Thinking In Reverse

Discussion in 'Psychology' started by jmoo, Feb 20, 2007.

  1. jmoo


    Today I thought instead of trying to figure out the best way to make money trading, I came up with how can I avoid big losses.

    I currently am working on an S&P futures strategy and was using S&R. This works but if you carry too many contracts you can get killed when the S or R doesn't hold.

    My Point? I'm going to trade one contract and target 3 points, instead of 3 contracts and two ticks.

    Sounds obvious I know, but it might help your trading, regardless of your instrument to think, how can I avoid big losses. This is the first key to success In my opinion.
  2. Bravo! Well said. That's pretty much what our goals our. Learning to trade while losing as little as possibile. Then the positive income will roll in slowly on its own.

    CajunSniper / Administrator-Trader
  3. did you know, including yourself... that 99.9% of the people that hang around here are learners ?
  4. If you can annotate the S and R give your self a point.

    If you can see that trading only one contract is a real way to start give yourself a point.

    You you can get out of your fears, anxieties and upcoming anger, give yourself a point.

    The numbers you list are all your inventions. Can you see that? Can you see that the S and R are given to you by the markets?

    Is it possible to see that the market gives out the numbers and you do not invent numbers?

    If you can, then give yourself two more points.

    Thinking that thinking of how to avoid losses is the first key to success costs you five points.

    Considering that thinking in reverse is a good idea costs you five points.

    Get back to zero.

    Give your self a point for each correct answer.

    1. What is the difference between a retrace and a reversal?

    2. What is the leading indicator of a trendline BO?

    3. How does the price test R or S?

    4. How do you know a BO is going to fail.

    5. How do you know when a BO has failed?

    6. If R is broken where do you look for the new value of S and vice versa.

    So now you get to see a little bit about what you fear and are anxious about. Isn't this better than looking in reverse and just changing a betting system?

    If you want to go further and get above zero points, take a look at where price is. It is between S and R.

    If you want to make some money, look at the answers to the Q's and use this variable to do trades between S and R.

    How many times a day does price trade between R and S? The answer depends on your skills and knowldege. It looks the same for everyone as a graph, but what looks like a trade or not depends on skills and knowledge.

    Work on getting skills and knowledge. That is how to find how to do trades that make money.

    When does a peron stop using stops? I do not use stops. Why don't I?

    When do you think you will be able to give yourself a point for not having fear, anxiety and the upcoming anger?
  5. Yep, and I will continue to learn until my last breath here on this planet.

    CajunSniper / Administrator-Trader
  6. Rocko1


    What if your winning rate is much higher for the 2tick profit trades? Then you can afford to have bigger sized losers, wouldn't you?