Cable Update (GBPUSD)
- #387,402
- Jul 15, 2014 5:37pm Jul 15, 2014 5:37pm
- Joined Feb 2012 | Status: Trader | 21,377 Posts
{quote} Fact... averaging in + increase profit Average down = increased loss Always add to a winning trade / never (never ever) add to a losing trade.... Martingale = account killer.... but what do I know Trade safe...
Since we don't know exact behavior of the market averaging in gives wider net to catch price on either direction.Often your 1st 2nd orders are too early...but by going in slowly you average at around good price level.
I just don't understand why concept of DD frightens most.I am so comfortable with DD that its natural to me to be in red before green.
In fact I had 3 shorts from 7165 7150 7130 all in profit at 7070 but failed to take profit because I was in Plane flying from LA ...
Then went all red then back again to 2green 1 minor red.Still no big deal my target is 1.70
regards
In trading, you have to be defensive and aggressive at the same time
- #387,403
- Jul 15, 2014 5:40pm Jul 15, 2014 5:40pm
- Joined Dec 2013 | Status: Trader | 19,815 Posts
{quote} Nope went in hammer and tongs... got stopped the same way
- #387,405
- Edited 6:03pm Jul 15, 2014 5:44pm | Edited 6:03pm
- Joined Mar 2008 | Status: Taking Care Of Business | 5,587 Posts
Hear the music before the song is over ...
{quote} Hi Jimmy Since we don't know exact behavior of the market averaging in gives wider net to catch price on either direction.Often your 1st 2nd orders are too early...but by going in slowly you average at around good price level. I just don't understand why concept of DD frightens most.I am so comfortable with DD that its natural to me to be in red before green. Regards
Same for me, I used to hate DD's, and not let myself get into that situation, but would still lose many trades.Now I can have DD's and almost always come out profitable with my style of trading. Some of us trading this way, works very well.. just getting used to DD's is a big part of a great win ratio IMO, and doesn't make someone a 'bad' trader.
- #387,407
- Jul 15, 2014 5:45pm Jul 15, 2014 5:45pm
- Joined Oct 2008 | Status: CANCELLED MEMBERSHIP | 3,116 Posts
{quote} Hi Jimmy Since we don't know exact behavior of the market averaging in gives wider net to catch price on either direction.Often your 1st 2nd orders are too early...but by going in slowly you average at around good price level. I just don't understand why concept of DD frightens most.I am so comfortable with DD that its natural to me to be in red before green. Regards
The answer is, they are day traders.
Your argument is sound, it makes perfect sense, there are many, many, many, many, many, many, different approaches and styles of trading to making a profit in this market.
Continue to trade your plan.
At the end of the day, its
"YOUR MONEY, YOUR TRADE, YOUR PROFIT, YOUR LOSS"
HDA OUT
- #387,409
- Jul 15, 2014 5:48pm Jul 15, 2014 5:48pm
- Joined Jun 2013 | Status: Trader | 3,071 Posts
{quote} @Davit: The answer is, they are day traders. Your argument is sound, it makes perfect sense, there are many, many, many, many, many, many, different approaches and styles of trading to making a profit in this market. Continue to trade your plan. At the end of the day, its "YOUR MONEY, YOUR TRADE, YOUR PROFIT, YOUR LOSS"
- #387,410
- Jul 15, 2014 5:54pm Jul 15, 2014 5:54pm
- Joined Jun 2013 | Status: Trader | 3,071 Posts
My dragon aspirations...
per graph... Good night all
per graph... Good night all
- #387,411
- Jul 15, 2014 5:58pm Jul 15, 2014 5:58pm
- Joined Feb 2012 | Status: Trader | 21,377 Posts
{quote} @Davit: The answer is, they are day traders. Your argument is sound, it makes perfect sense, there are many, many, many, many, many, many, different approaches and styles of trading to making a profit in this market. Continue to trade your plan. At the end of the day, its "YOUR MONEY, YOUR TRADE, YOUR PROFIT, YOUR LOSS"
Good to see you post.I get the argument a lot about adding to losing position.Its important to see the painting in its entirety instead of being so close that one only sees a small detail.Yes agree TF is important.I am swing trader and I don't close trades until I hit my TP or take the loss.
from Hedge Fund Wizards
Not saying emulate Balodimas but here is unorthodox trader making millions doing exactly that adding to losing positions and cutting winners short...
Stepping in Front of Freight Trains
Jimmy Balodimas breaks all the rules. He sells into uptrends and buys into downtrends. He adds to losers and cuts his winners short. He is a
predominant short in a market that is up the majority of days.1 By any of the standard guidelines for trading success, Balodimas shouldn’t survive in
the markets, let alone thrive. Yet he is one of the most successful traders at First New York Securities, the prop trading firm at which he began his
career 15 years ago, and he has never had a losing year.
I first interviewed Balodimas on February 22, 2011, a day in which the equity markets were down sharply in a selloff that ostensibly was triggered
by the uprising in Libya, which led to a sharp rally in oil prices and market concerns over a disruption in oil supplies. The Libyan upheaval was part
of the domino effect of Mideast unrest that began with the overthrow of the Tunisian dictatorship a month earlier. This down day in the stock market
followed a three-month period in which the price advance in equities had been so unrelenting that neither the S&P 500 nor the Nasdaq index was
able to go more than five days without setting new highs in the ongoing bull market that had begun two years earlier. The current month had been
particularly brutal for shorts, as the market reached new highs almost daily, never taking more than three days to do so. Balodimas had been net
short throughout this move. Watching the succession of near daily highs, Balodimas commented to his trading assistant, “This is like the tech
bubble, only with real stocks.”
Balodimas’s trading assistant was my son, Zachary Schwager. It was Zachary who made me aware of Balodimas and his incredible trading skill.
Zachary was amazed at how Balodimas could be short a rising market and still generate profits—more profits, in fact, than many other traders in
the firm on the right side of the market. Describing his boss, Zachary said, “Jimmy has zero fear. If he ever has a small position, it is either because
he was right on the trade right away or because the market has not yet moved against him. He has the same even emotional response whether he
is up or down for the day.”
I caught Balodimas on a very good day for him—a day he had just made back more than his entire loss for the month-to-date. But had I not known
he was short, I would never have guessed it from his laid-back demeanor. There was no sign of the excitement or euphoria many traders would
have expressed after such a rapid favorable reversal in the markets. I am sure if I had come one trading day earlier when his equity was setting a
new low for the month, Balodimas would have been equally even-keeled.
I had arrived about 25 minutes before the close, expecting to silently observe Balodimas from the sidelines. In my e-mail to him the previous day,
I indicated I might arrive a bit before the close, but that, of course, I would not expect to begin the interview until after the close. I was aware that
Balodimas was an active trader, and I did not want to get in the way. Immediately after I arrived, Balodimas began talking—the interview had begun
before I realized it had. Balodimas made no further trades while I was there. I had assumed this absence of activity was because Balodimas had
already placed all his intended trades for the day. Zachary, however, later informed that Balodimas had stopped trading simply because I was
there. Not surprisingly, given the market’s largest daily decline in many months, it had been an active day. “We placed about 500 trades before you
came,” Zachary said, “and if you were not there, we probably would have done a lot more. That’s just the way Jimmy is. If people are there, he will
pay attention to them and not the market.” Chalk up another one for rules broken.
I interviewed Balodimas at his trading desk with his six trading screens, a sea of red quotes, as a backdrop. I found the room uncomfortably
warm, but Balodimas was dressed in a heavy sweater.
In trading, you have to be defensive and aggressive at the same time
- #387,412
- Jul 15, 2014 6:05pm Jul 15, 2014 6:05pm
- Joined Feb 2012 | Status: Trader | 21,377 Posts
In trading, you have to be defensive and aggressive at the same time
- #387,414
- Jul 15, 2014 6:09pm Jul 15, 2014 6:09pm
- Joined Feb 2012 | Status: Trader | 21,377 Posts
I feel Davit talks about incremental position building which is not exactly the same as adding to a losing trade with blind hope of price action magically turning around. In the former one expects that entry is not going to be perfect and price may well go deeper into S&R zone before reversing. Capital is managed accordingly.
Nicely put and when you add BB 2nd -3rd deviations and RSI 80/30 your chance of success is pretty good.regards
In trading, you have to be defensive and aggressive at the same time
- #387,415
- Jul 15, 2014 6:12pm Jul 15, 2014 6:12pm
- Joined Oct 2008 | Status: CANCELLED MEMBERSHIP | 3,116 Posts
{quote} Hi HDA Good to see you post.I get the argument a lot about adding to losing position.Its important to see the painting in its entirety instead of being so close that one only sees a small detail.Yes agree TF is important.I am swing trader and I don't close trades until I hit my TP or take the loss. from Hedge Fund Wizards Not saying emulate Balodimas but here is unorthodox trader making millions doing exactly that adding to losing positions and cutting winners short... Stepping in Front of Freight Trains Jimmy Balodimas...
I know the story all too well.
As one matures more into trading, one learns that the holy grail to trading is "find what works for you."
Find that niche, claim it and trade it.
Never take anything said in these forums personal, just trade your plan, make your profit, make your loss, learn from the mistakes and move on.
Losses are inevitable, managing them is what keeps you in the business.
You wont get any argument from me. I know your style of trading all too well.
You were the one that introduced me to GBP/CAD and I've never looked back.
Thank You
HDA OUT
- #387,416
- Jul 15, 2014 6:18pm Jul 15, 2014 6:18pm
- Joined Mar 2008 | Status: Taking Care Of Business | 5,587 Posts
{quote} @Davit: The answer is, they are day traders. Your argument is sound, it makes perfect sense, there are many, many, many, many, many, many, different approaches and styles of trading to making a profit in this market. Continue to trade your plan. At the end of the day, its "YOUR MONEY, YOUR TRADE, YOUR PROFIT, YOUR LOSS"
Hear the music before the song is over ...
- #387,417
- Jul 15, 2014 6:20pm Jul 15, 2014 6:20pm
- Joined Feb 2012 | Status: Trader | 21,377 Posts
{quote} @Davit: I know the story all too well. As one matures more into trading, one learns that the holy grail to trading is "find what works for you." Find that niche, claim it and trade it. Never take anything said in these forums personal, just trade your plan, make your profit, make your loss, learn from the mistakes and move on. Losses are inevitable, managing them is what keeps you in the business. You wont get any argument from me. I know your style of trading all too well. You were the one that introduced me to GBP/CAD and I've never looked...
In trading, you have to be defensive and aggressive at the same time
- #387,418
- Jul 15, 2014 6:22pm Jul 15, 2014 6:22pm
- Joined Dec 2013 | Status: Trader | 19,815 Posts
{quote} @Davit: I know the story all too well. As one matures more into trading, one learns that the holy grail to trading is "find what works for you." Find that niche, claim it and trade it. Never take anything said in these forums personal, just trade your plan, make your profit, make your loss, learn from the mistakes and move on. Losses are inevitable, managing them is what keeps you in the business. You wont get any argument from me. I know your style of trading all too well. You were the one that introduced me to GBP/CAD and I've never looked...
- #387,419
- Jul 15, 2014 6:22pm Jul 15, 2014 6:22pm
- Joined Mar 2009 | Status: Trader | 25,480 Posts
{quote} Hi Jimmy Since we don't know exact behavior of the market averaging in gives wider net to catch price on either direction.Often your 1st 2nd orders are too early...but by going in slowly you average at around good price level. I just don't understand why concept of DD frightens most.I am so comfortable with DD that its natural to me to be in red before green. In fact I had 3 shorts from 7165 7150 7130 all in profit at 7070 but failed to take profit because I was in Plane flying from LA ... Then went all red then back again to 2green 1 minor...
.... A broader view is all we do.
Ghost Rider - WWTBMD?