Dammm

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...the only solution is to know going in how much you are willing to bleed.

How can you know that you are right, if you don't know when you are wrong?
 
Shortee:

.15 is a reasonable stop loss. But the thing is I have that mentally. And sometimes on my eventual winning trades, I cut before teh 15 cents limit then the position would totally go my way.

And on losing trades, I bust my .15 limit and sometimes take a big hit that's like .40-.60. Ouch!

Yeah, yeah. I know. Cut your losses, let your winners run. Easier said that done..
 
trader99

"In a losing game such as trading, we shall start against the majority and assume we are wrong until proven correct! (We do not assume we are correct until proven wrong.) Positions established must be reduced and removed until or unless the market proves the position correct! (We allow the market to verify correct positions.)" - Phantom's Book by Art Simpton

if you enter a position and assume that you are right.. and then want the market to prove you wrong by violating a certain price, it can create a conflict.. because what happens is as the stock approaches your stop you begin to think the position isnt wrong, the placement of the stop is whats wrong.. and you move the stop back to accomodate.. and this is further complicated by the times the position does reverse and go in the expected direction..

but if you enter a position assuming you are totally wrong about the trade.. then you want the stock to prove that the position is correct.. and as the stock approaches your stop, it is obviously looking less and less correct.. therefore, you take the stop because the position didnt prove the position was the correct one..

that simple change in thinking will make it easier.. =)

-qwik

http://www.futuresmag.com/futuresclassroom/phantom/phantom.html
 
Dammmmmm another nice day. All my gains were in the morning on the credit card companies. ACF and COF all on the short side. I wished I played the reversals on these in the afternoon but couldn't go long ooh even the sound of that word makes me nauseous.
 
quik, excellent comments. my thoughts precisely, couldn't of said it better, magna i hope this clears up my position for you. what quik said.
 
qwiktrade wrote:
"In a losing game such as trading, we shall start against the majority and assume we are wrong until proven correct! (We do not assume we are correct until proven wrong.) Positions established must be reduced and removed until or unless the market proves the position correct! (We allow the market to verify correct positions.)" - Phantom's Book by Art Simpton

if you enter a position and assume that you are right.. and then want the market to prove you wrong by violating a certain price, it can create a conflict.. because what happens is as the stock approaches your stop you begin to think the position isnt wrong, the placement of the stop is whats wrong.. and you move the stop back to accomodate.. and this is further complicated by the times the position does reverse and go in the expected direction..

but if you enter a position assuming you are totally wrong about the trade.. then you want the stock to prove that the position is correct.. and as the stock approaches your stop, it is obviously looking less and less correct.. therefore, you take the stop because the position didnt prove the position was the correct one..

that simple change in thinking will make it easier.. =)

-qwik

http://www.futuresmag.com/futurescl...om/phantom.html"

THANKS! I'll try to apply that psychology tomorrow!

But for me, I know of only a few really high probablity setups! But I still shoot for those shitty, maybe work/maybe NOT setups. And I know I shouldn't.

I guess one way around it is to REDUCE the # of trades I do a day that way I'm FORCED to take only really really GOOD setups.


trader99
 
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