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Hi Tim:
Had to comment on your post to Robert:
Comments between
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Robert:
One thing I'd point out to the less experienced traders that read this
list: The
one true advantage small traders have over larger traders is that they
can
choose when to trade.
The temptation is to always be in there, slashing and
burning for a profit.
b==============================================================================
Independent (profitable) traders whether they are small or larger choose
when
to trade. They trade when their system/method gives them a signal to
make a
trade. They decide when to trade.
Is an experienced trader understood to mean a profitable trader?
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But if you are trading your own capital [and especially if
that capital is small], capital preservation should be paramount.
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A profitable trader, again, larger or small, always has
capital preservation in mind, whether it is his/her money or not.
He/she has to know where the exits are on the upside and the downside on
every trade. NO EXCEPTIONS. NO EXCUSES.
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If you watch
the screen and call your broker and the size of the bid to ask spreads
set your
heart to racing, maybe your instincts are telling you the market
conditions are
too volatile for your trading skills and the tools you are able to
marshall in
your trading. Trade when you feel comfortable with the market
conditions.
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Do you trade with a racing heart?
Are you trading on your emotions?
If you are making money, ok. If not don't trade.
Know what market conditions make you money and trade them.
Instincts and feeling for a profitable trade comes from experience?
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Don't allow yourself to feel an urgency to trade because 'this may be
the big
one!'
Don't trade in overly-thin markets, whether the thinness is because it's
the day
before Christmas or because you found a support line looking at November
Chinese
silk cocoons. The markets will be here tomorrow and the next day and the
day
after that. And there will be plenty of moves in markets that have good
volume,
liquidity and orderly conditions. Trade when you are at your peak, when
you are
ready to trade and when the market conditions suit you.
Tim Morge
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A don't for Tim, a don't for me, maybe a do or don't for you.
It depends on your trading skill/style and if you are a profitable
trader or
not.
If it works/makes you money, use it.
If it does not work, don't use it. Pretty simple.
You have to find your own profitable trading style/system/method
that works for you.
Do you put on a trade (long or short) with high volume, liquidity,
orderly conditions?
Do you put on a trade with low volume, low liquidity, chaotic
conditions?
Tim, you have put up some great posts with a lot of useful trading
wisdom.
Good trading.
Bob
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