Do you ever check the news on stocks you trade? Did you not realize that GOOG may get out of China which is very good news for BIDU? It looks like you were trying to top pick against the trend with the stock breaking above its all time highs. I think this type of news would make it easier to buy puts or sell calls on GOOG if you have a short bias. Also, that could be hedged by being long BIDU.
Weinstein Trading and Fading
- Thread starter Robert Weinstein
- Start date
Hello Oraclewizard,
The signals are not based on news so looking at it would turn it into discretionary trading which is my biggest problem. Its very easy for me to see what I did wrong after the fact. I had a WW signal that has a valid stoploss that is very small and I choose to ignore the stoploss.
Until I can get my head straight on this issue every time all the time I am going to have issues.
I did also try out the IB simulated trading just now as I type this. I am going to spend some time with that and simply practice stopping out. Maybe after a couple hundred times of doing that I will have it pounded into my head
Best
Robert
The signals are not based on news so looking at it would turn it into discretionary trading which is my biggest problem. Its very easy for me to see what I did wrong after the fact. I had a WW signal that has a valid stoploss that is very small and I choose to ignore the stoploss.
Until I can get my head straight on this issue every time all the time I am going to have issues.
I did also try out the IB simulated trading just now as I type this. I am going to spend some time with that and simply practice stopping out. Maybe after a couple hundred times of doing that I will have it pounded into my head
Best
Robert
I'm really sorry to hear about that hit today. Fortunately, you've proven recently that you know how to be a strong disciplined and profitable trader. Now it's that little part about being disciplined on every trade.
Someon ET once posted this and I printed it out and stuck it on the wall in front of my face: âBeing disciplined in the past isnât good enough: on each and every trade you must be disciplined. Forever. Like a drunk in a program you can NEVER slip off the wagon.â
I once wrote this commentary in my journal:
"I will do very well day trading with strong risk management strategies, then I'll throw in some riskier trades and do well on those, too, even though they may run against me at first. That is very bad, because it causes me to change my rules for risk management on "certain trades", as if certain trades are just so good they don't require risk management. The biggest demon to take me down is the one that says a price is ridiculous and could not possibly get more ridiculous, therefore staying in the losing trade is the right thing to do, because surely people will regain their senses and the trade will do what it was supposed to do originally."
I've been sim trading large option positions on volatile stocks for a few months now, and am learning that putting in an initial stop immediately is the only way to save your ass. Paying the spread is bitch, even with simbucks, but if I'm ever going put on a Neke-size option position on one of those "sure things" I always contemplate and never trade, I need know that I'm automatically conditioned to put in the stop, accept that level of loss and not give it a second thought.
Thanks NoDoji,
Yeah, its EVERY trade that makes the difference.
I put up a sign today too. "Losers average losers" in big bold print. Anyone who has seen the Paul T Jones videos knows what I am talking about.
Its always the dumbsh*t that gets me into trouble. As if I go from super pro to brand new no discipline trader.
The funny thing is that I am actually getting better. I don't take a lot of trades and/or I exit many more with a small stop then I used to.
Best
Robert
Yeah, its EVERY trade that makes the difference.
I put up a sign today too. "Losers average losers" in big bold print. Anyone who has seen the Paul T Jones videos knows what I am talking about.
Its always the dumbsh*t that gets me into trouble. As if I go from super pro to brand new no discipline trader.
The funny thing is that I am actually getting better. I don't take a lot of trades and/or I exit many more with a small stop then I used to.
Best
Robert
Hey TraderSU,
I have to agree and never took sim trading seriously.
What I intend to do is practice the trades and practice doing the stop outs. Its all about doing the stops. I am limiting my trades with actual money and will continue with WWs in sim mode. My idea is that I will do it so many times that when I use real money (and small) it will seem natural.
Otherwise I just need to stick to my B8 signal and forget the rest. I would like to think that I can be better than that.
Robert
I have to agree and never took sim trading seriously.
What I intend to do is practice the trades and practice doing the stop outs. Its all about doing the stops. I am limiting my trades with actual money and will continue with WWs in sim mode. My idea is that I will do it so many times that when I use real money (and small) it will seem natural.
Otherwise I just need to stick to my B8 signal and forget the rest. I would like to think that I can be better than that.
Robert
" don't eat like a bird and defecate like an elephant"
You probably know the rules but here is just a reiteration of those. I just have some simple rules although very hard to implement. If you are averaging about 400-500 a day put your max loss maybe 250 or so. You can't expect to make it if you are losing more that what you are making. This was very hard for me to do so I devised another strategy. My max loss these days is $1000 (barring slippage). This was very hard for me to do in beginning since I like putting positions in on the open. Sometime my biggest winners and biggest losers come this way. But eventually I got into the idea that I would cut my first loss at $250. If first trade is a winner then second position will be cut loss at $500 if its a loser--if its a winner then I let it ride. If this is also a loss then my last trade will be a $250 loss unless its a winner I wont trade anymore.
This allows my 3 main things which in the past really plagued me and I needed to improve from my past journals
1. It avoids any big losers or runaway losers, no emotion etc
2. No gambling etc. To me this is what will eventually differentiate winners from losers. I feed off the winners and have nice days and dont care much about losing days anymore. Earlier I used feel so miserable from losing big.
3. It allows me to be more selective in choosing the right trades--since I dont want to stop trading if I lose.
Even at the end of a bad day I still feel good. And you have enough expereince to make it happen. Just cut down the losers and the winners will take care of themselves.
Good luck man. I am having some of the best days. Also research the instrument before you trade--although I ve made the same mistake on options--did it on APA a couple years back and paid with .90 spread.
Just look hard man. How can you lose 7k when it took you 8-9 days to make 4k? Some days are just bad.
You probably know the rules but here is just a reiteration of those. I just have some simple rules although very hard to implement. If you are averaging about 400-500 a day put your max loss maybe 250 or so. You can't expect to make it if you are losing more that what you are making. This was very hard for me to do so I devised another strategy. My max loss these days is $1000 (barring slippage). This was very hard for me to do in beginning since I like putting positions in on the open. Sometime my biggest winners and biggest losers come this way. But eventually I got into the idea that I would cut my first loss at $250. If first trade is a winner then second position will be cut loss at $500 if its a loser--if its a winner then I let it ride. If this is also a loss then my last trade will be a $250 loss unless its a winner I wont trade anymore.
This allows my 3 main things which in the past really plagued me and I needed to improve from my past journals
1. It avoids any big losers or runaway losers, no emotion etc
2. No gambling etc. To me this is what will eventually differentiate winners from losers. I feed off the winners and have nice days and dont care much about losing days anymore. Earlier I used feel so miserable from losing big.
3. It allows me to be more selective in choosing the right trades--since I dont want to stop trading if I lose.
Even at the end of a bad day I still feel good. And you have enough expereince to make it happen. Just cut down the losers and the winners will take care of themselves.
Good luck man. I am having some of the best days. Also research the instrument before you trade--although I ve made the same mistake on options--did it on APA a couple years back and paid with .90 spread.
Just look hard man. How can you lose 7k when it took you 8-9 days to make 4k? Some days are just bad.