How to Win at trading ... A - F

Originally posted by SethArb
some thoughts from a successful week ...


A : find a method that works for you

B: keep losses and losing streaks small

C: keep winners and winning streaks larger than losses

C: take breaks when tired ...

D: control emotions and keep trading size reasonable

E: hedge when necc.

F: Plot your progress each day and week to build up confidence.
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Good points Seth. Gotta go with A & B as most important IMHO.

BSAM
 
<Suppose your progress is negative? What does this do for confidence?>

I would take some days off to reflect on what went wrong
and try to find what works for you
 
<Hedge? When neccessary? This one I gotta hear. >

I know it is dangerous ... but if the spead is wide and the trade
went against you in the original derivative
and the arbs have not closed the gap on a highly related
derivative with a high correlation ... on has a chance to hedge
and then offset later on when the spreads and markets calm down
 
Originally posted by bone
Hedge when necessary???? NEVER, EVER TURN A BAD SCALP INTO A SPREAD. Just get out and start over again. Recipe for disaster.
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I am not convinced about this - I will often take a trade LOO on either side of a pair that I am willing to put on at the levels that it went out the day before [presumably, I am getting an even better spread if filled LOO.] I often will get filled on one side or the other. If it is the short side that I get filled on and the stock goes against me, I will look to the other one to buy it, in effect turning a "scalp" into a "hedge." [I don't have access to bullets so this only works one way for me.]

Still, I have gotten burned - maybe even more often then you one would expect...

nitro
 
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