December 20, 2011

Are You Frustrated Yet?

            I've noticed a lot of frustration on the stream as of lately. The gaps whether they fade or trend seem to be difficult to trade and trust. I just wanted to mention a couple of things that have lead to a decrease in my frustration levels.
          Once I noticed that many of my trades were being stopped out at a loss or trail stops hit in fairly short amount of time, I decrease the amount of trades I enter. This is also considering I feel my entry and stop placements are correct, following my strategy and rules for risk management.
           I pass on a lot and become much more picky...Volume being the number one indicator I watch.
           Depending on the size of the move I think the trade may make, I either drop my share size and widen my stop a bit, or tighten the stop all together. I prefer the dropping share size and widening stops.
          Were not in a trending market yet. So to flip flop back and forth from bearish to bullish makes no sense IMO. Having unrealistic expectations of follow thru on either the long or short side doesn't make much sense to me either. While having potential trade set ups is just part of doing the homework like @ChessNWine mentioned in his video the other day.

Here are a couple of links for Day and Swing traders that may or may not help.