Managing the trade

[barjon]

Here's a little exercise for you using FTSE and 5min time frame:

1. Enter £10pp long or short (your choice) on the opening price of the 9:30am bar.

2. Your objective is to gain maximum advantage (or least disadvantage) from the movement over the next hour.

3. You must close out on the closing price of the 9:55am bar if position still running.

4. Do this every day

5. Record your profit/loss each day and compare it to the best that was available during that hour.

6. Keep a cumulative record of your profit/loss.

If your money management is right you should find your cumulative total increasingly on the plus side.

If your price action reading is improving you should find yourself getting closer to the best available.

good trading

jon

 

[pedro01]

Jon

Have you tried this and did it improve your trading ?

Or are you encouraging the chasing of wild ducks ?

Pete

 

[barjon]

i did it with real money for the money management bit which was of most concern to me at the time. for the other bit - no - but i do something similar since one of my key results is percentage of move gained which i keep trying to edge up (that's on my eod stuff).

good trading

jon

 

[DeadMoney]

this is close to how I trade the ES on the open,
the major difference is that I wait for the market to move in one direction first.
Then I never wait for an hour to get out, usually more like 5 minutes.

I also downloaded a free program off the internet that records my DOM, so I can watch it over and over, that has helped speed up the process a lot.

 

[Mr10%]

From Ronald Rayguns Profile:

Here's a tip for the newbies who are learning to trade.

Ignore all that hype for various systems. Remember--for now--this one fundamental rule: The exit is more important than the entry.

With that in mind, I want you to do the following on a demo account:

1) Toss a coin: Heads long, Tails short
2) Manage the trade as you see fit. If you think the trade is bad, exit.
3) When you exit a trade, go back to step 1.

If you can double your account in less than 50 flips, I consider you a good enough trader to go live. I personally average between 20 and 30 flips, and I do it once a week, on the weekends, trading simulated data.

Simulator: (http://www.forexfactory.com/attachment.php?attachmentid=89818&d=Feb 25, 2008 8:18pm)


Try it. It helps, LOADS.

 

[shadowninja]

It is an interesting idea. I tried it. I'm pretty good at managing a trade. However... I was busy pissing about on demo and missed a nice entry worth about 100 pips. Thanks, mate.

 

[foredog]

It is an interesting idea. I tried it. I'm pretty good at managing a trade. However... I was busy pissing about on demo and missed a nice entry worth about 100 pips. Thanks, mate.

Short term pain or long term gain

 

[shadowninja]

OMG, after missing one swing entry, I got bored so started demoing on 5 minute TFs again. Guess what I just missed. /o\