Chuck Krug's Eurostoxx 50 trading journal

I want to talk a little bit about position sizing.
I know that there are tons of papers that talk about position sizing in a risk management framework. But for me it has more to do about clear-headedness.
Experience taught me that when i have a full position on, that i take winners too early and am a bit more jittery in my stop placement. And when i have, for instance a 30% smaller position. I simply trade better, even with the same conviction
And at the end of the day i make more money with a smaller position
 
So far pretty good results this month
the thing is, I've been struggling with the issues that i think most traders struggle with:
gamble urges, ego, perfectionism, stubbornness, emotions, discipline,
variable results (inconsistency), low skills, etc for a long time, so I had to break myself down and build myself up again, and now when I make 2 or 3 times a day trading than what i make in my day job, i am happy with my results when trading, but then afterwards i review and i see that i could have made 5x that, with a little more effort.
any one else has that?
is this just me, consolidating before I go to the next level? next skill level
any tips on what i should do?
i am also a bit wary that when the volatility dies down, my results will be lower
 
The market will always offer more than you can take. You should always take as much as you can, but that assumes you actually can take it. Personally, getting too greedy have only caused me trouble and I've often taken some bad losses after a good run - probably as a complacency creeps in and I start getting slopping thinking I know something.

When you talk about making 5x - is that if you increase size or simply by taking more trades?
 
I have an opinion an a scenario for my swing trading account, and last week that interfered in my daytrading.
Steps to solve this: each day think about what each account is for and separate the 2 and envision the goal.
 
Possible causes for decrease in performance/ drawdown:
Overconfidence from having very good months.
I felt a bit under the weather the whole week.
Market had smaller swings and I failed to adapt.
steps I have taken right away: decrease size.
steps to avoid this in the future: think about fine-tuning the strategy
 
Don't trade because the market opens,
trade because you see what's going on, and you see what's happening now, and you see a signal, and an opportunity with not too much risk, and you see where you are wrong, and you don't let a winner turn into a loser.
PS; For clarity: this is is me, talking to myself
 
Last edited:
last weeks seems like it has been nothing but losers. Not real big losers, thankfully, but it adds up. Been trying to finetuning my trading by having a tighter stoploss because my goal is to increase size
been hell
maybe it's the environment too or my mindset
any encouragement welcome
 
You must log in or register to reply here.
Back
Top