A profitable journal with all entries/exits posted in advance
- Thread starter 1a2b3cppp
- Start date
Hey, I like your threads but I have a question for you. I'm pretty sure you have close to or over $500,000-$1,000,000 capital based on your trades in other threads. Does it bother you that since november you've only made a couple grand? To me the most worrisome part is not only did you make a couple grand, but you were also on the right side of the trade since november, long. In my humble opinion you should either consider adding, opening with a bigger position, or something. In 5 months you were long one of the best rallies in recent memory, and still only made a couple grand off a $1MM account. There's no reason you shouldn't have made $100k-$200k during this rally.
This is really not meant to be an attack against you or anything I'm just wondering if you are considering a way to get more skin in the game, or if you are okay with making a couple grand on such a large amount of capital during one of the best rallies we've had all decade, while you were long..in a leveraged long etf none the less
This is really not meant to be an attack against you or anything I'm just wondering if you are considering a way to get more skin in the game, or if you are okay with making a couple grand on such a large amount of capital during one of the best rallies we've had all decade, while you were long..in a leveraged long etf none the less
That's a very valid question.
The drawback of trading this way is that sometimes I have no position or a small position during a big rally. Since I have no idea that a rally is coming, I don't know to buy a big position. The reason I don't add to winning positions is that that raises my average cost and makes it so that a smaller move a against me can turn my win into a loss. Since I never know when price is going to reverse, I never know when that's going to happen.
The flip side to this is that when everyone else is having big losses because price keeps going down, I am adding more and more, and when price reverses and goes back up I have a big win.
I'm not trying to say this the best, or the only, way to trade, just that it's the only way I can do it. If I knew where price was going to go I would take a bigger position in the right direction.
Here's more info about why I don't add to winners with some examples.
Adaptation plays an enormous role in trading, and it is not just direction, it plays a role in position management too.
You can only add to a winning trade when you are expecting superb momentum, the kind of momentum that would allow the close trail of a tight stop.
There is a place to add to losers and there is place to add to winners, in fact, there is even a place for both, it's all in the traders ability to adapt to ever changing market conditions.