Market just exposes all your weakness.... I had one of the biggest days ever going on... And what do I do? I wanted more.... Thus, I got to the point of betting it all that I made for the day. And everything I worked hard for all day today... is completely gone... I seriously need to examine my betting it all strategy. Maybe it isn't the best thing to do. Losing it all you made for the day,completely brings you down.
When you are a n00b, these rallies are just great. Thats when it comes back to your BEP from the losses you are bagholding to and it is time to get out. But, today... such an experienced and big shot trader that I am, I should've made a killing on such a move. I need to focus on the market at all times, regardless of how much I am ahead of the day. I should not be reading and browsing other websites etc.... What a day..!!!...
i'm sure few ym traders did well today. the market was so up and down one's stops got hit a ton. its easy to say one should have been short but when the marketrs down big 3 straight days any rally scares you out. jsut like any short who stayed too long on the last fall they got ripped by that rally
Yes, it is contrary to human nature to accept losses. Yes, it is difficult to decide where to place a stop. All day today I was scalping in and out of the YM and had my stops in place at the moment I entered the trade. I was doing well. Then I took a break. An idea struck me and I thought I'd trade it. I only put on a small position size and made the unfortunate mistake of NOT placing a stop! I was long at 10343. Guess what happened? I suddenly (and magically) turned into a deer staring at headlights - immobilized. I rode the whole damn thing down, because I formed an opinion that I was unwilling to let go of. HOW MANY TIMES WILL I REPEAT THIS SAME MISTAKE? I obviously lack emotional discipline. I find that hard to admit, but it is the truth. I finally exited the position at 10249-ouch! I gave up all of my days profits and an additional 500 bucks. I forgot the cardinal rule - once your in a trade, let go of your opinions. anything can happen.
Jmowery, how is it going? I hope you didn't blow out yesterday. These are not very easy days for a beginner..
what is the mentality of traders? (I thought I would post this little piece as a public answer to some PMs I have received recently. I don't know if anyone will understand what Im trying to convey, but if I get to one person I think I have done my job. Rather than sarting a new thread, I will post it here, as this is where I have been posting, and most of the PMs came from peole reading this thread). What is the mentality of wanna be traders? In a business where 95% of people fail, it continues to astound me how many people think they will be part of the 5% who make it- who become successful traders. I guess it arises from the hard-headedness of humans, of being human. Everybody thinks they are smarter than the next person, better than the next guy, less prone to failure than the next guy. Well, in 16 years of doing business, I think that approach is dead wrong. If someone has talent, why not pay that person and use that talent rather than stubbornly believe that you will oneday become that good. Look, when you have a dental problem you go to a specialist to fix it. You don't learn to become a dentist. When you need an operation you go to a doctor. When you sell your house, you employ somebody to bring you together with a buyer in exchange for a % of the selling price. Why should it be different in trading the markets? If someone has trading talent, why not hire them to make money for you.? Why go through all the hardships and travails to try to do something, when there is a 95% chance you will fail? Why not just hire talent and prosper? HIre a trading consultant to make money for you. Recently I posted a YM trade that returned 215 pts in 2 days per contract. That's $1075 per contract. If you are trading size you would have cleaned up. I post another trade recently that returned about 85 pts overnite. There have been other with NO LOSERS!!! Now if someone can put up these kind of numbers again and again ( I have been doing that for years here)(a well known poster named Pabst said my calls are 'right on' in late summer '03), wouldn't it be prudent to hire someone that good as a consultant? or would you rather brave the odds and stubbornly believe you are one of the chaose 5%? Up to you. It continually amazes me how many people throw themselves out on the roadways just to be run over. Why additionally block traffic? sincerely, blackguard