nkhoi, i'm glad you posted that. i have your thread linked on my desktop right now. i like what that thread says. that's the trouble with trading. you try so hard to come up with something. then you read something like that and think, "what the hell am i doing?"Quote from nkhoi:
GG, I copy this thread with you in mind http://www.elitetrader.com/vb/showthread.php?s=&threadid=11175
i'm going to make a clear example of a conflict i have. here's a quote from what you posted, nkhoi:
Also, it really isn't hard to figure out how to
enter winning trades, almost any system will do that for you, even a simple moving crossover. The trick is getting out of the losers ALL the time before they get large, and not opening trades that "almost" meet your criteria. There is no substitute for a lot of study, a lot of discipline (100% of the time, not 99%), and a couple of years of one-lot trading.
after all the shit i've tried, it wouldn't surprise me if just about any idea can give you a profit, and the key is not allowing losers. one of the best things i've ever read regarding trading is right here:
http://www.webtrading.com/phantom/chapter5.htm
phantom of the pits talks about a whole new way of dealing with losers. IT MAKES TOTAL SENSE TO ME, however, many times when i discuss this, people say it's bullshit. so then i'm left wondering if i should work on adding pop's ideas into my trading or not.
i've said in the past that i get stopped out to death. so maybe i should implement some pop rule 1 ideas. instead of setting a stop loss and always taking a certain loss, maybe i should also set expectations for my trades and get out if the expectation is not met....not just when my stop gets hit. i think this makes sense, but then i will wonder if i'm really just creating MORE ways to get stopped out? even right now, i can't decide which way to go.
here's something that has always bugged the hell out of me. you enter a trade, put a stop somewhere and say you have a trailing stop for gains. in order to take a loss, it only has to move against you a certain distance...but to get a gain it is much harder. if you don't have a target, it has to move far enough in your favor so that when it falls back to get taken out with the trailing stop, you still have a gain. for explanation purposes only, check this out:
let's just say you have a 2 point stop loss. and when you have a gain of 2 points, you trail your stop 2 points. it's easy to get a loss! it just has to go against you 2 points! but to get a 2 point gain, it has to go your way 4 points because you won't take the profit til it falls back 2 points! this is the type of situation that kills me. so i think about reversing this. or maybe adding in pop rule 1s to have other ways of taking a loss. then i'll go back to wondering if i should just tweak the concept and still go for the bigger gains. this is the type of mess i'm in.

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