A trading secret only some will understand...

[KastyG]

Quote from AAAintheBeltway:

I think this is a very valid concept, and I have to admit it is one I am not good at observing. I know my results would be a lot better if I did.

you've been trading for how long but never considered time as a relevant factor?

you been on here since 2001, i assume you been trading before this?

 

[Wide Tailz]

I've seen this secret posted elsewhere and never go around to back testing it.

But it does seem logical that good trades show you a profit immediately.

 

[KastyG]

EVERY Great trade shows profit when closed out.

 

[Rol]

Quote from KastyG:

EVERY Great trade shows profit when closed out.

So does every lucky trade.

 

[KastyG]

Quote from Rol:

So does every lucky trade.

so true. how do you tell the difference?

 

[Rol]

Quote from KastyG:

so true. how do you tell the difference?

Well I don’t believe you can tell the difference on a trade by trade basis. But if you can maintain profitability over a statistically significant period of time, then you can increase your confidence level. Even then, you cannot be 100% certain. Neke’s journal’s are a great example of once apparent skill now coming into question. Many of us have had a hot hand at one time in our trading career. Could it really just be a lucky streak? If you do find what you think is an edge, you have to respect it with sound money management, much like a black belt doesn’t go out and kick everyone’s butt who looks at him the wrong way.

 

[deaddog]

Quote from KastyG:

so true. how do you tell the difference?

You tell the difference on the losing trades.

 

[Rol]

Quote from deaddog:

You tell the difference on the losing trades.

Individual trades are comparatively insignificant in the grand scheme of things. A winning trade is just another notch in the handle. Losing trades go in the waste bin.

 

[R. Raskolnikov]

Thanks, Trader28

Quote from moonman:

If you are standing still you are only moving through the dimension of time, if you are moving but below the speed of light you are travelling through all 4 dimensions of width breadth height and time.

If you are moving at the speed of light time stops and you are only moving through the 3 spatial dimensions, hope that helps.

 

[keeptradin']

Quote from Wide Tailz:

I've seen this secret posted elsewhere and never go around to back testing it.

But it does seem logical that good trades show you a profit immediately.

My experience has been that my best trades were the ones that went green within the first few ticks, and never went red. Knowing which ones those would be in advance is impossible, which is where trade management comes in. Winning trades are just that, they start off good and never look back.

But what happens when you put on a trade and it goes against you for a point...two points...three points?? Do you average in so as to try to minimize the damage?? What happens if it turns out to be a twenty point move (speaking from experience)?? The need to be right is a powerful thing, and not to be dealt with carelessly.

I have found that when I put on a trade that is wrong, I am usually given one opportunity to get out breakeven. This may require averaging, but there is always a chance to get out with my equity (and dignity) still intact. When I ignore that gift from the trading Gods (greed) is when said Gods will teach me the lesson I need to learn...again.

The first loss is the smallest, and if given the opportunity to exit a losing trade breakeven, it is in the best interest of my account to say "thank you" and click the button marked "Close". Failure to do so results in the infliction of "Max Pain". My current rule is that if an ES trade goes more than three points against me then gets within a point of breakeven, I take the haircut and get flat. Obviously there was a flaw in my process that the market has made blatantly obvious, and failure to acknowledge such lesson is a result of greed/fear/ego/etc.

(Based on personal experience, your results may vary.)