the hardest thing about trading...

TA4ME · Aug 10, 2006

Quote from independenceair:

Being consistently profitable isn't bad- trying for the entire move increases risk and could change our success rate.
Trying for home runs is risky. I have the same experiences as you with exiting too early but then on other trades the same startegy gets me out just in time.
So I am satisfied with consistent , slow and steady gains.

Ditto. However, we all can't be winning unless we're beating up on fund managers.
I shorted right before a bull trap and closed it right before a 2% drop. This seems to be the way my worst trades are right now. I get upset too when after I close it starts to drop. I then don't have the discipline, yet, to get back into it.

DannoXYZ · Aug 10, 2006

Quote from sunggong:
Man, this is funny. We had 7 trading days so far in August. Today is August 9th, 2006. You're up 74% already?

You'll have no problem hitting your 100% goal for the month.

Sorry I meant in the past month, actually 5-weeks, 4-July -> 9-August. Really 70% from 4-July -> 4-Aug.

Quote from RoughTrader:
Wow, +74% on your account for the month, that's quite incredible! Do you achieve this by trading aggressively with 20% risk exposure per trade or something like that? I'm interested to hear about your money management. It's extremely difficult to geometrically grow your account that quickly without eventually getting slammed hard.

Well, I may be setting myself up for a good beating, but it'll be a learning experience, eh? Yeah, I try to limit my losses as much as possible, but it's been really hard compared to equities where I can set close sell-stops. By the time I react with futures-options, they've really moved against me. My only saving grace is I've been doing a lot of spreads & straddles, so my risk is the gap between the positions (and a little beyond to cover the losing side).

Quote from Dustin:
Just noticed your journal so I retract the smart ass comment above.

Well, I'd rather look like a jackass than lose money. If I do something stupid, let me know before it's too late, eh?

JimmyJam · Aug 10, 2006

1) Take an early fixed profit.

2) Move your stop to breakeven

3) Let the rest ride a pre-determined trend keeping indicator

bjg · Aug 10, 2006

Quote from JimmyJam:

1) Take an early fixed profit.

Effectively, reduce position size?

DannoXYZ · Aug 10, 2006

Sometimes I cash out a portion of the profits and use it to buy MORE!

nononsense · Aug 10, 2006

the hardest thing about trading...

MAKE MONEY.

nitro · Aug 10, 2006

I agree wholeheartedly. FWIW, imo learning how this affliction fits into your [psychology of] trading, is the Holy Grail.

In fact, in a weird way, imo almost all trading problems can be rephrased in the language of how to deal with this situation.

nitro

Quote from dac8555:

I swear it has to be hanging on to winners long enough.

It is easy to screen,
It is easy to study charts patterns
It is easy to cut losers short (for me at least...never had a problem with the 1% rule..just program the stop)
It is easy to do the studying part...the information is there.
i can draw a Trend line...i have patience to stay out of th market when conditions arent good...blah, blah blah.

but man...if i dont take 50% of the profits (or less) i could have every single time.

This month was the worst by far. I am profitable, i did fine...but i should have cleared over 15% this month so far....i am up about 5%. I covered the day before the 200+ point rally in the dow this week...and missed out on the rest.

I am up about 50% this year....but looking back, that should have been over 100%

1. Who else agrees?
2. Who has been able to fix this problem in your trading? I simply view it as a lack of personal discipline.

Hook N. Sinker · Aug 10, 2006

I find the hardest thing in trading is to not trade. Honestly, doing nothing makes money for me.

I'm studying this fund DODGX. I calculate DODGX has a cumulative annual growth rate of 92 % and a turnover of about 15 %. The managers don't sell often. Returns are high. As I think back on my trades since 1990 it was the positions that I held for years that made most of the profit.

MajorUrsa · Aug 10, 2006

Quote from Algorithm:

Learn how to take a loss not a profit.

Trailing stop/loss.

Agreed, OP says he's able to take a 1% stoploss after open, so he should treat the open position as a new one every minute/tick/volume-bar and replace the stoploss.

Ursa..

JimmyJam · Aug 10, 2006

Quote from Hook N. Sinker:

I find the hardest thing in trading is to not trade. Honestly, doing nothing makes money for me.

I'm studying this fund DODGX. I calculate DODGX has a cumulative annual growth rate of 92 % and a turnover of about 15 %. The managers don't sell often. Returns are high. As I think back on my trades since 1990 it was the positions that I held for years that made most of the profit.

Now that's anothe sweet post.

I'm going to have to start a LOG.