S/R Emini Journal
- Thread starter 4re
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I personally think it is best to have no expectations in regards to your returns.
It works for many, but to have profit targets or return expectations I find self limiting. It just adds unnecessary pressure.
It is better to focus on process targets, IMHO. The bottom line is how close your actual results mirror your theoretical results.
I do focus on my targets but since I don't trade everyday or for a living it is easy for me to do this. If I did trade for a living it might be different. I don't keep theoretical results because I don't when I will be able to trade. That is why I just focus on my 2 points a day and I am happy. Sometimes when I see another opportunity I take it but no pressure.
But I have had several years where I did make 500% or better. It was done on a small bankroll so I am no millionaire but I have done it. I have also blown quite a bit as well by trading this aggressive. That is why right now my focus is not about how much money I have in my account but more importantly how much experience and knowledge I can gain as I await my retirement. It works for me since I am trading with truly disposable income. I have no stress except while I am in a trade where I tend to be emotional. I don't mind that stress because I am having fun.
I think in any system you may have higher probability trades where if you increase size you will make more money. Increasing size in those situations can make sense.
I have thought about this myself, but decided against it. I like to keep my size constant. However, I also take profits in a flexible manner according to current market conditions of that day so that on days where there is extra volatility I will usually (not always) make more points.
Increasing size also increases your risk if you get it wrong. It puts more pressure on the trade to be right. What happens if it's a loss? Will you be comfortable with a larger loss than normal? Will the larger size affect your trade management?
Now, many will probably ardently disagree with me here. But, for me studying daily charts is not important to my own method. I could not look at the daily chart at all and it would not affect my trading. Depends on how you trade. I know what B1S2 does works very well for him, but I couldn't trade the same way.
There are many different ways to make money.
I increase size a little different than most. I base it on my monthly statement. I like to have doubled my account since the last increase plus I leave enough wiggle room for me to have 4 losing trades before my first winning trade with the new size. I figure by 4 trades I will have the psychology thing out of my head. I know it sounds weird but it has worked for me. I actually doubled my number of contracts this past Friday and won both trades. I don't increase my size or target based on potential opportunity but I will execute a second trade on these days. I don't see any problem with increasing size or extending targets on these days ( Even though Romik is not asking my opinion on this).
so now it comes down to money management, stop placement, and how you manage your long-term positions.
It's been making an exceptional run-up, and considering the fact that the markets are mean reverting mechanisms the downside is right-around-the-corner.
The only question is, how many SHORTS can they clear out before they decide to drop'em down???
Best Regards,
JJ
P.S. I think it's really gutsy holding futs overnight when they move against you, I've never seen anyone do it without eventually taking a puke, that's why I don't think I'm trader enough to try it.
You might wanna checkout ITM 2 or 3 month out options for diversification purposes, this way you could manage your risk, and while there is certainly less reward, there's a quantifiable loss (instead unlimited :eek: ) ... and you can roll them.
I'm betting once you got good at it, you'd virtually never experience another loss using this methodology again.
P.P.S. In case you're wondering, I'm playing it LONG intra-day until my indicators say different, but that' only because my discipline demands it, first good sell-off, and I'm switching sides.
It's been making an exceptional run-up, and considering the fact that the markets are mean reverting mechanisms the downside is right-around-the-corner.
The only question is, how many SHORTS can they clear out before they decide to drop'em down???
Best Regards,
JJ
P.S. I think it's really gutsy holding futs overnight when they move against you, I've never seen anyone do it without eventually taking a puke, that's why I don't think I'm trader enough to try it.
You might wanna checkout ITM 2 or 3 month out options for diversification purposes, this way you could manage your risk, and while there is certainly less reward, there's a quantifiable loss (instead unlimited :eek: ) ... and you can roll them.
I'm betting once you got good at it, you'd virtually never experience another loss using this methodology again.
P.P.S. In case you're wondering, I'm playing it LONG intra-day until my indicators say different, but that' only because my discipline demands it, first good sell-off, and I'm switching sides.
Always produces the best trades
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