Rule #1: Follow your rules Rule #2: Make sure you have good rules
Try practicing a bit more on the sim just to prove to yourself that if you follow your plan, things will turn out OK. Having that "faith" really helps during the heat of the moment.
Just remember, that no set of rules are perfect. There are a lot more gray areas to trading than many people concede.
Specifically, regarding the trade I didn't hold. There are 3 rules that came into play:
1) If I am up 1R or more and the trade falters 30% - bail out. 2) If I see volume coming on to reinforce my trade I will continue to hold the trade over 1.5 R until volume falters. 3) Typical profit target is 1.5R
These are all very fine rules and have been tested extensively. However, I had a doubt. After the trade began to falter say 20-30% ish, I thought, "I don't want a loser to start the day". And hit the exit. I actually strictly followed my rules. But it is like the Matrix - you have to know when to bend the rules, or even break them. Why? Because the reason price faltered was it was setting up to break out. Selling volume didn't come in, but buying volume temporarily stopped.
A big part of my edge as a discretionary trader is "reading" the market. If I trade like a retarded robot I can expect to see results indicitive of that level of trading.
"Big losses are normal part of trading. Just keep them contained. You're doing fine, Jules."
Hi Jules, I concur with sage. Additionally, I've learned that once in a trade and when any of your exit signals show up (per your trading plan), act ASAP as we know the market can just turn on a dime for sometimes no apparent reason.
Thank you, all. Really appreciate the kind notes. I am keeping myself together, but will need a better time to respond to each of you. Yesterday happened to be the first year anniversary of my worst nightmare. I hadn't realized that until this morning. Creeping bad karma.
I am pissed with myself.
7 comments:
I can't hold on, you can't let go. Good grief!
LT
Rule #1: Follow your rules
Rule #2: Make sure you have good rules
Try practicing a bit more on the sim just to prove to yourself that if you follow your plan, things will turn out OK. Having that "faith" really helps during the heat of the moment.
Keep after it.
Stan
Just remember, that no set of rules are perfect. There are a lot more gray areas to trading than many people concede.
Specifically, regarding the trade I didn't hold. There are 3 rules that came into play:
1) If I am up 1R or more and the trade falters 30% - bail out.
2) If I see volume coming on to reinforce my trade I will continue to hold the trade over 1.5 R until volume falters.
3) Typical profit target is 1.5R
These are all very fine rules and have been tested extensively. However, I had a doubt. After the trade began to falter say 20-30% ish, I thought, "I don't want a loser to start the day". And hit the exit. I actually strictly followed my rules. But it is like the Matrix - you have to know when to bend the rules, or even break them. Why? Because the reason price faltered was it was setting up to break out. Selling volume didn't come in, but buying volume temporarily stopped.
A big part of my edge as a discretionary trader is "reading" the market. If I trade like a retarded robot I can expect to see results indicitive of that level of trading.
LT
=/
I think Ron Sen (@ ronsen.blogspot.com) is a doctor.
=)
Big losses are normal part of trading. Just keep them contained. You're doing fine, Jules.
"Big losses are normal part of trading. Just keep them contained. You're doing fine, Jules."
Hi Jules, I concur with sage. Additionally, I've learned that once in a trade and when any of your exit signals show up (per your trading plan), act ASAP as we know the market can just turn on a dime for sometimes no apparent reason.
Think girl power, Jules!
Thank you, all. Really appreciate the kind notes. I am keeping myself together, but will need a better time to respond to each of you. Yesterday happened to be the first year anniversary of my worst nightmare. I hadn't realized that until this morning. Creeping bad karma.
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