The Perfect Trade
- Thread starter guy2
- Start date
The perfect trade has nothing to do with getting the high or low IMO. The perfect trade in my view is seeing a situation start to unravel, knowing that the odds are getting overwhelmingly stacked in your favor, knowing you can get in with a good low risk stop - hardly thinking or over analyzing the scenario at all - - - and then going all in - full leverage, max contracts/shares whatever. Then the really hard part, holding it till close or stop. This is a key part of my strategy and has a lot to do with identifying directional days. I trade range days as well and have caught the top and bottom several times, it isn't too tough, just set limits at known S/R or POC level (MP stuff), this is standard buisness, R/R asymetric bet outcome type stuff. The great trades are the ones where I know its gonna be a directional day and I just pile in and hold on... much easier said than done because it is a difficult psychological idea to not really have a profit target and let the market just move to higher highs or lower lows all day.
Mike
Mike
<font face="courier new">GoodTrade + GoodLuck = PerfectTrade
GoodTrade + BadLuck_ = OkTrade
BadTrade_ + BadLuck_ = Warning
BadTrade_ + GoodLuck = RecipeForDisaster</font>
GoodTrade + BadLuck_ = OkTrade
BadTrade_ + BadLuck_ = Warning
BadTrade_ + GoodLuck = RecipeForDisaster</font>
When I voted, I voted for never have, never will buy the day's low AND sell the day's high on the same trade. But, I assumed we were talking about outrights. If we're talking spreads, I do it all the time. 
Edit: for that matter, I probably do buy the day's low and sell the day's high of each individual leg on most days, because I do a lot of volume, but I usually hedge it so I don't think it counts.
Edit: for that matter, I probably do buy the day's low and sell the day's high of each individual leg on most days, because I do a lot of volume, but I usually hedge it so I don't think it counts.
Hey, I read your article, "The Perfect Trade".
I liked the statement: I have never pulled off a perfect trade and I never expect to. So Iââ¬â¢m not going to waste my time trying to chase perfection
I completly follow that. I alike, have no luck, and after spending all the time researching with my grandfather, I realized that I was wasting my time and should just settle in on a profitable and stable stock.
I liked the statement: I have never pulled off a perfect trade and I never expect to. So Iââ¬â¢m not going to waste my time trying to chase perfection
I completly follow that. I alike, have no luck, and after spending all the time researching with my grandfather, I realized that I was wasting my time and should just settle in on a profitable and stable stock.
That's exactly my point. It's easy to understand why we should do this but emotionally it's difficult to handle when we leave points on the table. If you use fixed targets and the market moves twice the distance past your fixed target then you start saying to yourself "let the market determine the target and don't use a fixed target" instead of just sticking to your system.
Quote from SethArb:
I trade very actively in futures at this time
once in a while I top - tick as the buyer or seller
but my time frame is too short for me to hold on
and see if the tick bought or sold was the top
as a matter of fact ... many times I do not get in or out at a good price ... and do not care as long
as at the end of the day or week my P+L
continues to be positive
Jesse Livermore mentioned that the first 1/8 and last 1/8 of a trend are the most expensive. Rockefeller was quoted as getting in too late and getting out too early yet making heaps....
Maria