Hey SML; A worthwhile read. It's considerd a classic for a reason.
Taking profit way too early!?
- Thread starter sjain100
- Start date
SimpleMeLike, I agree with you.
ROSO is an inspirational story. I’ve read it several times. During the down periods in my life I found it uplifting to read about the comeback after comeback the protagonist made after losing everything.
Well, in truth he didn’t lose everything. He still had his mind and will. He only lost all his money which he proved can easily be regained.
Of course his real life is more tragic. Livermore ran out of comebacks after his final time losing it all and he gave up, literally and figuratively.
As far as specific trading advice goes, such as the referenced passage about sitting tight, you have to know the context or else it can be very misleading. I’ve seen that passage quoted a few times on this site.
Anyone who has traded knows that sitting tight in a winning trade isn’t always a good idea. In a market like stock index futures, most of the time, sitting tight just means giving back all or a substantial portion of your profit. Certainly, Larry Livingston (Livermore) didn’t sit tight in the bucket shops where he was a trading god.
So, as you know, sometimes sitting tight is the right play and sometimes it is not. There is no way around the same old problem of knowing when to do one thing or the other.
If the bucket shop Livermore were alive and trading today, I’m not sure we would hear about him. No doubt he would be very rich though.
If you put the time in and am willing to roll up your sleeves,you will find answerS to this age old question....
Backtest/Foward test....
Tight stops,loose stops, time stops,no stops, trailing stops along with profit targets,no targets..If you want to let your hair down,look at scaling in and out and or pyramiding...
FWIW,I have not made one penny from this exercise as I "was" exclusively a market maker/ vol trader before being locked in the penalty box for 3 months for "overtrading"...
With that said I know it's the right path .....
Backtest/Foward test....
Tight stops,loose stops, time stops,no stops, trailing stops along with profit targets,no targets..If you want to let your hair down,look at scaling in and out and or pyramiding...
FWIW,I have not made one penny from this exercise as I "was" exclusively a market maker/ vol trader before being locked in the penalty box for 3 months for "overtrading"...
With that said I know it's the right path .....
Bracket Orders - Could Your Trading Method use them?
https://www.elitetrader.com/et/threads/bracket-orders-could-your-trading-method-use-them.349950/
if you tend to close your order early then maybe it's better to set up a Take Profit according to your R/R and just leave it. The more you check on your order, the more anxiety you gonna get and end up closing it early.
It's certainly a difficult enough situation and I think a lot of traders understand you at this point.
I think the main reason for that is probably the uncertainty about what you're doing or it's the fear you feel in the process.
The first option is of course a serious problem and it can be solved, it seems to me, with a more competent analysis and if you find some strategy that will give you full control over the situation.
The second problem is solved through the psychology of trading, which became a separate science for a reason, because this becomes a solution for gambling, fear, some other problems that arise in the process of work
I think the main reason for that is probably the uncertainty about what you're doing or it's the fear you feel in the process.
The first option is of course a serious problem and it can be solved, it seems to me, with a more competent analysis and if you find some strategy that will give you full control over the situation.
The second problem is solved through the psychology of trading, which became a separate science for a reason, because this becomes a solution for gambling, fear, some other problems that arise in the process of work