Becareful on those Johnny come lately moves, I actually bought back my short when you sold, based on my trading plan. Just because it moves fast one way does not mean continuation will happen. I think the plan should be re-evaluated, but thats only my opinion. Remember, stops are always going to be difficult to handle, just like life you will have to learn how to handle it.
Huge Losses
- Thread starter Ripley
- Start date
First you shorted on a gap down after it had fallen 62 points. You also shorted during lunch right after a panic sell off. Then you did not use a physical stop. This STOP is what saves your ass and keeps a $50 loss from becoming a $900 loss.
Riply....
The answer is at your stop point....
In a post above you said that you can stick to your stop most of the time....Those words should never come out of your mouth. You MUST stick with your plan 100 % of the time.
Its a lot like driving a car. You should stick to the rules all of the time. If you choose to veer off and decide to not stick to the rules you risk getting hurt.
In one of my models I dont use stops on individual positions as I have found they hinder my performance.... BUT I trade over 20 to 30 positions at once and use a portfolio stop instead. When it hits I exit all positions with a smile no matter what. I smile because I know it's a numbers game and my next big win is around the corner as long as I stick to my rules.
You my friend are trading without a plan.
Nick
Ripley, I studied your chart and annotations (GREAT job with the PDF
)...here is my opinion:
There comes a time in every great traders career when the slack is pulled taut....the 'lightbulb' switches on, so to speak....the corner to consistent profitability is turned.
What makes this difference? If you've read market wizards (both), Pitbull, even reminisces...you've probably read between the lines. Its not some secret indicator or pivot line crap....its something you already have...its your ability...to take a second cash advance on your credit card.
Read that last sentence carefully, when you're fully sure it's soaked in, its time to go porsche shopping. By taking a second cash advance, your showing the confidence to overcome any obstacle....and confidence is what trading is all about. Not sissy stuff like 'honoring your stops'....
When a great quarterback, like Mr. Tom Brady, drops back for a pass, you think he has a little stop loss for how far back (the opposite way!) he runs....NO...because he knows he's just one throw away from victory.
You think General Patton had a 'stop loss' on how many soldiers he was willing to see slaughtered before he called off the war, and let the iron fist of communism win? NO...victory is all that matters....
The above was sarcasm, of course, dont' do this. If you're still gonna trade after this, instead of simulation, keep physical stops.
)...here is my opinion: There comes a time in every great traders career when the slack is pulled taut....the 'lightbulb' switches on, so to speak....the corner to consistent profitability is turned.
What makes this difference? If you've read market wizards (both), Pitbull, even reminisces...you've probably read between the lines. Its not some secret indicator or pivot line crap....its something you already have...its your ability...to take a second cash advance on your credit card.
Read that last sentence carefully, when you're fully sure it's soaked in, its time to go porsche shopping. By taking a second cash advance, your showing the confidence to overcome any obstacle....and confidence is what trading is all about. Not sissy stuff like 'honoring your stops'....
When a great quarterback, like Mr. Tom Brady, drops back for a pass, you think he has a little stop loss for how far back (the opposite way!) he runs....NO...because he knows he's just one throw away from victory.
You think General Patton had a 'stop loss' on how many soldiers he was willing to see slaughtered before he called off the war, and let the iron fist of communism win? NO...victory is all that matters....
The above was sarcasm, of course, dont' do this. If you're still gonna trade after this, instead of simulation, keep physical stops.
Ripley,4 questions
1) How many books have you read?
2) Which were your two favorites?
3) Can you explain what your edge is?
4) How old are you?
You remind me of me when i first started trading 5 years ago,i would get a notion in my head and go up the wrong track for a few weeks at a time losing consistently.
Reread FuturesTrader71 and NihabaAshi`s posts and take them in.
The way you are going with the small amount of money you have you will not last much longer,as many here have said i would stop trading,read and study more and invest what you have in finding a mentor that has a proven track record to show you the way.
1) How many books have you read?
2) Which were your two favorites?
3) Can you explain what your edge is?
4) How old are you?
You remind me of me when i first started trading 5 years ago,i would get a notion in my head and go up the wrong track for a few weeks at a time losing consistently.
Reread FuturesTrader71 and NihabaAshi`s posts and take them in.
The way you are going with the small amount of money you have you will not last much longer,as many here have said i would stop trading,read and study more and invest what you have in finding a mentor that has a proven track record to show you the way.
Consider the credit card interest on that cash advance. I would hate to pay 20% or so for money that went up in a flash.