Averaging is the devil. fortunately for me over the last few weeks it has worked but i could have been on the nasty side of some nasty losses on the CL.
Good catch. That is why I questioned this thread based on his thread 2 weeks ago that he was giving up. 4D is a very confused rabbit. He has a "very successful system" BUT He cannot make it work
No, I think you said it best yourself: "I have to say that among all the things I have tried, trading is the most difficult. For several times, I thought I got it, but then I made some horrible mistakes that reminded me that I don't know what I am doing."
First of all, you have no idea what you are talking about. I have no problem pulling the trigger. I just like to go home with a winner when its late in the day. I like the guarantee when there isn't a huge chance of making a big gain anyway. Earlier in the day, and I don't even think about it. Secondly, boredom trading has ZERO to do with greed. It has everything to do with boredom, hence the name. I also told you I have negative expectations for the trade, and thus only trade singles in those situations (which is very small for me). If greed was the issue, why would I employ a negative expectancy strategy? Greed is an issue for people that trade too large, or hold a trade too long. Not a problem in my case. How did I blow up twice? Well, the first was your run of the mill death of a thousand cuts where I just had a crapload of small losses, and not too many big ones. I didn't know what I was doing. The second time, after 10 years trading full time, was much more interesting. It was during the Asian currency crisis in late 1997, and I took an overly large long position in the dollar/yen pair thinking it was way over done by the news. It was just getting started. I was way too cocky to get out with a moderate loss as I had been doing very well for quite some time. By the time I realized (or accepted) I was wrong, I was so much in the red that I just said "what the fuck, do or die", and let it ride. ka boom. Luckily, I didn't have a large % of my net worth in the acct. I took some time off and haven't had a large loss since. I put stops in with every fill immediately, no exceptions. I also trade at a size conducive to my acct.
How do you trade a $5000 account and only risk 1.0-2.5% on each position? You dollar limit per trade is $50-125.
Lots of BS about risking a small percent of your capital, also totally different situation. In trading, you will spend a lot of time being misled and finding a way out of the maze. You are very confused now, but it's ok, that's learning.
You assumed like a bet on horse racing, each bet ($50-125) is an ALL win or loss. He's talking about two possible scenarios for each long trade for example: - Bet all the $5000 and get out if price fell by 1.0-2.5% - Bet a portion of $5000, say $500 (10% of $5000) and get out if price fell by 10-25%. Thats called Money Management, how much you afford to lose per trade (10-25%) and how much you afford to lose per account (1.0-2.5%) as in this example using 10% of account fund for each trade. PS: Replace 'fell' by 'increased' for shorting. Short selling is another story, you need a margin account.