ES Journal Archive (2011)
- Thread starter Buy1Sell2
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Quote from Buy1Sell2:
Quick reminder to all:
It' not necessary to post trades here, but if you do, they need to contain a real time stop posted at the same time, since we have no way of knowing what an account size is. This is the way to keep it real and could aid in making someone a better trader as well. Averaging is ok for investing when the money is going to be available at some later point to average in. This however is a trading journal and stops must be posted. Because as we all know, leverage is being used and averaging in is indeed only being used by people who end up losing money. --- Use my posting as an example for proper posting. I copy the time stamps etc and it's easy to see what my position is at any one time. --I end up disregarding the majority of the other trades posted as they don't contain stops etc.--I read them, but disregard the ones that are just attempts to be right.--I'd rather be wrong a lot for small loss and be right hardly ever, but for a nice gain.
And you could have many small losses that will eventually equalize your so called "big" gain. So the question is, what's the difference from averaging down with a drawdown for a while till targets are hit, and someone taking small losses over and over again till they hit their targets? Under certain PA behavior, one methodology will do better than another, and vice versa. Mine seems to be working (so far). How long will yours work. I don't think anyone knows the answer precisely until they look back and analyze their trades. Our stops will get hit whenever the market decides to hit them. we have no control over it.
P.S. If you don't like my trading style, don't hesitate to put me on your ignore list, since you've already put me on your disregard one
---Suggest that when trading targets, the target needs to be at least 3 times the stop. I do not trade targets, because I would like to get more than 3 times when right. --When trading with a 1 to 1 RR, then you have to be right more than 50 percent of the time due to commissions and possible slippage. When trading with a target that is less than 1 times risk, then you must increase your "right" percentage to unachievable levels.
Quote from Buy1Sell2:
Suggest that when trading targets, the target needs to be at least 3 times the stop. I do not trade targets, because I would like to get more than 3 times when right. --When trading with a 1 to 1 RR, then you have to be right more than 50 percent of the time due to commissions and possible slippage. When trading with a target that is less than 1 times risk, then you must increase your "right" percentage to unachievable levels.
Several people have demonstrated more often than not that oscillating trading works, because that's the nature of the beast. Unless you're holding a position in the direction of the trend, and the market is trending strongly in your favor, your trading style is not superior to others. No?
You also mentioned that you put full position on all at once. So your loss is big from the outset. Many people don't like to trade that way. They like to ease into their position, and get a good feel of the water they're dipping their toes into before they fully submerge.
Still may be wrong but I like the position much better.
BTW got stopped out on the last one.
BTW got stopped out on the last one.
2 things:
1) The psychological effects that can cloud judgement when losses grow exponentialy
2) There isn't a blow-up potential with small losses. There's too many things that can go wrong with any trade, regardless of how effective one's strategy has been. Personally, I assume the worst case scenario until the market proves me wrong.
http://online.wsj.com/mdc/public/page/2_3022-mfgppl-moneyflow.html ....some profit taking
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