Please..help w/ risk mgmt!!

[slickshal]

bighog... ur absolutely right.... i look in the mirror and say the samething over and over...

be a f**kin man and own up to the realization that i made a bad call. it happens , move on. it is so easier said than done,
i truley feel its a reflection of my behavior when it comes to money.

i have on good thing going for me.. i was a nyse floor clerk for many years.. my ability and feel for the market is outstanding from my years of experiance,, but the one fault i own is the spending habit i incured while working down there.. talk bout living the fast lane.. i always made and i always spent... now its beyond critical that i curb this horrible habit. the money is only going one way till i wake the F**K up!.

 

[slickshal]

Quote from craneman:

One other lesson that cost me A LOT of money to learn -
NEVER add to a loosing position. I never double down on loosers hoping to lower cost base, even though once in a while you could get lucky most of the time you end up losing more. And in the mean time you've tied up a bunch of capital that you could be putting towards new opportunities.

I've learned the hard way, as I'm sure most have.

this is so accurate... LOSERS AVERAGE LOSERS!

obviously, because i dont kick it.. i average down and ur right i get lucky maybe 10% of the time otherwise i am in a bigger whole... ARRGHHH!!!

my new plan is implementation of hard stops.

these stops.. are they limit stops or mkt stops.

and if its market stops... wont hybrid have a ball with my order especially during nasty gap up/downs?

 

[slickshal]

Quote from spinner:

Make it even more bullet-proof: Every single order goes in with a stop attached (OTO = one triggers another). You are never allowed to hold a position without a stop, even for a few seconds. Move stops only toward your target. Or use auto-trailing stops, with or w/o scale-out. Even better, put your target in too -- make every order OTT (one triggers two).

If your broker or front-end platform doesn't have this capability, get one that does.

this sounds like very solid advice. i will make sure i follow up tom. thx spinner

 

[efficiency]

Quote from slickshal:

this is so accurate... LOSERS AVERAGE LOSERS!

obviously, because i dont kick it.. i average down and ur right i get lucky maybe 10% of the time otherwise i am in a bigger whole... ARRGHHH!!!

my new plan is implementation of hard stops.

these stops.. are they limit stops or mkt stops.

and if its market stops... wont hybrid have a ball with my order especially during nasty gap up/downs?

"gaps, a basic recurring maneuver of specialists and market makers, are inconsquential IF you're doing what you've been suggesting, namely scalping.

Although conceptual, the phrase "losers average losers" should be attributed to Paul Tudor Jones.

Hard stops telegraph where you are. Playing cards face out. As a scalper, you should be cognizant of price movement throughout the day and hence MENTAL stops (or notified alerts).

Stops of course mean nothing if you (and your ego) don't honor them. Basically, what you're wanting is a line in the sand where you're clearly wrong beyond expected flucutation.

If TRIN is above .90 you should be on your guard.

Yesterday's midpoint makes for a reasonable disaster point. Intra-day a low made first (LMF) changing to a high made first (HMF) is pretty basic wakeup call. A scalping position should be addressed long before that transition.

The distinction between loose and lose should go without saying.

 

[TSGannGalt]

Quote from slickshal:

does anyone have any sound advice on money management skills.... i basically scalp listed and i am very successful and finding nice set ups (75% is in the green but the other 25% is where i get spanked...hard)..
Its when the position goes against me and the drawdown begins... i f**kin freeze.

i dont know if its the fear of losing, cant accept defeat, or it could be my high tolerance for risk.. although i am not finacially capable of it.

i know one thing for sure.. because of the erratic swings in hybrid... its happening alot more now..

im hoping someone who had the same problem found a resolution for it. i can use any help offered...

the bottom line is... KICK IT!! once the position move against me, utilize what ever stock im playing off of.. before its to late and the agony begins.

i must say.. this is the single most hardest feat i need to over come.

This is not a matter of risk management.

In a very simple, backtesting environment, you can get a +80% profitable setup just by placing a limit order on the selected tops and bottoms (yes... it depends on the market, though) Usually, with this, you'll have a larger losing trade.

That said, you are still not good at picking nice setups. Also, you need to feel out when to scratch the trades or cut the losses.

 

[TrendPro]

Before online trading, when we had to call in orders to the floor (futures markets), the order to open a position would not be accepted without a corresponding stop loss order.

You need to enforce the same discipline on yourself for every new trade you plan to enter, no exceptions.

 

[slickshal]

Quote from efficiency:


Yesterday's midpoint makes for a reasonable disaster point. Intra-day a low made first (LMF) changing to a high made first (HMF) is pretty basic wakeup call. A scalping position should be addressed long before that transition.

The distinction between loose and lose should go without saying. [/B]

can u please explain LMF/HMF theories?

i'd like to learn more... ty

 

[edil]

Quote from JangoFolly:

I think the obvious question is why don't you set hard stops if you know you tend to watch things go in the crapper?

Let's start there...

Quote from TrendPro:

Before online trading, when we had to call in orders to the floor (futures markets), the order to open a position would not be accepted without a corresponding stop loss order.

You need to enforce the same discipline on yourself for every new trade you plan to enter, no exceptions.

Placing hard stops was the way I controlled this particular demon.

I suggest to the OP not to ignore these comments.

 

[ElectricSavant]

Just reverse for gawds sakes...

clip from opening post
the bottom line is... KICK IT!!

 

[slickshal]

Quote from ElectricSavant:

Just reverse for gawds sakes...

clip from opening post
the bottom line is... KICK IT!!

first day at focusing real hard and only had on pos. go against me... and guess what....went short @ 111.. lost 30c .. had the balls to reverse and made 70c... horray!