I'd like to become a better trader

[NoDoji]

Quote from Redneck:

Random stops are nothing but a band aid, and crutch – for poor trading skills

Meticulous study provided me with a fixed stop for my style of trading. What this "fixed stop" style of trading taught me was how to be patient in waiting for setups that allowed my fixed stop to survive. In other words, several conditions had to be met: Price had to present a valid setup and the valid setup had to be such either my max stop was survivable or 90% of the time my max stop would survive even if technically it wasn't survivable.

Once I had a fixed stop that would work for the setups I wanted to trade, I then chose a minimum profit target that was greater than my max stop. The minimum profit target meant that even if a setup looked good and my max stop was survivable, if the range of the expected move to next S or R was unlikely to provide me with enough "space" to get the minimum profit target, I would avoid the trade and wait for a setup that met all my criteria.

Market conditions changed abruptly over the past few days for the instrument I trade. As a result, I had to increase my max stop; however, I also increased my minimum profit target to compensate for the additional risk per trade.

Until this week my max risk per contract was .15 and my minimum acceptable profit was .20; this week my max stop is .20 and my minimum profit target is .40. I simply adapted to changing market conditions in a way that made sense: I accepted greater risk during extreme volatility, but increased my reward significantly as well.

 

[PO]

Quote from Redneck:

BL

You posted 2 losses back to back, one for $270.., the other for $420 – almost double

I took that to mean your stops are all over the radar

RN

420 stop was because of the bad entry.

 

[NoDoji]

Quote from Best Loser:

420 stop was because of the bad entry.

If you miss the proper entry, wait for the next setup. Think about it: A bad entry reduces your potential profit and increases your potential loss. Why would you want to do that?

 

[PO]

Quote from Redneck:


How about explaining why a “dynamic” trader, needs a “dynamic” stop….

What exactly tells you this trade will require a .05 cent stop… and that trade will require a .20 cent stop

Thanks

RN

RN, I appreciate your contribution and the discussion. Will need to think about it some more.

RN, I think Lf means that different set ups call for different stops, for example counter trend scalp will have a very small tight stop, vs a with the trend trade may have a bigger one, they also have very different profit targets.

 

[PO]

Quote from NoDoji:

If you miss the proper entry, wait for the next setup. Think about it: A bad entry reduces your potential profit and increases your potential loss. Why would you want to do that?

you are correct, I shouldn\'t do that.

 

[PO]

Quote from NoDoji:

Meticulous study provided me with a fixed stop for my style of trading. What this \"fixed stop\" style of trading taught me was how to be patient in waiting for setups that allowed my fixed stop to survive. In other words, several conditions had to be met: Price had to present a valid setup and the valid setup had to be such either my max stop was survivable or 90% of the time my max stop would survive even if technically it wasn\'t survivable.

Once I had a fixed stop that would work for the setups I wanted to trade, I then chose a minimum profit target that was greater than my max stop. The minimum profit target meant that even if a setup looked good and my max stop was survivable, if the range of the expected move to next S or R was unlikely to provide me with enough \"space\" to get the minimum profit target, I would avoid the trade and wait for a setup that met all my criteria.

Market conditions changed abruptly over the past few days for the instrument I trade. As a result, I had to increase my max stop; however, I also increased my minimum profit target to compensate for the additional risk per trade.

Until this week my max risk per contract was .15 and my minimum acceptable profit was .20; this week my max stop is .20 and my minimum profit target is .40. I simply adapted to changing market conditions in a way that made sense: I accepted greater risk during extreme volatility, but increased my reward significantly as well.

NoDoji, thanks for commenting.

I think there is a confusion (at least for me) between fixed stop and max stop. I\'m not opposed to max stop, for argument sake let\'s say it\'s 2.5 es points. then I wouldn\'t take a trade that has a target less then 5 points. But certain entries don\'t require such a large stop, so I would use 1.5 points stop, for example. Why do I need to risk my max 2.5 point stop if my set up will be invalid after 1.5 points loss?

and the reverse logic works also. If this trade only makes sense with 3 point stop, then I either wouldn\'t take it, or reduce the number of contracts to accommodate for a wider stop, especially in periods with increased volatility. But I wouldn\'t take this trade and put 2.5 point stop. It just doesn\'t make sense to me.

I hope it makes sense.

 

[PO]

Quote from wrbtrader:


Therefore, here\'s a direct question...please answer with a YES or NO...do you have a profitable trading method and is this thread \"trade journal\" about your discipline problems in executing that profitable method (you yourself is sabotaging the method in real trading conditions) ???

*******

Last of all, I\'m always suspicious of trade journals of struggling traders that say they have high probability trade methods while not posting any images of what it looks like on their monitors...as if they don\'t have a profitable method or it\'s not tested because they\'re still designing the method. Thus, there lays the discipline problems because the pressure in real trading is due to knowing the method isn\'t ready to be used.

Mark

I think my problem is both - the discipline and the trading method.

I did backtest many things in the past, have numerous notes, etc. but I think I have too many set ups that I tested and use and I am getting them all confused. I need to sort out the set ups that I have and start from a clean plate and slowly start adding the good ones back up, one at a time.

that\'s why I\'m back on sim and sorting things out. And charts will be coming too in time.

 

[wrbtrader]

Quote from Best Loser:

I think my problem is both - the discipline and the trading method.

I did backtest many things in the past, have numerous notes, etc. but I think I have too many set ups that I tested and use and I am getting them all confused. I need to sort out the set ups that I have and start from a clean plate and slowly start adding the good ones back up, one at a time.

that\'s why I\'m back on sim and sorting things out. And charts will be coming too in time.

Fair enough and thanks for the clarification...1 - 2 setups is enough on the plate of a struggling trader. Yet they should be giving trade signals in different types of market conditions.

By the way, you'll bring to surface what's going on in your trading to yourself and to the readers when you start posting charts at the end of your trading sessions. Just as important, you should post at least once what everything looks like on your monitors because a maximize chart of your trades is a lot different than an image of everything (charts, broker platform and any other windows) on your monitors. Thus, everything seems clear on a maximize chart but looks a lot different when that image is smaller and next to many other windows on your monitors...resulting in what I call reaction lag.

Mark

 

[Redneck]

Quote from NoDoji:

Meticulous study provided me with a fixed stop for my style of trading. What this "fixed stop" style of trading taught me was how to be patient in waiting for setups that allowed my fixed stop to survive. In other words, several conditions had to be met: Price had to present a valid setup and the valid setup had to be such either my max stop was survivable or 90% of the time my max stop would survive even if technically it wasn't survivable.

Once I had a fixed stop that would work for the setups I wanted to trade, I then chose a minimum profit target that was greater than my max stop. The minimum profit target meant that even if a setup looked good and my max stop was survivable, if the range of the expected move to next S or R was unlikely to provide me with enough "space" to get the minimum profit target, I would avoid the trade and wait for a setup that met all my criteria.

Market conditions changed abruptly over the past few days for the instrument I trade. As a result, I had to increase my max stop; however, I also increased my minimum profit target to compensate for the additional risk per trade.

Until this week my max risk per contract was .15 and my minimum acceptable profit was .20; this week my max stop is .20 and my minimum profit target is .40. I simply adapted to changing market conditions in a way that made sense: I accepted greater risk during extreme volatility, but increased my reward significantly as well.

My buddy gets it

Small wonder


Good Trading Today Ma'am

RN

 

[Redneck]

Here’s a fact BL…

Human mind can only focus on / think about one thing at a time – the more you can simplify – the better
===============================================================

And like NOD, and I've said – a fixed stop has built in discipline – something you desperately need


Sure setting stops based on PA can be done…

BUT 100% of the time..., in the middle of trading...., with 100’s if not 1000’s of thoughts racing through your mind – are you going to be able to get it right every time - seriously.....


Yesterday you had trouble waiting on a good entry for Christ sakes - what's next....

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And wait till you are trying to set your stop.., after entering..., and price pisses off past you..., and where you would have set your stop..., and now you’re looking at a MAJOR loss straight out of the gate


You have a lot of getting your ass kicked by the market left - to experience – trust me


Try to keep it real today...., and not view it as some video game - professional's don't


It is all your choice.

RN

Quote from Best Loser:

RN, I appreciate your contribution and the discussion. Will need to think about it some more.

RN, I think Lf means that different set ups call for different stops, for example counter trend scalp will have a very small tight stop, vs a with the trend trade may have a bigger one, they also have very different profit targets.