The treacherous path to $200k a year

Quote from coolweb:

1-3 tick Stop YM
Breakeven Stop moved asap once moved 3-5 ticks in my direction.

Smaller the stop , Higher the contracts.
More...


I smell something stinky...


ROFL 1-3 tick stop..

oh man... almost fell out of my chair!!
 
Quote from coolweb:

1-3 tick Stop YM
Breakeven Stop moved asap once moved 3-5 ticks in my direction.

Smaller the stop , Higher the contracts.
More...

Your winning % can't be much higher than 10% if you're using such tight stops. No matter how selective you are about taking signals, you must get shaken out of good trades all the time just do to market volatility. You must put on dozens of trades/day.

I've been trading the YM since its daily volume was < 15k contracts and the typical spread was 3 or 4 ticks. Now that the vol has picked up, maybe it is possible to trade as you do. But it takes an unusual personality to tolerate such a low winning %.

Winning % is a simple trade off no matter what kind of signals you're taking:
High winning % requires low ave win/ ave loss ratio (under 1.5 let's say)
Low winning % is only profitable with high ave win / ave loss ratio (over 3.0 let's say).

There is one thing that might clarify this issue:
Are you using "mental stops" or real stop orders?
If mental stops, that would explain everything.
As my eloquent friend Rover put it:

"Hard stops, hard stops, and nothing but. A mental stop is no stop at all."
 
Quote from coolweb:

In this thread we finally understand why there are

traders who live in penthouses
and
traders who live in studios.

:)
More...

Are you planning on a move out of the studio? You're uniquely ignorant.
 
Quote from coolweb:

In this thread we finally understand why there are

traders who live in studios
and
other traders who live in penthouses.

:)
More...

And then there is COOLWHIP who lives above his moms garage:p
 
lilduckling,

Thanks buddy, I got it :)

---------------


I like being an asshole to haters. It invigorates me :)


<h2>
Not only will I trash talk to their face, I'll back that up and make you <b>choke</b> on my success with envy.
</h2>
 
Ok, I thought we were going to talk about trading, money management, profit factor, drawdowns, etc.
If this is just going to be a flame war where people call each other names then you can count me out.
 
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