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RE: Day 1: +$2,562.50 - A great beginning
Wow dude, that's nearly a 10% capital gain on one trade ? You must have a hell of a risk management strategy :-)
How much were you prepared to lose on that trade if it had went the wrong way ?
One morning of training. It involved about 6 or 7 round trips.
In terms of risk management, I’ve mentally planned for a 2% loss on any given trade and I watch every position like a hawk. I’ve tended to be more trigger happy and bail out sooner. From some playing around this has resulted in leaving profits on the table so working on my discipline is my biggest challenge right now.
Well it's good that you know what you've been doing wrong, most people don't, or won't admit it !
What you've been describing is the reason that people lose at trading, not waiting for a trade to finish and taking smaller profits earlier. Most also take too big a loss as well when it goes the wrong way which is the other side of the coin.
"I'm at my stop level, but I'll just let it go a little further... ok, a little bit more now... am sure it's going to turn around any second... just a few more points.. Oh crap, I'm down 10%" he he.
Hah! The thought has definitely entered my mind on the losses but a few weeks ago messing with low float stocks I experienced how that could very rapidly backfire. It’s very clear to me that this is a game of having a plan and the discipline to stick to it.
Absolutely, it's the thing I struggle with the most, every time I mess with the plan it backfires, always :-) That's why I've forced myself now to put on a trade with a profit and loss target and walk away.
You can drive yourself insane second guessing every trade, thinking you've made a mistake halfway through, justify to yourself that you should take early profits or take a smaller loss.
My trading is very mathematical based now, on probabilities. So I know if I don't stick to 'the plan' then it throws the maths out the window and it's just gambling instead.