Monday, July 30, 2007

Commitment

You get paid to trade the market not to watch the market

I won't earn a dime, saying this is a long signal and I should go long as long as I don't do it

I never saw myself as being trigger shy, but I sure had hours when I was sitting in front of the computer, watching the charts and doing nothing, even if I thought: This is a long, that is a short...shit why did I not take it

Friday I lost a nice green day in a nasty FTSE selloff, when my Stop triggered at the bottom. (I had decided to leave a trade open, when I left for 1h and had set a disaster stop, which -as usual- I did not expect to get hit) 

From +500 to -2500. I traded 1500 back the same day by commiting myself to take every FTSE signal I saw and even if that stop at the bottom hurt, in the evening I was feeling quite good, being able to trade 50% of that loss back. After the close and over the weekend I tried to analyze what I made right and it really was just taking every signal and knowing the longer swings. Still there remained that lingering doubt, will I be able to continue trading with this kind of commitment.

Monday 2:30pm CEST (8:30am EST) and I managed to trade not every FTSE swing but enough to make back another 1000 bringing the account above Fridays open.

A few weeks back I told someone I'm usually able to tradeback a loss within a day. And on these days I'm usually very focused, very aware of the swings. I'm usually not taking greater risks, but often I'm taking more trades. I'm not sitting in front of the computer just watching the market, but taking the signals I see and trading them as good as possible.

Chris, continue doing what you do right!

4 comments:

Anonymous said...

Chris,

I think that if you had adhered to the principles that gb007 tried to instill in you that you would be a far, far better trader today than what your blog has revealed. Your stop management is holding you back from greater things.

Globetrader said...

Well anonymous, you are so right. But the pure 30/34 system GB007 was teaching used no stop at all, instead it traded just reversals. GB007 introduced stops in his system later, that's correct. Actually using no stops my account may be higher today. Unfortunatly I can't afford it. So I swing from wide stops to small stops. The last 2 days smaller stops (~150$/contract) worked fine and it might be I gyrate to contracts, where I can use this kind of stop, while I still have enough volatility for decent moves.

david_uk said...

Hi croc,

I really do admire your continuous thought-provoking questioning, as laid out in your most interesting Blog.

One thing I am sure about and that is when you do build up your trading account to $50,000 and more, you will then find that your trading proceeds much more profitably for no other reason other than you are no longer having to 'watch all the pennies' ... at that stage you can trade in a far more relaxed state of mind and that in itself will, I am sure, increase your profitablity.

I am intrigued that 'anonymous' (who clearly knows you for so many years ... from your / our Woodie days) chooses not to append his name / nick)... it would be interesting to read you this 'anon' is but that is not to be.

All the best,

David_uk

Gary(peaktrade) said...

Yes, I remember too, the GB 30/34 setup from my "Woodie" days too,(jeez,wish I had that whipsaw "tuition" back),only the 30/34 "system" was longer term, more tortuous tuition then the "zeroline/turbo crossover" Whipsaw Deluxe that "Woodie" has down to a Science...Thanks for the Waltz down Memory Lane Croc...