Congrats iqqod! I've heard that's the best way to start out with a relatively small balance and to keep it at least maintained and not losing money which is maybe the biggest breakthough of the learning. If the account is depleted to the halfway point then one is suggested to take time off , maybe a few months and regroup and/or stay in sim. Then when returning live, the account is replenished so one never suffers , psychologically, a full busted account.
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Do you think these two points conflict with each other, ie if one stops trading after say two or three consecutive losers as part of a daily max loss/risk management strategy and misses valid trades because of this, does this destroy the odds of the high probability system working in your favor over time, with strings of losing trades here and there needing to be taken?
Thanks for your journal and sharing!
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@iqgod, you're welcome, I point it out because I am conflicted with the same myself. Based on my past results, I believe I would be most profitable by limiting my losses to the minimum and my losing days to the minimum, even calling it a day after just two full stop outs; even if this skews the odds of the system working over time by missing valid setups. I believe this is because for my psychological skill level, I am more likely to be trading poorly at that point or out of sync with the market.
I would be interested to hear more discussion on this topic from others, but IMO the risk management aspect of protecting against huge losing days is more important than possibly reducing the odds of the system by missing valid setups.
At this point in my life trading has become so boring - 90% of the time its a doormat position (a doormat with eyes if you will).
Suddenly (or not so suddenly if you are in the correct attitude) 10% of the time the sniper has to activate.
Once the shot is fired its back to the doormat position, the trade is now out of your hands!
Rinse repeat! (and more often than not -yawn!)
This was not what I expected profitable trading would be all about.
Of course good trading means you have a disciplined lifestyle.
The routine is almost set. Do the hard work pre-market then get into the doormat position (the market is the 800-pound gorilla stepping on you so I better be a doormat) - and trading is limitless - the more you put in the more you reap!
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The most important line for me as I begin another trading session:
I DO NOT KNOW what price is going to do next.
I DO NOT KNOW.
But I am aware of, and KNOW that I DO NOT KNOW.
..... but .....
"I buckle up my seat belt and take that next trade. I have a tested and verified edge. Wearing a seatbelt does not guarantee anything, yet I have to drive on a reasonably clear and safe highway ("trust my edge")."
Last edited by iqgod; June 18th, 2013 at 08:43 AM.
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