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"The only way to trade with Fibonaccis" journal
- Thread starter 1a2b3cppp
- Start date
Quote from zxd:
So last week I net about 1500...this week at 1722 and it's Wednesday.
Nice work.
I have a question about money management, I'm more than happy to have just $1k per week, what is your opinion on ceasing trading once hitting the weekly goal?
Nonsense. "Stopping when you hit a weekly goal" is a psychological game that is actually detrimental to your success.
How do you know that the remaining days in the week will be losers if the previous days in the week were winners?
Winning and losing days are randomly distributed. You could have a string of winners or losers in a row and there's no way to know ahead of time. Therefore you don't know ahead of time if it's going to be a winner or a loser, and therefore there's no reason to stop trading when you hit a "weekly goal" unless you just don't feel like trading anymore.
What if you make $1,000 by Wednesday. How do you know you would lose it all on Thursday? How do you know you wouldn't make $2,000 on Thursday? You don't. If you do, I would like to invest a significant amount of money with you.
Should I keep trading until the week is over or is it wise to stop trading so I avoid losing what I gained and working unnecessary hours?
Unless you have some way to know if your future trades are going to be winners or losers, then how do you know if you're going to "lose everything you gained"?
Look, there are 5 days in a week. You have no idea which days are going to be winners and which days are going to be losers. there's nothing magical about starting on Monday and stopping on Friday. Trade the days you want. You have the same chance of making money on any day that you trade as you do on any other day you trade. There's no "stopping when you hit a weekly profit level." Trade whenever you feel like trading.
Quote from 1a2b3cppp:
can we have a couple down days, please?
Or how about a lot more intra-day volatility...today was good at the first half of the day and then we slowed down a lot at the second half.
By the way, thanks a lot for your earlier post explaining money management, makes a lot of sense, much appreciated.
Quote from zxd:
Or how about a lot more intra-day volatility...today was good at the first half of the day and then we slowed down a lot at the second half.
By the way, thanks a lot for your earlier post explaining money management, makes a lot of sense, much appreciated.
Glad it helped.
Feel free to post some of your own charts if you want.
I'd like to see how other people are using this method.
Quote from 1a2b3cppp:
Glad it helped.
Feel free to post some of your own charts if you want.
I'd like to see how other people are using this method.
I usually don't trade like this, but I've recently been using bollinger bands in combination with fib retracements to get a feel for a short bias or long bias. Usually, I'd fill the positions at 1, and 3, and 5 increments but today I did it different. I went long at the bottom end of the chart expecting a retracement, I chose the -9 point to close the position and go short 9 skipping the 1 and 3 points. It's somewhat risky so I will plan on minimizing this kind of trade.
Chart attached. If anyone is curious, I use thinkorswim from TDAmeritrade for my charting and do the actual trading on Interactive Brokers.
Attachments
Quote from 1a2b3cppp:
Looks like you perfectly picked the bottom. How'd you do that?
Sorry, let me clarify, the bottom at that point was 1232, I went long at 1232.50 (which is still pretty close to the bottom). My reason for going long at that point was because the es sharply declined and went south of the lower bollinger band.