Well, at least for me. I'd like to share about what I found and useful in my trading. Some of them are provocating or mind boggling, but once again, it's good for me :)
For some of you aren't agree parts or whole of my wisdom then it's okay. It's more my personal findings than general wisdom.
1. I would rather entry based on my system and have to cut loss then entry by feeling or out of system and give profit. How can I analyze the 'feeling' and improve my trade? And it'll be sure become a bad habit.
2. Entry, cut loss, then re-entry sometimes at worse price is not a shame thing to do. It's an insurance I'm willing to pay from some 'fat finger' triggered that may wiped out my profit or account before I know it. (Remember May Day).
3. Go with the trend, even in sideways, go with the trend. Never ever try to pick top or bottom. If it doesn't work out, so be it.
4. S**t happened not sometimes, but most of the time. Misstype, wrong entry, missed trade, etc. So, just accept and do better next time.
5. Start with small, My Stop Loss less than 1% of my account, after gaining momentum, I add the position. This way, I will be sure stopped out dozens of time. But when I was right, I'll reap great profits, big enough to cover my paper cuts and more.
Hope this helps :)
i'm pondering on point #5. Can you elaborate. Do you mean you add to winning trade i.e pyramid? or you jsut increase size as you take the trades?
ReplyDeleteWell, I just start with 1 contract, after it went my way, I added. Then if there's pullback, I'll add the final entry on double top. I only target 3-5ticks from double top. SInce I have 4contracts, the profit will be quite big and the probability is extremely high.
ReplyDeleteThis method often occur on CL, like today. Too bad I focused on TF missed it :(