Journal of ashes and Eminis

Quote from phoenix_rising:



True. In this case if I had thought about where I really wanted the stop, it would have delayed my entry. Which would have been good in this case, and pretty much every other case I made this type of mistake.



I realize this, but I screwed up. I seem to suffer from a trader's form of the Heisenberg Uncertainty Principle.
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Whether your recognize it or not, you've just stumbled onto one of the great disciplines of trading... that is, "Your ENTRY should be determined by your STOP"... Most rookies get it the other way around. If the light didn't go on, mull it over a bit. It will. :D
 
I realize the method of r/r I am playing with is a bit backwards. It is intentional in that I am playing with ideas, and it isn't how I have typically traded most of my "trading career".

My rational for playing with this method is that I tend to have a "good" record at picking places the market will hit, but have never been good at capitalizing on it. So, I figured that if I "know" where the market is going, I might as well put an exit order there. Which leaves me with the need to enter the market, and to place a reasonable stop. I have paper trading this system and generally do very well. But, then with paper, and don't feel the need to tighten my stops quite so much.
 
Quote from phoenix_rising:

I figured that if I "know" where the market is going, I might as well put an exit order there. Which leaves me with the need to enter the market, and to place a reasonable stop.
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What is "reasonable", however, will be the most logical price to place the stop according to the chart rather than according to how much you're willing to lose. Gnome is correct: figure out the most logical place for the spot first, then project, if you like, a potential target. Or, if you have a low-risk/high-probability setup, just let your profits run and forget about targets.

--Db
 
Absolutely no reason to be sorry. Repitition is essential in the learning process. :) I might actually be in a position now to start applying what you wrote in October. Guess I need to re-read it as well.
 
Quote from dbphoenix:

Reviewing this thread, I realized that what I've been saying is almost exactly what I said last October. Sorry. :(

--Db
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I talked to a bond timing program manger in Florida a few years ago and asked him how long he'd been in the business. He said, "long enough to make the same mistake I made years ago and not recognize it until it was too late... I saw it quicker, but not soon enough to save my bacon..." It's the nature of the beast. :cool:
 
Quote from dbphoenix:

BTW, are you the guy from SI, the one with the emini thread?
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I'm not sure what SI is, so I'll venture a guess and so no? I have no other trading threads anywhere on the Net.

Edit: BTW, what connection do you see?
 
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