|
PureBytes Links
Trading Reference Links
|
My 2 cents on this, FWIW:
> I had an ill-fated one month trial with daytrading the E-Mini. After a
> month, I wasn't getting where I wanted, so I quit.
One of the things that's pretty much a constant here is that traders tend to
*grossly* underestimate what it takes to develop enough of a mastery of this
type of trading to consistently succeed while staying out of trouble. One
month would be more like a brief introduction. The idea at this point would be
to keep your "lessons" affordable.
> One was that if I was trading breakouts (buying new highs, selling new
> lows) it was the risk control that made the strategy work.
Well, that's exactly its main advantage, in my view. What you're looking for
here is situations that can be readily assessed, so that you can allow for
profit potential while keeping the downside at a bare minimum. You enter
looking for the follow through on the breakout, and if it isn't there in a very
short period of time, your reason for entering the play has been violated.
This is going to be a lot trickier with indexes, though, due to their more
heterogeneous makeup.
> When the
> volatility stepped up, and I started giving it more room I started losing
> money big time.. I should've just called it quits.
Being able to cut losses isn't just the biggest advantage a trader has, it's a
necessity. Those who are unable to do so properly will not last long. One
must first learn to control the downside - your survival may depend on it, and
even if your bankroll is high enough that this isn't as much of a concern, you
will develop some bad habits by not heeding this which may eventually cost you,
not to mention taking much more of a hit at this stage than necessary. What
this comes down to is developing a more risk averse mentality, where a dollar
of missed gains is much more preferable to a dollar lost. As time goes on, you
can adjust this, but this is always true to some degree.
> The other notable thing was that I did better watching the ticker (i.e.,
> straight time and sales) for managing the trade than by watching the chart.
> When I started watching the chart, I would let it retrace too much.
I trade this way myself, and while I think that this depends on a trader's
particular style and preferences, whatever's working for you is always best.
There was a time where I'd almost exit too early watching the thing on T+S, so
I avoided that.
> I'll probably give it another shot when
> I've developed a more disciplined approach.
Realizing the importance of discipline is key. It sounds like you are taking
away some good lessons from this - being able to adjust, as well as persevere,
is the ticket here. Best of luck in the future.
A.J.
|