I'm sorry you're down this week. I'm sure you're not a wannabe who just trades for pennies. The only recommendation I can make for you is to cut loses quick. It seems like you're just throwing money at the trades and thinking it will come back to you. I'm sure you know the market can stay irrational longer than you can keep your account above zero. Keep your head up. If you're a praying man, I'd say you start it all with prayer....Keep you eyes open and look for the setups that works for you.
Taking 320K to 3.5million by Year End 2009
- Thread starter neke
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You're a Champion, Neke.
You've made us shut up before, I know you'll do it again.
***
Fuggedaboutit, have a great weekend, and get ready to step into the trenches come Tuesday.
That's the spirt! The larger neke's DDs, the louder the chearing section gets. Go for it Champ!
Quote from neke:
Weekly Update for week 19/50 ended 05/23/2009
No let up for a battered soul. Down 29K (10.7%). Almost running out of ideas.
I don't know how I forgot it was CME that killed me last week, fading its over-extended up move in stock and options. Did the same again on friday on the stock, shorting 500 shares at 287.50, and then averaged down until insanity, as the stock kept climbing. What's the need sizing down on the initial position, when I would eventually go all in if the position moves against me?
Will spend more time automating some strategies that have promise, and gradually wean myself from being responsible for placing trades. With this, a decision is being made now: If the account balance goes below 225K (down 30% from starting balance of 320K), I shall cease ALL discretionary trades for the remainder of the year, and rely only on automated trades and position sizes. Maybe that will spur me on more to strategy development instead of trade execution: it's obvious I continue to lag behind in the later.
Code:Opening Balance: 270,217 Net loss for the week -29,535 ------------------------------------------------ Net Balance: 240,682 Number of Trades 18 Number of Profitable Trades 11 Since Inception of Thread 01/10/2009 - 05/23/2009 Opening Balance: 320,064 Net loss (Less Margin Interest) -79,382 (Down 24.8%) ------------------------------------------------ Net Balance 240,682 Number of Trades 464 Number of Profitable Trades 292 Top/Bottom Discretionary Trades for the week TICKER ENTRY DATE/TIME EXIT DATE/TIME QTY PURCHASE AMT SOLD AMT GAIN/LOSS TYPE STLD 2009-05-19-11-53-00 2009-05-19-15-58-29 30000 412684 415464 2735 SHORT ------------------------------------ SPY 2009-05-20-12-02-41 2009-05-20-15-49-02 9000 822532 815400 -7174 LONG AMD 2009-05-19-18-28-50 2009-05-20-11-31-21 60020 283892 273845 -10124 SHORT CME 2009-05-22-10-10-50 2009-05-22-15-16-11 4000 1186989 1171125 -15978 SHORT
If I saw that curve on C2, I'd be thinking, "he doesn't know how to trade." However, if you really did turn a paltry amount into 300k, while this doesn't predict future success, I'd go back and study what I was thinking about during that period. I hope you've been jotting down notes during this time you've been posting. If not, you can probably go back and read your own threads. I'd be looking at my journal to see what I was thinking about, assuming you've kept one as most people recommend you do. You'd probably find you made money for the wrong reasons, not the right ones. Something tells me your overall view of the market and your bias is impeding your capital growth. Try and go read some articles on bloomberg if you want an idea what big money is doing, because its definitely not focused on the stocks your trading in, and certainly not in those directions.
Your whole week should be centered around the Bloomberg Economic Calendar. That's enough to decide which direction to trade in. Breakout trades are bread and butter on some of these headline news events.
http://www.bloomberg.com/markets/ecalendar/index.html
It's so fucking easy to read the market focus and interpret the market moving events for the day from that. You get the reaction very quickly, and, assuming you know what a breakout trade is, you'll find it's very profitable, too.
For those who don't, there's several events that cause the market to move substantially in one direction or the other. Literally seconds before the news release you place OCO order a few ticks above and below the current price. It has good MFE in most cases, and sufficiently covers your price if you're fast enough to take the profit, as the market generally overshoots by large amounts, maybe 10 to 15 ticks above or below your long or short as a stop order for futures only. In your case, Neke, you'd want to do something like 6 to 10 cents above and below at stop on SPY, which is where I see your trading is quite good in.
I take back everything I said about you knowing how to trade SPY. I just went and added up your net profit for SPY and SPY calls and puts and you've lost
drum roll.....
<b>$96,122</b>
Maybe you should refrain from buying SPY calls or puts. You'd be almost 100k higher without those trades.
drum roll.....
<b>$96,122</b>
Maybe you should refrain from buying SPY calls or puts. You'd be almost 100k higher without those trades.
If you lack discipline, AUTOMATION is the holy grail.
The Chart is a classic EW formation down to 200K. Ouch. He's now inside the blow-up danger zone for discretionary traders. On every trade his brain will switch to Revenge trading mode. The solution is simply to step back take a vacation.
Oh, and he seems to break the cardinal rule. Never average down. It works well, but the one time it doesn't work is the one time needed to blow up.
Trade with the trend and average UP. Easier said than done for discretionary traders.
unless you have a team of top level programmers like goldman sachs that have the knowledge and bank account to make such an automated system, just stick to manual trading like everyone else. It's more fun that way anyway.
I'm sure you can automate some tasks, but leaving it all too a computer is imo very risky.
just reduce your size, and did you look at your trades from last year like I suggested?...if not, do it, it will help.
- nate
I'm sure you can automate some tasks, but leaving it all too a computer is imo very risky.
just reduce your size, and did you look at your trades from last year like I suggested?...if not, do it, it will help.
- nate
Sorry to hear the loss again.
I did not trade much last week, so my account is pretty much unchanged.
My suggestions:
1. Do not force trades. Many people forget cash is also a position, and very important position.
2. I would say recall what you did last year. I don't think it was just random luck. You made so many trades last year, it can't be just luck. See what setup was successful and what wasn't.
3. I doubt automation will help you much.
I did not trade much last week, so my account is pretty much unchanged.
My suggestions:
1. Do not force trades. Many people forget cash is also a position, and very important position.
2. I would say recall what you did last year. I don't think it was just random luck. You made so many trades last year, it can't be just luck. See what setup was successful and what wasn't.
3. I doubt automation will help you much.
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