Some were positive. I got stopped out of most because the market turned against me quickly. These market move much faster than the ES. I guess I must mitigate risk more quickly and tightly.
I am finding that no matter what the market, and no matter what the strategy, the problem I keep having is that even if I am correct in understanding the general direction of the price, I get stopped out on a quick down swing. But then a short time later I see the price surge above where I entered before I got stopped out. So it's frustrating because I can see that I had the general trend right but just didn't pick the right bar to get in on. I have tried using wider stops but then you are playing with potential bigger losses if the trade goes against you. Seems like one possible strategy might be to keep a close stop and get stopped out in a few ticks for very small losses so that the only trades you stay in are the ones that go in the direction you want them to and you follow up or down with your stop until you get stopped out in a profit.
i use tight stops. in oil i like .12 to .20 stops and trail it, if it reaches a target or gets over 100 dollars i will tighten it more, like one bar stop unless i have a s/r level to use in my tighter risk profile. as i build my account up, i might add a little risk to try and catch more runners, but first i want to get to where i am trading the markets money. But you really have to study how the particular market forms the tick bars and how "noisy" it is to determine what good stops are for entries. But yea, the first rule of trading is dont lose money, the second rule of trading is to always follow the first rule.
I traded both gold and crude oil today and lost about $100 on each. fortunately it was sim.
ReplyDeletewhy do you think you lost? Were your trades all negative, or did you have some winners but more losers?
DeleteSome were positive. I got stopped out of most because the market turned against me quickly. These market move much faster than the ES. I guess I must mitigate risk more quickly and tightly.
DeleteI am finding that no matter what the market, and no matter what the strategy, the problem I keep having is that even if I am correct in understanding the general direction of the price, I get stopped out on a quick down swing. But then a short time later I see the price surge above where I entered before I got stopped out. So it's frustrating because I can see that I had the general trend right but just didn't pick the right bar to get in on. I have tried using wider stops but then you are playing with potential bigger losses if the trade goes against you. Seems like one possible strategy might be to keep a close stop and get stopped out in a few ticks for very small losses so that the only trades you stay in are the ones that go in the direction you want them to and you follow up or down with your stop until you get stopped out in a profit.
ReplyDeleteAny suggestions anyone?
i use tight stops. in oil i like .12 to .20 stops and trail it, if it reaches a target or gets over 100 dollars i will tighten it more, like one bar stop unless i have a s/r level to use in my tighter risk profile. as i build my account up, i might add a little risk to try and catch more runners, but first i want to get to where i am trading the markets money.
ReplyDeleteBut you really have to study how the particular market forms the tick bars and how "noisy" it is to determine what good stops are for entries. But yea, the first rule of trading is dont lose money, the second rule of trading is to always follow the first rule.
New to blogging. I like trading the edges. Anyone else?
ReplyDelete