My Goal for 2007: Break-Even
- Thread starter datamerc
- Start date
I realize this was posted sometime back but ...
I remember back when I was trading some forex using IB I was having some trouble with the spread and commission and how much it would move. I then tried to lengthen my holding times (buy in and set a sell stop - I couldnt get 2 stops to work in IB meaning 1 for a price projection and 1 for if it got too low sell). So I only would set a sell stop. I remember my worst trade last year was when I bought some forex (forgot which pair) and set a sell stop; went to work and then to bed; and when I woke up the pair hit the stop and reversed and spiked up hard; but Im sure we've all had that ...
anyways ... enjoying your thread
Datamerc,
I'm not sure if you have this problem ... But I know when I held futures or forex overnite I would have alot more trouble sleeping (Id wake up and want to check whats going on) - or if I was doing something Id be worried Id miss a big run up or something.
Not sure if this is the reason you prefer not to hold overnite - but it was mine. I coldnt get any sleep
Thats one of the reasons I liked to trade options(buy calls/buy puts) because I could buy something for X amount of money and know no matter what I could only lose X; sure I was still wanting to check all the time my position but it wasnt as bad as holding a high flyer like a future or something always on the go like forex.
Bad thing about options I would always get screwed - paid too much or it would decay too fast; or the underlying wouldnt move etc etc etc ... You buy something for 100$ and couldnt sell it for 5$ a week later stuff like that.
Datamerc,
I'm not sure if its me or just the fact we have different trading rules.
For me my predictions were decent; but my reactions were piss-poor. Meaning; my trading rules were lax, my reactions to market moves were not set in stone or I played it by ear, and my emotions got the hold of me too much.
I think all of us first start off by looking for a 'system'(prediction of what the market will do) and then we come to realize that it doesnt matter how good that system does if we cant react to the market then we fall short of our goals.
You can back test a system to kingdom come; but when it comes to the game; past performance doesnt = the future, and then you through in your emotions, and everyday life.
<<< just some comments for discussion here
Thanks for the comments djxput!
Just like you, if I hold something overnight I'll be waking up every hour or two just to check the market - afraid of missing out on something or getting my ass handed to me. Normally I don't put on stop orders, but if I hold overnight I'll put on a series of small stops (e.g. the min 25K for IB).Quote from djxput:
I'm not sure if you have this problem ... But I know when I held futures or forex overnite I would have alot more trouble sleeping (Id wake up and want to check whats going on) - or if I was doing something Id be worried Id miss a big run up or something.
Not sure if this is the reason you prefer not to hold overnite - but it was mine. I coldnt get any sleep
For me, my trouble has been the assumptions/predictions of where I think the market should be. When I get in that mindset, I start putting on trades that don't follow the rules - from that point on, the good trades are only because I was lucky. That is why I quit early this week, looking to start fresh on Monday. The rules I setup for myself prevent me from trading with these "predictions" and instead only "react" to what the trend is telling me. Have a good weekend!
very well said,evaluated and described by both posters in the above post.
The only thing to add here is, to never hold overnight long positions or worst yet without an stop. The short ones can be left without a stop and may suffer big losses but more chance of huge gains too in catastrophic situations.
The only thing to add here is, to never hold overnight long positions or worst yet without an stop. The short ones can be left without a stop and may suffer big losses but more chance of huge gains too in catastrophic situations.
6/26/2007
+$166.12, 5 trades (4W, 1L)
EURUSD: +3.5/26
USDJPY: +22/35
B
Nice movement today and I felt fine until my son decided to roll out of bed 2 hours early and come play with his toys in my office. I tried to focus, but the distractions hurt my trades - should have stopped trading earlier.
+$166.12, 5 trades (4W, 1L)
EURUSD: +3.5/26
USDJPY: +22/35
B
Nice movement today and I felt fine until my son decided to roll out of bed 2 hours early and come play with his toys in my office. I tried to focus, but the distractions hurt my trades - should have stopped trading earlier.