(s)
  5. Other option not listed

    2 vote(s)
  1. guy2


    I recently wrote The Perfect Trade. The concept is that the perfect trade is almost unattainable yet a lot of traders attempt to pull it off and are disappointed if they don't enter on the low tick and exit on the high tick. (I am guilty of this and writing about it is semi-cathartic and helps expel the demons.)

    My question to you: Have you ever pulled off the perfect trade? If so, how often do you pull it off?

    My definition of the perfect trade is really in terms of daytrading and would be a trade that lasts a reasonable period of time (at least 30 minutes and closed out before end of day) AND was entered on the low tick of the move and exited on the high tick of the move.

    In order to make this more objective I would like to ask this question: Have you ever bought the low tick of the day and sold the high tick without scaling in more than 3 times and scaling out more than 3 times?
  2. That last 1/8th on either end is by far the most expensive and psychologically damaging. I say forget it.
  3. guy2


    I agree.
  4. Yes, KKD back in 03..

    Was waiting for an entry, decided to pull the trigger and...

    Shorted at 48.25 which I think was the top tick or close had a 52 stop .. never went above that entry

    Covered 35ish

    All other trades perfectly imperfect.:p
  5. i wait for the market to tell me what to do...

    when the trade begins to reverse i exit...

    never at top or bottom but close enough for government work...:)
  6. If you have a target based on a solid technical level, you can make the perfect trade every now and then. The hardest thing for me to learn in trading was to have a target, and that my exit was more important than my entry.
  7. The perfect trade is the exact second your system tells you to enter and exit a trade.
  8. guy2


    Philisophically perhaps but I would not call your trade perfect if it loses money - which could happen in this case. Perhaps you are talking about perfect discipline - i.e. being able to follow a (perfect?) system?
  9. i trade at market so I cannot ever get the full range on a single trade..

    Multiple trades during the day go way past the daily range.

    This is usually not understandable by very many traders, apparently.

    getting the potential that the market offers is more likely whatwould be construded as being effective and efficient.

    Trading the value of the range is sub par in my opinion.

    This probably put many aspects of what knowledge and skills are in a different category than your polling considerations.
  10. cnms2


    I guess it depends what are you in the market for: beauty or money.

    Beauty (perfect trade) is (probably) impossible to regularly achieve, and the quest for it is resource (money and moral) draining.

    You can make much more money in the end if you take from each trend (and trade) only the higher velocity (and probability) part, then move your money into another trend (trade) that is in its high velocity (probability) zone, then again, and again, ...

    In the same amount of time, same capital will multiply faster if you focus on making money than on achieving beauty (perfect trades).
    #10     Jun 3, 2006