ES Daytrading: "only 1 trade per day" or "1st trade a loss, rest of day a loss"

Quote from increasenow:

okay...coming into a day afresh...you do not have the "hurt"of losing already...so, you perception is better...get your focus going and throw 10-50 cars at the ES and net 2-5 points...that is serious $$$...the issue is "crystal clear" focus on one trade rather then 'multible' trades after your first losing one...
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This won't work. Why don't you come in during the last two hours of the day, wait untill you see increasing volume along with price moving in the general direction of the day and short or buy 1 contract. Close out your position when you spot price moving opposite to your position on increasing volume. Don't trade at all if you're unable to spot the general direction of the day.

Next thing, fire up the simulator and trade as many cars as you like, how ever you like. You might just risk making a profit instead of blowing out your account equity.
 
Sounds like you don't have it yet and all you have to do is trying to determine whether today is your lucky day or not. It's like playing at the casino.

Quote from increasenow:

4-not having a real strategy to trade with
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Throw 50 cars in and SOMEBODY will make serious profit. Don't assume it will be you until you know what you are doing. You can't just look at the potential thats out there, its meaningless (other than just motivation) until you know when to take the trades.

Quote from increasenow:

why knock the 1 trade per day..seriously?...throw 10-50 ES cars at the ES and 2-3 points...serious profit..whats your take?
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stupid question by stupid person who doesnt even trade...lonely person looking for internet companionship...stocktrad3r?
 
On 8/5 first thing in the morning I had two stops trigger for a loss of $10,800 on a $130K account as a result of straying from my usual trading strategy. I pretended it was someone else's P&L I was looking at and continued to trade using my regular strategy. I had a loss of $100 on the next trade. I put that behind me too and then gained almost $1000 on the next two trades, followed by three profitable days in a row.

It was very tough not to walk away, but I figured if I'm doing this for a living I can't just leave the job because I made a mistake. I think the psychology of handling "1st trade a loss" is to literally put it behind you and start with a fresh slate. Every trade is brand new and holds the profit potential of your best trade. If it turns on you, toss it out and start fresh again.
 
Quote from NoDoji:

On 8/5 first thing in the morning I had two stops trigger for a loss of $10,800 on a $130K account as a result of straying from my usual trading strategy. I pretended it was someone else's P&L I was looking at and continued to trade using my regular strategy. I had a loss of $100 on the next trade. I put that behind me too and then gained almost $1000 on the next two trades, followed by three profitable days in a row.

It was very tough not to walk away, but I figured if I'm doing this for a living I can't just leave the job because I made a mistake. I think the psychology of handling "1st trade a loss" is to literally put it behind you and start with a fresh slate. Every trade is brand new and holds the profit potential of your best trade. If it turns on you, toss it out and start fresh again.
More...

It's helped me to turn off P/L when in a trade. I used to see the red to green, to red, etc., and that drove me nutty. I think my blood pressure literally went down when I set P/L to false (off)
 
As someone said... you just don't get it dude.

Here's the deal Increasenow...
The trading-day consists of making trades. The number is irrelevant, and should not be fixed for the sake of having a fixed number.

First what you need to understand is that 100% winning (or losing) TRADES in a day is in outlier. It is not normal. Contrasted against 100% of trading DAYS being winning (or losing) which is neither an outlier nor is it normal. It just is. Case in point 10 trades in a day 8 winners, 2 losers, the day is a winner. Next day, 10 trades, 8 winners 2 losers, day is a winner. Next day, 10 trades, 2 winners 8 losers, day is a winner. Next day 10 trades, 10 winners, day is a winner. Next day, 10 trades, 5 winner, 5 loser, day is a winner. Trades provide diversification and dispersion.

By limiting yourself to 1 trade a day you are guaranteeing yourself that each one of your trades will be an outlier (100% of trades in a day being winner or loser) and the cumulative result on winniing and losing trading days will be no better than the probability of your methodology. If your methodology is say 70/30, then you should prepare to withstand a MINIMUM of 30 consecutive losing days, making 1 trade per day.

What you need to do is trade. The number of trades is irrelevant. What is important is that you employ discipline against the loser outlier (100% of trades in a day) and inevitable string of losers. And too that end, you must find a number lets say $250 for example that is a MAXIMUM LOSS for a day. It doesn't matter if it's in 1 trade or it appears after you've generated a string of 25 losing trades in a row. Once the number is hit, THEN you are done for the day. Period. Note that this "discipline" does not exist in any way on the upside.

If $250 is inappropriate (too large or too small) for your account, than find a number that works. But it must be realistic. Wanting to profit $500 and willing to risk $10 to do it is not a calculated risk. That is a lottery game. Or maybe I am just underestimating your trading ability. I mean last week you were trading CL, DAX and YM.

Osorico
 
I never look at P/L, it is a distraction.

Less is more. The good news is the profit will take care of itself as long as you have consistent signals that have worked in the past. Trading is a PROCESS, a process of finding what works for you. Do not try to reinvent the wheel.


Usain Bolt just ran like no human has never run brfore. He is the fantastic star of the century. What a performance. Love it.

PS: The best is ahead of all of us as traders if we try, trade like Bolt runs.

<a href="http://www.sweetim.com/s.asp?im=gen&ref=11" target="_blank"><img src="http://content.sweetim.com/sim/cpie/emoticons/000202C4.gif" border=0 ></a>
 
thanks guys...this may be the most valuable thread with the insights here...I HOPE many read it..especially ?NEWBIEs!...I am at the airport now...researching the ES while waiting...11:03pm new york time...keep the insight coming!
 
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