sfsamperi.blogspot.com

You have to survive

You have to survive
Every day is a battle, survival is rule #1

Saturday, August 9, 2014

Sticking to my plan using real money

I must follow what I have been doing because overall it works very well for me.  Over the summer i found several mistakes that I had made but almost every mistake would have been avoided if i had just followed my plan.  I get distracted easily and I have a vivid imagination.  Even if something has been wonderful lately I can easily consider changing almost everything because I am very interested in anything related to trading.

I must follow my plan every morning and change nothing.

small uptrend going into open = buy at support
small downtrend....................= sell at resistance

trend = squiggly movement, usually a near perfect channel shape, has peaks and troughs

enter at or near market open 8:30 am central time.

exit after a close past 2 point stop loss or trailing stop
trailing stop = new recent trough (when buying) or new recent peak (when selling)

Because of my exit strategy where I want to keep losses small but let my gains get big, if I only had a 50% chance of being correct on market direction that would be fine.  By choosing my direction based on a small trend leading into the open i believe that I can get a little better than 50% on direction, maybe more like 65% ....hard to tell so far.  I just know that all summer after trading in real time on most days or looking back to see what I would have done and the result, there would be a mixture of losses, gains, a break-even trade and a couple of missed gains.  My gains were at least 50% of my trades and there is a significant profit, all based on trading 1 S&P 500 emini contract, 1 trade per day.  I would have had a net gain of about $1400 for the month of July alone.

I will probably trade with real money soon but nothing will change.  I am just hoping that my first few trades are good so I do not need to worry about adding more to cover the margin requirement.

No comments:

Post a Comment