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Scot,
Your comments about stops was right on. Stops by their very nature will always
give the impression we are "losing" some of the previous gain. That is why the
saying "don't count your profits until the position is closed "is important
element of an overall game plan.
A typical strategy I like to employ is to use a technically based target for
1/2 of a position, and a parabolic stop for the balance. This helps avoid some
of the problem of taking profits off the table too quickly.
This will alow for the Really Big Gain" we all need once in a while to make
all this hard work worthwhile.
As an afterthought, to all those system testers and "newbies"on the list.
Look carefully at most systems offered to the public and most of the time you
will see one big trade that gives the system the "boost" that makes it
profitable. Then ask yourself two questions. "Would I have taken every
signal?" (even after 5 losses in a row) and "Would I have overridden the
system on the big winner and sold too soon?".
The answers to these questions really tell how far you are progressing in
becoming a "Real Trader". IMHO the real battle always is in the head of the
trader regardless of market or technique.
Trading like life, as corny as it sounds, is ultimately a journey of self-
exploration.
Thanks for letting me ramble.
Terry Quinn
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