What do you do to stop overtrading / manage trades? | Psychology and Money Management


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What do you do to stop overtrading / manage trades?

  #69 (permalink)

Legendary Market Wizard
Cincinnati Ohio
 
Trading Experience: Intermediate
Platform: NinjaTrader
Broker/Data: Futures Broker
Favorite Futures: FX, Stocks, Options
 
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Posts: 1,772 since Feb 2011
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Grantx View Post
I would really like to hear more @Silver Dragon.
Do you trade single or multiple instruments?
Single or multiple setups?
Are you all in or do you scale into and out of trades?
If you use scaling, do you scale with the trade, against it or both?
How do you manage your risk?
Do you trade futures and options?
How do you balance the technical vs sentiment conflict? i.e. are you more discretion or more mechanical?

I have more but Ill leave it at that for now. You obviously dont have to answer anything but the only other person subtly recommending longer timeframes is @wldman. You have been trading for a lot longer than most and thats why I think you (and any other longer term traders) have a lot to offer in terms of lessons learned and how you approach trading. I think its great that people help one another on specifics but answers also come just by listening to more experienced traders talking in general terms.

@Grantx

As I mentioned in my previous post, I am new to long term trading. coming up on a month on actual trading. My answers are based on what I know today. I will defer to @wldman for expert opinions.

I like to learn with real money. I decided to go with micro futures because of the number of instruments available. Currently I have 28 pairs in my trading universe.

Do you trade single or multiple instruments? Multiple . Most open positions I have had to this point is 7 different pairs.

Single or multiple setups? Multiple. Trend breaks, breakouts.

Are you all in or do you scale into and out of trades? At this point, all in.

How do you manage your risk? Right now my risk is limited, because I am trading micro forex. However, as I scale up I will be risking 1% of capital on any one trade.

Do you trade futures and options? Forex. Looking to add micro futures in the coming months. Looking at options as well.

How do you balance the technical vs sentiment conflict? i.e. are you more discretion or more mechanical? I am a discretionary trader. I look at price movement then factor in RSI movement to determine bull/bear trend. I look for reversals in the direction of the trend. I will take a counter trend trade if the setup is good.

Hope this helps.
Robert

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