You rather be right or get rich?

Discussion in 'Journals' started by zhucap, Feb 22, 2018.

  1. zhucap


    Title saids it all. Next is Ego.

    $25K starting stack. Not a Pattern Day Trader.

    Options Level 3.

    Let's go.
    Baron, kurros and lawrence-lugar like this.
  2. JackRab


    I thought this was going to be a crypto-thread... certainly the topic-title for it....
  3. you never know theres bitcoin futures not
  4. Good luck!
    Last edited: Feb 23, 2018
  5. zhucap


    Bought 200 shares of GE at the close.

    Stop-loss under today's low (2/26/18)

    Trigger was technical - Hammer candle with long wick on a downtrend, so reversal play.

    Holding period: few days to few weeks.

    Screen Shot 2018-02-26 at 1.12.23 PM.png
  6. tomorton


    Why didn't you set a buy order above today's high? Or above recent days' consolidation?
  7. zhucap


    From a risk/reward perspective, I'm ok with using the closing price and the low of the candle. If I get stopped out, no worries.

    Buy order above today's high is prudent but I don't think I lose too much buying at the close. If breaks today's low, I get out.

    Thanks for your comment.
  8. Lee17


    Are being right and being rich, mutually exclusive? Or, Being rich is a subset of being right. And I don’t think being rich and not being right can last long.
  9. tomorton


    Being right (and being not wrong) is very important for some people, this is how we are all conditioned by education and professional career training and progression outside of trading. Its so strong that some traders will cut winners and take profits early and add to losers and widen stop-losses so they don't have to acknowledge a failed trade.

    Its doubly ironic because in trading (unless you pressed buy when you meant to press sell, or you bought EUR/AUD when you meant to buy EUR/CHF) losing trades are usually not down to mistakes, they're down to probability.
    zhucap likes this.
  10. zhucap


    I rather be rich than right, though at times they go hand in hand. Have you had an experience where you were wrong but the trade worked out for you? Or when you were right, but the trade went against you?

    To echo tomorton, some people are caught up with "being right." For myself, I just want to be positioned in trades that work for me and manage the risk of trades that don't. Being right isn't important to me while making the right decision (and money) is.

    Hope this clarifies.
    #10     Feb 27, 2018