Bcrafty, this thread is crowded with people who have more knowledge and experience than I, so I would like to avoid sounding misleadingly like I know more than I do… -g
What I described fits my personality, temperament, and real life constraints. Yes, I like to take out extreme ticks. My discipline is in getting out if I’m wrong, and increasing the position if I’m right. I’ll sell a resistance area in a few partial entries, and if wrong, will get out, also in a few steps. My 'edge' is in keeping risk / reward in my favor, as well as trying to be more often right than wrong in determining the patterns and the S&R’s correctly.
To me it is more important to be consistently profitable over time than to make big bucks pronto. This way I learn a new profession, which I may take up some day full time – or maybe not… but I’ll have the option.
Position sizing is essential with this approach. Right now, for example, I think the odds are that the top of the rally is in. Having said that, if the market will decide to extend the rally, it will. I am not going to back up the truck, but rather try and trade around S&R’s, hoping to find myself on the correct side with a good part of what I have – when the move does arrive... Plunging doesn’t work over time. If it didn’t work for Jessie, why should it work for a schmuck like me… g/ng.
(BTW, my wife trades, and her thinking is much like yours. Took us a few years to get used to it ;).
Cheers!
Ol’Ski, right now going back to work… |
