Many have mentioned that they are interested in doing whatever it is that I seem to do. There is a side to trading that attracts.
And I’m not referring to the gambling types but those that genuinely want to learn a craft based on a desire to learn a strategy, a method and discipline. A good start is to read the books by Bob Volman.
What follows is copied directly from our daily Skype chats. This is something I will probably post more regularly so others get a feel for what happens day trading in real time.
Worth a look at my statistics for yesterday. A Monday and often a slow day. A total of 14 trades of which 6 were winners (5 actually as one win was small). However, my gain was £642 for a £270 loss. All the profits were scalps as a ranging day. I’m trading tight with my stops. On one occasion I was out only to re-enter the same direction, and on another, I was out and bet on the opposite direction within a bar or two. The most important thing to me is context. Once I’m happy with that, I find that I’m closely watching the detail (individual bars).
For clarity, my planned stops are not tight, but my manual rejection of the trade (my actual stop) is close. I would still not trade without the planned stop in a proper position and for the reward/risk to make sense; this is only one technique. I think trading as Bob does in book two works well if done consistently. My outs are more in line with Bob’s writing in his first book.
I made the conscious decision yesterday to try the tight stop regime. But that was in a range. A trending market might show different results. Also, I figure that the more I practise the tight stops then, the better I ought to get at it.
Its interesting to note your average times in winning and losing trades. 20 minutes for winning trades, and your out of losing trades in an average of 3 minutes. Thats good practise that I need to learn.
An example from this morning – which I missed. The entry short for me would be on the pullback on bar 3. Quite near the top of bar 2 actually. My planned stop would have to be above the high but my actual out (manually) would be at the tight stop arrow – as price goes above the top of the bar before bar 1.