taking heat

if u sold spus today at 61 qnd they got to 65 and they looked toppy, ask yourself if you were flat would you buy them here ,if not ,you don't, taking heat is easier if you have confidence in your ability to make money because you know you can get it back,so if you are having trouble with heat,try harder and learn faster and become better at trading, and the heat will disipate
 
asking the opposite question...that's good

but, also, even tho you know you can make it back it's hard giving up profits, albeit on "paper"
 
Quote from nutmeg:

Watching a screen 24/5 for three years is one way to learn your system, keeping a really good diary is another.


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I keep a diary also. I've tossed thousand of sheets in the trash. Question. In your opinion, do you think anyone would benefit from your diary?
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I keep a journal and stick the lessons learned in big block letters on my wall. And still manage to occasionally make the same mistakes :) By the time of my third major drawdown, it wasn't quite as hot anymore because I realized the market is a living breathing thing and you have choices - re-evaluate the trade and exit if the initial conditions have deteriorated significantly.
 
Quote from sporky:

what do you do to sit through heat?
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<img src=http://www.seasonals.com/sitebuildercontent/sitebuilderpictures/.pond/dogonly.jpg.w560h328.jpg>
 
Agree if its bothering you, then your trading too big.

Quote from Cutten:

If you feel "heat" then you are trading too big. Reduce size until it doesn't bug you as much.
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If I have a trade on and am convicted to it, but the market is going against and I know it's a head fake, I will add too it.

But then again, i usually don't throw max size on an initial position. I like to leave room to add to a position since it's highly unlikely to get in at the exact top or bottom in every trade.

You can also trade around your core position during the day if you're holding a longer term position that's taking heat.

Lastly, put on a position in a different market that looks like it will go the opposite of your trade as a hedge to give you some time to think and clear your head.
 
Quote from mazaltov:

Agree if its bothering you, then your trading too big.
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see my previous response to Cutten's post. this is not about trading too big at all. Position sizing is part of my trading
 
Quote from nutmeg:

I keep a diary also. I've tossed thousand of sheets in the trash. Question. In your opinion, do you think anyone would benefit from your diary?
More...
That's a good question.

The answer is always the same (which we both know). If a trader is going to be disciplined, it will help him/her improve and reach the truth of how to trade well.

If a trader is not going to be disciplined, it doesn't matter what else they do, they will fail.
 
test
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