I am on a eight day profit streak. Altough I am sim trading, and my gains are small, it is still 8 consecutive profitable days. I've never had consistency like this, live or sim trading. The majority of my mind is attributing this to following my plan: catching momentum with good risk management. But there is a part of my mind that is saying "This is luck, it's only a matter of time until you lose it."
I think a cause of this problem is in a common day I'll have several losing trades or be breaking even...then I'll have a big winner or two that pushes me green for the day. Looking at this at the end of the day I can say..."oh, good risk management, you let your winner(s) run and kept your losses small." But what happens if I don't get those one or two big winners? I feel like I'm lucky to have found them.
Have you ever struggled with the same thoughts? If so, how did you overcome? If I don't get rid of this "it's all luck" thought, I feel it will impact me psychologically on a losing day by saying to that thought "Yep, you were right."
DTF- To be sure I'm licking my chops at the prospect of AAPL piledriving $100 lower but on the other hand I won't fight it if it turns and goes to $400. RVM- You make your own luck when your preparation meets opportunity. Losing trades are a big part of trading, the sooner you acknowledge that fact the sooner that losing trades can be cut short.Look on the positive sides of things - your span of winning trades vs. losing trades. The diligent application of your system will make you a winner even though you have losing trades.
dtf and i were talking today about how one can be negative on a day but still feel good about it because you followed your plan. on the other hand, you can be positive on the day but feel crummy because you didn't follow the plan.
Scott - it is simply uncanny how you are able to hold thru the 'fluff' and exit at THE turn around. Nailed it once again on this trade. Hats off bro.
Quick question on your overnighters - are you using another time frame to make your over night hold decisions? I don't see myself trying them but am curious.
DTF- any way I slice it, it is still just following the momentum. If I take a $10 or $15 run for profits, it is because I see a huge opportunity to complete the trade as a profitable one on my time and because the market is telling me to. On AAPL here the $300 is going to be on traders minds as an important level in the way that $297.37 or whatever is not.A good dip down is what I was waiting for. When it came I didn't let the opportunity pass me by. I don't use any other time frame for overnighters. I saw something last week that has spurred on these longer holds( I am short VNO,POT, and long SRS)and I may let those ride for a bit or end them when it'd be crazy not to.
From yesterday, AAPL short
6 comments:
So freakin' sweet.
Scott,
I am on a eight day profit streak. Altough I am sim trading, and my gains are small, it is still 8 consecutive profitable days. I've never had consistency like this, live or sim trading. The majority of my mind is attributing this to following my plan: catching momentum with good risk management. But there is a part of my mind that is saying "This is luck, it's only a matter of time until you lose it."
I think a cause of this problem is in a common day I'll have several losing trades or be breaking even...then I'll have a big winner or two that pushes me green for the day. Looking at this at the end of the day I can say..."oh, good risk management, you let your winner(s) run and kept your losses small." But what happens if I don't get those one or two big winners? I feel like I'm lucky to have found them.
Have you ever struggled with the same thoughts? If so, how did you overcome? If I don't get rid of this "it's all luck" thought, I feel it will impact me psychologically on a losing day by saying to that thought "Yep, you were right."
Thanks
DTF- To be sure I'm licking my chops at the prospect of AAPL piledriving $100 lower but on the other hand I won't fight it if it turns and goes to $400.
RVM- You make your own luck when your preparation meets opportunity. Losing trades are a big part of trading, the sooner you acknowledge that fact the sooner that losing trades can be cut short.Look on the positive sides of things - your span of winning trades vs. losing trades. The diligent application of your system will make you a winner even though you have losing trades.
dtf and i were talking today about how one can be negative on a day but still feel good about it because you followed your plan. on the other hand, you can be positive on the day but feel crummy because you didn't follow the plan.
one of these days i learn how to get past losers.
Scott - it is simply uncanny how you are able to hold thru the 'fluff' and exit at THE turn around. Nailed it once again on this trade. Hats off bro.
Quick question on your overnighters - are you using another time frame to make your over night hold decisions? I don't see myself trying them but am curious.
DTF- any way I slice it, it is still just following the momentum. If I take a $10 or $15 run for profits, it is because I see a huge opportunity to complete the trade as a profitable one on my time and because the market is telling me to. On AAPL here the $300 is going to be on traders minds as an important level in the way that $297.37 or whatever is not.A good dip down is what I was waiting for. When it came I didn't let the opportunity pass me by.
I don't use any other time frame for overnighters. I saw something last week that has spurred on these longer holds( I am short VNO,POT, and long SRS)and I may let those ride for a bit or end them when it'd be crazy not to.
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