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The market is a b*******. However as you are in the paper trading period I
think this is time to look into how to set stops properly. You dont want to
be stopped out too soon and you do not want to lose too much before you
admit you are wrong. You need to really study the market you are trading in
i.e. support levels, resistance levels, year highs and lows , intra-day
movement and others. I am afraid even experienced traders are suprised by
the markets. Study. Study and Study
Good luck
POP
-----Original Message-----
From: Mr. Troy Kelley <tkelley@xxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Date: 25 March 1998 21:25
Subject: GEN: Mean Market Psychology
>Just thought I would share how mean the market can be sometimes.
>
>I have been paper trading, and have had 4 losses in a row. So I was
>nervous to get a good trade. My system uses entry signals but it is
>descretionary as to when to get out. I got a signal today and the
>market moved in my direction. I got out one tick before the market
>continued in my direction. Then I got another signal. And again
>I got out 1 tick before the market moved strongly in my direction.
>
>Both trades were profitable, but not as much as they could be. THe
>next trade, the market hit my stop and I exited with a loss, and again
>it moved strongly in my favor. So I was primed to stay in the market
>too long. That is what happened next. I got in, the market moved
>against me, and I kept thinking it would come back again. It went through
>my stop and kept moving fast in the other direction. I took a huge loss
>because I didn't listen to my stop, and I was influenced by my previous
>trades. All psychology. It is hard to treat each trade independently.
>Instead we are effected by our previous trades. This can lead to trouble
>as it did with me today.
>
>Just venting.
>Troy
>
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