here is my thinking...okay...say you make 1k and then lose 750 and then make 1k and lose 750 and then make 1k and then lose 750...you are still ahead $$$ wise and actually more relaxed to trade as it is money you gained trading and not trading scared money...catch my thought process...yes, I do believe p&l stop loss trading has serious merits...
Trading is "easier" after that first (or big) big $$ winning trade
- Thread starter increasenow
- Start date
Your thinking makes sense on the surface. I completely understand your thought process here. But what I am saying is your thought process is wrong for trading. Your putting too much attention on the RESULTS rather than the PROCESS to get the results. If you have a solid method, the money will TAKE CARE OF ITSELF. If you don't, then what you are essentially doing is gambling. Your thought process description is more gambler mentality than a traders mentality.
I agree with you...very good point...thanks...
a good question is...what do most people really do and not "what they should do"...hmmm
but you are more happier, confidant and comfortable trading onward...
your posts, flutty, sound like someone who is getting lucky or unlucky with their first trade of the day which, determines how they proceed the rest of the day. I of course understand why you feel the way you do.
But when you have a method with positive expectancy, you shed those emotions and trade your method, for better or worse.
But when you have a method with positive expectancy, you shed those emotions and trade your method, for better or worse.
I disagree, after my first "big" win, I actually blew out! I progressed "normally" my first year...taking small gains and small losses...not really getting anywhere. On my first really "big" win, I made a substantial amount, around 5x my normal gain. After this, I tended to trade for the "home runs", and wouldn't take the smaller gains as I used to. A lot of times the market was only offering this smaller gain, but I was in "big move" mode. Only after the resulting blowup did I realize that one must be able to "sense" what the market is doing. The same setup may not always yield the same result, etc, and one has to be ready to take a trade off early if things start to change. Maybe this isn't true for everyone, but it was for me. Even today, after getting a really big gain, I now tend to try and take off for a bit, just to avoid overtrading for the next "big winner".