A small win for me. Trader Tyro posted this link and it hit me in the head pretty hard. Ever since I have been trading full time my results have sucked.
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I have two big problems - I can't seem to pull the trigger on or fast enough with about 75% of my trades and if I do pull the trigger, I stop out so many of my trades before they can work. This is think is the main problem behind my trading. So many times I see the trades work but I am not in them.
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And yes I have tried everything from small lots to small stops to wide stops to low priced stocks to trading only 50 shares on high price stocks. Nothing seemed to work. The article Tyro posted was about the four types of problem traders - Frustrated, Anxious, Overconfident and Defeated. I think I fall into the anxious type.
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One relief for the anxious is to focus on process. So I thought to myself what are the items of a trade - entry, exit, stop loss and size. I saw a trade (chart above). I knew what I thought was a good entry. I knew what I thought was a good exit. I knew that it would be a 1 for 1 risk reward with a high chance it would word and I knew what size I should use. Simple right. So I placed the order and it was filled in a few seconds. I then placed the stop loss, and exit price and I walked away. I went upstairs and got the mail. I came back in about 10 minutes and found nothing had changed. Went back upstairs and got something to drink. Looked again like it was going to work and bingo - exit price filled.
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That all may seem stupid to everyone but it was a very small victory for me. The stock moved down enough where I might of jumped out. If I didn't and held through the heat, I might have gotten out as soon as I had a profit. Instead, I laid out a plan and followed it and was paid. Maybe this is a solution for me. Time will tell.
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The numbers:
Stock: gross +129 net +117 shared traded 2200
Stock futures: none
Other Futures: none
Forex: none
3 comments:
Nice trading, Denarii! I'm glad that my mental breakdown is more than just comic relief, it's also a good luck charm :)
Brett Steenbarger has a lot of gems in his site, and sometimes they seem to come along at exactly the right instant. Let's hope that we can both profit from his advice.
Yo denarii you have a nice exit target, but your stop lost is not that great though. If you have study fibonacci before, your stop lost is at the 61.8 . I would stop myself at 38. somthing though. Your exit target is good cos is the fibonacci expansion point 161.8.
Seem like you guys spot your trade throught breakout system. Anyway this is a nice trade with a sound system. well done !! =)
I can't remember how many times I kicked myself not to enter a trade after seeing a good setup and watched it running without me. So I told myself to just take the damn trade when I see and manage the risk after that. That helped me a little.
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