I like the emphasis on defining risk instead of chasing reward, and the reminder that money management matters more than any single system. The transparency around showing both wins and losses is refreshing.
What’s the one risk rule you think newer traders struggle with the most when they start applying this kind of model?
I’ve subscribed and would be happy to support each other.
The biggest problem, most traders have that they don’t have a back tested structured trading plan. That’s really the biggest wrist most people take when they attempt to trade markets. They think that it’s gunslinging when it is really a very measured strategy. During my trading session, I literally stood on my hands until all the conditions that I trade are set. What I’m trying to settle myself now since volatility has become a greater portion of trading is to look at the breakout strategies I use and to determine whether to take the first breakout or the subsequent breakout after a retest. That’s what I’m testing right now and I’m going through the process of screening those issues. Those are the main reasons I lose money. I seldom blow things into oblivion and I always set a maximum risk per day and then I walk away from the trades after that. I usually don’t trade more than about 2 1/2 hours of the day and generally I’m done by 10 1015 most days if I start at the 930 session. When there is news out, I may delay my workout until the afternoon and I’ll stay and try the pre-session around 8:30 AM EST. I’m just trying to clean up the edges so that I can scale faster. That’s always the issue for me. Is how to trim those losses or to get to breakeven as quickly as possible without sacrificing the trade.
I am actively collecting data on an often used technique that can help or hurt your win/loss ratio. The key in a short-term trading environment is understanding the level of volatility you can withstand before your target gets hit. Happened to me today on the first trade, and it shut down further trading for the day (which is only about 2 hours long for me). More will be coming soon!
I like the emphasis on defining risk instead of chasing reward, and the reminder that money management matters more than any single system. The transparency around showing both wins and losses is refreshing.
What’s the one risk rule you think newer traders struggle with the most when they start applying this kind of model?
I’ve subscribed and would be happy to support each other.
Jorrit
The biggest problem, most traders have that they don’t have a back tested structured trading plan. That’s really the biggest wrist most people take when they attempt to trade markets. They think that it’s gunslinging when it is really a very measured strategy. During my trading session, I literally stood on my hands until all the conditions that I trade are set. What I’m trying to settle myself now since volatility has become a greater portion of trading is to look at the breakout strategies I use and to determine whether to take the first breakout or the subsequent breakout after a retest. That’s what I’m testing right now and I’m going through the process of screening those issues. Those are the main reasons I lose money. I seldom blow things into oblivion and I always set a maximum risk per day and then I walk away from the trades after that. I usually don’t trade more than about 2 1/2 hours of the day and generally I’m done by 10 1015 most days if I start at the 930 session. When there is news out, I may delay my workout until the afternoon and I’ll stay and try the pre-session around 8:30 AM EST. I’m just trying to clean up the edges so that I can scale faster. That’s always the issue for me. Is how to trim those losses or to get to breakeven as quickly as possible without sacrificing the trade.
I am actively collecting data on an often used technique that can help or hurt your win/loss ratio. The key in a short-term trading environment is understanding the level of volatility you can withstand before your target gets hit. Happened to me today on the first trade, and it shut down further trading for the day (which is only about 2 hours long for me). More will be coming soon!