It's not enough to be right: Managing the trade

[rols]

Rols your on, take the floor. previous mention to signals taken on no less a time frame than one hour with bracketed order, shine or forever hold your piece. Simple explanation only, nothing to complicated on Einstein

If you're looking for a magic bullet or key then I or nobody can give that to you.

I believe that a master of trading could succeed without charts or indicators, just price action.

He could have a chart with lines drawn with the ratio of planetary orbits to the genetic code of a hamster. And still make money.

I suggested the hourly charts and bracket orders because this helps with 2 problems less experienced traders suffer from, namely over trading and emotional trading.

Einstein and WS suggests to us that the fault lies within, we create our own realities and nothing is more stark of a reality than to see the rent money going down the toilet.

The third stabilizer perhaps might be something to filter out the periods when it is not advisable to trade, for example choppy markets.

The squeeze indicator is OK for this. Research it and try different versions and find one that suits your personality. Yes, your personality,nobody elses.

Take responsibility for your own money, or somebody else will take it for you.

 

[black bear]

Thanks for taking time to post

If you're looking for a magic bullet or key then I or nobody can give that to you.

I believe that a master of trading could succeed without charts or indicators, just price action.

He could have a chart with lines drawn with the ratio of planetary orbits to the genetic code of a hamster. And still make money.

I suggested the hourly charts and bracket orders because this helps with 2 problems less experienced traders suffer from, namely over trading and emotional trading.

Einstein and WS suggests to us that the fault lies within, we create our own realities and nothing is more stark of a reality than to see the rent money going down the toilet.

The third stabilizer perhaps might be something to filter out the periods when it is not advisable to trade, for example choppy markets.

The squeeze indicator is OK for this. Research it and try different versions and find one that suits your personality. Yes, your personality,nobody elses.

Take responsibility for your own money, or somebody else will take it for you.

Hi Rols,

Expected a great post and received it

Would draw attention to ~

"If you're looking for a magic bullet or key then I or nobody can give that to you."

The word you"re I would replace with you the readers, I am aware none exist

Thanks for your thoughts, very much appreciated Rols

Thats me done, had me say off to do some trading

 

[BSD]

If you're looking for a magic bullet or key then I or nobody can give that to you.

Einstein and WS suggests to us that the fault lies within, we create our own realities and nothing is more stark of a reality than to see the rent money going down the toilet.

Couldn't agree more on both points

Re trade management, once I'd really internalized the following, ie not just grasped it superficially but in a deep down way, and actually learned to trade that way, that's when something clicked and I made the biggest advances in my trading:

" “One common adage on this subject that is completely wrongheaded is: You can’t go broke taking profits. That’s precisely how many traders do go broke. While amateurs go broke by taking large losses, professionals go broke by taking small profits. The problem in a nutshell is that human nature does not operate to maximize gain but rather to maximize the chance of a gain. The desire to maximize the number of winning trades (or minimize the number of losing trades) works against the trader. The success rate of trades is the least important performance statistic and may even be inversely related to performance. …

What really matters is the long-run distributions of outcomes from your trading techniques, systems, and procedures. But, psychologically, what seems of paramount importance is whether the positions that you have right now are going to work. Current positions seem to be crucial beyond any statistical justification. It’s quite tempting to bend your rules to make your current trades work, assuming that the favorability of your long-term statistics will take care of future profitability. Two of the cardinal sins of trading - giving losses too much rope and taking profits prematurely - are both attempts to make current positions more likely to succeed, to the severe detriment of long-term performance.”

“If you make a bad trade and you have money management, you are really not in much trouble. However, if you miss a good trade, there is nowhere to turn. If you miss good trades with any regularity, you’re finished.” — William Eckhardt"

 

[blancspa]

intra day trading

I am bringing this post to live as an example that even traders with such a great experience tends to struggle with a discipline. I have run into this recently:

Learn to be a Position Trader

The first thing I told him was to learn to be a position trader (leaving positions open for several days to weeks/months). I told him that by doing this, he learns two absolutely essential things: to control his risk, and focus on the information that really matters in the currency market. If you learn those things, I said, trading on an intraday basis becomes much, much easier. If you have a good handle of the macroeconomic environment, and what’s truly driving investor sentiment, intraday scalps will cause you very little worry. Nothing gives you more confidence than your ability to score 500 pips on a single trade.

Counter to this, I told him that one of the biggest makes people make when they first start out trading is that they focus on miniscule moves of several ticks at a time which usually develop into massive losses. They become ‘hard-wired’ to this particular way of trading, and it usually ends up devastating them in the end. I said “They don’t understand what’s really moving the market or the value in basic fundamental analysis. It trains them to use ridiculous leverage when what they should really be doing is first learning to trade profitably then raising more capital to trade with profitably, instead of trying to turn 10k into 10mm. People, you will find, are very willing to give you their money if you’re making 20% a year after fees. Trust me. It comes. Billionaires don’t become billionaires because they ‘organically’ took 10k and turned it into a billion. Other people’s money always comes along the way.”

I am not very experienced trader, and still looking to develop my system and trading.
I spend my day looking at the screen, I tend to be missing bigger movements, while trading noise. I just wonder how professional traders do it, working all day in front of trading platforms and still keeping the head cool, and seeing the bigger picture?

And btw, the last post was very enjoyable. What is the title of that book by William Eckhardt?

 

[aspex]

Riding the rend can be profitable.
I use CFDs on FT350 but mainly the FT100
Results can be a good entry after opening
Recent examples:
ABF: 21 April Entry at 675. They continued up to 22 May at circa 760 before flattening and drifting.
AVV: 26 May Entry at 590. Peaked at 750 Sold 731 2 Jun
EMG: 28 May at 226 Peaked at 267 sold 258 2 Jun

I have just started this one and missed ICP on 1 Jun. Entry possible at 460 (Previous close) for a rise to 590 with sale likely at 570+

Is anyone interested in discussing pre-market information on likely trade opportunities like these?
If so I can open a thread under UK Shares.

 

[Plaste]

I trade 4 systems:
1. Long term multi-market trend following. In the market most of the time so the exit becomes the entry
2. Medium term multi-market trend following. Exit is via a trailing stop or a time stop (i.e. if trade is x days old then exit).
3. A short-term divergence system for stock indexes. Exit is on a fixed stop for a loss or if close of the day reaches a target (which is subject to change as the trade develops).
4. Intraday S&P. Fixed stop and exit at end of day.

The point I want to make is that each entry method has its own exit method and that there is no one size fits all. I have often seen it stated that it is possible to enter randomly and make a profit and whilst I have developed systems that do this they are crap systems. So, yes trade management is important but it is largely dependent on the entry.

 

[aspex]

Riding the rend can be profitable.

EMG: 28 May at 226 Peaked at 267 sold 258 2 Jun

.

Trigger happy again but in retrospect the re-entry of EMG at 249 would have been justified to finish the day at 271. However that is not following my principles except that perhaps not taking the original profit in the first instance.