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标签 MS量化推荐 MS量化交易 支撑阻力位 概率
Posted in: Trading Process and Strategy | April 21, 2017 at 4:01 pm , by Lance BeggsThis was an interesting sequence of trades – three which I got completely wrong, followed by one which I finally got
2018-03-18 23:37:04.0| 热度(0)| 点赞(0)| 评论(0)

Posted in: Trading Process and Strategy | April 21, 2017 at 4:01 pm , by Lance Beggs

This was an interesting sequence of trades – three which I got completely wrong, followed by one which I finally got right.

The key takeaways:

You won’t always get it right. Sometimes your timing is out. Other times, like in this sequence, your assessment of bias is just wrong.Good entry location and good active trade management can ensure that even when you get it wrong, you still don’t lose much. Or, as in this sequence, you don’t lose anything.One right trade can more than make up for numerous wrong trades.Profits come from a series of trades. Not from individual trades. In this business, individual trade results are irrelevant (assuming they do not break your money and risk management limits).

Note importantly on the Trading Timeframe that the entry was very much near the low. There was absolutely NO waiting for confirmation of price moving higher. Instead, entry was taken when price showed it could not move lower.

Note also how active trade management allowed the trade to profit, with half taken off at the first target area and the remainder scratched for a smaller loss once it was clear this trade was wrong.

Good decision making with regards to entry and trade management ensured that I did not lose here, despite being wrong about the direction of the market.

Again…

Note importantly on the Trading Timeframe that the entry was very much near the low. There was absolutely NO waiting for confirmation of price moving higher. Instead, entry was taken when price showed it could not move lower.

Note also how active trade management allowed the trade to profit, with some risk taken off when I wasn’t happy with the post-entry stall. This turned out premature, but it’s a good decision. Price should have moved quicker. Of the remainder of the position, half is taken off at the next stall area and the remainder scratched for a smaller loss once it was clear this trade was wrong.

Good decision making with regards to entry and trade management ensured that I did not lose here, despite being wrong about the direction of the market.

Yes, the temptation to not show bad trading is GREAT. But sometimes there are good lessons.

Once more for effect…

Note importantly on the Trading Timeframe that the entry was very much near the low. There was absolutely NO waiting for confirmation of price moving higher. Instead, entry was taken when price showed it could not move lower.

Note also how active trade management allowed the trade to profit, with some risk taken off early (in the area of the prior pullback lows) and the remainder scratched for a smaller loss once it was clear this trade was wrong.

Good decision making with regards to entry and trade management ensured that I did not lose here, despite being wrong about the direction of the market.

Repeating the key takeaways:

You won’t always get it right. Sometimes your timing is out. Other times, like in this sequence, your assessment of bias is just wrong.Good entry location and good active trade management can ensure that even when you get it wrong, you still don’t lose much. Or, as in this sequence, you don’t lose anything.One right trade can more than make up for numerous wrong trades.Profits come from a series of trades. Not from individual trades. In this business, individual trade results are irrelevant (assuming they do not break your money and risk management limits).

Happy trading,

Lance Beggs

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