Discretionary trading

[aversano]

So much has been said on the subject, some are or probably will try implementing its aspect at any point of their trading career other will wonder.

I currently trade based on chart patterns, volume and T&S but having mental problems with a discretionary method... what do you guys think? oh, I trade the Emini Russell

 

[tomorton]

I say there's no such thing.

The guys who say they run discretionary trading have a mental set of rules just as watertight as any computer programme. They just haven't bothered to write them down. Also, it makes them feel really good when they can seemingly enter, manage and run a random trade towards profit. Gives them the feeling they are trading 'in the zone'.

 

[forker]

the good setups are few and far between. most traders seem to hold onto the concept of "you must take every setup" because you dont know if it is going to be a winner or loser. this methodology has sound principles but has its flaws. there is such a thing as bad setups that are technically sound yet they have a lower probability of success,or, they do their thing as expected but not to the degree expected. most traders dont plan for this scenario and typically have bad days. these setups generally occur in consolidation areas and is principle in the failure of most traders. discretionary trading is important for consistency. you need to understand the market to a degree that you can avoid the traps most fall into. To say there is no such thing is basically saying you dont understand it and you probably avoid certain market conditions as a result or finding your capital fluctuating either horizontally or most likely in a negative trend.

 

[tomorton]

Set-ups I intend to use are backtested to destruction befoe real money goes in, i.e. to either consistent profit or wipe-out. True, some of the survivors are lower probability than others, but all are backtested across all market conditions, including the most adverse. Its important to recognise adverse market conditions, and respond by building in additional criteria at those times. If that is discetionary trading, I'm doing it.

 

[aversano]

At my early stages I had indicators on my charts. now I have none.
I hate to trade based on a "feel" but to me, that's the only way that makes sense. read the waves/cycles and follow or counter on a pullback, recognize areas of squeezes by observing a move in a conjunction with volume and T&S.

Up until now I have been trading with a fixed stop of 2 Russell points ($200 per contract) and let the trade run until it's hit. conceptually it was difficult to adjust to fixed stop loss concept where in many cases I had a feeling that the trade won't work.

2 weeks ago I read an article that suggested that every trade starts as a scalp trade and when it goes against you, move your target to the stop loss and cover it. The first day I traded this way I collected 3.5 TF points per contract but was EXHAUSTED. I found myself closing my trades left and right. the 2 days that followed I averaged much less, found myself fighting with positions, opening them and looking for a reason to close. I am wondering if I should go back to my old way of having things fixed and somehow never let my stop loss hit.

I am trading based on discretion, I use volume bars and pivots points.

 

[forker]

At my early stages I had indicators on my charts. now I have none.
I hate to trade based on a "feel" but to me, that's the only way that makes sense. read the waves/cycles and follow or counter on a pullback, recognize areas of squeezes by observing a move in a conjunction with volume and T&S.

Up until now I have been trading with a fixed stop of 2 Russell points ($200 per contract) and let the trade run until it's hit. conceptually it was difficult to adjust to fixed stop loss concept where in many cases I had a feeling that the trade won't work.

2 weeks ago I read an article that suggested that every trade starts as a scalp trade and when it goes against you, move your target to the stop loss and cover it. The first day I traded this way I collected 3.5 TF points per contract but was EXHAUSTED. I found myself closing my trades left and right. the 2 days that followed I averaged much less, found myself fighting with positions, opening them and looking for a reason to close. I am wondering if I should go back to my old way of having things fixed and somehow never let my stop loss hit.

I am trading based on discretion, I use volume bars and pivots points.

trading must be one of the most obstructive activities in existence. by design,or perhaps self inflicted through the way we exist in our world, our logic and emotions are useless when it comes to this business. anyone who tells you this business is easy is smoking their socks.
your thread is labelled discretionary trading yet you talk about technical strategy. dont confuse your emotions and the gut feel with discretionary trading because they are completely different. a discretionary trader understands the market and passes on trades not because of gut feel or technical analysis, but rather on the basis of reading the risk of the trade. many traders address risk on the basis of stop and no further.