@Yuri57 and really believe that I have seen just about everything you could imagine in trading and I can name only a very few locals from the Chicago floor trading community that were typically 1000 up on a given market. This, what we do today is quite a bit different than what went on in the hey day of open outcry market making....meaning that it is way way more difficult today to efficiently trade anything even near 100 contracts at a time from a computer screen.
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I have that issue all the time. I want to be a position trading local like back in the day, but that is nearly impossible. Often I feel like I am just trading or scalping the noise and that is outside of what I identify with as a trader. That said, the best guys could always and continue to do as tigertrader suggests.
The "reversion trade" or non trend, as he describes it, is or could be described as a statistical or quasi-statistical model based entry signaled by anything observable and somewhat repeatable. The case for evidence based technical analysis. In my case the trade entries are nearly the same, at least to a point that I review the potential of a trade to not be worth the identifiable risk of entry. The exits on the other had are totally different....more subjective based on what is given. 3 or 4 es handles is not a very productive trend situation outcome BUT six three or four handle trades, some on each side of the market can add up to tremendous productivity to the guy that can repeat the outcome.
Trend also, can be subjective. But the best earners, true enough, are adding to their positions with the trend right at the prices where the majority are starting to take profits. Good traders press the hell out of their winners.
Last edited by wldman; January 20th, 2014 at 08:38 PM.
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I can't agree more, and I appreciate your word phrases, because so many of us retail traders, after going a few rounds, either as trading groups gathered around some room, concept or shared approach, have drawn similar conclusions, just not as well worded, thorough or fully aware of all those parallel details.
Successful floor traders, amongst all those that were there, and those that had large accounts, were able to rest against orders and in essence take virtually risk-less trades over and over. As things go, those that were able to do that earliest in the life cycle of the contract traded became powerhouses in the pit.
Electronic success by essence comes from take many small profits, and over time, those themselves adding up to ones targets, goals or needs. Home-run trades happen, but are not the norm, even for position traders willing to stay through overnight margin calls or stay multi-day trades. One has to constantly fight against the natural human emotion of only seeking, preferring or looking for home-run trades, and get back to the grind and grind out a living with less than stellar trades, hopefully of a profitable nature and holding the line on losing trades.
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Over the years I found that the optimal approach is the one that fits with my personality (i.e. one that I can stomach). I know this is a trading cliche repeated over and over.... but it's true. For me, that means scalping and frequent winning.
As a trader, I have to feel happy and content with the way I work. Otherwise, I won't be able to execute properly or withstand drawdowns.
"...the degree to which you think you know, assume you know, or in any way need to know what is going to happen next, is equal to the degree to which you will fail as a trader." - Mark Douglas
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