Most of your profits come from ... (base hits vs homeruns) - Psychology and Money Management | futures io social day trading
futures io futures trading


Most of your profits come from ... (base hits vs homeruns)
Updated: Views / Replies:4,193 / 36
Created: by Big Mike Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors – all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you don’t need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

Most of your profits come from ... (base hits vs homeruns)

  #31 (permalink)
Trading Apprentice
Australia
 
Futures Experience: Advanced
Platform: Ninja Trader, Jigsaw Trader
Broker/Data: Kenetic
Favorite Futures: Bonds ZN, ZB, ZF
 
joeyk's Avatar
 
Posts: 24 since Jul 2013
Thanks: 14 given, 76 received

Why you need small profits?
Its for emotional capital. If you keep trading to go for home runs your emotional capital will run low. Getting big wins is hard and if you keep getting chopped up you will probably miss the trade you should of taken to get the home run because your emotional capital was low and you were sick of losing.

I consistently take 3 ticks in the bonds market and keeps me in the game. They stack up every day and keep my business open the next day.

Home runs?

A home run for me is like 6 + ticks. They happen when traders are puking and exiting losing positions and a lot of new money is coming in too.

They keep me in the game in a major way. If you trade 10 of these a month they def stack up right? What about if you get 15 of these a month? 6 tick Rallies are common in my market so they happen often. But you need the emotional capital to trade them. How do you keep your emotional captial in check? By taking small profits when you can.

Finding the balance between home runs and small profits will come with experience.


Last edited by joeyk; July 25th, 2013 at 03:56 AM.
Reply With Quote
The following 6 users say Thank You to joeyk for this post:
 
  #32 (permalink)
Elite Member
Philadelphia
 
Futures Experience: None
Platform: corded black telephone
Favorite Futures: ticker tape
 
Itchymoku's Avatar
 
Posts: 2,892 since Apr 2012
Thanks: 1,681 given, 3,621 received


joeyk View Post
Why you need small profits?
Its for emotional capital. If you keep trading to go for home runs your emotional capital will run low. Getting big wins is hard and if you keep getting chopped up you will probably miss the trade you should of taken to get the home run because your emotional capital was low and you were sick of losing.

I consistently take 3 ticks in the bonds market and keeps me in the game. They stack up every day and keep my business open the next day.

Home runs?

A home run for me is like 6 + ticks. They happen when traders are puking and exiting losing positions and a lot of new money is coming in too.

They keep me in the game in a major way. If you trade 10 of these a month they def stack up right? What about if you get 15 of these a month? 6 tick Rallies are common in my market so they happen often. But you need the emotional capital to trade them. How do you keep your emotional captial in check? By taking small profits when you can.

Finding the balance between home runs and small profits will come with experience.

Just curious, How do you manage where you exit? Do you find it advantageous to trail your stop order and leave no limit order to allow opportunity for price to run? I still work on this aspect as a trader and wonder how others prefer go about it. Thanks

Reply With Quote
 
  #33 (permalink)
Elite Member
Portland, OR
 
Futures Experience: None
Platform: tos
Favorite Futures: NQ, SB, 6J, CL, GC
 
Massive l's Avatar
 
Posts: 1,458 since Mar 2011
Thanks: 922 given, 1,822 received

I already commented..further detail below


I use a scale out method where my first target would be considered a base hit.
Then I hold onto it to see if I can maximize my gains (homerun). A homerun for me
ranges anywhere from 2-6R my initial target.

Psychology > Strategy ≥ Money
Reply With Quote
The following user says Thank You to Massive l for this post:
 
  #34 (permalink)
Elite Member
Philadelphia
 
Futures Experience: None
Platform: corded black telephone
Favorite Futures: ticker tape
 
Itchymoku's Avatar
 
Posts: 2,892 since Apr 2012
Thanks: 1,681 given, 3,621 received


Massive l View Post
I use a scale out method where my first target would be considered a base hit.
Then I hold onto it to see if I can maximize my gains (homerun). A homerun for me
ranges anywhere from 2-6R my initial target.

Could you elaborate more on how you manage the home run? For instance, what are you looking for to get out of the home runner? Do you hold onto price to the next level you've identified in advance despite exhaustion or do you use some discretion to keep what you've made? Or, do you use some sort of time exit like exiting at the end of the day regardless of all of the above?

Reply With Quote
 
  #35 (permalink)
Trading Apprentice
Australia
 
Futures Experience: Advanced
Platform: Ninja Trader, Jigsaw Trader
Broker/Data: Kenetic
Favorite Futures: Bonds ZN, ZB, ZF
 
joeyk's Avatar
 
Posts: 24 since Jul 2013
Thanks: 14 given, 76 received


Itchymoku View Post
Just curious, How do you manage where you exit? Do you find it advantageous to trail your stop order and leave no limit order to allow opportunity for price to run? I still work on this aspect as a trader and wonder how others prefer go about it. Thanks

Exiting is a skill you become good by doing it. I had a lot of trouble for many months but getting consistent with taking profits. Im just letting you know this first because i know the feeling of not knowing when to exit when your not consistent yet.

How i exit
How i exit is the same as how i enter. Im looking for size and traders coming in behind me pushing the market my direction.

If i enter a buy trader and i have traders coming in like 200, 100, 50, 50, ,200, 50, 20, 40, 100 contracts on the buy and all the sudden i see 2000 buy orders not move the market up i cover and take what i can. 2000 contracts should move the market based on the last hour of activty. This is just one simple scenario.

There is really no hard and fast rule to profit taking, its more art then science when your a discretionary trader.

Only hard rule is to follow the size and understand its not how size reacts to price but how price reacts to size.

One of the Prop Traders that gave me this advice i thought well f*$@) this is gona be hard. He was right. Its seriously and art. A Skill. You get better by doing it. Most my profits are 3 ticks and i get a 6 tick probably 50% of the days during this current market.

Losing trades

My losing trades are -1 to -2 ticks sometimes 3 ticks. 3 tick losers dont happen often. But again im looking for size.


Last edited by joeyk; July 26th, 2013 at 02:58 AM.
Reply With Quote
The following 4 users say Thank You to joeyk for this post:
 
  #36 (permalink)
Elite Member
Portland, OR
 
Futures Experience: None
Platform: tos
Favorite Futures: NQ, SB, 6J, CL, GC
 
Massive l's Avatar
 
Posts: 1,458 since Mar 2011
Thanks: 922 given, 1,822 received


Itchymoku View Post
Could you elaborate more on how you manage the home run? For instance, what are you looking for to get out of the home runner? Do you hold onto price to the next level you've identified in advance despite exhaustion or do you use some discretion to keep what you've made? Or, do you use some sort of time exit like exiting at the end of the day regardless of all of the above?

I have a predetermined level. I don't day trade that often. I'm usually holding positions for a few days up to a month.

Psychology > Strategy ≥ Money
Reply With Quote
 
  #37 (permalink)
Trading for Fun
london
 
Futures Experience: None
Platform: various
Favorite Futures: Glockenspiel
 
Posts: 166 since Jan 2012
Thanks: 43 given, 157 received


rubyslippage View Post
I'm an intraday scalper so I go for lots of base hits. But if a strong trending moves transpires, I often get a home run or two because I don't use fixed profit targets in a strong trend or if a measured move target is far away from an entry price.


Ditto. But I also position trade and find the distributions are about the same.

FWIW:

My thoughts are that if you model the market as random, you should be using fixed stops and profit targets.

If you trade based on the assumption the market is non random, you shouldnt employ targets, but let the fat tails/home runs come in.

I'm thinking along the lines of probability distributions of STD's


Last edited by TheDude; July 27th, 2013 at 03:23 PM.
Reply With Quote

Reply



futures io > > > Most of your profits come from ... (base hits vs homeruns)

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
NinjaTrader 7 List of used BarsType base(PeriodType.?) zacharydw00 NinjaTrader Programming 13 December 16th, 2015 01:59 PM
Stocks Data base Amiuser AmiBroker 23 November 7th, 2014 05:47 PM
Hedging against base currency fluctuations zktier Currency Futures 2 December 17th, 2012 08:05 PM
Calculating Adjusted Cost Base for Futures? DannyG Traders Hideout 6 April 2nd, 2012 05:32 PM
Trading Account Base Currency Ash669 Reviews of Brokers and Data Feeds 5 November 1st, 2011 12:15 AM


All times are GMT -4. The time now is 01:16 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-14 in 0.14 seconds with 19 queries on phoenix via your IP 54.234.255.29