|
PureBytes Links
Trading Reference Links
|
An excellent advise. Very commendable
Ashok
----- Original Message -----
From: Timothy Morge <tmorge@xxxxxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxx>
Sent: Saturday, December 02, 2000 2:13 PM
Subject: Re: [RT] When & How to Quit When Losing
> Brian:
>
> My first comment is: You knew in advance that there was an important
> economic number out this morning and more important, that the US
> Supreme Court was hearing the election debate this morning. Your
> first thought should have been: Do I want to trade on a day like
> today? And if so, do I have to watch out for unusual market
> conditions?
>
> Second: If you are making 3 pts on one day, 5 pts on another day, 9
> pts is the max for the week, you *can't* lose 19 plus pts one day!
> Cannot! No way. Can't ever let it happen.
>
> First rule: If you run out of capital, you don't get to trade again.
> Period. They take your account away. If you can't be disciplined
> enough to stick to a rule as important as: I *can't lose more than 8
> points in one day, you aren't trading...you are not even gambling.
> You're throwing money on a raging fire. Traders around the world are
> waiting for you to make another trade so they can get rich.
>
> This isn't a game, Brian. This is trading. It's often very difficult.
> It's work. The hardest thing to do is to stick with the plan.
>
> Have a plan, trade the plan. Period. No over ruling the plans. No
> changing the rules mid-way through the day. A bad plan is better than
> no plan at all, and a plan that isn't followed is worthless.
>
> If you don't respect yourself enough to follow your own plan about
> losses, either stop trading and put your money in a CD *or* please
> tell all of us what commodity you are going to trade next, so we can
> get some of the free cash you are passing out.
>
> How do I know when to quit? I hate losing money. When I lose money, I
> don't think about a comeback. I don't get mad. I close my positions
> out and take a break. I must be doing something wrong--why would I do
> more of it? There's always tomorrow.
>
> Last thing I'll throw your way: Joe DiNapoli has a great technique
> for traders that are trying to learn to follow their rules: You set
> your rules. You make your plan. If you make money that day and
> followed the rules, that's great. Get ready for tomorrow. If you lost
> money today, but you followed the rules, that's ok. You're gonna make
> losing trades, that's part of the plan. But if you didn't follow the
> rules you made for yourself, impose some discipline right now. The
> worst penalty a trader can impose on himself is time off from
> trading. Take three days off from trading now. No exceptions. Get
> away from the market action, because you are addicted to it. Take a
> break and clear your head. Don't go back to trading until you have
> gotten all that poison out of your system. If you come back and
> violate the rules all over again, take a two week period off.
>
> You're gonna say..."I can't be away from the markets for three days!"
> And that's your problem. You have no respect for yourself and your
> hard earned assets. Get some discipline.
>
> I hope you think long and hard on it over the weekend.
>
> Tim Morge
>
> On Fri, 01 Dec 2000 14:00:41 -0700, Brian Keith Voiles wrote:
> >I have a question: At what point do you (meaning everyone in
> general)
> >call it quits for the DAY when you're losing? And how do you
> >discipline yourself to actually stop and quit, and not try to "make
> >it all
> >back"?
> >
> >I'm wondering because I had a great week in the S&P this week, up
> >until today. Monday was a 3-point gain, Tuesday was a
> >5-point gain, Wednesday was a 9 point gain, and Thursday was a
> >9.5 point game. Now... here we are on Friday... and I lost 19.7
> >points (ouch!). So grand total I made 6.8 points this week on
> >18 trades... a net win of $1232... but could'a been a lot more if I
> >hadn't responded so emotionally today to this:
> >
> >My first trade today missed the limit by 1-lousy tick.... then it
> >turned around and hit my stop -- minus 4.7 points. Second trade:
> >the same thing happen -- minus 5.5 points.
> >
> >So those two events got my emotional-juices flowing. But, you
> >see, I have a written rule staring me in the face that says
> >
> >"REMEMBER: a loss of 8-points and you're done for the day, no
> >matter what!"
> >
> >So I ignored it. Here I am after the session realizing that may be
> a
> >rule I can't live with. After-all, I'm the "come-back king!".
> >
> >Well, I'm looking for all you "old-timer's" advise on this. What
> >rules do you follow and how do you mentally and emotionally
> >disconnect enough to quit while the losses are "small"?
> >
> >Thank you,
> >Brian Voiles
> >
> >
> >-------------------------- eGroups Sponsor -------------------------
> >~-~>
> >eGroups eLerts
> >It's Easy. It's Fun. Best of All, it's Free!
> >http://click.egroups.com/1/9698/0/_/152424/_/975715817/
> >---------------------------------------------------------------------
>
> >_->
> >
> >To unsubscribe from this group, send an email to:
> >realtraders-unsubscribe@xxxxxxxxxxx
>
>
> -- Timothy Morge, tmorge@xxxxxxxxxxxxxxx on 12/1/00
>
>
>
> To unsubscribe from this group, send an email to:
> realtraders-unsubscribe@xxxxxxxxxxx
>
>
>
-------------------------- eGroups Sponsor -------------------------~-~>
eLerts
It's Easy. It's Fun. Best of All, it's Free!
http://click.egroups.com/1/9699/0/_/152424/_/975872789/
---------------------------------------------------------------------_->
To unsubscribe from this group, send an email to:
realtraders-unsubscribe@xxxxxxxxxxx
|