tommiho » Wed Dec 10, 2014 7:58 pm wrote:Guys what kind of money management are you using?
If you are more less sure that you have the next move direction fixed but you didn't manage to hit it in the right spot like in the pins, do you ease in the position in few trades? So the total trade size is staggered a bit? Just to spread the risk and drawdawn? Or just dump it all at one place?
thanks
Since beginning to grasp a few of the concepts CJ presented, my best win rate has been 67%.
On average it hovers around 55%.
But that doesn't worry me none coz at that same time my a/c is up x10, or x14
Two truths that helped set me free on the way along:
1. If you knew that the a/c you were trading would eventually be VERY successful, would you have any problem cutting losses?
2. The idea is to make money, not to be perfect
I make a good number of losses [ you guys see my charts, you know some don't work out as I thought ].
Some losses are valid ( like if I'd have gone long on EJ/CJ a day ago ), and some due to impatience / forcing a setup where it's not there.
But after killing quite a few live accounts in the past ( the boom and bust cycle ), #1 above sunk in and became functional. The acceptance of the fact that I'm not a mind reader, trades can and will go against me at times. That there's no shame losing $2000 today, and SAVING THE CAPITAL that can gain me 10 times that number the next week. So a loss cut off is acstually a GAIN --> the capital that remains is like a seed that will reproduce itself a 1000 times over in time.
This week, my mind was off with other worries, so I haven't traded, have just watched from sidelines [ another hard-learned lesson --> that this is a MIND GAME; if the mind is not fully there, it'll translate into losses ]. I think the only trade idea which would have worked out so far would have been the NZDUSD [ but I'd have made it pay for all the losses, and some profit on top ]
When I'm more of less sure that I have the next move direction fixed [ say I think price is going to go up ], I put on a market order or 2, and sometimes pending orders for better pricing. If price moves against me, I add more positions (full positions, not split positions) if I can get a better price.
For the particular type of trade idea, I define in my head at which point the trade idea is invalidated. If I was trading a BARF SHORT, then price goes past what I thought was the Higher High, then trade is invalidated, and I cut the losses. If on the other hand it starts moving my way with encouraging signs (e.g pins pointing down when I'm long), I will add full positions while my margin increases [ e.g the GBPNZD trade from about 11 days ago ]. I don't have a final lot-size in mind; just what my account balance can handle SO LONG AS PRICE IS PLAYING OUT LIKE I THOUGHT IT WOULD. At some point I stop, and just let price go.
When I don't get in at an optimal place, I don't stack as much, maybe just one or two positions. But if I feel the train has already left the station, I often let it go, purely to keep my mind and check and not be reckless.
I've realized that I'm not good with price predictions (actually, I suck at it), and sometimes BARF throws me off. But I've also realized I don't need all the knowledge to make money, just what I understand, and for me that's Ms,Ws, and Levels
Sorry for the long-winded post
Cheers |
