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RT's,
I can't tell you how much less stress I experienced when I started looking
at trades as points vs dollars. I found an excellent Excel spreadsheet
program called MAC2000 (recommended by someone on this forum) that tracks
futures trades and lets you look at a statistics page (ave win vs loss for
any time period) in $, points, or average points per contract.
Howard
>From: Dennis Holverstott <dennis@xxxxxxxxxx>
>Reply-To: dennis@xxxxxxxxxx
>To: <realtraders@xxxxxxxxxxxxxxx>
>Subject: [RT] Re: Trading System/psychology.
>Date: Wed, 12 Jul 2000 07:48:05 -0700
>
>Earl wrote:
> > Perhaps managing emotions is a more practical objective than detaching
> > emotions. If fear grips you at the very thought of pulling the trigger,
> > scale trades down in size until the consequence of loss will have
> > nominal financial impact.
>
>Yup, trading small really helps the emotions as well as dramatically
>increasing your probability of surviving a drawdown. Small decreases in
>position size make a huge difference in your risk of ruin.
>
>There's another thing that, on the surface, sounds really silly but it's
>helped me deal with the emotions of trading the S&P. I've trained myself
>to think in terms of points rather than dollars. I have Tradestation set
>up with BigPointValue = 1 so the system reports are in points, not
>dollars. All my Excel worksheets and my daily strategy printouts are in
>points as well. After I exit a trade, if you were to ask me how much I
>made or lost, I would have to do a mental calc to tell you the number in
>dollars. Somehow it's easier for me to deal with a drawdown of xx points
>than to remind myself that I just lost the price of a new car. :-)
>
>--
> Dennis
>
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