A profitable journal with all entries/exits posted in advance

Daring · Dec 2, 2012

Quote from SteveH:

You are right to take a small initial risk because you don't know what the market is going to do next. You are wrong to add to that position if it continues to show you a loss.

The right thing to do is to add to a winning trade, not a losing one.

Yes but ET will never understand this.

Trading is hard on the psych, adding to winning trades is even harder, so don't hold your breath

1a2b3cppp · Dec 2, 2012

Quote from SteveH:

You are right to take a small initial risk because you don't know what the market is going to do next. You are wrong to add to that position if it continues to show you a loss.

The right thing to do is to add to a winning trade, not a losing one.

I have two issues with adding to a winning trade:

1) it raises your average cost and makes it so that a smaller movement against you wipes out your profits.

2) just because a trade is "winning" does not mean it is going to keep going in that direction.

If you have confirmation that it's going to keep going in your direction, then sure, add to a winning trade. Go all in.

I'm sure there are some people who can add to a winning trade as part of their successful strategy, but doing so doesn't work for me.

1a2b3cppp · Dec 2, 2012

Next add on QLD is probably going to be $47 or so.

That's assuming price doesn't keep going up for a while first.

Daring · Dec 2, 2012

Quote from 1a2b3cppp:

Next add on QLD is probably going to be $47 or so.

That's assuming price doesn't keep going up for a while first.

Thank you for answering one of my questions.

What about target ? Do you trail or got a target in mind, that part is still missing from your journal.

Thanks

1a2b3cppp · Dec 2, 2012

Quote from Daring:

Thank you for answering one of my questions.

What about target ? Do you trail or got a target in mind, that part is still missing from your journal.

Thanks

Oh sorry.

No target yet. But when I come up with one I'll post it in here, or I'll at least post my exit in real time.

1a2b3cppp · Dec 3, 2012

Selling SPY right now @ $142.07.

1a2b3cppp · Dec 3, 2012

12/3:

The SPY position was closed out for a profit of $2.98.

QLD: $436

Daring · Dec 3, 2012

Quote from 1a2b3cppp:

Oh sorry.

No target yet. But when I come up with one I'll post it in here, or I'll at least post my exit in real time.

Great, wish you best of luck/skill with your positions.

I know I give you shit but at least I follow your journal

1a2b3cppp · Dec 4, 2012

12/4:

QLD: $390

Specterx · Dec 4, 2012

Quote from 1a2b3cppp:

If you have something that allows you to predict market direction, by all means, use it.

Because I cannot predict direction, this is how I trade.

If you believe you can't predict direction at all, and don't use any leverage, what's the point of trading? How do you intend for your strategy to beat passive index-tracking?

In other words, why not set up a diversified portfolio of SPY and bonds (and perhaps gold, REITs etc.) and rebalance yearly? If you like, tinker with the weightings a bit based on perceived under- or over-valuation. This way you'd save on commissions and avoid short-term CG taxes.