A Trade Supporting My Stop Strategy
April 11th, 2007After analyzing my trades in January I’ve been trying to add a dose of patience to my stop strategy. I try to not move my stop to breakeven until at least an hour after I enter a trade. It’s difficult - but my trading journal tells me it’s the right thing to do. The other day I took a boredom trade that cost me 2R.
Today I traded WNR and, of course, my strategy was tested. This time it worked out for 4.25R. For “January Dave”, this would have been a 0.5R loss.
I opened up April with a terrible day where I overtraded and mishandled just about everything. That left me with a hole to dig myself out of.
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Prospectus Said,
April 12, 2007 @ 5:03 am
Congratulations! This trade reminds me of a quote from Jesse Livermore: “It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight!” Way to sit tight!
(More great lines from Jesse here: http://en.wikiquote.org/wiki/Jesse_Lauriston_Livermore)
Dave Said,
April 12, 2007 @ 5:13 am
@Prospectus: Thanks! Yeah, it’s really difficult at times to be patient - but time and time again my journal tells me it pays off.
Thanks for the link to the Livermore quotes - there’s quite a few in there on “sitting tight.”
Prospectus Said,
April 13, 2007 @ 6:39 pm
If you like that, then you should definitely read Reminisces of a Stock Operator (if you haven’t already).
http://www.scribd.com/doc/7923/Reminiscences-of-a-Stock-Operator