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At 11:37 PM 9/3/98 -0500, Mark Brown wrote:
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>
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>>Lots of discussion about multiple positions and reverse trading to me are
>attempts to guise a loss.
>
>I dont understand this comment? A loss is a loss weather I flip it or not.
>I have accepted the loss, but I'm not going to set on the sidelines now
>because I got my butt kicked. I just dont understand how you guise a loss?
Mark;
Well you guise a loss by trading again only because you took a loss the
previous trade. Your now trading to so to avoid the feeling of the loss the
motive is wrong here. Like the old gamblers pray don't want no cheese just
let me out of the trap. You trade because the trade looks good not because
you were wrong and don't want a loss. Thinking here is you're emotional at
this point and probably will end up with two losses instead of one.
>>For me I have to keep it simple a loss is a loss and part of the game. I do
>reverse trading but not as an attempt to avoid the loss because it was the
>next right thing to do.
>
>Now you say that you do reverse, if you dont reverse to avoid a loss (could
>be a complete wipeout of the account) then why do you reverse? Just get
>tired of going the same direction? I'm not giving you a hard time, but I
>dont get it? Please explain if I'm miss-understanding ..
>
Mark;
LOL, No, I know going into a trade thinking its a top or a bottom but if
I'm wrong then it's just a retrace or a bounce and it's probably going to
continue in the trend so I will reverse with it. Playing double tops and
bottoms at new highs and lows tend to run stops if they break into a new
highs or lows. Thing is its a planned out trade before not a reaction to a
loss. I guess as a system trader and holding positions overnight this would
make more sense to you to reverse and as would me to. The loss issue which
was the original post didn't explain the technique of trading being used so
I reverted to the way I trade as comparison. I do not use a system to trade
maybe someday in some markets but I'm not you and don't have the skills you
have to system trade. Your statement about how accurate a computer can be
at reversing is fascinating to me but over my head. So maybe the confusion
is the way we trade and think as I'm not disagreeing with you but speaking
of motives for people who might trade just because they had a loss. That
would be fine if every time they did they would achieve success. Most do
not have a proven reason to do so but its all emotions and trade again
because of the loss. Hope this helps to understand my reasoning to my post.
Robert
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