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Hi Pete
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> From: Pete Halllock <hallocd@xxxxxxxx>
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Subject: GEN: PROFITABLE TRADING
> Date: Saturday, June 27, 1998 7:18 AM
>
> Please correct me if I'm wrong but it seems to me that every profitable
> trader does the same thing:
>
> 1. finds a trending market and enters on a pullback
>
> 2. or finds a trading range market and trades the swings
>
> 3. or finds a potential breakout situation and goes with the
> flow
>
> 4. or finds what looks like a top or bottom formation and
> climbs on for the return trip.
(snip)
This is a good post.
I'd one more element to the trading plan:-
Management of the trade once we are in.
In a sense getting in is easier than.....
.... knowing what to do once we are in a trade
and it is moving in our favour. We are faced constantly
with the question:
"do I get out here or does this trade have much further
to go."
We usually perceive this question to be even more
important if we are 1 lot traders.
For me what is important is to formulate a strategy
and then to apply it consistently; this is especially true for
the 1 lot trader. If our strategy is to take profits a
a certain level, and we miss some "blue sky" profits, we'll
make that up on the occasions that we'd have been stopped out
had we not taken profits. The reverse is also true.
> That's it. No big deal. Let's all just get out there and do it.
Ah but that's the rub. I like to say that trading is simple but not
easy. It's simple because the roadmap to success is clearly laid
out; it's not easy because following that map is difficult. It's difficult
because winning psychological paradigms are acquired in a ways that run
contrary to the practices to which we have been accustomed.
regards
ray
R Barros
101/25 Market Street
Sydney NSW 2000
Australia
Voice: 61 2 92673470
Fax: 61 2 92673478
E-Mail: rbarros@xxxxxxxxxxxxxxxxxx
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