How can I overcome this fear?

Quote from traderdave72:

Kiwi,
I trail my stops, my intention (which usually doesn't end up happening) is to take half profits at a 1:1 and then trail my stop from there. What happens is, the stock moves my way and then pulls back close to entry and then I end up taking profit on all of it. This happens 9 out of 10 times because normally a stock doesn't just shoot straight up and never look back. So you could say fear would be causing me to do this.
I looked at Sierra charts and they offer a 14 day trial so I may just give them a try. Thanks for the post, I appreciate and no hard feelings taken on Forex thing:)
traderdave72
More...

The 1:1 and trailing have to be set for the market you follow.

In HSI, trailing to be+ too quickly just results in u giving money away so I dont do it. One option might be to set ur first half at 0.8 to 1 or some number that gives a high enough win rate to still be ok and that could make it much easier to leave the stop alone longer on the second half.
 
Quote from kiwi_trader:

The 1:1 and trailing have to be set for the market you follow.

In HSI, trailing to be+ too quickly just results in u giving money away so I dont do it. One option might be to set ur first half at 0.8 to 1 or some number that gives a high enough win rate to still be ok and that could make it much easier to leave the stop alone longer on the second half.
More...

Kiwi,
I really don't understand what you mean. If my stop is a ..20 then I would want to wait until at least then to consider taking profits on 1/2 of my position and then I could go 1/4 and then another 1/4, this is the way the Hubert from TradetheMarkets does it and it seems to work good for him. Could you explain in better detail what exactly you mean. Thanks
traderdave72
 
Sure,

As goinglite says in a few threads most things will work if you use them creatively.

So the question is "where is price most likely to reach 70% (say) of the time from my entry" ... and if the answer is 0.8 of your stop then you'd still take it for the first part (assuming that it didnt reach 0.9 66% of the time).

If you do the "take half off thing" then your goal is to reduce pressure on the other half (mark douglas) so find the best point to do it. 1:1 isnt likely to be it.

It might be 0.8 it might be 1.3 ... you have to calculate the expectancy for the different choices and come up with a good one for your entries and your markets. Not someone elses.

expectancy = (winrate * winsize - lossrate * losssize )/ average losssize

So for an 80% winner with 0.8 winsize, 1 lossize, 1 average losssize the answer is


e = (0.8 *0.8 - 0.2*1)/1
= 0.44

So for every dollar you risk you get 0.44 return (u get 1 back +0.44). So the first one should be a high probability win AND a positive expectancy
 
Quote from kiwi_trader:

Sure,

As goinglite says in a few threads most things will work if you use them creatively.

So the question is "where is price most likely to reach 70% (say) of the time from my entry" ... and if the answer is 0.8 of your stop then you'd still take it for the first part (assuming that it didnt reach 0.9 66% of the time).

If you do the "take half off thing" then your goal is to reduce pressure on the other half (mark douglas) so find the best point to do it. 1:1 isnt likely to be it.

It might be 0.8 it might be 1.3 ... you have to calculate the expectancy for the different choices and come up with a good one for your entries and your markets. Not someone elses.

expectancy = (winrate * winsize - lossrate * losssize )/ average losssize

So for an 80% winner with 0.8 winsize, 1 lossize, 1 average losssize the answer is


e = (0.8 *0.8 - 0.2*1)/1
= 0.44

So for every dollar you risk you get 0.44 return (u get 1 back +0.44). So the first one should be a high probability win AND a positive expectancy
More...

Kiwi,
Thanks for putting that into perspective for me. I will give it a shot and see what happens. I appreciate the help. I will let you know how things work out.
traderdave72
 
I have some of the same problems, so this thread has been very helpful.

I think for those learning to trade, you do need spend a long time just demo trading, say at least 3 months before going live.

If your demo account is positive after those months, then start small and DON'T REVENGE TRADE.

I am currently trading with my mentor. We waited all day long for a trade. I actually did not think we would get any.

It 1st gets real close, and then does not fill.

Finally, it fills, my heart is racing. I am stressing, but the fact that he is in the trade with me gives me courage.

The market moves up and down, 1st you want to get into the trade. Next you can't wait to get out.

Finally, profit!!! Yea!!!!!! So much emotion and stress. Totally different from demo trading.

My hands are shaking. I just made more money today than working a week at my old computer job and trust me they pay well.

Damm, I need a drink... Did I trade more contracts than I comfortable with. Yep, but they were the same number as he did.
 
If your serious about this issue listen to me CAREFULLY.

YOUR TRADING TOO LARGE

Scale down your size to an amount that allows you to stay in all the way to your targets.

Scale down , scale down and scale down again till you do.

It really is just that simple.

(That will be $500 from your first profits please) :)
 
I am sure eventually that fear will be a force of confidence...
get connected with some experience ppl around here. I am sure they will help you out...
 
I re-read the 1st post. What I think helps is to think about the trade the same way before you got in. I dont know about others, but my mind is ALWAYS more clear before I throw money in the market. Maybe its just an issue of a lack of confidence?

cm69
 
Use a 3 period simple moving average with 2+ offset as a tight stop line on your price chart... great for re-entries too in a strong trend
 
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