Feb 5, 2008

Same old story

Boy finds stock.
Boy shorts stock.
Boy adjusts stop to near breakeven after 1R gain.

Boy gets fucked as price hits his adjusted stop earning him decent change but then reverses and falls back down to the original price target which was the fib. ext and boy now feels stupid that he didn't just keep his original stop especially on the :30 chart which he knows he has to be patient on and then ends up writing one of the longest run on sentences in the history of daytrading blogs.

Boy posts chart.

Boy says goodnight.

Boy mentions he hasn't traded futures the last two days either.


Dave said...

007: I feel your pain. I got closed out of SNCR early and ended up with a scratch on ILMN when I had told myself I might even hold some of it for a swing.

LP said...

You, me and Dinosaur Trader can join the we sell too early club by fucking with out stops unfucking necessarily.

I need to get out of this scalper type mentality. I seriously felt better losing 1R by not adjusting the stop than how I feel now. I'm sitting on 1R for the past two days when I could be sitting on about 15 R. I kid you not.

Off Topic here: btw could you steal you mom in laws recipes and share it with us.

QQQBall said...

late day continuation rate:

DUG PB'ed to support near 46.10. i was waiting for it to "scoop" a bit with NRBs. but it threw a hammer and rocked up a buck w/o me!

LP: take partials with stop to BE?

OONR7 said...

lp: it really comes down to the fear of the consequences of being wrong. Do I want to feel the consequence of a 1R loss or breakeven? On the days when price shoots straight back up I feel like a genius.

qqqball: in a way, greed, is what stops me from partialing out at breakeven. Up until I was stopped out, I still had hope price would fall back down and hit the fib. ext. (which it did). The question here is whether there's ever a good reason to move your initial stop. I'm still figuring that out.

Trader a said...

hi there
had the same story on SOHU 30min chart, 1300 bar entry, moved my stop to almost breakeven and got out by a spike (1500 bar).
you know what, i dont regret it, sure, its frustrating, but ill do it again - on the long run following your plan is more important,it aint your fault that mr market is an unpredictable asshole.
im sure that if you took all the cases where you replaced your stop like you did today youll notice that overall it was a good call.

btw how much monthly R's do you think a trader should expect?

OONR7 said...

trader a: see... if I traded my plan (which is to exit a short only when price has significantly spiked or closed above the 5ema - and then exit off of that bar's high) then I would have banked some nice change on yesterday's trade. However, once you're seen a nice profit in your trade turn into a loss, it's hard not to want to get out at breakeven. On these types of trades, I need to start trusting my judgment on why I entered the trade in the first place.
As for your second question... wow, that's really subjective. All depends on your risk size, trading style and monthly bills. For me, 25R per month will do the trick. I really think that's a realistic goal and I hope to exceed that by year's end.

lp: I'll try to wrestle those recipes away but I've heard she straps them to her inner thigh and, well, I just don't want to go there dude.

Anonymous said...

may be your system is not correct.
when things don;t work for me, i change the system.

Anonymous said...

25 R doesn't say anything to me..
tell if if R is $10 or $100 or more?

OONR7 said...

anon: sometimes it's not the system. My entry was correct, my stop was correct, my management was not.

As for your R question. I think I answered that by saying there are many factors. 25R per month works for me based on my risk amount. I don't need to tell you what my risk amount is however. Are you having trouble understanding that risk amount multiplied by monthly R amount equals monthly income????

trader A said...

hi there oonr7
thanks for your answer, my target is also about there. two more:
-how much % of your capital is your R?
-do you change your R (2R \ 0.5R) when you trade more\less reliable setups? i believe some rare setups are more reliable then others and they should be traded more aggresively
dont buy that chair

OONR7 said...

trader a: I'm probably trading at about .7% of my capital. A lot of folks use .5%. While I do not risk over 1R, I often times reduce my risk if my entry is on a narrow range bar.