Go BIG or Go Home!!

[dnaj65000]

Let me ask you guys, when you're already up for the day do you gamble big knowing you got a cushion or do you get really cautious and risk adverse?

Lately, when my P/L is showing green, I swing for the fences trading the SPY. Some days I hit the home run, but for the last week, I strike out all the time. It's gotten to the point that overall I'm down.

When I trade small size like 200 shares, I seem to make money, but then I slap on 500-800 shares, those trades seem to always kill me.

What the heck am I going to do?

DNAJ65000

 

[indahook]

Thats my motto....try a happy median, go with 3-4 hundred instead and dont focus on the $$$ just the value. Good luck!

EDIT - P.S even the Yankees win games with base hits.

 

[DHOHHI]

Quote from dnaj65000:

Let me ask you guys, when you're already up for the day do you gamble big knowing you got a cushion or do you get really cautious and risk adverse?

Lately, when my P/L is showing green, I swing for the fences trading the SPY. Some days I hit the home run, but for the last week, I strike out all the time. It's gotten to the point that overall I'm down.

When I trade small size like 200 shares, I seem to make money, but then I slap on 500-800 shares, those trades seem to always kill me.

What the heck am I going to do?

DNAJ65000

(1) When I'm up big for the day I quit and go enjoy the day. You used the word "gamble" and I'd bet the trades that got you up for the day were not gambles but rather trades that met your trading strategy. So why would you take a low probability trade? Low probability, high payout versus high probability, low payout. I'll take the singles every time and not swing for the home runs.

(2) I too trade the SPY and usually just trade 300-400 given that I'm comfortable with that and if a trade turns on me I don't go into a panic thinking how much I'm losing as the market rips against me. Rather, I get out if I'm wrong before too much damage is done. No matter how aware you are of things I'd bet the increased trading size (500-800 versus 200 SPY) does have some effect on you internally. You KNOW you've got more money on the table and their is an emotional reaction I think.

 

[gongish]

only start with a fifth of your position size, and only add if you have a profit.

 

[lescor]

I try not to let P/L dictate how I trade. Ideally, I'd be cool and trade the same way no matter how much I was up or down. It depends on how the day is shaping up (choppy or high volume trend), but I tend to protect profits tighter the more I'm up.

 

[EMini-Player]

Quote from DHOHHI:



(2) I too trade the SPY and usually just trade 300-400 given that I'm comfortable with that and if a trade turns on me I don't go into a panic thinking how much I'm losing as the market rips against me. Rather, I get out if I'm wrong before too much damage is done...

Hey, what kind of stops do you use when trading SPY? $.40 ?

 

[50_luma]

I trade stocks, but used to have the same problem. Now, regardless of P/L, I trade relatively large sizes (2-4K shares) the first hour after the open, than cut the size to 500-1000, and completely stop trading from 11.3 till 2.00. It all depends on what your trading setups are and where your edge is, what's right for one trader might be wrong for another one.

 

[indahook]

Quote from gongish:

only start with a fifth of your position size, and only add if you have a profit.

Thats a blanket statement. What if he is day trading with a set stop in cents or fading the move?

 

[GreenDog]

5,000-20,000 shares/trade in the Qubes.

stop @ ~ .10/trade
profit target .15-.20/trade -- but will let it run if trending.

QQQ highly liquid, slippage rarely > 1 penny. 20K share trade gets swallowed up w/out so much as a ripple in the market.

Today was tightest range in the Qubes all year -- but profits booked all day.

 

[DHOHHI]

Quote from Fast_Trader:



Hey, what kind of stops do you use when trading SPY? $.40 ?

For me, 0.35