K ive decided to have quite a big change in trading stratergy from now..
:/
Im basically joining with Annekdoton and going to start trading his style of trading, 'intra day trends'.
http://www.elitetrader.com/vb/showthread.php?s=&threadid=99283&perpage=6&pagenumber=1
I used to always call those 'chaser trades', and so thought people like jakker who traded them were gambling way too much.
Yet after reading through Anneks thread, as well as speaking in other forums,
ive decided that in this current market, there arent gna be anymore big volatile movements like i had gotten used to for the last few months in oil of a $6s daily range just being average.
Especially how there are often 1 t 2day per week when the whole entire day is just 1 long trend,
and so my my technique of ''buying up the bottom 2/6s and selling down the top 2/6s'' was just completely doomed from the start, as there was no bottom plateau made that could be bought, and no top spike back up that could be sold down either.
So it was physically impossible for me to make money with my technique of trading on quite a few days over the last few weeks.
However Annek's style of trading works in every single daily market intra-day, and the more elongated and easy to see that the trend goes the better it is.
So im going to read more of his thread tomorrow, speak more directly to him, and on monday demo trade that style of trading
And if it does work from me i will start doing that from tuesday...
While i do much more enjoy my own spanish style of just ''out muscling the market with money'', so you can always just bully and force it into having to give you profit from trades,
it only works when you have a market that is 'At either the top 2/6s or bottom to 2/6s of its (weekly/monthly or yearly range, and is trading volatiley back from the extreme to the centre'.
But so in this current market when itd be ridiculous to be setting up strong short - medium term sell trades as we are so close to what will have to be the lowest oil can fall to,
its also be extremely dangerous to start building any strong long term trades yet,
as its most likely going to just start trade sideways from when it reaches near its low, in a tight range for a few weeks t even months.
So if theres a tight range with no big extreme spikes in either direction that can be contra-traded, i would endup having a very dry dull christmas and spring trading session.
lol
Any tips on trading in Annek's style of trading would be very very much appreciated though porph....??
Since i know you also trade in the direction of intra-day trends after they have started already,
but teh main thing i struggle with about that is when you see a trend going in 1direction how do you know that when you get in its not going to just be very near / right at the end of that trend, and so going to reverse onto you??
Or that if its a rather spiky trend that when you get in, even if you use a decent size stoploss like 30 t 40ticks, that you wont get that taken out by a stray spike, just to then have trend continue without you???
When i 1st started trading i followed all these rules about 'tight stoplosses, follow intra day trend only, and all the other stuff that everyone says is right.....
yet that is how i lost so much money.
It was only when i started trading in my own style of trading that i started earning so much and kept on earning at that level consistently for so long.
So im naturally extremely scared and concerned about going back to the thing that has only ever lost me my money before.
While it may be lower losess, of if i have 30ticks stoploss and £2 per tick i could max only lose £60 per trade, that is still a big loss for me!
Thaat £60 is a whole days living cost for me!! :eek: :eek:
So if i have just 5 trades where i get either stopped out even when in the right direction, or get in at a reversal or misjudge the trend,
i will have lost £300!!! :eek:
Which would be an entire weeks living cost, (8% of my entire trading capital).
And that could extremely easily be lost in just a few hours when using this tight stoploss style of trading.
Wheras in my style of trading you have lots and lost of profitable trades normally and so make lots of money,
and even though you do occasionally take losses that are alot bigger %s than most people's, if you keep the trading size per £ the same for all trades, then you are extremely more likey to end up each week, and each month in profit, even afetr those losses.
For example with what happend to me over last 2weeks, id spent the previous 2months trading at just £2 t £4 per tick with not letting profits run far,
then in those 3bad days i have 5 trades at £8 per tick that i take losses on near the worst times, and yet i still end up keeping over £3,000 profit per month for both the months on average.
~And so while i would like to trade in the other way if it will earn me lots of consistent profit everyday also,
I am EXTREMELY concerned because of those 2 reasons i mentions above.
