I cannot claim this crazy revolation as my own. I am sure I read it elsewhere and only recently came to understand it as my own. And, I am positive that all those that I read (C.Kirk, Mark Douglas, Marcel Link, et al.) will agree to this:
Making money in trading is hard...especially when you are TRYING to make money. However, if your focus is to make good trades, and really, truly, THAT alone is your goal, THEN AND ONLY THEN, will money be made.
I sit here with a short gold position and I am at least 5 points in the money. I have wanted all morning to add to this position, but there is no good reason to do so and no good place to do so. I simply want to add more to the trade b/c I want to make more money. I want to trade and really, that's the only reason. BUT, if I were to think about making GOOD TRADES the goal, then it is clear that I should NOT add to this trade here and now. A huge sigh of relief through my body when I realized this.
A little more....Making the act of making good trades the goal, makes it easier to make money. When I think..."I just want to make $100 more today.", or "I am adding to my 1 lot and scalping out for 2 more points", it becomes so easy to let money slip away. But if only I were to wait for good trades to present themselves, I limit my trading to high probability trades. And that's when money comes.
I am sure I could have said all of this better...but as long as I get it for now, that's fine with me.
Good luck, Traders.
Andy
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3 comments:
Well said. I've been doing this, off and on, about 20 years and can relate. Remember this is gambling. Don't forget that!!
Also -- a lot of times when you "think" you made a stupid trade - it isn't necessarily stupid -- but rather a casualty of the unpredictible chaos of your chosen markets. It's very very difficult to attain any kind of an edge in this. Do you have one? Also what seperates you from the pack? What makes you think you're ultimatelly going to get rich off of this when everyone else will end up a net losser in the long run? Do you know anyone who makes money consistantly trading these stock index futures markets. Not many people do.
I think you're on the right track by limiting your entries to only those with the best chance of success. Less is more. Trading all day long is a lossers game as you already know. So is averaging your lossers... That's a sure fire way of taking big hits.
phil, nj.
ps. what kind of method do you use? And Why?
what happened to the BLOG?
enjoyed reading your blog andy...do you still plan to post on it?
mark
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