Risk management on breakout trading

victorycountry said:
Longer holding? Do you work for a hedge or mutual fund?


You need to find out when the primary trend is likely to change. You are lucky because it is going to happen this month. Once you find it then you can hold your position until next year around this time. Good luck man
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When I say longer, I mean days, weeks from intraday. Taking profits when trend is likely to change of course. :)
 
Leopard9 said:
Yes its true. I´m still in the struggling phase. My system and intuition work perfect but I still have a lot of confidence issues and my psychology is not yet developed. Failing to act on the right time, overtrade, revenge trade, chasing, very tight stops etc. I still make a lot of mistakes but i´m putting a stop to it now.
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That is the thing. I think having smaller gains but, limiting drawdowns will go a long way to keeping your confidence in your trading system. Big drawdowns undermine confidence and lead you to question your abilities as well. It is psychologically, debilitating and you will end up questioning your trading decisions even if it is the right one! I am for tighter stops and settling for smaller gains. If you have an edge, you will still make monies in the long run!
 
smallfil said:
That is the thing. I think having smaller gains but, limiting drawdowns will go a long way to keeping your confidence in your trading system. Big drawdowns undermine confidence and lead you to question your abilities as well. It is psychologically, debilitating and you will end up questioning your trading decisions even if it is the right one! I am for tighter stops and settling for smaller gains. If you have an edge, you will still make monies in the long run!
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Yes its true. That works but its not enough. On the 26th december I bought the nasdaq and I was incredibly bullish. Why did I do 10 long trades and took profits instead of letting it run, increased contract size and trailed stops? Of course I did not expect it to go this far but still... Its a mix of intuition, calm, focus, and good management. I will get it. Time to think bigger and safer instead of facing pressure many times a day.
 
SimpleMeLike said:
Leopard9,

Can you please summarie the book in 5 key points that will help you make money?
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Practice #16: tracking and intercepting negative self-talk.
Practice#26: using meditation to improve decision making.
Practice#27: reprogramming mind trough visualization
Practice#32: managing trading stress with biofeedback.
Practice#39: Developing self control routines during trading.

Could go on.
 
Leopard9 said:
I have all tools to make money except for this. This is exactly what I need and what I was missing.
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Are you an intraday trader or swing trader?

Intraday means close trades by end of day. Swing meaning hold for a few days
 
SimpleMeLike said:
Are you an intraday trader or swing trader?

Intraday means close trades by end of day. Swing meaning hold for a few days
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Lol... Im not a begginer. To answer your question im mainly a day trader. Im setting up for longer time frames price dependent.
 
I'm surprised no developer has made a trading journal that can simulate what the P&L of your trades would be if you moved different parameters around. Holding trades 15% longer, or taking profit earlier. That would be very valuable.
 
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