Re: 6 rational trades
Thanks Mate, however I've made an entry into the S&P which is not currently going so well! That's the discretionary trading life I guess.. currently breakeven on the day, S&P at its high's. Should I cut here or continue on.... hhhmmmm.... If it retraces at all I'm back into profit if it goes further then I@m down on the day. However not thinking about the loss. I'll be out at 1088 if it can make it there and that will be a loss thats within my risk profile for a days trading.
Confidence - I thinks its grown as the years have gone on. You tend to see more and more things and ultimately recognise where the probability is on your side. Of course its just a probability and it can go wrong which is why you should always use a stop loss. Something I once read may help you with using a stop loss..
Every trade can have 4 outcomes - small loss, small win, big loss, big win. By adding the stop loss you've now eliminated the big loss. That already puts things in your favour..
That said there is a world of thinking about where to place the stop loss.
Fear is natural - it comes back to how we're built to think and uncertainty breeds fear within trading situations however if you've done your home work and you know your risk profile then you have nothing to fear. Tell you what - I'm happy to put up a trade a week on your journal and we can see how it trades out. Pre market entry and my thinking, during the trade and then the result. Of course I don't want to hijack your journal so only if you feel this would be useful and add to your content?
Certainly the Chart game is an excellent resource and I think your doing the right thing using that. I try and limit myself to 3 trades per day and limiting your trades is definitely a good idea (well in my view considering my lack of experience). Occasionally I make a trade or two more however the criteria for more than 3 is that I have to be in profit for the day.
I think about it in a strange way as
'pushing my luck'. In the same way as if I don't win and have 3 losing trades I will not make any more trades during that day, If I do ok - have made some decent trades and have a profit then I tend to push my luck somewhat considering that what I'm risking is coming out of profit - when I'm lucky I want to be
really lucky. That said the max number of trades for 1 day will be 5 regardless, that is my absolute cut off, even if they have all been profitable. Again maybe not for everyone but I find that it works for me.
From your posts I think that you should consider spreadbetting in order to control your risk to a greater extent. It sounds as though your not comfortable with your trades due to the risk that is placed on each trade (please correct me if I'm assuming wrong) and hence why you feel the need to jump out of trades quickly.. If the trade cannot do a great deal of damage to your account then you'll feel much more comfortable in holding on for longer.
The blog sounds great and I would appreciate joining. Happy to write... although not sure how useful my thoughts would be
Thanks for the link and your views. Again I find this tread very interesting and I think you hit the nail on the head with your journal - of course you keep a journal !! sometime I cannot see the wood for the trees!
Interesting point you make about spreadbetting firms. I cannot substantiate in any way but have also heard that they dick about with your account in all manner of ways and will occasion trade against you if your a new trader. I think they're are better types of account out there but for now I manage to make a profit in spite of their spreads and can work within my risk profile so they get my business. I've been considering DMA (Direct Market Access) but have not really had the time to look into it. Will have a look at futures also.
Sounds as though life is good - At home, No rent, No costs...
what is it you do? I've worked in IT sales for the last 10 years so have had sometime working from home.. hence why I got into this originally.
10k minimum account size for an automated system - I'm guessing because your trading it through futures contracts? Sure you could bring down that requirement if you trades an automated system through a spreadbetting firm. Sounds like they did great
10k to 20k in a few months... I'll definitely have a look at them.
S&P position holding steady... only just in profit for the day with 1 hour before the close... time for a glass of vino I think!