What about guys like PTJ that would only take a 10% hit in a month before shutting down until the next month?
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- Thread starter marketsurfer
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What about guys like PTJ that would only take a 10% hit in a month before shutting down until the next month?
Quote from marketsurfer:
Clearly, in hind sight, that stop setting was wrong. I try not to dwell on judgement mistakes but I do have them on occasion. surf
Your first CL trade where you got out for a small loss, was the one that was properly executed. This second trade stinks. Non existent risk management.
Quote from southall:
Your first CL trade where you got out for a small loss, was the one that was properly executed. This second trade stinks. Non existant risk management.
The risk management is built into the position size, not some arbritrary feel good guaranteed to lose stop out level. I think its best to hold judgement on the trade untill it is closed out. surf
Quote from marketsurfer:
The risk management is built into the position size, not some arbritrary feel good guaranteed to lose stop out level. I think its best to hold judgement on the trade untill it is closed out. surf
It doesnt matter if it turns back to be profitable or not.. the fact wil remain this trade was very poorly executed. You should be embarrassed of trading in this way. At least in the first trade you took your loss like a well disciplined trader and you deserve some respect for that one. But none for this one even if it does make you money in the end.
Quote from actionzip54:
What about guys like PTJ that would only take a 10% hit in a month before shutting down until the next month?
I would shut down also if I realized losses of 10% of my OPM capital in any one month. .......fortunately, I don't have to trade OPM. What my philosophy is, is that position sizing is far more important than hard stop levels when it comes to trading success. For instance, if you can only trade one contract to allow it to move 5 points adversely and still be within your loss limits, then only trade one contract rather than constantly be paying the vig by rapid trading. the Vig will kill you. We are dealing with an oscillating system, no one can time it consistently regardless of the claims, therefore it often takes riding down waves against your position before the big picture pressures on price can push the position into profits. Should I stagger my entries, rather than going all in, yes, in hind sight, that would have been a good idea. I hope this makes sense-- if not feel free to ask whatever. surf
Quote from marketsurfer:
I hope this makes sense-- if not feel free to ask whatever. surf
Question. The $25,000 heat you have taken on this trade, as a percentage of your account, how much is that? Given that you have run out of margin to add another 10 contracts, i would say its probably 25% of your account at least (its probably more than that).
Where is the position sizing as a form of risk management you are talking about, risking 25%+ of your account on one trade is asking for a blowup.
Again, it's one inconsistency after another. Unless, you believe it's ok for you to resign a strong judgment prior to closing a trade but the rest of us cannot.
Quote from marketsurfer:
If not today, it will be a solid winner tomorrow. PD's are at 7 bullish for CL right now. .......
.....I think its best to hold judgement on the trade untill it is closed out. surf
Quote from southall:
Question. The $25,000 heat you have taken on this trade, as a percentage of your account, how much is that? Given that you have run out of margin to add another 10 contracts, i would say its probably 25% of your account at least (its probably more than that).
Where is the position sizing as a form of risk management you are talking about, risking 25%+ of your account on one trade is asking for a blowup.
I never said I don't have the margin, I don't have the risk capital to add additional contracts based on my self imposed position size limits--- What you see as crazy plunging gamble is, in reality, very tightly controlled. surf
Quote from marketsurfer:
I never said I don't have the margin, I don't have the risk capital to add additional contracts based on my self imposed position size limits--- What you see as crazy plunging gamble is, in reality, very tightly controlled. surf
i hope you have $1M+ in your account, otherwise this was an amateur mistake. (imho)
Quote from marketsurfer:
I never said I don't have the margin, I don't have the risk capital to add additional contracts based on my self imposed position size limits--- What you see as crazy plunging gamble is, in reality, very tightly controlled. surf
*Very tightly controlled* normally means less than 1% of risk to capital.
So $25K+ heat on this one trade would mean you have over $2.5million of risk capital to play with. The markets must have been really good to you over the years.
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