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Tom Cathey wrote:
> I am strictly a counter-trend trader, attempting to buy or sell a
> panic....never buy break-outs anymore....used to.
> Well, maybe on a rare occassion, but for the most part, I usually regret
> these "public trades". I look for these "counter-trend" entries to turn
> into "with the trend" trades, of course.
>
I don't take breakout trades in S&P's. They are a strange animal and though I
trade them, they seem made to counter such efforts.
> I do not scale in/scale out ...just initiate all at one price. I know
> Tudor Jones is a strong advocate of scaling in and out...so who am I to
> say?
I don't scale in or out generally. I tend to execute at the market. I never add
to positions, ala pyramiding. One of my early mentors told: 'Double up and
throw up.'
> My biggest losses have usually come after a big score. (sound familiar?) This
>
> is really true for me probably due to overconfidence. It's almost a way of
> protecting myself from myself.
This is why I keep my position constant and use an equivalent risk matrix to
determine position size. Otherwise, after a big winning trade, I'll double or
triple my trade size and...well, you know what happens then.
Best in your trades...
Tim Morge
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