Message For Ftse Traders......

Keithh, how do you decide on your stops? a 5 point stop if you went short @ 3950 sounds really close at a resistance level esp with the volatility- I've put mine at what I see the next resistance level of 3900 so 10 points, and as theres not much price action between 3890-3900 see this as a good area.

Just asking, I'm still trying to work out how to manage my stops it's been my bugbear and I'm trying to come to some firm conclusion to stop fiddling.
 
lapalabra said:
Keithh, how do you decide on your stops? a 5 point stop if you went short @ 3950 sounds really close at a resistance level esp with the volatility- I've put mine at what I see the next resistance level of 3900 so 10 points, and as theres not much price action between 3890-3900 see this as a good area.

Just asking, I'm still trying to work out how to manage my stops it's been my bugbear and I'm trying to come to some firm conclusion to stop fiddling.
Click to expand...

I usually base it on Risk reward and chart trading wiht the current short term trend, except for today im not in the right frame of mind. as i tool a loss earlier my emotions took over, After all i posted about emotins yesterday , Yes it gets to us all.

for today as an example the recent high after opening was 3905 so I placed my stop there for the entry of 3895 which is where i should have left it untill the 9:00 bar which made a significant move down I could have covered the trade, ( iwas too impulsive today) as you can now see i would have made the target.

As the stop was 10 pts away im looking for return of around 1.5 - 2+ depending on the current strength.

hope this makes sense

if you are still in your trade well done (y)
 
keithh said:
I usually base it on Risk reward and chart trading wiht the current short term trend, except for today im not in the right frame of mind. as i tool a loss earlier my emotions took over, After all i posted about emotins yesterday , Yes it gets to us all.

for today as an example the recent high after opening was 3905 so I placed my stop there for the entry of 3895 which is where i should have left it untill the 9:00 bar which made a significant move down I could have covered the trade, ( iwas too impulsive today) as you can now see i would have made the target.

As the stop was 10 pts away im looking for return of around 1.5 - 2+ depending on the current strength.

hope this makes sense

if you are still in your trade well done (y)
Click to expand...

Yes, still in the trade, moved my stop loss from 3900 to 3875. I'm happy of course, but I can't shake this sense of nervousness that just because it went my way my analysis was necessarily correct.

i see what you meant about the stops- fair play if it was emotions, totally understand that one!

But your last line - "As the stop was 10 pts away im looking for return of around 1.5 - 2+ depending on the current strength. " - can you explain that? 1.5 as a multiple? Just don't understand the numbers there.
 
keithh said:
boy am i kicking myself now for moving the stop early
Click to expand...

Ouch.

This is the first time I've actually stayed in and moved my stops with the trade, as opposing to getting shocked I might lose on a reversal and jump ship. I'm just riddled with self doubt...
 
lapalabra said:
Yes, still in the trade, moved my stop loss from 3900 to 3875. I'm happy of course, but I can't shake this sense of nervousness that just because it went my way my analysis was necessarily correct.

i see what you meant about the stops- fair play if it was emotions, totally understand that one!

But your last line - "As the stop was 10 pts away im looking for return of around 1.5 - 2+ depending on the current strength. " - can you explain that? 1.5 as a multiple? Just don't understand the numbers there.
Click to expand...

if i am risking 10 pts i am looking to return 20 pts + therefore my risk to reward is twice as much, that way my winners will always out weigh my losers even if i trade with a less than 50% sucess rate.


e.g

trade 1 lose 10pts = -10
trade 2 lose 10pts = -20
trade 3 win 20pts = 0
trade 4 lose 10pts = -10
trade 5 win 20pts = +10
trade 6 win 20pts =+30
trade 7 lose 10pts = +20
trade 8 lose 10pts = +10
trade 9 lose 10pts = 0
trade 10 win 20pts = +20

number of wins 4 - number of losers 6 - win rate 40%, bank in profit,
 
lapalabra said:
Ouch.

This is the first time I've actually stayed in and moved my stops with the trade, as opposing to getting shocked I might lose on a reversal and jump ship. I'm just riddled with self doubt...
Click to expand...

take heart you are progressing and becoming more confident. I still have sweaty palms.you are heading in the right direction it is the right way learn learn and learn, i don't think you can ever stop learning in this line of business.


if you don't have one set a daily target and then stop around that daily target over trading is a killer on many fronts.

1. you begin to belive in your invinciability when you are on a winning streak, the market has a habit of kicking that in tto ouch.

2. if your anything like me, fatigue sets in without you noticing and you make bad calls that cost you dearly.
 
keithh said:
if i am risking 10 pts i am looking to return 20 pts + therefore my risk to reward is twice as much, that way my winners will always out weigh my losers even if i trade with a less than 50% sucess rate.


e.g

trade 1 lose 10pts = -10
trade 2 lose 10pts = -20
trade 3 win 20pts = 0
trade 4 lose 10pts = -10
trade 5 win 20pts = +10
trade 6 win 20pts =+30
trade 7 lose 10pts = +20
trade 8 lose 10pts = +10
trade 9 lose 10pts = 0
trade 10 win 20pts = +20

number of wins 4 - number of losers 6 - win rate 40%, bank in profit,
Click to expand...

Everytime I learn something from on these forums it makes me feel yet more insecure knowing how much more there is to learn and that I am trading with an incomplete strategy or picture!

Thanks a lot Keith, that makes total sense now and is infinitely more sensible in taking account of the long view than my 'every situation is different' stop placements.
 
keithh said:
take heart you are progressing and becoming more confident. I still have sweaty palms.you are heading in the right direction it is the right way learn learn and learn, i don't think you can ever stop learning in this line of business.


if you don't have one set a daily target and then stop around that daily target over trading is a killer on many fronts.

1. you begin to belive in your invinciability when you are on a winning streak, the market has a habit of kicking that in tto ouch.

2. if your anything like me, fatigue sets in without you noticing and you make bad calls that cost you dearly.
Click to expand...

I've had a brush with both 1. and 2., which to be honest almost made me afraid to walk into my study again for days- still recovering hence the sense of total insecurity even when my analysis proves correct and I'm on a streak. Feels like it's all built on quicksand.

As for profit targets, I actually have one and have exceeded it but just couldnt bring myself to leave....as you have reminded me I'm going to do the right thing and get out with my sanity and a positive +50 points and call it a day.

I see 3836-3854 as a steady range anyway so prob good time to take profits and plan a next move for this afternoon...um...I mean tomorrow :)
 
lapalabra said:
Everytime I learn something from on these forums it makes me feel yet more insecure knowing how much more there is to learn and that I am trading with an incomplete strategy or picture!

Thanks a lot Keith, that makes total sense now and is infinitely more sensible in taking account of the long view than my 'every situation is different' stop placements.
Click to expand...

wrote the reply out once then noticed i did not add the attachment.

a chart to show what i should have done(normally) not what i did today.

find waht you are happy with and run with it as we are all different. take today the calls were

short, short and short, but the entries were different, so we all saw the same thing but the interpretation of when to enter was different. you cannot learn everything in this game but yoou can learn bit by bit and add to your armoury to give yourself an advantage.


it feels like i'm preaching which is not my intention, so sorry if it sounds that way I hope i am providing encourgement.
 

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chartcraft saying that nas 100 and russ 200 posted peak kdr
looking for a deeper p/b
kdr=key day reversal candlestick
 
it feels like i'm preaching which is not my intention, so sorry if it sounds that way I hope i am providing encourgement.[/QUOTE]

Doesn't sound like preaching at all, Keith- very encouraging thanks
 
Glory be! As I said, I got a power cut and went out to buy books. Just got back to a 54 point profit!

I closed it, because it had been lower, at one stage, and I think I may be able to negotiate a long before I go to work.
Split
 
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