NexusFi: Find Your Edge


Home Menu

 





Really afraid to trade?


Discussion in Psychology and Money Management

Updated
      Top Posters
    1. looks_one monpere with 14 posts (21 thanks)
    2. looks_two nillz123 with 11 posts (8 thanks)
    3. looks_3 mainstream with 7 posts (2 thanks)
    4. looks_4 c12345 with 6 posts (7 thanks)
      Best Posters
    1. looks_one Big Mike with 7.7 thanks per post
    2. looks_two jagui with 5 thanks per post
    3. looks_3 tmmaggi with 3.4 thanks per post
    4. looks_4 monpere with 1.5 thanks per post
    1. trending_up 35,944 views
    2. thumb_up 178 thanks given
    3. group 49 followers
    1. forum 125 posts
    2. attach_file 5 attachments




 
Search this Thread

Really afraid to trade?

  #41 (permalink)
Maineiac
Niles, Illinois, United States
 
Posts: 3 since Aug 2010
Thanks Given: 0
Thanks Received: 3

The ah-ha moment for me was truly understanding expectancy. Now I take 2 trades per day -ES. Opening and afternoon push, period.

2 point stop, 4 point target with 55% win ratio.

No indicators, single time frame, single signal that works for me.

Works out to 44 trades per month, 24 winners for 97 points, 20 losers for 40 points. Net 37 points, 4.5 points on commissions paid-net, net 32.5 points. 3 ticks expectancy per trade- winners or losers.

Good luck to all.

Reply With Quote

Can you help answer these questions
from other members on NexusFi?
Deepmoney LLM
Elite Quantitative GenAI/LLM
NT7 Indicator Script Troubleshooting - Camarilla Pivots
NinjaTrader
Build trailing stop for micro index(s)
Psychology and Money Management
The space time continuum and the dynamics of a financial …
Emini and Emicro Index
Are there any eval firms that allow you to sink to your …
Traders Hideout
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Get funded firms 2023/2024 - Any recommendations or word …
59 thanks
Funded Trader platforms
37 thanks
GFIs1 1 DAX trade per day journal
22 thanks
NexusFi site changelog and issues/problem reporting
22 thanks
The Program
20 thanks
  #42 (permalink)
 mainstream 
Chicago, IL
 
Experience: Master
Platform: Kinetick Ninja Trader <7>
Broker: Ninja & IB
Trading: YM & Equities & Options & Mutual Funds
Posts: 174 since Jun 2010
Thanks Given: 57
Thanks Received: 88


Ryanb View Post
I
i have 6 markets on my screens, that makes it for me easier to trade (i mainly trade 2 markets)

I used to have all the markets up like that, and would get killed on days where the correlations were off. How do you handle that scenario?

Reply With Quote
  #43 (permalink)
 
Ryanb's Avatar
 Ryanb 
Netherlands
 
Experience: Advanced
Platform: none
Trading: Stocks
Posts: 195 since Sep 2010
Thanks Given: 117
Thanks Received: 358



mainstream View Post
I used to have all the markets up like that, and would get killed on days where the correlations were off. How do you handle that scenario?

Most of the time the correlations are gone when there was some kind of news, and thats what i`m also following.
Multiple markets give me more feel for the way it moves, if the correlations are off then my feeling is not good and so i don't trade.

Reply With Quote
  #44 (permalink)
 mainstream 
Chicago, IL
 
Experience: Master
Platform: Kinetick Ninja Trader <7>
Broker: Ninja & IB
Trading: YM & Equities & Options & Mutual Funds
Posts: 174 since Jun 2010
Thanks Given: 57
Thanks Received: 88


Maineiac View Post
Opening and afternoon push, period.

2 point stop, 4 point target with 55% win ratio.

Why such a big stop? Especially for the AM trade? Another good time is the European close.

Reply With Quote
  #45 (permalink)
Maineiac
Niles, Illinois, United States
 
Posts: 3 since Aug 2010
Thanks Given: 0
Thanks Received: 3


mainstream View Post
Why such a big stop? Especially for the AM trade? Another good time is the European close.

A tighter stop just was giving money away, getting stopped out way too often with AM volatility.

Reply With Quote
  #46 (permalink)
 
monpere's Avatar
 monpere 
Bala, PA, USA
 
Experience: Intermediate
Platform: NinjaTrader
Broker: Mirus, IB
Trading: SPY, Oil, Euro
Posts: 1,854 since Jul 2010
Thanks Given: 300
Thanks Received: 3,371


Maineiac View Post
The ah-ha moment for me was truly understanding expectancy. Now I take 2 trades per day -ES. Opening and afternoon push, period.

2 point stop, 4 point target with 55% win ratio.

No indicators, single time frame, single signal that works for me.

Works out to 44 trades per month, 24 winners for 97 points, 20 losers for 40 points. Net 37 points, 4.5 points on commissions paid-net, net 32.5 points. 3 ticks expectancy per trade- winners or losers.

Good luck to all.

I had the same ah-ha moment, when I got the gumption to change my trading plan to go from a 1:1 reward/risk ratio to 3:1. My struggling, barely break even methodology turned profitable overnight. With a 1:1 ratio, I was always timid and fearful of every trade, so I would skip trades out of fear, and if the skipped trade was a winner, I would get really frustrated and go into revenge mode. So, I decided to dump the discretion, go purely mechanical, and take every signal once I observed that a 3:1 reward/risk ratio would result in about the same win/loss ratio as the 1:1 reward/risk.

I trade the YM with a 4 tick stop, and 12 tick target period, all in all out, I don't care what the market does, every trade gives me 12 ticks, or takes 4 ticks. Now, knowing that my system is a bit less then 50% accurate with 1:1 ratio, with the same accuracy at a 3:1 ratio, I now rely solely on the math, and take every signal without fear or hesitation, because I know that my scalping system which generates about 20 trades/day, I would need to have 16 losers out of 20 (which has never happened) to have a losing day. So, in the end, I think fear is only an issue for discretionary traders. If you are mechanical, and trust the expectancy of your system, you should be able to let go of your fear, and pull the trigger without a 2nd thought.

Reply With Quote
  #47 (permalink)
 mainstream 
Chicago, IL
 
Experience: Master
Platform: Kinetick Ninja Trader <7>
Broker: Ninja & IB
Trading: YM & Equities & Options & Mutual Funds
Posts: 174 since Jun 2010
Thanks Given: 57
Thanks Received: 88


monpere View Post
my scalping system which generates about 20 trades/day.


That is a lot of trades in a day! What is your TICK goal??

Reply With Quote
  #48 (permalink)
 
monpere's Avatar
 monpere 
Bala, PA, USA
 
Experience: Intermediate
Platform: NinjaTrader
Broker: Mirus, IB
Trading: SPY, Oil, Euro
Posts: 1,854 since Jul 2010
Thanks Given: 300
Thanks Received: 3,371


mainstream View Post
That is a lot of trades in a day! What is your TICK goal??

I have a small account, so I need to trade cheaply, hence I chose the YM, and trade 1 contract. I generally reach my daily goal by noon, and then switch to sim. Because of my personality, I have to be a scalper, I can't sit in a trade for even 15 minutes or I get jittery. I am most comfortable pulling the trigger a lot, but be in trades for a very short time. My average trades last less then 90 seconds. That is just perfect for who I am. I am thinking of moving to the CL, I think my average trade time will probably be even less, but I need to study the CL some more before I put the big boy pants on

Reply With Quote
  #49 (permalink)
 itrade2win 
New York
 
Experience: Intermediate
Platform: Sierra Charts, TOS
Trading: E-mini S&P 500
Posts: 751 since Aug 2010
Thanks Given: 447
Thanks Received: 437

The CL is not for small accounts. Margins are much higher compared to ES and YM. 2000/1 compared to 500/1 and I would recommend 10,000/1 minimum if you're new to trading.

Reply With Quote
  #50 (permalink)
 
monpere's Avatar
 monpere 
Bala, PA, USA
 
Experience: Intermediate
Platform: NinjaTrader
Broker: Mirus, IB
Trading: SPY, Oil, Euro
Posts: 1,854 since Jul 2010
Thanks Given: 300
Thanks Received: 3,371



itrade2win View Post
The CL is not for small accounts. Margins are much higher compared to ES and YM. 2000/1 compared to 500/1 and I would recommend 10,000/1 minimum if you're new to trading.

I tried out the CL today with my YM strategy. Started trading 8:00am EST, reached my daily goal with 4 winners by 9:08am !!! Looks promising! Have to try this beast out some more and see. I know the market has a way to lure you in, just to then grab you and spank you . Gonna trade it the rest of the day in Sim.

Reply With Quote




Last Updated on December 16, 2012


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
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.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts