10/24/2008

OUCH!!

Just read Jules in Jumbles blog where she referenced this post from Dr. Steenbarger. Note my comment in the previous post about why I wouldn't just trade the last hour of the day as that is where all the money is. My answer was, I might miss a trade.

Then I read this.

Again, ouch!

1) Patience - "The ones who are afraid of missing moves, who chase moves as a result, are getting hurt. The ones who wait for clear signals and good reward-to-risk opportunities can take advantage of the volatility. The successful traders aren't afraid of missing a move; they know, in this volatile environment, other opportunities will arise." Dr. Brett Steenbarger

Stupid Doctors, think they know everything.

I added Dr. Steenbarger blog, Traderfeed, to my blog roll. I had his web site in my list before, but he only uses the blog now, so there it is.

Click on this post's title for a link to his article, Five Trading Behaviors I'm Seeing Among Traders Making Money Now.

3 comments:

Jules said...

:-) Solfest, you can still get clear signals and good trades in the first part of the day. I like the 10-11am. 9:30 only if there are clear signals from pre-US market open (e.g. prices being stopped by support/resistance), or when there's strong move in a certain direction (such are times when sitting on the sideline is just simply too tormenting)- I don't care if I'm chasing by going in coz if I'm wrong, I just get the hell out asap...well at least that was what I was able to do with ER2 (which I'm missing sorely!).

But I definitely like the last hour (not necessarily the entire hour - the last half is sometimes pretty scary) and used to depend on it to get my PnL into positive region - much like what you did...Other times I went in simply coz signals were screaming for me to get in.

I guess when you said you don't want to miss a trade, you actually meant you don't want to miss a GOOD trade?

Solfest said...

I think my crude oil trading with the ADX exit turned me into a scared trader, scared that if I missed the whale it would ruin the month. Quite often 1 or 2 trades made the entire month.

Scalping with a fixed target should allow me to relax, if I miss a trade it really doesn't matter.

I can say it, now can I do it.

Jules said...

I've used ADX with FX before, and it gives so few signals. Little wonder that anyone using ADX is afraid to miss them.

I did the scalping with a fixed target thing...not at all relaxing...guess my target was not realistic to begin with.