DAY TRADERS Are You 'Seat of the Pants-ing' some, or all of your Trades? Yes - No - How do you know? Does it work? When? Could you teach your method to another educated person? Do you cleve to a detailed action plan? "The Mundane Three"? 1) What triggers a buy or a sell to open? 2) What triggers an exit? 3) How do you size your trades? What's Different from The Mundane Three about your ACTUAL Trading? --- What would you say belongs in a solid trading plan? A big tip of the hat goes to Robert Morse https://www.elitetrader.com/et/thre...solid-trading-plan.340340/page-4#post-5031706
It feels like it sometimes, but my back testing and actual stats would say no. But I've been doing this for 25 years, so I know how to manage my risk. My safe money is in my roth. Yes it works. When? Mostly just in the first hour or so. I could teach it to my mother, who was an elementary school reading teacher, in about 10 minutes. 1. My scanner. 2. Time or systematic stop. Whichever comes first. 3. Volatility of the stock. That being said, I do have another strategy which works fairly well, but I think someone else could do it way better than me. I need to be more systematic when I trade, rather than looking at dozens of charts and looking for something which has no way of being back tested. My stats on that one are positive, but not very good. That's why I trade super small on it. And I think I would have to explain that one to my dad, the retired engineer.
The most common frase I hear in daytrading is: If I Just could follow my trading plan, I would be a millionaire... And that is from people that realise they need a trading plan.
The observation's synergistic result of by-hand-benchmark stats taken on a set of 100+ charts via the 'structure' imposed on that group by a bar to entry composed of a shared initiation status, aka a signal trigger, a setup; is to develop a 'feel' for a specific setup's resultant recurring milestones as price journeys to 'predetermined measurable exits'. Is this 'feel' akin to the 'Art' that some traders have honed to an unconscious competency demonstrated by repeatable results? How so? unconscious competency - Search https://duckduckgo.com/?t=ffsb&q=unconscious+competency&ia=web
Great post. 1. My scanner. 2. Time or systematic stop. Whichever comes first. 3. Volatility of the stock. Enough technique packed into those three for you to Get The Job Done.
That's for sure. The most important thing is a trading plan and discipline to follow. If there is no discipline - someone who will beat you in the hands if you break your plan And the main thing is a small selection of trading instruments (stocks, futures) and not be sprayed on everything.