Taking 410K to 4million by Year End 2010
- Thread starter neke
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This is why once you are in a trade with a stop and target, you will less logically then before. Taking a position is usually against logic.
For example, in the morning, a master forex trader told me that the report was good news, so I went long ES, and was stopped out for a small loss, because I did not follow my system.
However, the next trade, I went long CL, and made a profit that was double my loss, but still did not follow my rules which were to stay in the trade longer.
For example, in the morning, a master forex trader told me that the report was good news, so I went long ES, and was stopped out for a small loss, because I did not follow my system.
However, the next trade, I went long CL, and made a profit that was double my loss, but still did not follow my rules which were to stay in the trade longer.
hi, not that i'm an expert, but it seems i went thru some of what you did, and also my sizing is smaller.
- Be careful with avg down, it can kill you. Why are you avging down? i know you are trying to break even, and some time it did, sometime it did not. The tricky thing is as u avg down, u are also increasing the size. And why you need to avg down, because the price is going down, not up, and proved that you are wrong in your 1st decision to buy it. Yet you are increasing your size in this wrong buy.
- You are going against the trend.
- why not try decrease your size till you are back to your winning form?
Hope these helps, because i did go thru some heartbreaking moments (big losses) as you did...
- Be careful with avg down, it can kill you. Why are you avging down? i know you are trying to break even, and some time it did, sometime it did not. The tricky thing is as u avg down, u are also increasing the size. And why you need to avg down, because the price is going down, not up, and proved that you are wrong in your 1st decision to buy it. Yet you are increasing your size in this wrong buy.
- You are going against the trend.
- why not try decrease your size till you are back to your winning form?
Hope these helps, because i did go thru some heartbreaking moments (big losses) as you did...
I am going to have to agree, averaging down is def not the way out, its so cliche but true...
Staying neutral for the week is better than being down, 20 some thing K....
I know you got yourself into a hole, and are trying to work your way out, but with the unpredictability of the market and low volume, now is not the time to take a stand...
Work on your system and wait for a volume rebound... Maybe work on some swing trading, intra day is becoming much more volatile and less visable...
Again cliche but, Adapt or die..
Staying neutral for the week is better than being down, 20 some thing K....
I know you got yourself into a hole, and are trying to work your way out, but with the unpredictability of the market and low volume, now is not the time to take a stand...
Work on your system and wait for a volume rebound... Maybe work on some swing trading, intra day is becoming much more volatile and less visable...
Again cliche but, Adapt or die..
Neke, reflect on what signaled your entry into each trade.
If it's a technical signal with a sound reason for entry, then a technical breakdown point is where your stop needs to be, no exceptions.
If it's an intuition, then go in small and let the price action tell you whether your intuition is right. Your stop still needs to be based on a technical breakdown point, no exceptions.
If it's an opinion, avoid the trade. The way you can tell it's an opinion is when your thoughts about the trade contain words like "always" ("Price always bounces/crashes when this happens."), or "never" ("It's never before done Y after X occurs.").
Other hints that you're about to trade an opinion are thoughts like: "The news isn't that bad; this is really overdone." (HPQ), and "Earnings were fantastic; this one's really gonna run." (DV), and "It can't go much higher/lower than this; if it does, I'll just add to the position and take profits on the retrace." (OK, I realize that is actually a viable strategy for the experienced counter-trend trader who utilizes a fixed max stop loss planned in advance, but the way you know you're an experienced counter-trend trader who fits that description is that either your name is Ammo or you have a consistently positive equity curve over a long period of time with infrequent drawdowns).
In pre-market/afterhours as well as the first 15-30 minutes after the open, emotions run high with fear and greed at their worst when it comes to earnings/news gaps. Tread carefully.
If it's a technical signal with a sound reason for entry, then a technical breakdown point is where your stop needs to be, no exceptions.
If it's an intuition, then go in small and let the price action tell you whether your intuition is right. Your stop still needs to be based on a technical breakdown point, no exceptions.
If it's an opinion, avoid the trade. The way you can tell it's an opinion is when your thoughts about the trade contain words like "always" ("Price always bounces/crashes when this happens."), or "never" ("It's never before done Y after X occurs.").
Other hints that you're about to trade an opinion are thoughts like: "The news isn't that bad; this is really overdone." (HPQ), and "Earnings were fantastic; this one's really gonna run." (DV), and "It can't go much higher/lower than this; if it does, I'll just add to the position and take profits on the retrace." (OK, I realize that is actually a viable strategy for the experienced counter-trend trader who utilizes a fixed max stop loss planned in advance, but the way you know you're an experienced counter-trend trader who fits that description is that either your name is Ammo or you have a consistently positive equity curve over a long period of time with infrequent drawdowns).
In pre-market/afterhours as well as the first 15-30 minutes after the open, emotions run high with fear and greed at their worst when it comes to earnings/news gaps. Tread carefully.
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