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Stops include hard stop (most common), time stop (like 5-10 mins) and mental (soft) stop. I tried the latter two but couldn’t do it consistently, so I finally bite the bullet and programmed a hard stop in every trade, not intending to get hit every time.

I don’t know about others. However, I can easily hold a stock dropping from 100 to 50 but rarely holding a winner from 50 to 100. So the math works for me in a bad way. Even though OP is correct that stock price can go up or down the same amount symmetrically it’s not so for most...

I use stops to protect from myself. I tend to hold losers forever and add to losers if possible. It’s simply human psychology. If I don’t have a clear stop price I just use 1% loss rule. Otherwise, I use whatever clear stop price point as I see.

My revelation has been a few big issues I thought I could fix myself actually proved to be not so. The final solution turned out to be utilizing mechanical systems/processes so I don’t have to fix them myself. For example, one problem I had was using large sizes, e.g., 2000+ shares of tsla. In...

So your entry is random? I know your exit is about PRM and letting winners run, ideally.

Why do you say it’s random outcome? What is the winning days %? Looks like you’re consistently small positive. Of course, it could have been the other way around. The key question is do you know your edge? If you do you should be able to say it in one clear sentence. Even with an edge it...

I don’t care about history and such. If a post by anyone seems reasonable to me or is useful to me I like. Hehe

So this is exactly what happens in Las Vegas casinos. We know that the betting statistics is against gamblers so the expectancy is negative. You go broke by keeping gambling. However, in the stock market I am not sure about the expectancy. If the expectancy is Not negative, e.g., random, one...

It sounds good as a strategy. In practice you may be killed by market whiplashes if you’re not experienced enough. I wish trading were that simple.

It’s a good strategy. Nothing works in trading 100%. Market changes all the time, even within each day. Traders have to constantly assess the situation and adapt accordingly. That’s the hard part.

Fully agree. However, it’s easy said than done.

You have a good point about driving without fear. It’s become a natural part of us after some experience. In general, severe car accidents are far and between. Trading loss is hard to become natural to us due to the inevitable frequent losing trades. The emotional impact is quite different. For...

Because I am keenly aware of the psychological effects of winning/losing real money in trading from my very own experience. In one of your posts you said even trading for a Mac money it’s a big deal. Indeed, that’s exactly what I felt too! I believe it’s human nature as long as real money is...

News and whatever doesn’t really matter. Market does whatever it does. For day traders we just need to follow the market and ignore everything else. I am still fighting to do this consistently. Too often my judgment on the market leads me astray.

Did you figure out why? You didn’t execute live trades as well as your paper trades? Or it’s a completely different thing with live trading?

Whatever floats your boat. I remember a trading book saying market/price just does its thing and we interpret it whatever we think/believe. There’s no right or wrong.

It’s crazy how a trading display thread evolved into an online fist fight. No wonder pit trading was eliminated. Amazing those pit trading years didn’t end up someone getting injured/killed. LOL

The myth of trading is that everything is statistics and nothing is 100% right/wrong or good/bad. Any indicator or support/resistance can work as well as fail. So most arguments are meaningless. A random action is 50/50 probability. That’s why trading attracts so many uninitiated because anyone...

I day trade tsla. It has a few big runs (up or down) every day. Tsla is a trendy stock I would say. Since I am a discretionary trader I determine the trend by looking at the chart patterns. Of course, I am wrong about 50% of the time. The key is cut losers quick when wrong and ride a big...

I agree high R/R ratio is way better than high win rate. Much easier trades and fewer trades. In order to achieve a high R/R ratio you got to trade a significant trend. It is mean reversion (reversal) vs. trend.